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There are many perks to being a business owner, like being you own boss, making your own schedule, putting a higher dollar value on your time, and pride of ownership. Another great reason, you want to own a business because you can qualify for higher credit card limits and these credit cards do not affect your personal credit once you’re approved and if you’re set up as a C-corporation.

However, one the biggest most benefits are the business tax write-offs.  Business ownership does have a price, especially when you’re using the banks money to help fund the business.  The good news is that business bank fees can be tax deductible and we give you a few examples here:

Annual Fees

Annual fees on a business card are tax deductible. This may be a great way to justify getting that card with the steep annual fee that also has amazing rewards. Yes, you can write it off, but keep in mind that the primary use of the card needs to be for business purposes and not for personal use.

Late Fees

Hopefully you’re not incurring late fees on your credit cards, but mistakes happen and you sometimes forget to make a payment. Those fees can be written off for your business taxes. Of course, it’s always best to call the company and explain you simply forgot and ask if they can waive the fee this time; saving $35 is almost always going to be better than claiming a $35 tax deduction.

Interest Charges

Again, in an ideal world you won’t be paying interest on any of your purchases. But there are times when you need equipment, and there just isn’t enough cash in the bank to pay for it right away. Those interest charges are all tax deductible.

Swipe Fees (point of sales fees)

As a business owner, you pay the credit card company every time someone uses their card to pay you. These are always business-related expenses and fully tax deductible.

Miscellaneous Fees

There are sometimes other fees associated with using a credit card. For instance, your cash advance fees are deductible.  

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http://GoodCreditUnion.com Houston over at http://BusinessCreditAmerica.com had Good Credit Union to remove a Bankruptcy from Experian in less than 10 days. They also removed 2 inquiries off of Experian. Houston's fico score jump from 714 to 738 experian, 701 to 713 equifax, and transunion score increased from 743 to 765.

Check out http://GoodCreditUnion.com get your credit cleaned in less than 30 days.
100% MONEY BACK GUARANTEED

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http://GoodCreditUnion.com Houston over at http://BusinessCreditAmerica.com had Good Credit Union to remove a Bankruptcy from Experian in less than 10 days.  They also removed 2 inquiries off of Experian.  Houston's fico score jump from 714 to 738 experian, 701 to 713 equifax, and transunion score increased from 743 to 765.

Check out http://GoodCreditUnion.com get your credit cleaned in less than 30 days.  
100% MONEY BACK GUARANTEED.

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I believe that effective outsourced accounting, taxation, financial management and consulting is more than a service, it is a relationship. We build that relationship with each client by learning about his or her business process and culture. Then we design a service package that meets the unique needs of the business. If the client has an in-house accounting staff, our team can supplement and support their work. If needed, we can become the in-house accounting department.

 

Shirika Gomillion

Accountant & Tax Advisor

http://www.saccountingsolutions.com

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10744061866?profile=originalOver the years, I have had the privilege of consulting many first time business owners. One of the most common concerns that comes up is the fear of owing taxes on the money they earn. So many cash based business owners avoid taxes altogether. If you're considering ignoring taxes this year, here are five reasons to file a return for your business.

 

1. Retirement Savings

In order to save for retirement you must know how much money you're making in business. This not only requires good money management but tax strategies, as well. A component of funding your retirement includes credits to your social security account. When you're self-employed, the payments that you make for Self-Employment tax are reported when you file your tax return. No return, no credit.

2. Business Opportunities

There are instances where tax returns are a requirement to business growth. If you are considering applying for certain business certifications, loans, or grants, for example, you will need proof of running a legitimate company. Certifications can open doors of opportunity to larger contracts and more income. However, one requirement of most applications is a filed income tax return.

3. Refundable Credits

A common tax myth that business owners have involves reporting zero income or net losses. However, you may be surprised at the tax benefits even when there is little or no profit to report. The Earned Income Credit, for example, is a refundable credit that can put between $457 to $5,666 in your pocket. If you qualify, the refund is extra money that you can use to grow your business or take a much-needed vacation. The choice is up to you.

