Posts Tagged ‘money’
To those one the right: Why not simply deepen tax deductions for the behaviors we want?
Posted by admin in US Tax Questions on January 3rd, 2011
Since you frame taxes as an absolute dilemma between jobs and no jobs, why not simply deepen tax deductions for the good behaviors we would like to see? That way no one can claim that the government is taking money that would otherwise go to company spending. How does that sound?
What would be the problem with bringing back the personal interest tax deduction?
Posted by admin in US Tax Questions on November 15th, 2010
Yes we were able to once upon a time deduct the interest on credit cards as well other sorts of personal interest such as a car loan. Back then the excuse for eliminating this was that they did not want to promote spending. Well that was a bunch a crap in my book. That is all we heard recently to get the economy back on the roll – go out and spend. The government wouldn’t have to bail us out just allow for this type of deduction to be taken once again. Depending on how much debt someone is in would determine the overall amount that could be deducted. Some more some less. As for the banks having any say with this, they are at our mercy now and with this we would like to see some of our life line money they know all to well how to spend be once again back in our wallets. With that a credit card charging 30% interest would become a thing of the past.
If I advertise my business on my car what tax deductions can I take?
Posted by admin in US Tax Questions on October 31st, 2010
I was told that I could deduct all of my mileage-even personal mileage- if my car was used to advertise my business. Is this true?
I’m not looking to make money another way. I just want to know whether advertising MY business on MY car makes my personal mileage tax deductible.
Ontario–Payroll Tax Deductions: Is a Company bonus taxable if I transfer the full amount to my work RRSP?
Posted by admin in US Tax Questions on September 25th, 2010
At the end of each year I receive a bonus from my company.
When this bonus is paid out to me, I get hit with high payroll tax deductions.
I was told that if I put this money towards my company’s RRSP program that I currently participate in, the “full” bonus amount goes straight into my RRSP with no taxes deducted from the bonus amount … is this correct?
Any information is much appreciated!
Bring back the personal interest tax deduction especially for credit cards.?
Posted by admin in US Tax Questions on September 17th, 2010
What would be the problem with bringing back the personal interest tax deduction especially for credit cards?
Yes we were able to once upon a time deduct the interest on credit cards as well other sorts of personal interest such as a car loan. Back then the excuse for eliminating this was that they did not want to promote spending. Well that was a bunch a crap in my book. That is all we heard recently to get the economy back on the roll – go out and spend. The government wouldn’t have to bail us out just allow for this type of deduction to be taken once again. Depending on how much debt someone is in would determine the overall amount that could be deducted. Some more some less. As for the banks having any say with this, they are at our mercy now and with this we would like to see some of our life line money they know all to well how to spend be once again back in our wallets. With that a credit card charging 30% interest would become a thing of the past. With the hudge bailouts that the banks got without our approval and with our money this is the least that could be done to help the backbone (middle class) of this economy.
Self Employed Get UnFAIR Tax Break in 2009 When Opening A Solo 401k
Posted by admin in US Tax Questions on September 13th, 2010
Nabers www.Nabers.com says setting up and contributing to your Solo 401k before the end of 2009 will allow married couples to deduct up to 9000 from their 2009 income taxes. Watch this video to learn more or you can pick up the phone right now and call Nabers Group directly at 877-903-2220.
Invested Money in Small Business as Partner – Tax deductions possible?
Posted by admin in US Tax Questions on August 21st, 2010
I invested 3K in start-up money with 2 other guys plus spent another 4K in misc. such as travel costs, supplies, etc. and we haven’t taken a salary or any income and are actually barely breaking even. Can I get any tax benefits for my personal income tax by having invested in this business?
Thanks.
LLC is the entity. Will not be changing that. I also live 2 states away and will not be able to just go see a tax pro together with the 2 other partners. The solution will have to be individually solved for each of us. They both have multiple other businesses it is just not going to be us going to see the same personal accountant.
Thanks.
