-----------------

Homepage

Articles: 1, 2, 3, 4, 5, 6, 7

The IRCS1031 Tax-Free Exchange - Calculating the Basis of Replacement Prope
2008-02-09 13:22:00
Introduction This article provides a very brief introduction to two different methods and approaches for the computation of the basis of replacement property receive in an Internal Revenue Code Section 1031 (IRC§1031) exchange. It should be noted that these methods are relatively “simple,” when compared to more complex IRC§1031 exchanges. This is because some may involve more than one
More About: Free , Exchange

What is an "Ordinary" and "Necessary" Business Expense?
2008-02-09 13:21:00
Introduction For a business expense to qualify as deductible it must be (1) connected to the taxpayer’s trade, business or profession, (2) be an “ordinary and necessary” expense of this trade, business or profession, and (3) be paid or incurred during the tax year for which the deduction is claimed. The first and third items are self-explanatory, but which expenses are “ordinary” and which
More About: Business , Ordinary

Avoiding "Hobby Loss" or "Not-for-Profit" Classification
2008-02-09 13:20:00
IntroductionThis article provides guidance to those concerned that their profit motivated trade or business activities remain deductible, particularly in those cases where losses have been generated in the past and/or are expected to continue to be generated in the future.The 3-out-of-5 year rule and taxpayer misconceptionsThe Internal Revenue Service (IRS) has established an administrative rule
More About: Hobby , Profit , Loss

"Employee" versus "Independent Contractor" Status
2008-02-09 13:18:00
IntroductionIn an employer/employee relationship, the employer has the right to control and direct the employee. An employee is subject to the will and control of the employer. The employer controls not only what tasks are to be performed, but also how these tasks are to be performed (see Treasury Regulation §31.3401(c)-1(f) and Internal Revenue Code Section (IRC§) 31.3401(c)). Qualified real
More About: Versus , Status , Independent , Employee , Contractor

The Proposed Income Trust Taxation -- Impact to Canada and Investors Around
2008-02-09 13:17:00
On October 31, 2006, the Canadian government gave a rather nasty surprise to the market by imposing a new tax on income trusts. Existing trust will be taxed starting from 2011, for new one the effective date is as early as 2007.The Toronto stock exchange dropped 2.6% and the S&P/TSX Income Trust Index plunged 12%.What is Income Trust?It is an entity that is required by law to distribute almost
More About: Canada , Taxation , Investors

1031 Exchange for Commercial Real Estate
2008-02-09 13:16:00
A 1031 exchange is defined under section 1031 of the Internal Revenue Code. This code states that if an asset, usually some kind of real estate like land or building, is sold and the proceeds of the sale are reinvested in a similar kind of asset, then no gain or loss is recognized, permitting the deferment of capital gains taxes. A 1031 exchange is also called Like Kind exchange.If an investor
More About: Commercial , Estate , Real Estate , Exchange , Real

Finding Real Relief From High Taxes
2008-02-09 13:15:00
It is the bane of citizens everywhere: high taxes that can crimp your lifestyle, even affect the way that you do business. In many areas, citizens are revolting against ever increasing taxes by insisting that lawmakers hold the line on spending. The results of these efforts are mixed and largely depend on the community’s determination to hold our elected official’s feet to the fire. Are you
More About: Taxes , Real , High , Relief

How Do Taxes Apply To A Corporation
2008-02-09 13:14:00
A corporation is a designated entity where the individuals related to it, and the company, have different legal identities. The reason most companies prefer to incorporate is asset protection – incorporation protects your personal assets from seizure during a lawsuit.If you decide to incorporate your small business, you can choose the S corporation, C corporation or LLC model. Before choosing any
More About: Taxes , Corporation

Figuring Your Basis, Get It Right, Reduce Your Taxes, Get It Wrong and Pay
2008-02-09 13:13:00
The scenario is as followsEd purchased a house on an acre of land from Ruth. Prior to the purchase Ed has been renting the house from Ruth for $1000 per month. Ed paid the following:$100,000 in loan proceeds to Ruth $2,000 in points to the bank $1,000 in real estate taxes $1,000 in pas due rent to Ruth $1,000 in closing costs to the bank for legal recording, title insurance and survey fees
More About: Taxes , Reduce , Wrong