4. Easy to Do

There are many options that make it convenient to file a tax return. Some choices include Do-It-Yourself tax software, electronic filing, and paid tax preparers who will prepare the return for you. Each of these are designed to take you through the process with ease.

5. Your Responsibility

Aside from the benefits above, another important reason to file is tax compliance. As a person earning taxable income you are responsible for filing a timely income tax return each year. Failure to do so can lead to late filing fines, penalties, and possible time in prison.

Now that you know why you should file, visit http://www.tbsusa.com and download my free audio to learn how to slash taxes and keep more of the money you make in business.

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Financial Tips for December 2010

Make Charitable Contributions
Consider making charitable contributions before year-end both to obtain the maximum tax deduction and to fulfill any charitable programs or commitments you may have established.

Buy a New Car
If you need a new car, now is a great time to purchase or lease. Frequently, dealers are anxious to clear out last year's inventory prior to year-end. In making your choice, consider the federal tax (and occasional state tax) advantages for buying fuel-efficient vehicles.

Examine Investments
Examine your current investments to determine those with unrealized losses. Consider selling those investments to take the loss this year. You can deduct up to $3,000 in capital losses in excess of capital gains. However, do not let the tax savings outweigh the investment potential. You might consider "swapping" for a similar company in the same industry if you like the potential of the industry.

Pay Tax-Deductible Expenses
Consider paying tax-deductible expenses prior to year-end. Some common examples are real estate taxes, quarterly state or local income taxes, investment-related expenses, and dues. These must be paid by December 31 to obtain a deduction this year. Professional guidance will be helpful here, so please call us.

Evaluate Your Progress
Evaluate your progress for the year. How close were you to your budget? Recalculate your net worth. Compare it to the value at the beginning of the year. How did you do?

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As of Oct 2010, the US unemployment rate was estimated at 9%. Job loss creates tax issues and income tax returns for the unemployed are tricky. To shed light on this subject, CPA and CEO of Wealth Building CPA, Ebere Okoye, has written a new e-book, “Top 20 Tax Planning Tips for the Unemployed."


“Top 20 Tax Planning Tips for the Unemployed” provides in-depth explanations of tax questions that arise for the unemployed. Some of these questions include:


Is Severance Pay taxable?
If I sell other assets like stocks, bonds, and investment property, are they immediately taxable?
What can I do if I owe taxes and cannot pay them?
What if I withdraw money from my qualified retirement plan or IRA?
Can I deduct any of the expenses that I have from looking for a new job?
Is health insurance deductible?

Below is a free copy of the new book.

Top 20 Tax Planning Tips for the Unemployed


About the Author
Ebere Okoye is the CEO of Wealth Building CPA and a Certified Public Accountant. She holds a B.S.in Accounting and MBA from the University of Maryland. Her unique areas of expertise give her an in-depth understanding of the mistakes individuals and businesses make in their tax planning and investments. She advises clients on how sound financial strategies can lead to a steady gain in income and profitable investments. Contact us today for a FREE initial Consultation 301.830.6830.
Email: info@WealthBuildingCPA.com
Twitter: @WBCPA | Facebook

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If there is one thing that is certain in life it's.....

We all know this saying and it's true. Some of us have unfiled tax returns and may think that they are safe if three years has past and the IRS hasn't knocked on their door. This actually may not be true! Fortunately one of my favorite websites for knowledgeable legal tax advice comes from Taxgirl.com (love her site!)

Below are three very important tips every person should know regarding your tax return.:
1. There is a statute of Limitation (SOL) of 3 years for assessment of taxes expires 3 years from the due date of the return OR the date you filed.
2. If you fail to file, guess what? The SOL never kicks in so it's totally still up for grabs!
3.With respect to collections, the IRS generally has ten (10) years after the date of the assessment of tax or levy to collect.


The best advice is if you haven't filed your return it's best to get with a professional to help you navigate through the process. Also you have 3 years to have your taxes amended if you believe it was an error. Don't assume the 3 years SOL is as simple as it seems. Luckily my firm and partners are offering free tax review services for tax years 2007, 2008, and 2009 and so far have discovered several errors, missed deductions and more.

