By month: July 2010

Tax Tips for Charitable Deductions as Business Expenses

The critical point for making payments to charities and churches deductible business expenses is your reasonable expectation of financial return.

Tax Tip for Business Car When Incorporated

Here are your only two tax-saving choices when you operate your business as a corporation but personally own the car you use for business.

Tax Tips for Section 179 Expensing of a Motor Home

This subscriber is going to buy a motor home and use it during the first year for travel to and from conventions. In the second year, he is going to convert that motor home to a transient rental property. His plan meets the qualifications for Section 179 expensing and avoids recapture.

Did S Corporation Low Salary to CPA Owner Doom Tax Strategy?

The CPA in this court case operated as an S corporation with a low salary. The low salary got the IRS’s attention. To salvage bigger things, the CPA had to take the IRS to court

Reimburse Corporate Owner-Employee for Depreciation

If you operate your business as a corporation but own the business car personally, your best result comes about when you have your corporation use an accountable plan to reimburse you for actual expenses, including depreciation and Section 179 expensing.

Tax Audit Tips on Hiring Your Child

When the IRS invites you for a tax audit, the examiner does not know that you hired your children. This fact surfaces during the initial interview or survey process, and the IRS instructs its examiners to examine this hire closely. You avoid all the problems when you have the right records.

Tax Tips for S Corporation Employing Owner’s Mom

When your S corporation employs a relative, you need to be aware of the stock attribution rules that can wreak havoc on the health insurance fringe benefit.

Tax Audit Tip When You Fail to Seek Expense Reimbursement

When you fail to seek reimbursement for an expense, you often have no write-off. However, there are exceptions to this general rule, as examined in this tax audit tip

Tax Tips for the Real Estate Investor/Dealer

Tax law allows an individual to be a real estate dealer with respect to his dealer properties and a real estate investor with respect to his investor properties.

Tax Tips That Unearth Section 179 Deductions in Lodging Properties

Your lodging property may qualify for one or more of four exceptions that allow Section 179 expensing. The four exceptions override the basic rule that you may not claim Section 179 expensing on property used primarily for lodging or in connection with the furnishing of lodging

Tax-Saving Tips for Married Taxpayers Claiming Section 179 Deductions

If you are married, you need to consider your spouse’s W-2 and other income sources in your Section 179 expensing eligibility. The inclusion of your spouse often enhances the amount you can deduct using Section 179 expensing.


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