A real estate transfer tax is a one-time tax paid at the closing of a property, and is considered a stream of revenue for state budgets. This transfer tax though, once collected is not generally used for housing-related purposes. The tax is based on the value of a property as agreed to by the parties in a real estate contract.
In the excitement of selling or buying a home, often the real estate transfer tax cost is overlooked. Depending on locale, either the buyer or seller pays the tax at closing or escrow, but beware in New Hampshire both the buyer and seller pay, half of 1.5%!. In some states it can be a formidable amount, you should be prepared for what the transfer taxes will be, and who pays them, before you start a home search or list your home for-sale.
The good news is, thirteen states don’t have a real estate property tax. They are: Alaska, Idaho, Indiana, Louisiana, Mississippi, Missouri, Montana, New Mexico, North Dakota, Oregon, Texas, Utah, and Wyoming.
The bad news is that the remaining thirty-seven states and The District of Columbia charge taxes on the transfer of a property. The tax is only levied once when a property is exchanged between parties, unlike general property taxes which are paid annually and are based on the assessed value. Real estate transfer taxes range from a low of .01% in Colorado to a high of 1.28% in Washington state.
Variations on transfer taxes include; in Arizona only charges a tax on deeds. However Alabama and Florida charge on deeds and mortgages. To avoid financial surprises, inquire early as to who pays (buyer or seller) and how much transfer taxes will be. Some states dictate who pays the tax, and some just want the tax paid. This cost can typically be negotiated between the parties. Consult an experienced real estate attorney.
A handy online link for transfer taxes for all fifty states.
http://www.parealtor.org/content/AssetMgmt/Issues Resource Center/Realty Transfer Tax/Transfer tax chart.pdf
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Mark Nash, is a residential real estate author, broker, columnist and writer based in Chicago. His fourth book 1001 Tips for Buying and Selling a Home received eighteen five star reviews on Amazon.com. His latest book; Real Estate A-Z for Buying & Selling a Home will be published in December 2006. Mark publishes a free monthly ezine for real estate professionals. Agent to Agent features ten articles that offer free reprints for agents, home buyers and sellers through EzineArticles.com . Real estate news and book reviews, Celebrity Homestyles, Home selling and buying tips and advice, Joke-of-the-Month, Help this Agent, and agent marketing tips. Over 5000 subscribers in the U.S. & Canada. Subscribe at: http://www.1001realestatetips.com/forrealestateagents.html Tip! Buy a house. The mortgage interest and real estate taxes are deductible, and may allow you to itemize other deductions such as property taxes and charitable donations.
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Tags: get tax help, tax reduction, federal tax, tax relief, income tax
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 file your own taxes from the comfort of your own home with very little stress. It is really not as difficult as you think and can actually have quite a few advantages.
The first thing you should do is decide how you will be filing your taxes. Will you file taxes online? Will you go to an accountant? Perhaps you will use the free e-file programs that are available. Filing taxes online is rapidly becoming the most common way of filing taxes. Even if you go see a tax professional, they are likely to file your taxes online because the process is quicker. In addition, those who file online typically receive a refund quicker than those who file through regular mail. Many tax preparation software packages include the option of storing your information from last tax season which allows you to quickly complete information that hasn’t changed.
There are some things to remember when filing your taxes online. First, you will want to read your W-2. Find out what each of those boxes mean and be sure to read the back of your W-2 as well before you begin. You will want to print out copies of your tax forms, even when you file them online, for your records. Most online filing services will provide you with a confirmation that the IRS has received your taxes. You will want to print that out as well.
Online tax filing programs typically will offer tax advice as you work through the programs. It is a good idea to go through the tax information that is given, even if you do not think it applies to you. You might be surprised by something you are able to deduct or an additional credit you are able to claim. That is one advantage of opting to file taxes online.
The IRS website, in addition to offering a tremendous amount of tax information, will provide you with different options you have to file taxes for free. There are different criteria for each organization that files taxes for free. You will most likely be able to find one that applies to you. There are also many tax preparers that will file your taxes online for free if you pay them to prepare your taxes for you.
