Author Archive
Business Tax Deductions: How to Drive the IRS Crazy
Looking for an easy way to increase your business deductions? Look no further than your driveway.
First, the general rule: your vehicle is deductible to the extent you use it for business. So, if you drive your car 100% for business, all car-related expenses are deductible.
But if you use it less than 100% for business, […]
Business Tax Deductions: How to Deduct Expenses Without Keeping Receipts
No receipt, no deduction, right? Generally speaking, yes. The mantra of small business bookkeeping has been relentlessly burdensome for decades: no receipt, no deduction.
My own tax clients are quick to remind me of this basic recordkeeping rule. Over the years I’ve heard this countless times: But I don’t have any receipts. I […]
Small Business Taxes: How to Eliminate All Fear of an IRS Audit
A few months ago, one of my clients (let’s call him Mr. Jones) got one of those IRS “love letters” requesting more information about his return, and the IRS wanted to meet with Mr. Jones in person to discuss the situation.
Mr. Jones (a small business owner) was required to show up at the local IRS […]
Tax Reduction Strategies: How to Turn Taxable Income Into Tax-Free Income
Believe it or not, there are ways to convert taxable income into non-taxable income, without any fear of an IRS audit. Here’s one of my favorites. It’s been part of our tax code for over 30 years, yet many still don’t take advantage of it.
What am I talking about? The IRA — Individual Retirement Account.
Now, […]
Small Business Taxes: How to Contact the IRS Without Breaking Into a Sweat
We all love to criticize the IRS, don’t we? It’s easy to ridicule a huge organization of government bureaucrats who often seem to be Public Enemy #1.
Our negative attitude toward the IRS can lead to a strong desire to just ignore it altogether. But self-employed people who ignore the IRS do so at their own […]
Filing Tax Returns: Will You Make the 42 Cent Mistake This Tax Season?
When it comes to filing your tax return, spending 42 cents could be the biggest mistake you ever make.
Millions of taxpayers make the mistake of putting their income tax return in a regular letter-sized envelope, sticking on a 42 cent stamp, and placing the envelope in the mailbox.
And millions of taxpayers “get away” with this […]
Business Tax Deductions: Is It Really Necessary To Keep Receipts?
I regularly receive email from sincere folks who ask questions like this: “Is it true? If I don’t have good records, will I really pay more tax than I could/would/should have?”
Or how about this one: “If I don’t have receipts, does it really matter? If I get audited, will the IRS nail me for not […]
Small Business Taxes: What is The #1 Reason You Pay Too Much Tax?
What is the Number One reason you pay too much tax? Let’s brainstorm. We all pay too much tax because:
1) Our elected politicians created the complicated and convoluted monster known as the U.S. Tax Code, and this monster takes our money away.
2) Public Enemy #1 (The IRS) takes our money away.
3) Tax preparers […]
Small Business Tax Tips: Why You Might Need To File Two Tax Returns This Tax Season
Does just the thought of preparing your income tax return this year make your blood boil? And when you’re done, do you break out the champagne and celebrate like it’s New Year’s Eve? (Or just reach for the Tylenol?)
Well, guess what? I’m going to suggest that you inflict yourself with that same punishment […]
Small Business Tax Tips — Where to Find Free Tax Information
Trying to get a handle on the complex world of small business taxes? There are plenty of good resources available, both online and offline, for free and not-so-free.
I’m assuming you want to postpone spending any money on a topic you may prefer not to touch with a ten-foot pole let alone a ten-dollar bill. […]
