Tag Archives: Business
Limited Partnerships
Thursday, May 6, 2010 // 0 Comments // Tax Law
Because some companies, such as mining or oil drilling ventures, have large start-up costs and substantial risks of going under, the government allows investors to take tax deductions for initial funding of these companies. Investors receive immediate tax savings, as well as the potential long terms gains if the company prospers.
Read more & Talk about itCharitable donations
Thursday, May 6, 2010 // 0 Comments // Tax Law
Making charitable donations is a legitimate way to reduce your taxable income, and as a result reduce the overall taxes you’d have to pay.
Read more & Talk about itRetirement plans
Thursday, May 6, 2010 // 0 Comments // Tax Law
Since retirement accounts aren’t taxed heavily, investing in them qualifies as a form of tax shelter.
Read more & Talk about itTax credit
Thursday, May 6, 2010 // 0 Comments // Tax Law
A tax credit is different than a tax deduction, which reduces taxable income. A credit, though, reduces your tax liability dollar-for-dollar. For example, if there were a tax credit of $1000 for using environmentally friendly construction materials, you would owe $1000 less in taxes that year.
Read more & Talk about itTax Shelters
Thursday, May 6, 2010 // 0 Comments // Tax Law
In an effort to avoid paying taxes, some individuals and businesses have sought refuge in tax shelters. The term “tax shelter” covers a wide range of methods designed to reduce the amount of tax incurred. The legality of tax shelters varies, and many arrangements are illegal. Thus, the IRS is constantly on the lookout for [...]
Read more & Talk about itTax Scams
Thursday, May 6, 2010 // 0 Comments // Tax Law
Some scammers claim that by starting a home-based business, taxpayers can deduct many personal expenses as “business” expenses. Other schemes involve offshore transactions in foreign countries that have financial secrecy laws. As a general rule of thumb, taxpayers should be wary of anything that sounds too good to be true. Even if they are duped, [...]
Read more & Talk about itChange of Filing Status
Thursday, May 6, 2010 // 0 Comments // Tax Law
Couples getting married may joke about how they’re looking forward to enjoying the tax benefits. While no one seeks a spouse solely for tax purposes, marriage does offer filing options that may prove beneficial. It’s best to consult with a tax professional to determine the optimal filing status for your individual situation though. One option, [...]
Read more & Talk about itAppealing the Filing of a Lien
Thursday, May 6, 2010 // 0 Comments // Tax Law
The IRS must provide written notice of a lien within five days of its filing. Once taxpayers receive that notice, they may opt to request a Collection Due Process hearing with the Office of Appeals. The paperwork involved may become tricky, as you must file with the specific office listed on the Notice of Appeal, [...]
Read more & Talk about itReleasing a Lien
Thursday, May 6, 2010 // 0 Comments // Tax Law
Because liens have such wide-ranging harm, releasing a lien becomes a priority. The IRS will issue a Release of the Notice of Federal Tax lien if the taxpayer meets proper conditions. If the tax debt is satisfied, the IRS will release the lien within 30 days. Satisfying this debt includes payment of any associated interest [...]
Read more & Talk about itConsequences of a Lien
Thursday, May 6, 2010 // 0 Comments // Tax Law
If the taxpayer fails to satisfy the debts in 10 days, the IRS creates a lien and files a Notice of Federal Tax Lien. Because a lien is filed publicly and gives notice to all creditors, the affects can be immediate and devastating to the taxpayer. Liens damage credit ratings, and the repercussions may prevent [...]
Read more & Talk about itWhat is a lien?
Thursday, May 6, 2010 // 0 Comments // Tax Law
A lien gives the IRS legal entitlement to any property you own, or any property that you acquire after the lien is filed. The IRS pursues a lien to satisfy payment of outstanding tax debts. To meet legal requirements, the IRS must follow a certain process when pursuing liens. First, they must assess the tax [...]
Read more & Talk about itChapter 13
Thursday, May 6, 2010 // 0 Comments // Tax Law
Chapter 13 bankruptcy can only be filed by individuals and acts as a means of reorganization. Individuals who have an income that would allow repayment of debts will typically use Chapter 13 as a way to institute a 36 to 60 month payback plan. Individuals who are behind on their mortgages or have debts that [...]
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