Many commercial software packages allow you to file online for free as well. Once you purchase the software, you can file your federal taxes for no additional cost. Some programs will allow you to file taxes for free in your particular state. Others charge an additional fee.
Filing your taxes online can eliminate a lot of the stress from taxes. The programs have error checkers and calculators built in so you have a much smaller chance of making an error. With so many options to file for free, it is no wonder that many Americans are choosing this route to file their taxes.
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Natalie Aranda writes on business and finance. 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. The first thing you should do is decide how you will be filing your taxes. Will you file taxes online? Will you go to an accountant? Perhaps you will use the free e-file programs that are available. Filing taxes online is rapidly becoming the most common way of filing taxes. Even if you go see a tax professional, they are likely to file your taxes online because the process is quicker. Tip! Employment Taxes: Home-based workers who employ others must comply with many additional tax requirements. IRS Circular E, Employer’s Tax Guide, covers the federal regulations, and your state tax agency can inform you of state requirements for employers with regard to income, state unemployment, and workers’ compensation taxes.
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Tags: tax attorney, tax, tax season, property tax, tax forms
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." This program would provide increased pay, health care and benefits for veterans and their families. The cost of the program would increase outlays by $99 billion over the next five years. The top income tax rate would be increased to offset the increase.
In addition to the noted costs, NTUF Senior Policy Analyst Demian Brady noted that there are several "cost unknown" items that would significantly increase the net total spending that the Democratic agenda is seeking. One of these items includes a proposal to screen 100% of all inbound US Cargo.
"Americans should take note that proposals containing many political promises are likely to contain many tax dollars as well," Brady said.
"Given that the average House Democrat’s agenda in the last Congress would have boosted spending by $521 billion, the ‘New Direction for America’ may appear to be modest," he continued. "Many taxpayers, however, are probably hoping that if Democrats take control of Congress, they will somehow find the fiscal responsibility on Capital Hill that has been lost amongst slabs of pork-barrel spending and IOU’s from unfunded program liabilities."
Other major spending plans include a proposal for a savings account system in which the federal government would match dollar-for-dollar the first $1,000 a citizen contributes to a personal retirement plan. This is estimated to cost taxpayers $7.5 billion each year.
The largest item in the spending program is healthcare spending at $28.8 billion. It includes reforms to the Medicare prescription drug program and accounts for 36% of the increases. Other spending includes education increases for teacher recruitment and lower student interest rates.
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Martin Lukac represents http://www.RateEmpire.com, an Internet consumer banking marketplace. RateEmpire.com is a destination site of personal finance, investing, taxes and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. RateEmpire.com also operates a financial portal #1 American Financial, found at http://www.1AmericanFinancial.com and San Diego loan portal http://www.LendingSanDiego.com |
Tags: tax accountant, pay less tax, tax information, estate tax, tax preparation
The scenario is as follows
Ed 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
$1,000 in escrowed Real Estate taxes to the bank
What is Ed’s “basis” in the house and land purchased from Ruth?
A. $100,000
B. $102,000
C. $104,000
D. $106,000
AND Now, Ed decides to sell the house and the land and receives $360,000 for the property 5 years later. How much of his gain will he have to pay taxes on? (Ed is single and lets say he did not invest any more money into the property)
A. 0
B. $4,000
C. $8,000
D. $12,000
Note: If you sold your house and you miss this question, you probably should NOT be doing your own Taxes. Contact your Tax Professional as soon as possible. In fact it would have been best to contact your Tax Professional “BEFORE” you sold your property, because if Ed didn’t live in the property for 3 of the last 5 years that he owned the property, then he would be exposed to Capital Gains Taxes on $258,000.
The correct answers based upon Tax Codes; are B and C
Congress votes in over 100 new Tax Laws every year. The software programs do an excellent job of implementing these changes, however, I am not sure how well they do with finding the loopholes.
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Cassandra Ingraham is a Tax Accountant and Instructor for Basic Tax Classes in the San Francisco Bay Area. During the balance of the year she can be found at http://www.taxeswilltravel.com providing Formal Introductions to Lenders for Accounts Receivable Funding (Factoring) and Purchase Order Funding. Individuals with Tax issues can find dozens of self-help tax articles at: http://taxeswilltravel.com/article_index.htm |
Tags: income tax, tax, tax time, estate tax, tax relief
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 to fully expense tangible property in the year it is purchased )- In 2006, a business can expense $108,000 in capital expenditures.