This is about my personal taxes, not the LLC which will be done by the company’s CPA. I will get a K-1 at the end of that process? I also don’t do my own taxes. I’m trying to figure out if a. I can take deductions and b. what I need to give to my accountant to get the deductions and c. what are the questions I should be asking my partners prior to doing my own personal taxes. So far it looks like I should be asking to see a Schedule K-1.
Looking for help to find personal tax allowances and deductions when working.?
Posted by admin in US Tax Questions on August 12th, 2010
Wish to maximise my tax refund and get more money back
Personal, Small business tax deductions in addition to standard?
Posted by admin in US Tax Questions on June 22nd, 2010
Hello,
Got a quick question. Are expenses incurred by a small business startup compound on a personal standard deduction? My scenario is below:
-I’m employed (not self-employment, at an actual company) and rent an apartment
-Say I incur ,000 in small business expense this year for a SIDE business.
Is this ,000 write off in conjunction with the standard deduction (of around 5k for single)? So, in other words, can my income be claimed to be 15k lower? If my startup costs incur ,000 is there a reason for me to NOT do the standard deduction? It seems awfully stupid that standard deductions exist, as I would’ve kept my own money instead of spending it on all this crap…
S-corp tax deductions on personal income ?
Posted by admin in US Tax Questions on June 8th, 2010
Hi, I am trying to setup a small business in CA with 2 other partners and thinking of doing a S-corp. We will each put in some money say k in the company and have an equal split. Here are my questions:
1. Since we are officers in the company, are we required to pay a salary, I saw someone mentioned k is the minimum.
2. It’s very likely that the company won’t make enough profit to pay 3 x k. Are we allowed to take smaller salary?
3. Assuming we have a net loss for the first year, and I understand S-corp’s profit and loss will flow through to your personal tax income. Does it mean that I can deduct the loss from my income that I earned from my previous employer?
4. I heard someone said that we can deduct up to 3 years of your personal income. Is that true? i.e. if the new company lost k this year and assuming a equal split. Can I deduct the k from my tax return in 2008, 2007 and 2006?
Thanks!
-Mr. Beacon
A Better College Credit
Posted by admin in US Tax Questions on May 16th, 2010
A tax credit that helps pay for college is now much bigger and better. Bigger, because it puts more money in your pocket. And better, because more families qualify for the cash What used to be called the Hope education credit, is now the American Opportunity credit. Heres how it works for 2009 and 2010. For starters, the maximum amount of the credit has increased from 00 to 00 per year, per student. And its available for four years of college, not just the first two like the old Hope credit. Finally, many more middle-class families will benefit. While those with high incomes still wont qualify, the income limit has been increased by 60 percent. For example, married couples can now make 0000 before this tax break starts to disappear. Remember, a tax credit increases your refund, or cuts the amount of tax you owe, dollar for dollar. And, if your credit is bigger than your total tax bill for the year, the government will cut you a check for the difference, up to 00. The American Opportunity credit doesnt replace two other education tax breaks, the Lifetime Learning Credit and the tuition deduction. But for most families, the new credit is the best choice.
Are You Searching For A Tax Shelter? You Could Have One Right In Your Own Home!
Posted by admin in Tax Deductions For Self Employed on January 27th, 2010
Many people mix up tax shelters with tax havens. When they hear the term tax shelter, what usually jumps to mind is something shady, or maybe the British Virgin Islands or some far off kingdom in the middle of Europe. But, in reality, it doesn’t actually have to be anything exotic like that at all. Really, a tax shelter is, quite simply, just a program that the government recognizes, in which anyone can participate in, to receive some special tax benefits and enable some personal tax deductions.
An example of one is when you donate to a recognized charity, you get a deduction – and that’s one of the most effective ways of retaining your money and avoiding paying taxes on that amount donated. Even better than that would be to set up your life so that a lot of your personal expenses can be seen by the IRS to be recognized tax deductions.
This, surprisingly, is not too complicated to achieve – you just need to become the owner of a business.
