If you are ready to purchase your dream home, a careful tax analysis about different types of mortgages must be done. If you want to know about big tax write-off a mortgage can give you, you should learn how mortgages work and then sit down with a tax advisor or an accountant and determined whether a […]
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Posted in:Personal Tax ArticlesThe interest that you pay on your home mortgage loans is a very important factor in your financial tax strategy. The good thing about mortgage loan is that mortgage interest may be tax deductible. This is one of the popular tax deductions that you, the taxpayers, look forward to. However, you must adhere to some rules so […]
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Posted in:Personal Tax ArticlesThere are two types of interest in a partnership: Capital Interest and Profits Interest. Both Capital Interest and Profit Interest are determined based on the contribution of property to the partnership and or services performed for the partnership. The Tax Court has described a Capital Interest is any interest that would entitle the holder to […]
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Posted in:Business Tax ArticlesPartnership or LLC Distributions may be taxable to the partners or LLC members. Distribution of partnership assets can be done as either current distribution or liquidating distribution. A current distribution is when a partnership makes a distribution to the partner(s). The receiving partner’s capital interest is retained fully or partially (IRC Sec. 761(d)). Even if the distribution reduces partner’s […]
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Posted in:Business Tax ArticlesDisclaimer: This article is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. Choosing the best and correct business structure is vital key component to starting a new business or office. This article will address some formation and legal issues that businesses encounter daily. Hopefully […]
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Posted in:Business Tax ArticlesHaving access to reliable NJ/NYC accounting CPA tax services is important for businesses of any size in the New York/New Jersey area. But some businesses may not spend as much time as they should in choosing the accounting and tax services firm for their company. Often the business owners just select the “low cost provider” […]
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Posted in:Business Tax ArticlesA taxpayer who trades securities, reports his/her trades on schedule D of form 1040. He/she is subject to the $3,000 annual limitation that applies to net realized capital losses. Also, securities are subject to the Wash Sales rules (in a nut-shell; loses will not be recognized for tax purposes if you sell a security at […]
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Posted in:Business Tax ArticlesIf you are thinking or already attending a college, university or a graduate school, then you should know about several educational tax credits that you can claim on your personal income tax return. If you are a dependent, your parent(s) can claim those credits on their personal income tax return. This article addresses The American Opportunity […]
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Posted in:Personal Tax ArticlesIf you send your kid(s) to a summer camp(s) or day care facility, you might be able to deduct those costs by claiming dependent care expense tax credit. Because you and your spouse work or are looking for work, you must arrange to care for your child(ren) under 13 years of age during the school vacation. […]
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Posted in:Personal Tax ArticlesDo you have an IRA or an employer sponsored retirement plan such as: 401-K, 403-B, 457, DB, Profit Sharing Plan, or other qualified retirement plans? Did you purchase a non-qualified annuity to protect your retirement assets? If the answer is yes, then you should know what would happen tax-wise, if you take the money out […]
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Posted in:Personal Tax ArticlesCapital Gains and Losses are recognized when you sell or dispose of an asset (property, stock, bonds, other securities, collectables, etc.) Here are some facts you should know about capital gains and losses. • When you sell a capital asset, you should know the original price. It also referred to as “basis”. The difference between the […]
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Posted in:Personal Tax ArticlesIf you have already filed your individual or business income tax returns and discovered that you made a mistake, or you forgot to add a dependent, or your accountant or a tax advisor missed a tax deduction, or reported wrong taxable income, or you need to make any other adjustments to the taxes; you should […]
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Posted in:Personal Tax ArticlesIf you are living and working abroad you may be entitled to the Foreign Earned Income Exclusion. The foreign earned income exclusion is adjusted annually for inflation. For 2009, you can exclude from the U.S. taxes the maximum annual amount of up to $91,400 per qualifying person. The foreign exclusion is not a simple tax matter and […]
