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How to Reap the Tax Perks of Business-Owned Life Insurance

Many businesses maintain life insurance policies on their owners or employees for estate planning, buyouts, and various other business purposes. To receive the maximum tax benefits from business-owned life insurance, though, you need to understand the IRS rules and requirements. Basic Rules Business-owned life insurance generally refers to a life insurance policy that 1) is

Is Holding Real Property in a Corporation a Good Idea or a Bad Idea?

Real estate can be an attractive long-term business investment. For tax reasons, you’re generally well-advised¬†not to hold real property in a corporation. Here’s why limited liability companies (LLCs) and revocable trusts are usually better alternatives. Double Taxation Threat Holding depreciable real property or land in a C corporation is generally a bad idea from a

Let’s Be Reasonable about Owners’ Compensation

Is it possible to have too much of a good thing? The IRS thinks so, at least in the context of compensation paid to business owners. If an owner’s compensation is deemed excessive, the IRS may dispute deductions for wages that are unreasonable under the circumstances. A recent U.S. Tax Court case shows that “reasonable

Is Self-Employment Right for You?

For some time now, the media has highlighted the so-called “Great Resignation,” where legions of people have left their former jobs. If you’re among those who’ve resigned or you’re thinking about quitting, you may be considering a shift to self-employment. Before making the leap, though, you need to consider several factors that could be pros