To qualify for the section 179 deduction, your property must meet all the following requirements.
* It must be eligible property.
* It must be acquired for business use.
* It must have been acquired by purchase.
4. Do not over estimate expenses that you don’t have receipts for.
5. Do not round you number off to $50, $100, $150 $200 - allow your numbers to be “real” $51, $108, $148, $203, etc.
6. Do attach an explanation if you have an extremely large deduction.
7. Don’t try and force the software if your e-file won’t go through - take your return to a Tax Professional. There is a reason the e-file didn’t go through.
8. Do file your taxes before April 15. Extensions give IRS more time to review your return since it is not filed during the season rush.
9. Do sign and date your return. You would be surprised at how many people forget to sign and date their return.
10. Do not take the home office expenses unless you know what you are doing, especially if you are planning on selling your home in the next 3 to 5 years.
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Cassandra Ingraham is a Tax Accountant and Instructor for Basic Tax Classes in the San Francisco Bay Area. During the balance of the year she can be found at http://www.taxeswilltravel.com providing Formal Introductions to Lenders for Accounts Receivable Funding (Factoring) and Purchase Order Funding. Tip! Participate in company retirement plans. Every dollar you contribute will reduce your taxable income and thus your income taxes.
Individuals with Tax issues can find dozens of self-help tax articles at: http://taxeswilltravel.com/article_index.htm |
Tags: tax, tax accountant, taxes, tax forms, pay less tax
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 seeking real and last relief from high taxes? If so, read on and we’ll explore ways you can keep your own taxes in line.
Render unto Caesar the things that are Caesars, and render unto God the things that are God’s. Yes, even in Bible times taxes were a big issue. Back then, the government extracted taxes from its citizens by force, if necessary. The biblical command is clear: what the government wants, the government should get. Of course, illegal means of obtaining tax money is never encouraged but obviously the mandate is that all citizens must pay their share of taxes.
Today, modern democratic governments allow citizens to have at least some voice in how governments tax its people. In many cases this can even involve a proposition to the law, California is famous for this, where citizens can demand that the government cap taxes. By vote, citizens have the power to tell their elected officials how they must run the government.
Unfortunately, very few places empower their citizens to the point that California does. However, real relief for you can come in several different ways and the sum of each can add up to decent savings. These include:
Itemizing your tax returns. The IRS permits taxpayers to itemize their deductions to lessen their overall tax burden. Millions of taxpayers do not itemize, losing hundreds of dollars per year in potential tax savings.
Disputing property taxes. Property tax increases that are several times the inflation rate are commonplace in many northeastern states. While you may never be able to roll back taxes you can dispute an erroneous assessment. Challenge your tax bill with your tax assessor to drop your annual burden by 5 to 10 percent or more.
Contesting Sales Tax Increases. A state sales tax increase from 6 to 7 percent may not sound like much to most consumers. However, if you regularly spend 10,000 per year on goods, that amount translates into a quick $100 tax increase. Perhaps your governor needs to be reminded that the fat should be trimmed before the taxpayers are bilked.
Naturally, raising your voices collectively will go added weight to your cause. If you know that government mismanagement is behind the proposed tax increase, band together with other citizens and demand some accountability. Everyone deserves relief from high taxes including you!
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Jeff Lakie is a freelance finance writer, His website The Tax Guide is a great place to find out more about Tax Help. Visit his site today and find out more. |
Tags: pay less tax, tax relief, property tax, tax help, tax accountant
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 kind of corporate model, you should look at the tax rules and regulations related to a corporation.
Tax Laws for Various Corporations
Tax laws vary from country to country and state to state. You need to go through them before and after incorporating. In general, all countries have mandatory tax requirements from companies. Your corporation needs to pay taxes on the profits it earns. Even if your corporation is registered abroad, you may need to pay taxes if you reside in your home country.
1) C Corporations have to go by standard corporate tax laws. They need to pay taxes on their profits, subject to certain deductions depending on their shareholding structure.
