The amounts for exemptions and deductions usually change from year to year. Each type of tax savings has its own rules for who may or may not take the exemption or deduction. Exemptions and deductions reduce taxable income and take effect before Line 43, which is your taxable income. Tax credits are figured after Line […]
Some people wait until the last minute to file their tax returns and other want to get it over with as soon as possible, especially those getting a refund. However, the Internal Revenue Service (IRS) will not process any tax returns earlier than the date that it decides to open. Last year, the IRS started […]
The estate tax, commonly referred to as the death tax, was made permanent in the Internal Revenue Code as part of the American Taxpayer Relief Act of 2012. The tax passed on Jan. 1, 2013. The tax exemption amount changes every year and the change is based on inflation. When it was first made into […]
If you normally throw receipts away, start keeping them for the business. While it’s not mandatory to provide receipts for your taxes, you have a better chance of ‘winning’ against the IRS in an audit. Part of organizing your business taxes is the organization of receipts, including those for services, entertainment and goods.
Start Using Accounting […]
You’ve come up with a brilliant business concept and you are in a hurry to get it going. That is the biggest mistake you could make, as that leads to many other “mistakes” that could cost you success. Business planning takes time, and ensuring that it is done correctly takes a little money – but […]
It’s never too early to start gathering an estate plan. Even young adults that do not have many assets should begin working with an estate lawyer to begin the process of drafting an estate plan, especially if they have children. Many people think that death is so far off that they don’t plan. However, anything […]
When you make charitable donations, be sure they are deductible by following the rules the Internal Revenue Service sets forth. Certain rules apply to donations less than $250, more than $250 but less than $500 and over $500. Regardless of value, every donation must be made to a qualified charity in order for you to […]
When creating your estate documents, you need to determine which documents best fit your situation. Wills, trusts, living wills and powers of attorney could save you money and will help your heirs save money if you become incapacitated or when you die.
Will vs. Trust
Both documents are used to give your assets to those of your […]
The gift tax may have a severe financial impact on your finances, depending on the size of the gift, the size of your estate and other factors. While many do not have to worry about gift taxes, some do, as there are limits to how much you are able to gift. Keep in mind that […]
The time to start getting ready for filing your taxes is the day you file your current taxes. If you keep receipts and stay organized throughout the year, your taxes – whether you do them or an accountant does them – will be less painful.
1. Create a Filing System
Create a filing system, whether digital or […]