10 Do's and Do Not's for Filing and Lowering Your Taxes
2008-02-09 13:12:00
1. Do keep good records of your expenditures.2. Do keep your receipts, even if its in a shoe box. Its better to have the backup in case IRS ask questions.3. If you are in business and you need to purchase equipment for your business, do so, and ask your Tax Professional to 179 the property. (The provisions of Internal Revenue Code Section 179 allow a sole proprietor, partnership or corporation
More About: Taxes

2007, 2008 Income Tax Estimator, Calculator Online
2008-02-09 13:10:00
Are you wondering how much money you'll get back on income tax this year? Are bills piling up, or are you thinking about a spring vacation to a warm beach?Whether you use income tax refund money to pay bills or go on a vacation, you have the opportunity to know how much money that will be today. By estimating your taxes, you can project the amount you will receive at tax time.By tax estimating
More About: Calculator , Income , Online , Estimator , Income Tax

Study Shows "New Direction" Could Lead To Higher Taxes
2008-02-09 13:09:00
The Democratic Party's "New Direction for America" could mean more economic solidity, but might also result in higher taxation, according to a recent study.According to a line-by-line analysis of the program by the National Taxpayers Union Foundation, the plan includes billions of dollars of new spending.For example, the largest spending program is the "G.I. Bill of Rights for the 21st Century."
More About: Taxes , Study , Higher , Lead

Tax Preparation and Filing Online
2008-02-09 13:04:00
Using the internet to file your taxes online is a convenient way to complete your tax return.If you are thinking about preparing your taxes online this year, then don't worry because it's easier than ever. Here is a quick guide to help you get your tax preparation and tax filing online done fast and easy.There are many websites where you can prepare and file your taxes electronically to the IRS.
More About: Online , Preparation , Tax Preparation

Child Care Tax Deduction 101
2008-02-09 13:03:00
For parents of children 12 and under, the child care tax deduction can be a life saver to working parents. Parents should become familiar with the tax information regarding the child care tax deduction. If they aren’t sure what to do, there are many tax professionals which can offer tax advice on how to claim this deduction. All of this can help them when it comes time to file taxes online.The
More About: Care , Child

Tax Deduction 101 for Home Based Businesses
2008-02-09 13:02:00
Seeking tax advice and tax tips is never a bad idea. When it is time to file your home based businesses taxes online you want to have every weapon that is legally at your disposal. Having a list of acceptable deductions for your home business will allow you to quickly and legitimately flow through the tax season with little to no hiccups. Here are a few things to think about when beginning to
More About: Home , Businesses

Practical Tips for Filing Taxes Online
2008-02-09 13:01:00
Tax season can be a very stressful time for many people. It can be frustrating trying to understand complex tax codes, deductions and earned income credit. Some people become so intimidated by their taxes that they simply chose to ignore them. Although this can be a tempting solution, it is never the right answer.With a little common sense, a calculator, a few hours and a pot of coffee, you can
More About: Taxes , Tips , Online

VAT: The Basic Principles
2008-02-09 13:00:00
VAT (Value Added Tax) is a sales tax, levied on the expenditure of consumer goods and services and business transactions, which is paid by the consumer at the point of purchase and collected by Her Majesty’s Revenue and Customs (HMRC). First introduced to the UK in 1973, it is now a major source of revenue for the government.There are four different categories for VAT: standard rate (17.5%) for
More About: Basic , Principles

Mortgage Interest Tax Deductability - What Are The Limitations
2008-02-09 12:59:00
Mortgage interest is deductible in two main ways, but primarily limited to your priamry residence and qualifying second home. One is acquisition indebtedness and the other is home equity indebtedness. Failure to understand these definitions may have put many home owners in jeopardy of IRS penalties. While I could just quote IRS definitions, I do not want to put you to sleep as this is an
More About: Mortgage , Interest

3 Tips For Getting The Most Out Of Tax Deductions
2008-02-09 12:57:00
Hundreds of tax deductions that could be filed and claimed go unaccounted for each year. Unfortunately, it is just because people do not realize that they can take them that they do not. Yet, there are many ways in which you can insure that you are getting the most from your filing status, your business and you personal situation. Getting the most out of your tax deductions is all about
More About: Tips

Tax Return Preparation: Love It or Hate It, You Have to Face It
2008-02-09 12:56:00
The term tax is very annoying to many ears. We must all accept the fact that there are many things that we do not like to do, but we have no choice in some matters. Tax return preparation is one such thing that any individual who has an income must do it. All individuals who have an earning are liable to pay taxes to the government. Tax payment is done annually and every individual must be
More About: Love , Hate , Love it , Face , Return

