[…] For bookkeeping purposes, the entire $1,000 has been spent the moment you signed the paperwork. What you have now is simply a loan from BestBuy. It’s between you and BestBuy, and the IRS can’t care less […]
[…] Occasionally (hopefully), your business account will be short. A common mistake is to then pay out of personal account. Don’t! Instead, make it two steps: transfer money from personal account […]
[…] It gets worse. My first example was a make-ready between tenants. What if this painting job was done on a flip house you’re preparing to sell? Well, your extra tax on the forgotten $1,000 labor could easily be $400 […]
[…] Depends on who you hire, as you will see from the recent IRS announcements. The list includes both one-person businesses and large franchise operations. Also, this Hall of Shame includes a tax attorney, a CPA, and even an EA. […]
[…] Now, who would walk away from this juicy deal, may I ask? Answer: anybody with a basic understanding of IRS taxes. Here is the deadly trap I was referring to: the IRS will tax Andrew on his entire… […]
[…] for the property that you own (cars, real estate, investments) you should keep everything until 3 years after you sell it. If you bought some stock back in 1995, and you sold it in 2013 – hold on to your 1995 purchase documents until […]
[…] Now the newly enlightened artist had $30,000 of so-called business expenses (including, you guessed it, a Disneyland vacation, err, business trip) and a huge tax refund. This money came handy and was promptly spent. Shortly after, she also had […]
[…] One missed payment will never be a reason to freeze your bank account. Also, before freezing your money, they should have sent you multiple warnings by mail, the last one by certified mail. Did you recently move and not receiving your mail, by chance? […]
[…] With a business like yours, the start date is somewhat subjective. It could be the date when you received your first order. It could be the date when you first advertised your business […]
[…] I can see 3 scenarios where this tax can affect real estate investors with high overall income. Interest from owner-financed properties, especially with wraps. In a wrap situation, you will not be able to offset the interest you receive from the outside loan […]
