The theory of relativity is in the tax code
This is not the theory discovered by Einstein, but the one that states that certain tax advantages may be disallowed if you sell an asset to someone (or a company) that the tax code calls a “related party.” Simply put, selling a capital asset at a loss to any of the following entities will cause the loss…
Read MoreNew tax credit for hiring vets
President Obama has signed into law increased tax credits for hiring certain veterans. The credits are part of the Work Opportunity Credit, which requires that employers certify through state jobs agencies that employees qualify for the credits. The credit rules, effective for veterans hired as new employees: – A maximum $4,800 credit (40% of the…
Read MoreWhat do the letters IRS really stand for?
During tax season, one of the most oft asked questions is – What do the initials in IRS mean? We offer the following ideas. Feel free to send us your own.
Read MoreWhy most clients are in violation of their Quickbooks license and don’t even realize it!
As if the IRS wasn’t enough to deal with, now Quickbooks owners have another hidden trap that Intuit is just waiting for you to stumble into. The trap centers around the wording in the licensing agreement. Simply put, it’s not a per user license like most multi-user software. Instead, it’s a per person license. Let…
Read MoreThe state of estate tax
The “state” of the Estate Tax is … … in a state of confusion and that’s putting it mildly! Originally, for those dying in 2010, there was no estate tax. Then Congress thought you might not be happy with this arrangement. So they created two methods of taxing estates and determining the basis of…
Read MoreEven Rodney may need an advanced degree to understand this.
Not only are there several different types of tax credits and deductions for education, but they can vary according to status within college (Freshman,Senior, etc.) and your level of income. This article from the Wall Street Journal gives a basic overview of what’s available. As always, contact us before acting on this or any tax credit. …
Read MoreTax breaks of C Corporations
Income splitting. The government taxes the first $50,000 of corporate profits at a lower rate than the individual owners’ tax rates. Therefore, you one should split your C corporation’s income between yourself (or your S Corp) and the C corporation. This allows you to pay taxes on the salary you pay yourself at your individual…
Read MoreUS Treasury indicates about 70% of millionaires to be hit with new tax are small business owners.
Depending on which definition you choose of what defines a “small business owner,” any new “millionaire tax” is going to disproportionately affect the group that creates the most new jobs in our country. A new US Treasury study indicates that over 70% percent of so-called millionaires hit with this type of tax are small business owners. Almost every business…
Read MoreWhat’s in your wallet …(or on your copier)?
I’ve always liked the Capital One credit card commercial that closes with the line “What’s in your wallet?” We’re asking, “What’s on your copier?” The amount of confidential data that’s stored forever on your business copier might surprise and come back to haunt you. Need proof? Check out this video.
Read MoreLand of the free and home of the subsidized?
Under the “department of statistics that really scare me” , here are some charts that show the rapid growth of Americans on the government dole. Here’s the same information showing which departments are the most culpable.
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