Have you reviewed your choice of business entity lately? “Business entity” is the legal form under which your business operates. Perhaps you organized as a traditional C corporation to obtain the liability protection offered by a corporate structure. Perhaps you operate as a sole proprietor or in a simple partnership, giving up liability protection but avoiding the double taxation of...
If you hold foreign bank or financial accounts and the total value of your account exceeds $10,000 at any time during the calendar year, you may be required to file a Treasury Department report known as the FBAR. It’s easy to overlook this requirement because it’s separate from your federal income tax filing, with a different deadline and strict rules....
Tags: Foreign Bank Accounts
Category: Taxes
Getting a bank loan for your business may be more difficult than usual in today’s troubled economy. However, if you give your bank a thorough, organized, and well-supported loan proposal, you’ll increase your chances of getting the money your business needs. * Apply early. Applying early shows that you’re planning, not reacting. Also, if you wait until the last minute,...
Tags: bank loans
Category: Business
Need to save more for retirement? Saving money doesn’t have to be hard work. In fact, many successful savers have found simple ways to cut spending and increase their savings. Here are some tips to help you get started and stay on track. * Figure out how much money you need for retirement. The number of years you have before...
Tags: retirement
Category: Taxes
Starting in 2014 employers with over 50 full time equivalent employees must offer substantially all full time employees coverage that is affordable. Employers that do not meet this test will be subject to a two tier penalty system. The rules on what is considered a full time equivalent employee are very low (30 hours weekly) and what is considered affordable...
The IRS rules are complex and potentially restrictive, so a word of caution is in order as you plan the use of your vacation home. Owners of vacation homes often rent out the property when they’re not using it themselves. Renting out your vacation home may or may not make sense for you. The principal variables are the number of...
Tags: Vacation Home
Category: Taxes
This was mentioned in a previous post but it’s worth repeating. For years, the IRS interpreted the IRA rules to allow taxpayers to do one rollover per year in each IRA he or she owned. In doing a rollover, the taxpayer is not taxed on the funds taken from the IRA so long as the funds are redeposited into an...
Tags: IRA rollover
Category: Taxes
Generally, an organization will not owe taxes if two things are true: * It has registered as an exempt nonprofit organization with the IRS, and * It has no business income from activities unrelated to its exempt purpose. Registration is quite straightforward. The IRS grants exempt status to groups organized for charitable or mutual benefit purposes. You must submit your...
Tags: nonprofit tax obligations
Category: Taxes
For many business owners, a business appraisal or “valuation” can furnish vital planning information and help mitigate risk. Consider the following: * Establishing a verifiable value for your business can show whether assets have appreciated at a reasonable rate. If not, the firm’s strategy may need to be adjusted. * Business valuations furnish documentation to support new financing. Lenders need...
Tags: business valuation
Category: Business
Tax records should be kept year-round, not hastily assembled just for your annual tax appointment. Without tax records, you can lose valuable deductions by forgetting to list expenses on your return or having unsubstantiated items disallowed if you’re audited. Generally returns can be audited up to three years after filing. However, if income is underreported by more than 25%, the...
Tags: tax records
Category: Taxes