Archive for Taxes

Do You Really Understand Federal Income Taxes

Regardless of how you or I personally feel our dollars that are generated from the federal income taxes support many vital public services. Many of our federal programs such as schools, public utilities, healthcare and retirement programs like Medicare and Social Security wouldn’t be functioning without them. Federal income taxes are collected from income earnings of entities and individuals yearly. However, there is an exception to paying the tax if a person does not meet the lowest earning requirements. Many people rightfully feel that tax codes are too complex and complicated and as a result hire professional tax preparers to ensure that the filing process is easy yet accurate. Over the years there have been many improvements to make make filing quicker and smoother by implementing shorter tax forms, clear directions and web-based filing programs.

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Tax Planning - The Top 10 Mistakes

Yesterday I saw a Christmas tree in a local department store. It’s way too early to think about Christmas but not to early to do some 2007 tax planning. Ask yourself, are you making one or more of these tax planning mistakes? If so, you’ve got some time to correct the situation, but act now, or we’ll be having this conversation again next year.

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New Tax Law Benefits For Car Donation Tax Deduction

The IRS has taken steps to take the guesswork and confusion associated with car donation tax deduction with a new law. When January 1, 2005 rolled around, you were able to deduct the full price that the charity of your choice receives for the sale of your car.

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Internet Tax Help - There When You Need It

If you’re someone who finds yourself in need of tax help–and who hasn’t, from time to time–you’re much luckier than you realize. In past generations, getting tax help meant calling an expensive accountant, tax advisor, or even attorney; or heading for a bookstore to purchase a tax manual understandable only to the person who wrote it; or buttonholing someone at work who claimed to have been through a similar tax dilemma and survived. But with the arrival of the Internet, tax help can be as close as your computer monitor.

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The Basics Of Federal Income Tax

The basics of a federal tax return are:

1. First find out if you need to file a federal tax return.

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The 2006-2007 Tax Calendar At A Glance

Taxes and tax returns are of paramount importance and a person needs what can be termed as tax discipline. In order of get all tax papers and relevant details ready and the tax returns, both federal and state filed on time you need a “tax calendar” which will become a ready reference source. The IRS in its efforts to allay fears of tax returns and make tax returns less complicated has a set of useful guidelines at: www.irs.gov/publications/p509/ar02.html#d0e393 .

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The Many Ways To Avoid Inheritance Tax

Inheritance tax is becoming a reality for many families simply because of rising house prices. Mortgages giant Halifax Bank of Scotland has estimated that more than 2m properties in Britain could be worth enough to land their owners with a tax bill.

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Global Tax Consulting Services

If you are an independent contractor, consultant or an expatriate working offshore it may be advisable to get a reputable tax consulting company to look after all your taxation and social security needs. It is important to find a tax consulting service which can offer premium taxation and financial planning services today. Choose a company which can offer services for the country or your destination. Get a taxation consulting company which is able to expand their services globally.

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5 Things You Should Know About Tax Deductions

Tax deductions are one of the great, if only, things that are good when concerning tax time. We all grudgingly send in those papers knowing that at least we should be getting potholes filled and new textbooks in the school systems.

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Tax Deduction Checklist

A tax deduction checklist is one of the most important items a small business, or home based business, can have. This will always allow you to review it, and refresh your memory as to what is tax deductible and what is not. There can definitely be some gray areas when taking business deductions, but if you are not sure, or if it will raise a red flag, then just don’t do it. It is not worth it. But I have compiled a tax deduction checklist I use, and it is one I put together with my tax accountant.
Automobiles: 2 ways to deduct this, either by miles, or by all of the receipts of your expenses. Personally, I recommend just using the mileage deduction. You will probably be able to deduct more money this way, and it is just plain easy. Write down the number of miles it takes you to go somewhere for business. Then add them up and multiply it by the dollar deduction for mileage. This number may change.
Office: Anything used in the operation of your office, whether at an office, or in the home office, is tax deductible. Just keep receipts.
Bank charges: Any amount of money you are charged through a bank, or through a credit card processing company, is deductible.
Business Gifts: Be careful with this one. If it is truly a gift, then deduct it. But this can cause a red flag with auditors if the amounts of the gifts become very large. It looks as if you are just trying to not pay taxes.
Health Insurance: Any amounts of premiums you pay for your self employment are deductible. This included medical, life, and dental.
Charitable contributions: Any donations made to charities can be deducted.
Professional Fees: If you have an accountant, which files your taxes, and charges you a fee, it is deductible. Same goes for lawyers and consultants.
Depreciation: Check with your accountant on this one. Some things must depreciate over a certain number of years. And, it all comes down to how you label it. If I bill someone for a “Website Design”, they are suppose depreciate it. But, if I call it “website updates”, they can write off the entire amount. Kind of tricky, so be careful.

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It’s Time for the Flat Tax

Well, it’s tax time again. As I try to make some sense of the seemingly bottomless pile of papers required to balance my account with the federal government, it strikes me that now, more than ever, is the perfect time to implement a flat tax.

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2007 Federal Excise Tax Refund Warning

This is March 2007, a month yet before the end of the 2006 tax season, and audit letters from the IRS are already going out, some private tax offices have been closed and some people have been charged with fraud. All because of abuse of this years one time Federal Excise Tax Credit.

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Setting Up Your Business Entity

Do you remember getting started in your brand new business venture? Besides testing the market, deciding on a product or service, there was this decision regarding entity selection. Before the early 1990’s, there was the corporation (C or S), the partnership in its many forms, and the sole proprietorship. With the advent of the Limited Liability Company or LLC, choosing an entity form has become more interesting and thought provoking.

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Top Tax Scams for 2007 According to IRS

Every year, the IRS issues a list of the top tax scams the agency is seeing. Known as the “dirty dozen”, here are some highlights of the 2007 list.

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Tips to Reduce Your 2006 Income Taxes in 2007

Income taxes are a substantial burden for business owners and real estate investors. There are few actions which can reduce your 2006 taxes after December 31, 2006. This article summarizes four options for reducing your 2006 federal income taxes during 2007. These include reducing revenue, increasing real estate depreciation, increasing expenses by conducting a fixed asset audit and increasing expenses by converting capital expenditures into operating expenses.

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