Now before you say “I don’t want to be bothered with all that effort”, let me explain what I really mean. You don’t need to go and get yourself incorporated or anything like that, you just need to declare on the appropriate forms that you have a home business, as an individual private proprietor.
If you do this, then right away, a lot of what you spend can then become a tax deduction. The IRS does know that such a thing is possible, and is legal as well. So, to prevent everyone from doing this too easily, they have a couple of simple rules that need to be followed. These rules are not too difficult to adhere to and practically anyone can follow them without much difficulty.
The rules only say that it has to be clearly obvious that you’re doing it for profit, even if, in actual fact, you may never have a hope of making one. You may still have your day job, you don’t have to give that up.
There are many ‘businesses’ out there that run purely for the benefit they provide of being a tax shelter for their owner and could possibly not have made a profit in many years and yet still, if the rules have been followed, have the IRS’ blessing.
When the IRS scrutinizes what exactly you are running to see if it is a real business, they will make some subjective assessments….
- Whatever it is you do, they will check to see if you do it regularly.
- Do you have any kind of expertise in that particular area of what you claim to do?
- Do you actually tend to your business on a regular basis, or is it just something that’s only on paper?
- Can you prove that you actually keep books for it?
You could be completely and thoroughly bad at how you run your business, that doesn’t really matter. The most important thing is that you look like you believe you’re running one in the hope of a profit. It is extremely important to follow the IRS’ rules and do not try to abuse the system.
So maybe you are wondering how to get this thing going? Well first off you’ll need to get your receipt books and business forms printed and ready. Whenever you spend anything, it must be properly accounted for. It is always best to seek the advice of an accountant to learn exactly what is allowable as a deduction.
There are all kinds of hobbies that can fit in with this kind of plan particularly well. If you like to carpentry as a hobby and make things out of wood, then you could say you were hoping one day to get a paying customer, and attend some craft shows or flea markets and make some sales. Then you would be able to route some of your household expenses through your carpentry ‘business’. Other examples would be sewing or quilting, drawing and painting pictures, just about anything that is creative. Find something that you are fairly good at and take action and start your own tax shelter!
If the law allows it, why not? Just remember to follow all the legal rules, be honest, and, as I said before, don’t try to abuse this opportunity.
Meet The Tax Man – Tax Shelters
In popular usage, the term “tax shelter” denotes the use of tax deductions or credits produced by one activity to reduce taxes on another [...]
Is An RRSP The Best Tax Shelter For Retirement?
The deadline for RRSP contributions that are deductible on your 2009 income tax return is March 1, 2010. A lot of people are now faced with a decision about whether to make a contribution. Try thinking about your decision this way [...]
Finance, Tax And Life Insurance
For this reason, insurance policies can be a legal and legitimate tax shelter wherein savings can increase without taxation until the owner withdraws the money from the policy. On flexible-premium policies, large deposits of premium [...]
Home Based Business – Your Ultimate Tax Shelter
You would pay no tax on this additional income. Don`t miss this important point! Although these tax deductions are actual, legitimate business expenses, these are expenditures you would probably have made anyway, whether you had a[...]
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Important Tips For Learning How To Manage Your Money
Posted by admin in Tax Credit Vs Tax Deduction on October 3rd, 2009
Times are very tough right now, there’s no question about it. For the majority of people, it can seem like they are just about making ends meet – is an almost an impossible challenge. While your income remains static, expenses however, are constantly rising. Your financial buying power is being diluted to the point where you’re searching desperately to save in any possible area of your budget.
Then there’s always tax season that has to raise it’s ugly head once every year and then the question on everyone’s mind becomes “how can I save money this year and pay less taxes. Both problems, daily budgeting and having enough money at the end of the year to pay your taxes, both boil down to the same thing, learning how to manage your money. This has become an essential skill, personally, I think it should be a subject that is taught at school. Here we’ve got some tips on making your income stretch to meet your expenses, while building a
savings account, even on a modest income.