2) S Corporations are the best option if you have a startup company or a small business. S corporations do not have to pay income tax, and get to enjoy the advantages of being a standard corporation. The eligibility condition is that your small business should have less than 75 shareholders who are all citizens of the US. To get the benefits associated with the Subchapter S Corporation, you need to file an application with the tax authorities. If you want to submit taxes under LLC structure, you need to submit another application before the current financial year-ends.
3) Limited Liability Partnerships, or LLC, are preferred by businesses that need streamlined allocation of profits and losses. This facility is not available to S Corporations. LLCs need to file form 100 ES and Form 100.
S Corporation Taxes
Since this article is primarily concerned with entrepreneurs and small businesses, it would be relevant to go into the details regarding the S-corporation. If you decide to register yourself as an S-corporation to avail tax breaks, you need to keep in mind the eligibility conditions. Apart from the conditions already discussed, you need to remember that you have to use the calendar year as the financial year of the company. In addition, any shares your company sells have to be of a single kind.
Advantages of Being an S Corporation
1) The best thing about the S Corporation status is that the shareholders shoulder the responsibility for paying the tax as their personal income tax. Therefore, the corporation need not pay income tax twice over- first as a company and secondly as individual shareholders. In fact, most S corporations do not pay any tax.
2) It reduces the need for extensive paperwork when filing tax returns or declaring income.
If you wish to incorporate your small business and need more information about tax structures of various corporations, you can consult a small business advisor or tax consultant. Choose the type of incorporation carefully, as taxes will apply to your business based on that. Get yourself educated on the advantages and disadvantages of each type of incorporation vis-
As we roll towards the end of 2006, you are probably thinking about the holidays and gifts you need to buy. Well, it is also time to give yourself a tax gift.
Take Expenses Now To Limit Your 2006 Business Taxes
Take a moment to think back to last April. Do you remember the anguish of writing a check to the Internal Revenue Service? Did it seem a bit more than it should have been? Did you have to scramble to put together the funds? If you do not recall, go check the ledger in your check book or your accounting system. Bring back bad memories? If you want to avoid this situation again, you need to start following the simplest of tax strategies.
A time-tested and incredibly effective tax strategy is expensing everything you possible can before the end of the year. Now, the expenses need to be legitimate, but you can do some serious positive damage to your tax bill next year if you take this step. Remember, legitimate business expenses reduce your gross profit, which results in a reduction of your tax bill.
Most small businesses have a very interesting balance sheet around the end of December each year. If you took a look at it, you would think the company was nearly bankrupt. Why? A business that plans ahead will use all available cash to pay for expenses in an effort to “buy down” their profit. A company that otherwise might show a $100,000 profit for the year suddenly shows a $10,000 profit. Of course, it may also have a bevy of new equipment, office supplies and so on.
So, what areas should you focus on? Well, every business is different, so you need to consider the nature of yours. Try to focus on expenses you know will come up in January and February of next year. This can be the most basic of things such as office supplies to more complex expenditures like new office equipment. Make a list of these items and determine what you can buy now instead of next year. Importantly, make sure you understand how much cash you will need in January so you don’t have cash flow problems if you over expense.
If you want to limit the damage of your tax bill in April, the time to act is now. Taking such action is like giving yourself a nice gift, but you have to wait till April to open it.
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Richard A. Chapo is with Business Tax Recovery - providing information on IRS tax debt settlement help. |
Tags: income tax, tax forms, tax accountant, paying tax, property tax
If you complain about paying taxes, and who doesn’t, then you need to take steps to limit the pain next April. Yep, you should always make adjustments to your finances at the end of each year.
People are unique and so are their financial situations. Whipping your finances together at the end of the year is really a matter of deducing what type of year you had. If you are a salaried employee of a business, you taxes are going to be fairly simple as are the financial moves you need to make. A business owner, on the other hand, is going to be dealing with a much more complex situation. Let’s take a closer look.