Check out the full blog post here and then give us a call to schedule your free review. 8884494145

As always,

Be empowered!
-Katrina



This is actually related to tax but with tax season underway and with our current FREE TAX REVIEW SERVICES I feltthis was fitting to post. Are many of you aware of the Statute ofLimitations on filed and un-filed tax returns? It is 3 years BUT if youNEVER filed the SOL never starts (so the ...3 year rule may not apply)One of our FAV blog sites for excellent tax information comes from Taxgirl . Check it out

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The White House

Office of the Press Secretary



FOR IMMEDIATE RELEASE


September 27, 2010



BACKGROUND ON THE SMALL BUSINESS BILL SIGNING TODAY


Today, President Obama will sign the Small Business Jobs Act, a bill that will give our nation’s small businesses support and incentives to help them grow and hire. The bill includes a series of small business proposals that the President put forth earlier this year, and small businesses will start benefiting from the bill on day one.



The President will be joined at the signing today by a group of small business owners who will benefit from the new legislation, some of whom the President has previously met with as he fought to pass this bill (their bios are below). He will also be joined by Small Business Administrator Karen Mills, Treasury Secretary Tim Geithner, and Members of Congress. The signing is today at 1:45 pm ET in the East Room at the White House. The signing is open press.



The Small Business Jobs Bill Will Provide Immediate Support for Small Businesses:

The bill immediately extends successful SBA Recovery Act provisions, meaning that within a few days, it will restart the SBA’s Recovery lending, beginning with the more than1,300 small businesses that have been waiting to get the credit they need – with thousands more benefiting in the coming weeks.


Andthe bill includes eight new small business tax cuts – all effective
as of Monday, and applying to small businesses’ taxes for this year – providing an immediate incentive for businesses to make new investments and,expand.

For example:

· if you are a small business and you buy new equipment, you can immediately write

off the first $500,000 of your investments;

· if you are one of over one million eligible small businesses, key long-term

investments in your company will be subject to zero capital gains taxes;

· if you are an entrepreneur and take a chance on a new idea, you can deduct the

first $10,000 of your start-up costs;

· and if you are self employed you can deduct 100 percent of the cost of health

insurance for you and your family from your self-employment taxes.



MORE DETAILS:

Eight Small Business Tax Cuts – Effective Today, Providing Immediate
Incentives to Invest:
The President had already signed into law eight small business tax cuts, and on Monday, he is signing into law another eight new tax cuts that go into effect immediately.



1. Zero Taxes on Capital Gains from Key Small Business Investments:
Under the Recovery Act, 75 percent of capital gains on key small business investments this yearwere excluded from taxes. The Small Business Jobs Act temporarily puts in place for the rest of 2010 a provision called for by the President – elimination of all capital gains taxes on these investments if held for five years. Over one million small businesses are eligible to receive investments this year that, if held for five years or longer, could be completely excluded from any capital gains taxation.

2.
Extension andExpansion of Small Businesses’ Ability to Immediately Expense Capital
Investments:
The bill increases for 2010 and 2011 the amount of investments that businesses would be eligible to immediately write off to $500,000, while raising the level of investments at which the write-off phases out to $2 million. Prior to the passage of the bill, the expensing limit would have been $250,000 this year, and only $25,000 next year. This provision means that 4.5 million small businesses and individuals will be able to make new business investments today and know that they will earn a larger break on their taxes for this year.

3.
Extension of 50%Bonus Depreciation: The bill extends – as the President proposed in his budget a Recovery Act provision for 50 percent “bonus depreciation” through 2010, providing 2 million businesses, large and small, with the ability to make new investments today and know they can receive a tax cut for this year by accelerating the rate at which they deduct capital expenditures.

4.
A New Deduction ofHealth Insurance Costs for Self-Employed: The bill allows 2million self-employed to know that on their taxes for this year, they can get a deduction for the cost of health insurance for themselves and their family members in calculating their self-employment taxes. This provision is estimated to provide over $1.9 billion in tax cuts for these entrepreneurs.

