2023 Last-Minute Medical Plan Strategies
All small-business owners with one to 49 employees should have a medical plan for their business. Sure, it’s true that with 49 or fewer employees, the tax law does not require you to have a plan, but you should. When you have 49 or fewer employees, most medical plan tax rules are straightforward. Here are […]
2023 Last-Minute Vehicle Purchases for Big Tax Savings
Here’s an easy question: Do you need more 2023 tax deductions? If the answer is yes, continue reading. Next easy question: Do you need a replacement business vehicle? If so, you can simultaneously solve or mitigate the first problem (needing more deductions) and the second problem (needing a replacement vehicle) if you can get your […]
2023 Last-Minute Tax Strategies for Your Stock Portfolio
When you take advantage of the tax code’s offset game, your stock market portfolio can represent a little gold mine of opportunities to reduce your 2023 income taxes. The tax code contains the basic rules for this game, and once you know the rules, you can apply the correct strategies. To avoid higher rates, here […]
2023 Last-Minute Tax Deductions for Existing Vehicles
Wow, how time flies! Yes, December 31 is just around the corner. That’s your last day to find tax deductions available from your existing business and personal (yes, personal) vehicles that you can use to cut your 2023 taxes. But don’t wait. Get on this now! 1. Take Back Your Child’s or Spouse’s Car and […]
2023 Last-Minute Retirement Deductions
The clock continues to tick. Your retirement is one year closer. You have time before December 31 to take steps that will help you fund the retirement you desire. Here are five things to consider for 2023 last-minute retirement deductions. 1. Establish Your 2023 Retirement Plan First, a question: Do you have your (or your […]
2023 Last-Minute General Business Income Tax Deductions
Here are six powerful business 2023 last-minute deduction strategies you can easily understand and implement before the end of the year. 1. Prepay Expenses Using the IRS Safe Harbor You just have to thank the IRS for its tax-deduction safe harbors. IRS regulations contain a safe-harbor rule that allows cash-basis taxpayers to prepay and deduct […]
Switch from the Milage-Rate to the Actual-Expense Method
Is the mileage rate sticking it to you? Could you increase your tax deductions by switching from the IRS mileage rate to the actual-expense method? If so, you will be happy to learn you can make that switch. When you choose the mileage rate, you elect out of the actual-expense method and also elect out […]
Ways Rental Property Owners Can Avoid the Net Investment Income Tax
The federal income tax tables do not give you your “true” tax rates. Here’s one example: the net investment income tax (NIIT). It’s a hefty 3.8 percent on top of what you pay according to the table rates. If you own rental property, you’re one of the NIIT’s prime targets. You pay the NIIT only […]
You May Need to Pay These Taxes if You Want to Leave the U.S.
When you leave the U.S. to live in another country, you essentially have two choices from a tax perspective, both of which can cost you a pretty penny. First, you can simply leave the country and take up residence elsewhere. But if you choose this option, beware: the U.S. continues to tax you on your […]
How to Determine if You Should Convert Your Personal Vehicle to Business Use
If you can convert a personal vehicle to business use, you likely can increase your tax benefits—and do that without spending any money or driving another business mile. Here’s an example: Once Mel and Sharpe, his wife, started using both cars, they had 73.7 percent business use of each car. Before their agreement to switch […]