07th May 2008
One strategy companies have used in recent years is to reward employees with options to purchase a certain amount of the company's stock for a fixed price after a defined period of time. The employee is not required to exercise the option. Usually (and ho...
07th May 2008
Over the years, I have met and worked with literally hundreds of business owners. At one time or another, many of them have written a business plan. But very few of them have a working business strategy. A business plan and a business strategy are two ver...
29th April 2008
When the income tax was first introduced in the early 20th century, it was a flat rate on high-income taxpayers. As the Government needed more money, the rate increased and the tax base broadened to include more and more people. If this were the end of th...
29th April 2008
On Tuesday (Tax Day), John McCain announced his idea for how to simplify the tax filings for mllions of people. Finally, a workable idea!!! His idea is quite simple and would solve many problems. For those of you who didn't hear about it, here it is in a ...
16th April 2008
One of the most important steps in any tax strategy is determining what entity should be formed to hold your businesses and investments. For legal purposes, there are four basic types of entities: sole proprietorship, partnership, corporation and limited ...
15th April 2008
When it comes to business travel, expenses, and deductions, I am frequently asked "What constitutes travel away from home and why is it important?"
In order for certain business travel expenses to be deductible, you must be traveling "away from home." ...
14th April 2008
This is the time of year when all Americans think about their tax situation and what they might do differently to reduce their heavy tax burden. There is a record of an ancient civilization that was required to pay 50% of their earnings to their captors. ...
13th April 2008
You should if you want to take full advantage of a tax deduction many people overlook. The home office deduction allows individuals to deduct expenses that are not otherwise deductible such as utilities and homeowners insurance. There are certain requirem...
02nd April 2008
This is all about the foundation of financial success: wealth strategy. My key purpose here is to draw a clear, unmistakable distinction between wealth strategy and what usually passes for "financial planning."
To be blunt, conventional financial plann...
28th March 2008
Even if you have strong positive cash flow from your rental real estate, chances are you still have a loss for tax purposes due to the depreciation deduction.
This is a great tax strategy because your positive cash flow is sheltered from tax. But, it ...
26th March 2008
The Limited Liability Company (LLC) is a terrific tax entity. The number one reason is its flexibility. Specifically, an LLC can be taxed as:
- a sole proprietorship
- a partnership
- a C corporation
- an S corporation
Do you know how your LLC is...
20th March 2008
The number of IRS audits increased in 2007. See my recent article "IRS Ramps Up Audits" to read more about what is causing this increase and who is targeted. What can you do to be prepared?
#1 Build a defense for your rental real estate losses.
Wh...
19th March 2008
Are IRS audits really on the rise? YES!
Here are a few highlights from the IRS's audit activities in 2007:
For the first time since 1998, the percentage of individual tax return audits was higher than one percent. Audits of S corporations and part...
03rd March 2008
How do you find a tax preparer that is right for you?
First, not all tax preparers are the same. I wrote an article about this last year titled: Tax Returns: Are They All Created Equal?
HOW DO YOU FIND A TAX PREPARER THAT IS RIGHT FOR YOU?
First, ...
28th February 2008
Congress recently passed the Economic Stimulus Act of 2008. It's designed to inject $152 billion into the U.S economy. What does this mean to you?
You could be one of the 130 million taxpayers who will receive a rebate check this year.
If you own a...