As a salaried tax payer, you are both fortunate and unfortunate when it comes to taxes. On the fortunate side, you really do not have to do much to address your tax situation. On the unfortunate side, this is because you are really restricted in regard to the steps you can take to limit your tax bill. Foremost among these steps is to maximize your contributions to pre-tax retirement vehicles such as a 401(k) account. If you have yearly bonuses coming up, try to jam them into your 401(k) so you don’t end up owing in April. In addition to this step, you should go through all your finances and deduce whether you can create any tax deductible expenses to offset your income.
If you own a small business, you already know things are a bit more complicated. In this case, you want to try to limit the profit of the business to minimize both your income tax and your self-employment tax. If you are on a cash basis accounting, are there any expenses you can take now instead of January. For instance, can you buy new computers or whatever you are going to need? So long as the expenses are legitimate, you can use this tactic to minimize your taxable income.
If your small business is complex or you own a larger business, you should really take a common sense step. That step is to sit down with a certified public account and discuss your situation. He or she can give look at your finances and offer specific steps that can be taken to reduce your tax bill for the year. The key to this approach, however, is to make the time to sit down with the accountant NOW! If you try to show up on December 30th or in January, you are limiting your options and hurting yourself.
I have a general rule when it comes to taxes. If you want to complain about the amount you pay in April, you can only do so if you take every step to limit them. If you do no planning, you can only blame yourself for the huge tax bill you end up with in April.
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Richard A. Chapo is with Business Tax Recovery - providing information on tax debt relief. |
Tags: federal tax, tax, pay less tax, state tax, property tax
There is a killer on the loose that can steal, kill, and destroy the economy: high taxes. In areas of the world where taxes are very high, economies are generally very weak. Where taxes are low, economies are usually much stronger. Clearly, the advantage for any government is to keep taxes in line in order to keep the economy humming. Let’s take a look at just how low taxes can fuel economic growth.
Some politicians fail to grasp an essential point when it comes time to raising taxes: the more taxpayers have to pay in taxes, the less discretionary money they have available to them. Specifically, high taxes hurt because:
Businesses have less to invest. The bottom line for every business is profit. When a business makes a profit, they have more money to spend on other things including: hiring additional employees, expanding their business, contributing to the local economy, etc. New employees, means more tax revenue as employees pay social security taxes, incomes taxes, etc. More profit means that the business will funnel some of those profits back into the business in the form of expanded services, a newer building, the purchase of goods and services, etc. In addition, the local economy benefits when a business is thriving through their share of property taxes paid, and discretionary funds to donate to local causes, community events, even state backed groups such as the symphony. Raise taxes too much and it will have a ripple effect on the way that businesses help out the local market.
Consumer confidence nosedives. Consumers who feel too much of a tax burden will pull back and not spend. When consumer confidence drops, everyone suffers. The purchase of vehicles, homes, discretionary goods, and the like will drop. Instead of purchasing higher end items, consumers will opt for the best prices thereby threatening entire areas of discretionary spending. On the other hand, if consumers believe that they have enough to live on, they may go ahead and purchase that new vehicle now instead of waiting a year or too. Guess what? The state government reaps a nice tax on the purchase of a new vehicle too!
Cash strapped governments often plead for additional revenue through higher taxes. Instead of resorting to automatic tax increases, taxpayers should demand that governments consolidate services, trim expenses, and put a freeze on hiring until they get their house in order. Failing that, consumers and businesses can expect stifling increases that can only hurt the economy.
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Tip! State and Local Taxes: Depending on where you live, you will face a variety of state and local tax requirements. All but nine states (Alaska, Wyoming, Nevada, Florida, Tennessee, South Dakota, New Hampshire, Texas, and Washington) have state personal-income taxes.
Jeff Lakie is a freelance finance writer, His website The Tax Guide is a great place to find out more about help with back tax issues. Visit his site today and find out more. Tip! Some categories of users are exempt from some taxes.
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Tags: get tax help, state tax, tax forms, federal tax, paying tax
Zoning laws may be determined by your city or your county, and you should familiarize yourself with these laws so you will be able deal with any issues that may arise. First, you need to determine if your home-based business will have employees or walk-up trade. If not, the zoning questions may never arise. Home-based businesses that deal with the public or have non-family-member employees that work out of their home are more likely to have issues with with zoning laws. Before you start your business, get a copy of your local ordinances from your city or county clerk’s office, the city attorney’s office, or your public library.