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Posted in:Personal Tax ArticlesHave you spent money to care for your child(ren), or a dependent, or perhaps you are planning to do so this year? If so, you should know that you might be able to qualify and receive a Child and Dependent Care Credit on your federal and state (not all states have this credit please check with your […]
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Posted in:Personal Tax ArticlesIf you would like to contribute to a qualified retirement plans such as 401-K, 403-B, 457, SEP, SIMPLE IRA, KEOGH, IRA, or other qualified retirement plans, you may be eligible for a tax credit known as Retirement Savings Contributions Credit. But not everybody will qualify for this credit. Here are some facts that you need to […]
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Posted in:Personal Tax ArticlesIf your mortgage debt is partly or entirely forgiven during tax years 2007 through 2012, you may be able to claim a special tax relief and exclude the debt forgiven from your income. Here are some facts on this. · Generally, if debt is forgiven, it results in a taxable income to you. However, under […]
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Posted in:Personal Tax ArticlesMany clients ask us what to do if their employer did not provide them with the form W-2? Employers have until February 1st of each tax year to send you the W-2. If you haven’t received your W-2, follow these four steps: 1. Contact your employer: If you haven’t received your W-2, by February 5th contact your […]
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Posted in:Personal Tax ArticlesYou recently bought a lottery ticket and have won, or your trip to Las Vegas was a success and you made some cash in the casinos! Well, the gambling winnings are fully taxable and must be reported on your tax return. Here are some facts you should know on this. Gambling income includes but is […]
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Posted in:Personal Tax ArticlesIf you received or will be receiving Social Security benefits, you should know that some or most of the Social Security benefits may be subject to the income taxes. Depending on your taxable income, up to 85% of your Social Security benefits may be taxable. Here are some facts that will help you determine whether […]
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Posted in:Personal Tax ArticlesThe Alternative Minimum Tax was designed to ensure that anyone who benefits from certain tax deductions pays at least a minimum amount of tax. Tax laws provide tax benefits for special tax deductions and tax credits for certain expenses. These benefits can drastically reduce taxpayers’ taxable income, thus fewer taxes will be paid. Congress created the […]
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Posted in:Personal Tax ArticlesDo you need to obtain a copy of filed federal tax return from the IRS? Here are some important facts you should know. 1. There are two easy and convenient options for obtaining free copies of your federal tax return information — tax return transcripts and tax account transcripts. 2. The IRS does not charge a fee for transcripts, which are […]
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Posted in:Personal Tax ArticlesIf you have children, consider these important tax benefits available to you. In most cases your child can be claimed as a dependent in the year they were born. So if your child was born on December 31st, you can claim that child as a dependant on your personal income tax return for that tax […]
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Posted in:Personal Tax ArticlesIf you have a small business like a sole proprietorship or an independent contractor, or you operate as Single Member LLC, you generally would consider yourself to be a self-employed. For tax purposes, you must file IRS Schedule C, Profit or Loss From Business or Schedule C-EZ, Net Profit From Business with your individual income […]
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Posted in:Business Tax ArticlesIf you are filing an income tax return, you must know which filing status applies to you. The tax filing status is very important! It determines your personal deduction, the amount of tax you would need to pay or if you will receive a tax refund. Here are some facts about the individual tax filing […]
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Posted in:Personal Tax ArticlesThere are three individual tax return forms you can use to file your Federal Income Taxes. Its form: 1040, 1040A and 1040EZ. You can mail your individual tax return by mail or you can e-file it. Whether you use e-file or file by mail, using the simplest tax return form will help avoid costly errors […]
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Posted in:Personal Tax ArticlesThe following are the amounts that are exempt from Federal Estate Tax. In 2005: First $1,500,000 in assets In 2006-2008: First $2,000,000 in assets In 2009: First $3,500,000 in assets In 2010: First 1,000,000 in assets In 2011-2012: First 5,000,000 in assets If your assets (Real Estate, IRAs, Life Insurance, Savings Accounts, CD, Stocks, Bonds, […]