5.
Tax Relief andSimplification for Cell Phone Deductions: The bill changes rules so that the use of cell phones can be deducted without burdensome extra documentation – making it easier for virtually every small business in America to receive deductions that they are entitled to, beginning on their taxes for this year.

6.
An Increase in theDeduction for Entrepreneurs’ Start-Up Expenses: The bill temporarily increases the amount of start-up expenditures entrepreneurs can deduct from their taxes for this year from $5,000 to $10,000 (with a phase-out threshold of $60,000 in expenditures), offering an immediate incentive for someone with a new business idea to invest in starting up a new small business today.

7.
A Five-YearCarryback Of General Business Credits: The bill would allow certain small businesses to “carry back” their general business credits to offset five years of taxes – providing them with a break on their taxes for this year – while also allowing these credits to offset the Alternative Minimum Tax, reducing taxes for these small businesses.

8.
Limitationson Penalties for Errors in Tax Reporting That Disproportionately Affect Small Business: The bill would change, beginning this year, the penalty for failing to report certain tax transactions from a fixed dollar amount – which was criticized for imposing a disproportionately large penalty on small businesses in certain circumstances – to a percentage of the tax benefits from the transaction.






Extension of Successful SBA Recovery Loan Provisions— Immediately Supporting Loans to Over 1,300 Small Businesses : With funds provided in the bill, SBA will begin funding new Recovery loans within a few days of the President’s signature, starting with the more than 1,300 businesses
– with loans totaling more than $680 million – that are waiting in the Recovery Loan Queue.


· In Total, Extension of Provisions Which Have the Capacity to
Support $14 Billion in Loans to Small Businesses:
Extending these
Recovery loan enhancements – which increase guarantees for SBA’s largest loan
program (the 7(a) program) to 90% and reduce fees for the 7(a) and 504 program
– has the capacity to support $14 billion in lending to small businesses.
Already, SBA Recovery loan provisions have supported $30 billion in lending to
over 70,000 small businesses.


· Within Coming Weeks, the Bill Will Allow SBA to Support
Larger Loans As Well:
The bill also increases the maximum loan size for SBA loan
programs
, which in the coming weeks will allow more small businesses to access
more credit to enable them to expand and create new jobs. The bill:


o Permanently raises the maximum loan size for the SBA’s two largest loan programs, increasing maximum
7(a) and 504 loan size from $2 million to $5 million and the maximum 504
manufacturing related loan size from $4 million to $5.5 million.


o Permanently raises the maximum loan size for SBA microloans, increasing it from $35,000 to $50,000 and strengthening a critical tool for entrepreneurs and business owners in under-served markets to access start-up capital.


o Temporarily raises the maximum loan size for SBA Express loans from $350,000 to $1 million, providing greater access to working capital loans that small businesses use to purchase new inventory and take on their next order – allowing them to create new jobs.


· Treasury Is Working to Quickly Implement the Small Business
Lending Fund and State Small Business Credit Initiative:
In addition
to these SBA provisions, Treasury is working to quickly implement two new
programs designed to support private-sector lending to credit-worthy small
businesses, and expects to release further details in the coming weeks
concerning applications for these programs.


o The Small Business Lending Fund would make available $30 billion in capital to
small banks with incentives to increase small business lending, potentially
supporting several multiples of that amount in new credit.


o The State Small Business Credit Initiative will support at least $15 billion in
new lending by strengthening state small business programs – many of them
facing budget cuts – that leverage private-sector lenders to extend additional
credit.



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Part of my mission is to education and empower Minority businesses and business women on the importance of proper financial management of our businesses. I decided to do a weekly "Ask the Accountant" LIVE chat from my website.

Every Wednesday from 2-4pm EST I am on my website live discussing ANY business and accounting topic you may have. Now no need to worry about your accountant billing $150 an hour just to ask a simple question! The first 30 mins features your's truly LIVE broadcast where for about 20-25 minutes I discuss a specific topic and for the remainder of the time I leave my chat lines open to discuss the topic at hand or any other questions you may have. If the question is too complex to answer via chat, I'll request your email or other means of communication and we chat off line (and I won't bill you).

