TAX
« Previous EntriesCapital Gain and Loss Tax Issues
Thursday, May 15th, 2008Investors
Whenever you sell an investment at a profit, you will probably owe the IRS a tax known as a capital gains tax. This is true for most investments, including stock, mutual funds, bonds, options, or business. Capital gains are the amount by which an asset’s selling price exceeds its initial purchase price. A realized capital [...]
Tax Issues For Foreign Students – F Visa & Opt Status
Tuesday, April 15th, 2008Tax issues for foreign students are often very complicate and difficult. What do you do when the first paycheck, scholarship check or loan disbursement check is received and taxes are withheld?
First of all, is the student is a “resident alien” or “non-resident alien” for U.S. tax purposes?
Resident Alien vs. Nonresident Alien
An individual who is not [...]
Tax Tips for Small Businesses
Tuesday, April 8th, 2008Most of unincorporated business are considered “sole proprietors.” A sole proprietor is just another way of saying “self-employed,” “independent contractor,” or “freelancer.” Income and expenses related to your self-employment is reported on your 1040, Schedule C.
Being self-employed is quite possibly one of the best tax strategies available today. You are in full control of [...]
How do you get audited?
Tuesday, April 1st, 2008The IRS uses a system called DIF (Discriminate Income Function) to identity tax returns to examine. The scoring system is set up to identify specific returns that, if audited, will generate additional income tax. Sometimes, the IRS computer selects returns for audit on a random basis. Your income, deductions or where you live could be [...]
Business Tax Overview
Friday, March 28th, 2008When you have your own corporation, you are responsible for many other tax obligations. Many new entrepreneurs are overwhelming with many complex and burdensome bookkeeping and tax obligations.
When you are an employee, you do not have to worry much about taxes. Almost all of your taxes are withheld from paychecks by your employers. But [...]
Home Office Tax Saving
Monday, March 24th, 2008Do you spend a lot of your time working from home? If you do, you may find not only it is convenient, low overhead, but more importantly, it allows you to deduct the business use of your home and take the advantage of tax saving.
Your personal household expense are generally not deductible. By utilize your [...]
Reduce Taxes For Education Expenses
Monday, March 17th, 2008College (or Higher) Education Expenses / Back to School
If you or your children are studying for college, graduate, or professional level education, then you might be able to utilize the following information to reduce your taxes.
Hope Tax Credit: The first $1,000 of tuition and fees paid for higher education and half of the next [...]
IRS to step up enforcement of Starker exchanges
Friday, January 25th, 2008If you are considering a 1031 exchange (also known as a “Starker exchange”), you better make sure that you do it right. The Internal Revenue Service plans to increase its audits and its enforcement of these exchanges by the summer of 2008.
Usually, when a taxpayer sells a business or investment property, the taxpayer must pay [...]
Are taxes on second homes deductible?
Wednesday, January 16th, 2008Mortgage interest and property taxes are deductible on a second home if you itemize. Check with your accountant or tax adviser for specifics.
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Are property taxes deductible?
Wednesday, January 16th, 2008Property taxes on all real estate, including those levied by state and local governments and school districts, are fully deductible against current income taxes.
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