Usually the problems arise when neighbors complain, and the zoning boards are required to deal with the complaints. If employees and customers are going in and out of your home, making noise, or parking by the neighbors’ homes, your neighbors will probably bring this to the attention of the zoning commission. Also, your hours of operation may also be an issue if you are open early in the morning or late at night and you disturb your neighbors. If your biggest problem is your neighbors, try talking to them about your business ahead of time to help allay their fears. If you meet with resistance from neighbors, you may be able to negotiate a resolution.
The amount of space your business is uses in your home usually cannot be greater than the actual living area. This is called “space percentage,” and it can lead to a zoning issue. Also, the type of merchandise you are selling may also be restricted in a residential area if you are using chemicals or other items that have an unpleasant odor. Most zoning laws allow a nonpolluting home businesses, as long as any home containing a business is used primarily as a residence and the business activities don’t negatively affect neighbors.
You may also be in breach of zoning laws if you post a sign for your business in your yard, and you should read up on signage laws in your area before you post a sign. You may be able to find other business owners in the area who have similar zoning issues, and you can organize a local business campaign to try to change your zoning laws to make them more favorable to home-based businesses.
In many cities and counties, if a planning or zoning board rejects your business, you can appeal or request a variance from the city council or county board of supervisors. You are more likely to suceed if you have the support of all affected neighbors and other businesses in the area. Because of the prevalance of home-based businesses, some communities are working to amend ordinances that prohibit home-based businesses entirely to allow “traditional home-based businesses” that are unobtrusive.
In an effort to protect residential property values, most subdivisions, condos and planned-unit developments create special rules called Covenants, Conditions and Restrictions (CC&Rs) that govern many aspects of property use. When you purchased your home, you received a copy of the CC&Rs, and you should read them carefully to be sure that you are allowed to operate a business in your home. Rules pertaining to home-based businesses are often significantly stricter than those found in city ordinances and they are more zealously enforced. If you violate these homeowner’s restrictions, the homeowner’s association or property management company could obtain an injunction to stop the business activities, and you could be facing stiff fines.
(u)(b)Legal issues affecting home-based businesses(/u)(/b)
The first thing you must do is establish a business entity for your new venture. You need to take this vital step for your business to protect yourself from liability issues. You will also need to apply for a business license before you start selling anything if your state requires one. If your state does not require a license, you may be required to have a reseller’s certificate. Research your state’s business laws and get the proper license or certification.
Many home-based business overlook their need for insurance. Unless you are covered already, you will need to provide your own health, dental, and life insurance. You will also need liability and business property insurance to protect your business and its assets if an accident or other unexpected event affects your business. If you have employees working in your home-based business, you must consider whether you will provide health insurance for them. Also, research the OSHA standards to determine if your home-based business is subject to them.
Tax laws that govern your home-based business
Your tax situation will change when you start your home-based business. Because new tax laws are passed every year, you need to hire a good accountant to be sure you are compliant. Even if you have done your own taxes for years, owning a business means that you will need different tax forms and schedules. It is well worth the cost of a good accountant to be sure that your deductions are viable and that you are paying the correct amount of tax.
State taxes regarding deductions, income tax, and sales tax vary from state to state. Contact your state’s tax office for specific information about how taxes are calculated and collected in your state. The Internal Revenue Service can be researched on-line at www.irs.gov to learn about the tax laws you will be facing. The IRS Web site provides comprehensive information for small businesses and also lists a toll-free number if you need more help. Spend some time at the IRS Web site until you feel comfortable with the new.
You can also get good information from the Small Business Association site on tax laws and other business issues. Another good resource is Nolo Press that sells books, e-books, and guides specifically about small business tax issues. Their Web site also offers free information. If you plan to hire employees, you need to be aware of employment taxes and other issues that face business owners. You will need to set up a system for federal withholding tax, state tax, and other employment taxes, and you need to report and pay the taxes withheld to the appropriate government agency.
Jo Ann Joy, Esq., MBA, CEO
The future of your business starts here!
