Tag Archives: tax
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 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 itFinancing arrangements
Thursday, May 6, 2010 // 0 Comments // Tax Law
Related individuals often use complicated arrangements involving capital gains taxes to their advantage. Capital gains incur fewer taxes than other investment income, so one person might decide to pay inflated interest rates to a related person in order to reduce the overall taxable value of the investment. Then, when withdrawing the investment, a huge capital [...]
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 itTax Fraud
Thursday, May 6, 2010 // 0 Comments // Tax Law
Our tax system uses voluntary compliance as its method of assessing taxes, which means that individuals are responsible for filing their own tax returns each year. Happily, most of us are law abiding citizens who diligently file returns by the deadline and pay the correct amount of tax. There remains, though, a small portion of [...]
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 itTaxes and Marriage
Thursday, May 6, 2010 // 0 Comments // Tax Law
When it’s time to tie the knot, tax issues are likely the last issue on the happy couple’s mind. However, it’s worthwhile to sit down after the honeymoon and consider the issues below. Taking a little time to update information as a new couple will ensure your tax filing goes smoothly. Some things to consider [...]
Read more & Talk about itOffer in Compromise
Thursday, May 6, 2010 // 0 Comments // Tax Law
When taxpayers fail to pay their tax debts within IRS deadlines, options such as the Offer in Compromise (OIC) exist to facilitate settlement. The goal of an OIC is to find a tax solution that resolves debt in a way that’s satisfactory to both the government and the taxpayer. Compromise is key. Although the IRS [...]
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 it