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Posted in:Personal Tax ArticlesMany business owners are curious and interested to know about different ways to save money on taxes. This article will introduce you to a legal way of reducing businesses or corporate taxable income by paying your minor children. The payments to minor children have to be reasonable. The minor child needs to be compensated for the services […]
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Posted in:Business Tax ArticlesThe corporation does not recognize gain when it distributes cash to its shareholders. Also when a shareholder in exchange for cash, redeems a corporation stock, the corporation recognizes no gain. (Sec. 311(a)). On the other hand, if a corporation distributes property in connection to stock redemption, this may result in corporate-level capital gain and/or ordinary income. […]
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Posted in:Business Tax ArticlesMany taxpayers are confused about different tax professionals that prepare tax returns. Even though the current law allows anybody to prepare and file your taxes, it’s strongly recommended to use a tax professional that has one of the nationally recognized tax designations. The IRS is currently working on legislation that will regulate all tax preparers. […]
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Posted in:Personal Tax ArticlesIf you were thinking of getting additional office help and wanted to hire someone on a part-time of full-time basis you need to understand the difference between employees and independent contractors. There is a major difference between employees and independent contractors when it comes to how much tax you as an employer has to pay and withhold […]
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Posted in:Business Tax ArticlesHere are some important facts you need to know before deducting charitable donations/contributions. Note that in order to deduct charitable contribution you need to itemized your deductions on Schedule A of form 1040 Charitable contributions must be made to a qualified charitable organization. Qualified means that the charity is registered with the IRS and has received a status of qualified organization. The most common […]
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Posted in:Personal Tax ArticlesReligious organization can provide to clergy ministers non-taxable benefits referred to as parsonage allowance. It’s done as part of total compensation paid to the minister. How does this work? Religious organization can provide to a minister with rent-free furnished apartment or housing that is owned by the religious organization. Religious organization also can pay the […]
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Posted in:Business Tax ArticlesWith today’s technology many people can run and operate a business out of their homes. Many clients may be able to take a home office tax deduction when filing their tax returns. What do you need to know about claiming the home office tax deduction? Generally, in order to claim a business tax deduction for your home, you must use […]
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Posted in:Personal Tax ArticlesGenerally, you cannot deduct amounts that you approximate or estimate. You should keep proper records to prove your expenses or have sufficient evidence that will support your own statement. You must generally prepare a written record for it to be considered Proper. This is because written evidence is more reliable than oral evidence alone. However, […]
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Posted in:Business Tax ArticlesThis material was written and prepared by TaxBizPro, LLC © 2009 You have a great idea, you are excited and now you want to start your business. So you are asking yourself, where do I begin? First you need to understand that in any business you need to have a plan and a good tax […]
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Posted in:Business Tax ArticlesMany clients ask me what they can deduct and what they can’t deduct? So I am providing the following lists of NON deductible expenses: Expenses You Cannot Deduct Expenses that were reimbursed by your employer. Apartment Rent, unless qualified to claim away from home expenses for a business trip expected to last one year or less, or if […]
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Posted in:Personal Tax ArticlesMany clients ask me what they can deduct and what they can’t deduct? So I am providing lists of possible deductions. The lists are only meant to give you an ideas. These tax deductions are not all-inclusive and not all items are deductible all the time. Many are subject to limitations, may only apply in certain situations. Please keep […]
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Posted in:Personal Tax ArticlesIRS Circular 230 Legend: Any advice contained herein was not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax payments or penalties. Unless otherwise specifically indicated, you should assume that any statement in this website or articles that relating to any U.S. federal, state, or local tax matter was written in connection with the promotion or marketing. Disclaimer: Any articles herein is designed for general information only. The information presented at this site should not be construed to be formal legal or tax advice. Each taxpayer should seek advice based on the taxpayer's particular circumstances.
