The push to audit S corporations (described above) is part of a larger IRS initiative to examine more returns, particularly of small business owners. Don’t think you’re immune just because you’ve been able to fly under the radar so far.
For busy businesspeople, cell phones, laptops, PDAs and other portable devices are essential. Usually, the company buys such devices and gives them to higher-ups and other employees who need them.
Normally, you must depreciate the cost of business or commercial real estate over 39 years. In comparison, you can depreciate residential rental property much faster over 27.5 years.
Unless you’re a CPA or a tax nerd, the term MACRS can be daunting. It stands for Modified Accelerated Cost Recovery System, which is the standard federal-income tax method for depreciating the cost of your business assets.
New proposed IRS regulations give the green light to using electronic means to send benefit plan information to employees and beneficiaries that is otherwise required in writing.
The IRS plans to give you even more time to complete your 2005 individual Form 1040 next year.
Do you need extra cash to pay for your child’s (or your own) college tuition? When you’ve exhausted other conventional sources, you can turn to your IRA in a pinch, even if you’re younger than the age generally required for penalty-free distributions.
Pity the late Albert Strangi. He tried to save his family from estate taxes by transferring the bulk of his assets into a family limited partnership (FLP). But the IRS stepped in and nixed the tax benefits.
It’s not very often that the IRS lets you pull down tax-free income. So, take advantage of such opportunities when they pop up.