For the next couple weeks we are exploring business entities and the benefits of each one. I also offer some little known benefits as well as offer simple explanation of complex idea.

  • What business entity did you choose for your business?
  • Why did you choose it?
  • Do you know if you are receiving the best Tax benefit from it?

Join me LIVE today at 2pm by clicking here! I can't wait to chat with you!

P.S. If you miss this opportunity, no problem, I post the entire broadcast on my website. I also post smaller highlights as well.
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While my primary business is consulting small businesses on management and accounting structure as well as being CEO of a growing Bookkeeping firm it is inevitable that business owners gravitate to me seeking advice and HELP for tax issues. I welcome them with open arms because I try to educate my clients on their business finance in a way that doesn't confuse them but EMPOWERS THEM to take action and become accountable to their business.

Today I wrote on my website about the current TAX AMNESTY program taking place in Washington, DC and how residents there can take advantage of it. Not sure what a Tax Amnesty is? Basically it's when your states department of revenue either reduces or completely eliminates penalties and fines incurred when you failed to file and pay your taxes. States do this as a way to bring citizens in compliance as well as to raise revenue (DC expects to raise $20 million from their program)

How do they raise money? Simple, oftentimes what may stop you from paying taxes once you realize you owe is the penalties and fines imposed and the high cost of hiring a tax firm to help negotiate a lower rate is a hefty expense as well. The government has to spend money hiring auditors, initiating garnishments, and the sort. When many states are faced with tight budgets and low revenues, offering a Tax Amnesty to abate outstanding tax penalties is the answer they need.

Check out the full article here and while you're there, join our Small business community, or check out our latest Live Broadcast Video archive.

As always, Be Empowered,

-Katrina
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One of my favorite websites for business and entrepreneurship is Inc.com (if you haven't been to this site and you're in business check it out!) Today I got the perfect I mean PERFECT alert regarding business and taxes and I want to share with you the highlights!

The article discusses planning for the next tax season now by being PROACTIVE. In essence, what this means is not waiting UNTIL January 2011 or April 14th for that matter to giving attention to your businesses finances. It means taking small steps through out the year to manage and organize your books, ask questions to your Tax Preparer or Tax Advisors, knowing and understanding the new tax law changes and how they affect your business today and so on. Several tax professionals offer their advice and tips on this and have formulated it into an acroymn: P.L.A.N.

P. Preparing your Records

L. Listing Issues and Questions

A. Analyizing for Accuracy

N. Noting Changes in Tax Laws

Do you P.L.A.N for your taxes? As a Bookkeeper and Small Business consultant, I realize that most if not ALL of these steps can be time consuming or frustrating when you don't know where to begin. Especially noting changes in Tax Laws. Unless you're like me and receive IRS updates and alerts daily most businesses find navigating through the text to find relevant information they can apply today elusive, confusing and just a waste of precious money producing time. I get it!

Some small businesses do hire Bookkeepers to take on this task which is highly recommended, but small businesses are made up of roughly 78% Micro businesses who most simply cannot afford to do this! While I LOVE this article, it does very little in directing business owners on where to begin to Plan for tax time. I consult with or talk to many business owners weekly who have this very issue, "where do I begin, and where do I find the time, how can I afford a bookkeeper?" When you don't feel you can afford a bookkeeper, what do you do?

No this isn't a sales pitch, but there are ways you can get the help of a qualified bookkeeper to get your records and books in order before tax time. Some will help you and provide you with tools if you choose to do it yourself completely free or for a nominal monthly fee. Depending on your budget you may be able to afford an outsourced bookkeeper to help you manage your books. Affordable BOOKKEEPING for your business DOES EXIST if you know where to look! I urge all businesses micro or small to take the time to consult a Bookkeeper at the minimum or CPA to request a review of your books and recommendations for how to P.L.A.N. for tax time. In my blog about Proactive Accounting, I talk about how planning in advance can actually SAVE you money at tax time, and save your business!

