By month: July 2021
It’s easy to make a mistake on your tax return. The tax law is complicated and always changing. If you did make an error, it’s not the end of the world. The tax law gives you two ways to undo your mistake at little to no cost to you. We’ll go over the two ways and how you can use them to your best advantage.
What happens if the IRS makes a mistake in its publication or instructions? Is this your problem? How would you know if the IRS made a mistake? This article explains a mistake on the gross-income limit in the IRS home-office publication. Make sure this mistake is not costing you money.
If you are suffering or about to suffer an IRS audit, you should know how your tax positions stack up against the IRS examiners’ positions. In most cases, you are discussing the facts, not the law, and you prove your facts with receipts, canceled checks, and logbooks. Once you get into the law, however, you need to know the rules that trump other rules. This article explains how you use the tax law, rulings, and other IRS documents to prove the legal side of your case in an audit. And this article helps you understand what the courts are looking for, should your case advance beyond the IRS audit to the courts.
The thought of an IRS audit is a worry—no question about it. But it’s worse when the IRS wants a lot of your money. And it’s even worse yet when the IRS wants your money because it interprets the law incorrectly and, at the time you see the IRS adjustment, you have no idea whether the IRS is right or wrong.
Do you claim a home-office deduction? Do you have a garage (attached or detached) at your home? If so, you need to spend a few minutes with this article. You will learn when to include and exclude the garage when calculating your home-office space.
If you took the coronavirus-related IRA distribution of up to $100,000 during 2020, here are your options for avoiding taxes on that money.
To get a tax deduction for your yacht, use it for business travel and avoid the entertainment facility rules. If you run afoul of the entertainment facility rules, you have one small hope. To maximize your deductions, you want more than 50 percent business use and knowledge of the luxury water transportation tax deduction limits.
Inside this article, you’ll find the 14 tax reduction strategies for the self-employed that we identified for you last month. But here you find more—links to the articles so that you have the nuts and bolts of implementing the strategies.
If you travel out of town overnight on business, you need knowledge of the tax rules that allow and disallow such travel. This article clarifies the days that tax law deems to be business and the days that tax law deems to be personal.