You may contact Jo Ann by phone at (602) 663-7007, by fax at (602) 324-7582, by email at joannjoy@Indigo Business Solutions.net, and by mail at 2313 East Ocotillo Rd., Phoenix, AZ 85016. I have many published articles, and I will send any article to you free of charge. Most consultations are free.
For information about other important legal, tax, and business topics, free copies of articles, or EBooks, please visit our website at u>www.IndigoBusinessSolutions.net. Copyright 2006. All rights reserved. Indigo Business Solutions is a registered trade name.
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Discover the secrets to success and grow! About the author: Jo Ann has a law degree, an MBA, and an Economics degree. She is a strategic business attorney who works closely with businesses to improve their performance and their chance of success. Her background includes commercial, corporate, contracts, real estate, accounting, financial planning, mortgages, marketing, product development, banking, and business planning and strategies. She ran a successful business for 10 years and writes and gives presentations on many different legal, tax, and business subjects. Please visit our website at www.IndigoBusinessSolutions.net for more information on business, legal, and tax topics and for free copies of articles and EBooks. Tip! State and Local Taxes: Depending on where you live, you will face a variety of state and local tax requirements. All but nine states (Alaska, Wyoming, Nevada, Florida, Tennessee, South Dakota, New Hampshire, Texas, and Washington) have state personal-income taxes.
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Tags: taxes, tax information, tax forms, tax refunds, income tax
Electronic fund transfers are a modern method to transfer money between concerned parties. This secure system works via electronic signal and is considered to be a prompt system that eliminates the physical exchange of money between concerned parties. Similar to using them for payments, taxes can also be paid with EFT. It is mandatory to pay certain taxes with EFT. These transactions comply with predetermined rules and security procedures. These transactions can only take place when customers make a special application to enable such payments. People who need to pay taxes with EFT have to do so for an entire calendar year. A number of people prefer to pay taxes with EFT, as they view the system to be safe and efficient.
Paying taxes with EFT can be done by EFT credit or EFT debit. EFT credit requires people to make applications to initiate such payments, and taxpayers may have to pay a service fee. When using an EFT debit, taxpayers can plan their payments up to 30 days in advance and are not required to pay service charges. There are various taxes that can be paid by EFT. They include sales and use tax and/or solid waste, and surcharge liabilities are over a specified limitation. Other taxes include unemployment tax, communications services tax, fuel tax, corporate income tax and corporate intangible tax.
Others may opt to pay severance tax/solid minerals tax, gross receipts tax, oil and gas production tax, gas and sulfur production tax and/or insurance premium tax through EFT. EFT can also be used to pay pollutant tax and documentary stamp tax. Large businesses prefer EFT tax payments, as they offer a secured system to file for various types of taxes simultaneously. This eliminates the chance of delayed tax payments and other irregularities, and proves to be beneficial for manufacturers and the government. When people choose to pay taxes using EFT, money is electronically transferred from a payer?s bank account to the tax department’s bank account.
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Tags: tax, tax forms, tax refunds, estate tax, property tax
The universal answer to every human problem, according to today’s left, is to raise taxes and soak the rich. My question is, does this work?
There are countries that have done this. Did they function well? Guess which nations did this absolutely? You got it.
The Soviet Union of Russia, the old East Germany, the old communist China, and today’s Cuba, among others. They all had the liberal dream of universal health care, low CEO pay, government funded education and so on.
What was the result? The worst economies in the history of the modern world. Poor agricultural output, stagnant industrial growth, and little or no scientific innovations. Their health care was among the worst in the world. Their educational systems produced few noted scholars.
At the same time, the United States of America, using capitalism, grew to be the largest economy in the world. Why?
The Apprentice Factor
I have watched Donald Trump’s The Apprentice since its beginning, just as a human interest phenomena. What you see on the show is that the contestants are willing to do just about anything to become Donald’s apprentice. Of course this means the chance to become a CEO for one of Trump’s businesses. This means a bright future with all the compensations of a CEO. Yes, this includes million dollar salaries and above, plus all the perks, like stock options and so on. All the evils that liberals hate.
What’s the result? These people are willing to kill their mothers to win. Or, are they? What becomes apparent is that yes, they are willing to do almost anything