Tax Problems – Procrastinate At Your Peril
2008-02-09 12:55:00
If you are an American, you have to pay taxes. Sometimes it seems like you get it in the pants…err, bank account coming or going. If you get behind on your taxes, things can get a bit more stressed.Tax Problems – Procrastinate At Your PerilWe can talk all day about whether we should have to pay taxes to the government. As recently as the late 1800s, there was no income tax. Ah, for the good old

IRS Releases Mileage Rates for 2007
2008-02-09 12:54:00
One of the advantages of working for yourself is you can write off a lot of different expenses to lower your taxable earnings. One deduction that is very popular is business mileage. Any mileage you undertake for business purposes can be converted into a very healthy tax deduction.The IRS changes the rate at which you can deduct business mileage each and every year. The change has almost always
More About: Rates , Mileage

An Instant Pay Raise Can Help Your Spouse Stay Home With the Kids!
2008-02-09 12:52:00
If you are leaving the children in day care while your spouse works because you need the money, listen-up!You know and I know that children with a parent at home do better in life.Extra care and attention was never needed more by kids than today.Now there is a way your spouse can stay at home with the kids, while the IRS will equal or better the income your spouse loses by not working!Example:Joe
More About: Kids , Home , The Kids , Stay , Spouse

How Are Bonds Taxed Upon Death - A Sequel
2008-02-09 12:51:00
Question: Thank you so much for your response. It was over and above what I needed to know, which is great. The more informed we are on this the better!I do have one additional question. If we cash out the bonds with the estate, the interest will be around $300,000.00. If we cash them out individually (split 3 ways), won't the taxes be lower as they will be under $150,000.00 (including our other
More About: Death , Bonds , Sequel

Secrets of Offshore Banking
2008-02-09 12:48:00
This is an introduction to offshore banking and incorporation a world that you may or may not be familiar with. There are many countries that are considered to be tax havens of one sort or the other. Each jurisdiction has its own reasons in extending a warm welcome to non residents. The aim of this article is to introduce to offshore banking and give you an idea of the benefits of going
More About: Banking , Secrets , Offshore

Understanding The Dreaded Income Tax
2008-02-09 12:47:00
Every year in April, American citizens are faced with an imposing deadline – tax day. Throughout the year, income is earned and then taxed. Depending on the way in which dependants are claimed and deductibles used, a person would then be entitled to money back come income tax time or they would have to pay taxes. In either case, dealing with income tax forms and laws can be a disturbing
More About: Income , Understanding , Income Tax

How Are Bonds Taxed Upon Death
2008-02-09 12:46:00
Question: My grandmother, recently deceased, left E, EE, & HH bonds to me, my sister, and mother. The total is approximately $600,000, under the limit to be taxed. However, there is substantial interest accrued on the bonds. What would be the best way to distribute these? Should we have them changed to our names to avoid the Capital Gains or do the taxes have to be paid before distributed? Will
More About: Death , Bonds

How to Settle Your Tax Debt for Pennies on the Dollar
2008-02-09 12:45:00
When you owe the IRS for back taxes, you probably owe a large sum. Most people who fall behind in their taxes, owe for more than just one year. When you owe back taxes, you know that the penalties and interest will end up costing you more than the original debt... usually MUCH MORE! These fees keep growing and compounding upon themselves only to get you deeper and deeper in debt! I'm sure that if
More About: Dollar , Debt , Settle

Home Improvements Qualify For Tax Deductions
2008-02-09 12:44:00
People who are considering doing some home improvement will be intereseted to know that the money you spend in order to complete your project is eligible for tax deduction. It is very important to know exactly what you are doing in your home improvement process, however, as home improvement is different from home repair. In the case of the tax deduction, home imporvement will qualify for the
More About: Home , Home Improvements

Accounting - Tax Deductible Medical and Dental Expenses
2008-02-09 12:43:00
An itemized deduction falls under one of the following categories: Medical and dental expenses, taxes paid, interest, gifts and charity, casualty and theft losses, expenses and miscellaneous deductions. Taxpayers who wish to claim medical and dental expenses must use the itemize deduction option and present documented evidence to substantiate the amount being claim. The itemized deduction option
More About: Dental , Accounting , Expenses