Take the time to call your local bookkeeper or CPA, invest a couple hundred dollars and request a review, be Proactive about your business! If you are having difficulty in finding a bookkeeper, give me a call, inbox me. Even better become a fan of YourSimple Bookkeeper, Inc. on Facebook and I'll put you on my priority list for the launch of my YourSimple Bookkeeper -in-a-Box Download on Effective Recordkeeping which is available for Free download Tuesday July 6th (and forever and ever and ever after that)! Information is free in my mind.

Remember: Making Money is EASY, Keeping it is where the Challenge comes.

To check out the full Inc.com article click here.

To become a fan of YourSimple Bookkeeper to be one of the first to receive a FREE download click here.

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5 Ways to Make Money While on Vacation

10744043488?profile=originalWouldn’t it be great to turn your fun trips into tax cuts? If you plan to take any trips this summer, here are some ideas that will help you get the most out of your travel budget.

1. Make all your business appointments before you leave for your trip.

Most people believe that they can go on vacation and simply hand out their business cards in order to make the trip deductible. Wrong.

You must have at least one business appointment before you leave in order to establish the "prior set business purpose" required by the IRS.

The first thing that you need to do is set up appointments in the various cities that you will visit before you leave. One way to establish this is to post an ad for distributors in the town’s newspaper. You could then interview those who respond when you get to the business destination.

2. Make It All "Business Travel."

In order to deduct all on-the-road business expenses, you must be traveling on business. By definition, you are on business travel whenever you are sleeping overnight in a strange bed - conducting business, that is!

3. Make sure that you deduct all of your on-the-road -expenses for each day you're away.

For every day you are on business travel, you can deduct 100% of lodging, tips, shoe-shines, laundry and dry cleaning, car rentals, and 50% of your food. According to the IRS, no receipts are required for any travel expense under $75 per expense. The only exception would be for lodging.


4. Sandwich weekends between business days.

Interestingly, the IRS notes that if you have a business day on Friday and another one on Monday, you can deduct all on-the-road expenses during the weekend.

5.Make the majority of your trip days business days.

The IRS says that you can deduct transportation expenses if business was the primary purpose of the trip. The majority of the days in the trip must be for business activities. Otherwise, you cannot make any transportation deductions. This is an all-or-nothing proposition.

With proper planning, you can deduct most of your vacations if you combine them with business. That can make your life a lot less taxing!

To learn more about tax strategies for small business owners, sign up for my newsletter at www.tbsusa.com.