However, before I begin, it’s worth mentioning the W-4 form you must file with your employer. This is the form is where you fill in the number of exemptions you wish to claim for payroll deductions. For example, let’s say you’re a single person, earning $1500 a month. It’s logical that you probably thinkd that you should claim only one exemption, but did you know that you are legally entitled to claim up
to 9 exemptions, for payroll deduction purposes? Sure, you aren’t very likely to receive a refund come tax time, but nevertheless, claiming 9 deductions will increase your net pay substantially.
If you claim only one tax exemption, your Federal and State tax deductions are calculated at the regular standard rate. The result is that you will get a nice tax refund at tax filing time, but the other side of the coin is that you won’t earn any interest from the government on that money. It can be a smart move for you to keep that money in your wallet during the year! You can make a rough assessment by using last year’s tax tables to optimize the number of exemptions
you claim on your W-4 form so that, come tax season, you actually owe nothing. You can file an amended W-4 at any time during the year.
When you are learning how to manage your money, it is essential that you make a budget! It’s a must! List all of your essential expenses first, being food, rent or mortgage payments, transportation, car insurance, and clothing. Then do the math. As you probably already know, there may not be much money left over.
Let’s say, for example, you’ve got $200 left over each month after taking care of your necessary obligations. On paper, that may seem workable to you, allowing you the occasional dinner out or a night at the movies.
In reality, though, you also know that ‘things come up’.
Maybe all of a sudden you need new tires for your car, an unforeseen and uncovered medical expense crops up, or the phone bill is higher this month than anticipated – there goes your extra $200.
Understanding how to manage your money intelligently and carefully, it’s imperative that you allow for a margin of error. Once your basic budget is in black and white, start saving all of your receipts, for at least 3 months. Keep them in a sfae place and then at the end of 3 months add all the expenses up. You’ll then see that the key to how to manage your money lies in the details.
You may not have even thought of such an array of minor expenses, such as mailing packages, a visit to the dry-cleaners or snacks and coffee purchased on the way to work. These expenses all add up! Saving your receipts provides an object lesson in how to manage your money effectively – it gives you a clear picture of exactly where your money is disappearing to. Maybe your snacks and coffee comes to a total of $30 a month. If that’s the case, then why not consider investing in a thermos and buy your snacks at the grocery? Just there you can save another $30 per month.
Then there’s the problem of credit cards, so many people have this problem and are searching for credit card debt elimination . These are one of the most common pitfalls in even the most well-intentioned budget. Just take a look at your past credit card statements and see how much impulse or unnecessary debt you’ve incurred. The banks just love to see that debt pile up. You must discipline yourself to the extent that your credit cards are only used when it’s completely necessary. This doesn’t mean spending your money on a pair of shoes you can’t afford to pay cash for, but should be reserved only for things like new tires, an unforseen medical expense or other necessary item or service.
I’ll finish now with a great tip on how to manage your money so effectively that you, on a $1500 per month income, can end up with a $900 savings account in a year! Setting aside just 5% of your paycheck each week – that works out as $17.50 – and depositing it in an interest bearing savings account, it will net you about $900, plus interest, in 12 months. If you also save your loose change, leave the magazine out of your shopping cart or rent fewer movies each week,
you’ll have even more more saved. Just think what you could with an extra $900 or $1000, you could even have a nice vacation!
To learn how to manage your money isn’t difficult, it just needs a hard look at your budget and a little self discipline and self control. Give these tips a try, you’ll see your bank account going in the right direction for a change!
Managing Money Matters to Become And, More Importantly, Stay Wealthy
The first excuse isn’t accurate because managing money will lead to your financial freedom, not restrict you. The second excuse doesn’t hold water either because the truth is that if you cannot manage a very small amount of money you [...]
Managing Your Money Effectively
Antonia speaks about proactive money management and achieving your financial goals. You need Flash. Managing your money effectively. Antonia speaks about proactive money management and achieving your financial goals.
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