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December 1, 2019

If you operate your business as a sole proprietorship, there are many strategies to reduce your taxes.

Let’s start with the following 10:

1. Use the Section 105 plan to make your health insurance a tax-favored business deduction on your Schedule C.

2. Employ your under-age-18 child to make taxable income disappear.

3. Employ your spouse without paying him or her a W-2 wage.

4. Rent your office, even your home office...

November 9, 2019

The recent tax reform eliminated personal exemptions for taxable years after December 31, 2017, and before January 1, 2026. This makes your child worthless to you on your Form 1040.

But there is a way to get even or, perhaps, much more than even.

Let’s set the stage first. For taxable years after December 31, 2017, and before January 1, 2026, the standard deduction for a single taxpayer begins at $12,000 in 2018...

October 16, 2019

You may or may not be thinking of converting your personal home to a rental property, but if you are, please discuss this with me before you take action.

You likely have some planning opportunities available on this conversion of your home to a rental that can improve the rental profits.

One possible strategy is to create an S corporation and then sell your home to the S corporation, which would then operate as t...

September 7, 2019

Do you claim your business miles at the IRS optional rate?

If so, imagine you are now being audited by the IRS for your business mileage. The IRS has requested odometer readings for your vehicle. You might wonder if the IRS can do this.

The answer is yes. The tax code says that you must substantiate your business vehicle deductions by adequate records or by sufficient evidence corroborating your own statement, in...

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