Home Office Deduction for Multiple Businesses
The office-in-the-home deduction produces good-to-excellent cash benefits when it eliminates commuting mileage. That’s the result you achieve when you claim an administrative office in your home. To qualify for the home-office deduction, you must use the office exclusively for the business or businesses for which you are claiming the deduction. Your ability to qualify for the office-in-the-home deduction is straightforward [...]
How the Metropolitan Area Rule Affects Business Mileage Deductions
The IRS has ruled that you “may deduct daily transportation expenses incurred in going between your residence and a temporary work location outside the metropolitan area where you live and normally work.” In this favorable ruling, you find two possible impediments: Temporary work location Metropolitan area Temporary Work Location The “temporary work location” is a location where you realistically expect [...]
IRS Audits on Entertainment Deduction
Here’s a true tax story that you will find interesting. John Henry is engaged in an IRS audit, and he has a big problem with his entertainment deductions. John’s first visit with the IRS was unsatisfactory. He did not have any proof of his entertainment costs. The auditor allowed him to return for a second visit, at which point he [...]
Expense Your Business Costs Using the Safe Harbor Method
For 2018, you can elect the de minimis safe harbor to expense assets costing $2,500 or less ($5,000 with audited financial statements or something similar). The term “safe harbor” means that the IRS will accept your expensing of the qualified assets if you properly abide by the rules of the safe harbor. Here are four benefits of this safe harbor: [...]
S Corporation and Health Insurance
You and your S corporation continue to enjoy good news in 2018 when it comes to your health insurance. And that good news also applies to your 2017 taxes. You first have to thank the 21st Century Cures Act for: Reinstating and extending IRS Notice 2015-17 to eliminate the $100-a-day penalty through December 31, 2016—and this gives new life for [...]
The 10% Solution: Painless Retirement Savings for All
Many people insist they simply can’t save for retirement. They say that by the time they receive their paycheck, the money has already been spent – on housing, utilities, car payments, groceries, clothing, etc. However, saving for your golden years is absolutely critical – and even people with small incomes do it. It takes some discipline, but not as much [...]