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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...

August 4, 2019

Premiums for Medicare health insurance can add up to a substantial sum. That’s especially true if

  • you have high income, and

  • you’re married and both you and your spouse are paying premiums.

Fortunately, the premiums can potentially help your tax situation. The dollar benefit of Medicare tax deductions depends greatly on where you can deduct the premiums:

  • The business deduction produces the maximum t...

July 23, 2019

Here’s a true story from the IRS.

To put the story in context, I am putting you in the driver’s seat.

You Buy a Vehicle

You buy a new vehicle from your local dealership with zero percent financing. You complete all the paperwork, including the purchase order and vehicle registration, and leave the dealership owning the vehicle.

Dealer Oops

The next day, the dealership calls you and says there’s been a mistake: you a...

June 27, 2019

You’ll find much beauty and little beast in using a single-member LLC for your real estate ownership.

Should you use a single-member LLC as a real estate ownership vehicle?

That might be a very good idea.

Under the so-called check-the-box regulations put out years ago by the IRS, you can generally ignore the existence of a single-member LLC for federal tax purposes.

The exceptions are

  1. when you elect to treat a s...

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