Mind Your Business, June 2019

Small Business Are My Favorite Clients!

I welcome Brother Junipers and DataMart, Inc. as new clients!

Your One Stop Professional.

As a former in-house counsel, Superlawyer in taxation and Accredited Estate Planner, I may be able to answer questions formerly answered by three or more professionals! In addition to tax and estate questions, I can help you with important contracts like leases, licensing agreements, business succession agreements and more. What happens if an owner dies or is terminated?

As your business grows, do you feel that you are paying more than your fair share of taxes? Is your accountant too busy or not specialized enough to answer your questions? As an entrepreneur, don’t you want to understand your taxes better? I am happy to work with your accountant so you get the best deal.

Remember that tax attorneys like me are generally regarded as “the ultimate tax experts.” I can tell you more and save you money. For example, did you know that charitable contributions can be taken as business deductions in some cases and as such, they can save you more taxes? Why? Because business expenses can lower your self-employment tax. How? You must prove that they help your business and are reasonable in amount. As a lawyer let me discuss a recent Tax Court case.

It is even better is to take deductions eliminated by Tax Reform as business deductions, like Miscellaneous deductions.

Beat the $10,000 real estate and sales tax limit: I had a client this year whose real estate and sales taxes exceed the $10,000 limit. However we were able to claim a home office in her business, so we deducted a portion of real estate taxes as a home office deduction, as well as mortgage interest, insurance, and utilities. An added bonus is that these deductions reduced her self-employment tax.

Beat the HELOC rules. Home equity credit line interest is normally not deductible. However, it is deductible if you use it to (i) improve your home, buy business assets or buy rental assets.

Power up Your Charitable expenditures. Under recent Tax Court cases, Charitable expenditures that are reasonably expected to help your business may be deductible as business expenses. If you are promoting your business with charitable events, let’s discuss.

Employee (Miscellaneous Deductions) were eliminated by Tax Reform, but often these types of deductions also help your self-employed business or rental business, so you can move these deductions to Schedule C or E and do even better. Examples include cell phones, internet costs and more.

Lower the cost of sales. Under Tax Reform, employees are no longer able to deduct their cost of selling, like automobile use, cell phones and more. On the other hand, employers who reimburse these expenses can deduct them. By making some adjustments in pay and reimbursements you can reduce your cost of sales for both parties.

Call me for a free ½ hour consultation and put the tax savings in your pocket.

About Wis Laughlin

I help clients with tax preparation and IRS representation, estate planning, and complex contracts, including LLC's. As a former IRS tax attorney in their National Office. Law.com picked Wis in 2017 and several prior years as one of the Top Tax and Estate Lawyers in Tennessee. I am your advocate, not your accountant. I don't tell you what you can't do. I show you how to do it.
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