Articles
• 03.10.22
You may believe that the only time taxes are levied on an IRA or another form of retirement plan is when you take withdrawals or distributions. However, it is likely that certain income received in retirement accounts, which are tax-exempt entities will be taxed before that.
When tax-exempt charitable nonprofits make revenue from a source...
• 28.09.22
When it comes to accumulated depreciation vs. depreciation expense, the fundamental difference is that one is reported as an expense (depreciation) on the income statement, while the other appears on the balance sheet as a contra asset (accumulated depreciation).
However, both refer to the decay or wearing out of machinery, various kinds of...
• 14.09.22
Your business structure determines how you will be taxed. You need to understand and use strategies that will result in tax savings. Read on to find out S Corporation tax secrets to minimize your tax liability.
The default business structure you get is of the sole proprietor. However, when your business grows you might need to consider...
• 09.09.22
Did you know every year the IRS selects 0.05% of tax returns for audit? Schedule C filers are more likely to get picked since it offers incentives that self-employed people can exploit to reduce their tax bills. There are red flags you should be aware of to prevent this. Here are the top 7 Schedule C audit triggers that will lower your chances...
• 05.09.22
There comes a time when business owners know that every shred of evidence suggests that it's time to wrap it up. You need to know how to close a business with IRS since it is a complex process and involves detailed planning and mindful actions.
Make sure you wind it up in a way that would keep you from getting into any unnecessary trouble. In...
• 31.08.22
The government at both the federal level and state collects different types of taxes in the United States. Specifically, the excise tax affects consumption of goods or services in particular. It's a tax that's very specific, often geared to a specific product, and you pay it without realizing it. Second, there is a sales tax, which...
• 13.07.22
Side hustles have become prevalent in the gig economy. Professionals in practically every area are now making money as a side business, whether it is through Upwork, Fiverr, or Uber. Plumbers and electricians use TaskRabbit, as do homeowners who rent out their homes on Airbnb.
What the side business has evolved into seems to have no limit,...
• 08.07.22
Renting a store and stocking it with goods is a well-traveled avenue to sales. Another approach is the eBay way — electronic commerce that can be done from your computer at your home or office.
This article introduces you to tax reporting and planning for an eBay business. You will learn that your tax reporting responsibilities and planning...
• 27.06.22
Certain types of entities are permitted to take advantage of the pass-through taxation system under United States tax law. Thus, in effect, income tax obligations are shifted from the entity earning the income to the individual(s) who are beneficially own the entity. Schedule K 1 tax form shows the amounts of income that are passed on to each...
• 08.06.22
A C corporation is a business structure that is often overlooked by small business owners as a viable option. C corporations have a number of structural advantages over other types of businesses such as sole proprietorships, LLCs and S corporations that they cannot offer. The purpose of this article is to discuss what the benefits of C...
• 01.06.22
You might have heard about tax deduction reducing your taxable income but did you know IRS offers small business tax credits to incentivize them to be socially responsible and make contributions to the economic & social well-being of the entire nation. Tax credits directly reduce your tax bill.
In this article you will find out what are...
• 13.05.22
Time and energy are often limited for self-employed real estate agents in charge of their own income. Although taxpayers must not file later, the IRS recommends they shouldn't file prematurely either. There is a danger of making a mistake that might delay the filing of your tax return if you file before you have all the necessary...
• 29.04.22
We've all seen the posts on social media asking for financial support. Whether it's for a charitable cause, help with unexpected emergencies, or even money for a vacation, more and more people are turning to crowdfunding to bolster their coffers. Many entrepreneurs have also used this mechanism to finance a new business venture or pay for...
• 30.03.22
Every small business owner has to stay on top of their taxes. Not only are they expected to keep their business afloat, but they also have to track every transaction and pay the right amount to Uncle Sam. Thankfully, there are ways to reduce your income tax liability.
Enter the tax deduction
Tax deductions are one of the easiest ways to...
• 22.03.22
To make the move to the new Schedules K-2 and K-3 even easier, the Internal Revenue Service (IRS) published more specifics on further transition relief for certain domestic partnerships and S companies preparing the new schedules. Those who qualify for the relief will not be required to file the updated schedules for the 2021 tax year.
The...
• 21.02.22
Some companies and other payers deduct backup withholding from payments paid to specific individuals. These organizations, though, must keep in mind the imminent filing deadlines. But first, let's discuss what exactly backup withholding is.
What is Backup Withholding?
The person or entity paying the taxpayer does not deduct taxes from...
• 13.12.21
Hobby Income is the money you make while doing what you love without expecting to earn profit from it. There are no restrictions on making money from a hobby but once you earn a few bucks, there will be tax consequences. In this article, you will learn about the rules related to hobby income taxes.
What is a hobby income?
If your intention...
• 29.11.21
Did you receive the IRS Form 1099-K from the payment settlement entities and have no idea how it should be reported? This article contains detailed guidelines to help you understand it.
What is a 1099-K?
According to the IRS:
“Form 1099-K, Payment Card, and Third Party Network Transactions is an IRS information return used to report...
• 20.09.21
Who doesn't want to be their own boss? Running your own business has numerous benefits. However, it can provide a lot of difficulties, particularly if you live abroad.
Every move you make as an American expat entrepreneur has tax repercussions, from how you establish your company to how you pay yourself and your staff. Small business owner...
• 09.09.21
When starting a business, selecting a business structure is among the many decisions you need to make. A business, by default, is either owned by multiple partners (general partnerships) or by a single proprietor (sole proprietorships). These may seem like the simplest ways to organize a business, but there is a major drawback: they do not...
• 03.09.21
If there's one thing that's certain in business, it's taxes. All businesses, from small mom-and-pop stores to billion-dollar conglomerates, have to pay taxes. As a small business owner, it's your job to stay on top of your tax responsibilities: which taxes you need to pay, how much you owe, and the filing deadlines.
A single mistake can be...
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