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FIRST-TIME HOME BUYERS ARE NOW ELIGIBLE FOR A NEW $8000 TAX CREDIT. YES, THAT SOUND YOU HEAR IS OPPORTUNITY KNOCKING.As leading advocates for homeownership, REALTORS® work closely with Congress for legislation that supports home buyers, likethe recent stimulus package that gives fi rst-time home buyers a tax credit of up to $8,000.* The credit, combined with today’s low interest rates and increased affordability, make buying conditions more favorable than they’ve been in years. Repayment is not required and it is available for homes purchased between January 1 and December 1, 2009.Homeownership is an investment in your future. Work with a REALTOR®, a member of the National Association of REALTORS®, who can explain the process and show you options that best fi t your situation. To learn more, visit HousingMarketFacts.com.EVERY MARKET’S DIFFERENT, CALL A REALTOR® TODAY...Denise R. McCoyRealtor/Employer Housing Specialistdenise.mccoytilson@ReaRealtors.com(916) 534-5239Share with a friend:http://www.realtor.org/pac.nsf/files/Fence_Sitters_8000_PDF.pdf/$FILE/Fence_Sitters_8000_PDF.pdf
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Jackie Mayfield the founder of the multi-million dollar company Compro-Tax, the largest Black-owned tax preparation and bookkeeping company in the United States, with over 200 offices in 24 states has joined the Black Business Network 4.0. He has extended an invitation to every Black person we can find to either attend his free seminar this Saturday in person in Atlanta at TAGTeam or to view online. This seminar explains the role of culture in today's business world. Learn how you can create that culture within your family and create massive success for you, your family, your business and your community. Learn from one of the most successful Black men in America. Learn about Jackie's vision, Compro-Tax services and their unique franchise opportunity. Find out how to understand your business or personal taxes to legally get more money back each year.Create the Culture of Business in Your Family Seminar is scheduled for this Saturday, July 18, 2009 from3:00 PM - 5:00 PM View Live Broadcast ONLINE or Attend Event In Atlanta, GeorgiaThis phenomenal event is FREE to attend live in Atlanta or to watch online.TAG TEAM Marketing, Inc.3465 North Desert DriveBuilding 4, Suite 102Atlanta, Georgia 30344Call (404) 305-0300 for directions or add’l info.REQUIREMENTS You must be a Black Business Network member to attend in Atlanta (free, can sign up online or at door and let them know that Darlene Robinson from Orlando invited you). Either way you must register online to secure your seat or your online viewing portal. So if you don’t already have an online account at the black business network go to www.blackbusinessnetwork.com/TeamDollar and get yourself signed up as a general member so you can get registered right now because seating and web viewing slots are limited.I am hosting a viewing party in Orlando from 3-5pm followed by a networking event at my office located at 771 Kirkman Road, Ste 108, Orlando, FL 32811. Hope to see you online or your smiling face on the live broadcast from Atlanta. Have a blessed day!Darlene Robinson
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Starting a small business is a great way to supplement your income. Whether you are operating your business from home or a storefront, practically every expense related to business is a write-off. Generally speaking, the government looks kindly on small business owners. They applaud the entrepreneurial spirit upon which this country is built, and they reward it with tax deductions to lower the owner's taxable income and help the business to succeed. Unfortunately, many owners end up paying more taxes than they should or they fail to receive their maximum refund because they're not aware of ordinary deductions that are available. Though this is by no means an exhaustive list, here are some of the most common:1. Start-up costs. One of the biggest obstacles for a new business is getting over the hurdle of start-up costs. Although it can take a large slice out of the overall pie, you can get back a portion of those expenses at tax time. Small businesses can deduct as much as $5,000 of starting costs in their first year of business.2. Vehicle use. The government allows you to deduct certain expenses for business vehicles, including mileage. Keep good records for this deduction (or any other, for that matter) in case you're challenged on any point by the IRS. If the vehicle is used for business and personal activities, you can deduct only the percentage amount of the business use of the vehicle.3. Equipment deductions. All businesses require equipment of some kind. The amount can be deducted all at once in the first year of acquisition (up to a limit of $125,000, as of this writing), or amortized over a number of years.4. Entertainment deductions. Who wouldn't want to have a fancy dinner on the government? Business meetings over dinner or attending business conferences in sunny Florida can be deducted as business expenses, if they meet the necessary requirements.5. Travel expenses. Traveling for business is a tax-deductible expense. Keep your receipts for airline tickets, hotel stays, and meals. Any service that was necessary during the course of the business trip can generally be deducted. However, expenses for family members that you took along for the ride are not deductible.6. Advertising costs. Costs for advertising your business are tax-deductible. These may include print, billboard, Internet, radio and television, or other ad forms.7. Legal fees. Businesses often consult lawyers from about business matters or to review contracts. The fees charged are deductible.8. Retirement plan contributions.9. Home office deductions - expenses like a % of your rent, utilities, insurance and many more.10. Educational expenses. The costs of classes taken to further your knowledge for your present business can also be deducted.Tax credits, which are dollar-for-dollar reductions of the taxes you would otherwise owe, can also be used to save money. Again, there are a variety of taxes, including those related to hiring certain employes; owning and fixing up certain realty; and being "green".Businesses do have an advantage when it comes to taxes. If you're a business owner, take advantage of all the deductions available to you. Be sure to consult a qualified tax professional for further information on these and other tax deductions.
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Tax Breaks for Your Children This Summer

When school is out, what do your children do? Parents may send children to summer camp or special school programs or make other child arrangements. Some older children may go to work. There may be tax breaks for these activities.DEPENDENT CARE CREDITIf your child is under age 13 (or a child of any age who is physically or mentally incapable of caring for himself or herself) and you work full time or part time, you may be eligible for a tax credit. The credit, which is based on eligible expenses up to $3,000 for one dependent and $6,000 for two or more dependents, ranges from 20% to 35%, depending on your adjusted gross income (AGI). For those with AGI over $43,000, the credit rate is 20%. Thus, the top credit for those at the 20% rate is $1,010 for one dependent and $2,100 for two or more dependents.A variety of expenses incurred both in and out of the home can qualify for the credit.- Compensation to a babysitter, housekeeper, or au pair to watch your child. Also include employment taxes you may pay for a housekeeper.- Daycare costs.- Costs for day camp, including a speciality camp such as a soccer or computer campINELIGIBLE EXPENSES: The cost of sleepaway camp is not an eligible expense for purposes of the dependent care credit. Also, transportation costs to day care or paying for the transportation costs of someone working in your home does not qualify for the credit.SPECIAL NEEDS CHILDRENThe cost of education for special needs children, which may continue throughout the summer months, can qualify as a deductible medical expenses are deductible only as itemized deductions to the extent they exceed 7.5% of AGI). The schooling must be on a doctor's recommendation, so a physically or mentally disabled dependent can attend a program to alleviate or overcome the disability.Note: Outside-the-home care costs for a special needs dependent may qualify for the dependent care credit. However, the same expenses can only be taken into account once (either for a medical deductions or dependent care credit).PUTTING YOUR CHILD TO WORKIf you own a business, you may be able to employ your child this summer. Given the tight job market, this may be the only way your child can earn money and gain work experience now.Wages paid to your child are deductible by the business. Wages up to $5,700 in 2009 are not taxable to your child. If, for example, you paid your child $16 an hour for a 35-hour work week, he or she would reach the tax-free limit in about 10 weeks.What's more, he or she can use these earnings to get a jump on retirement savings. Up to $5,000 can be used to fund an IRA. It's probably wise for a child to opt for a Roth IRA; they usually won't need the tax deduction for a traditional IRA, and earnings in the Roth IRA build up tax free.If you're self-employed and your child is under 18, there are no FICA (Social Security and Medicare) taxes or FUTA (federal unemployment) taxes. There may, however, be taxes and other insurance obligations at the state level.Caution: Make sure you pay your child only reasonable compensation for work actually performed. Since the IRS pays extra attention to family-related write-offs, keep time slips and other records of your child's work.
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Tune in to Strictly Business on BlogTalkRadio.com on Thursday, December 4 at 3:00 PM (EST) to learn about what you can do if you are a business owner or individual struggling to overcome your tax burdens.Stop looking over your shoulder in fear of the IRS! Obtain the knowledge to be proactive in finding solutions to break free from the crushing burden of financial woe.Michael Rozbruch, founder and CEO of Tax Resolution Services, one of the nation’s leading experts on solving individual and small business IRS tax problem, will be discussing some insider secrets of tax relief with Strictly Business host Anna Banks including important taxpayer rights, how to reduce or avoid IRS penalties and interest, and how to get a fresh start even if you have delinquent tax returns from the past 7 years.Call in with your own IRS tax questions (718) 766-4021.More on Michael Rozbruch and Tax Resolution ServicesMichael Rozbruch is the founder and CEO of Tax Resolution Services and is one of the nation’s leading experts on solving individual and small business IRS tax problems. As a Certified Tax Resolution Specialist (CTRS) and CPA (licensed in the state of Maryland), he has represented thousands of taxpayers who owe the IRS, but simply cannot afford to pay.In the past year alone, Michael has successfully settled hundreds of Offers in Compromise (IRS settlements) usually saving clients 90% of their outstanding tax bill. His success rate is approaching 90% and is one of the highest in the industry. He has saved his clients in excess of $35 million dollars over the past ten years. For further information on Michael Rozbruch and Tax Resolution Services, Co., visit www.TaxResolution.com or call (818) 774-1813.
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