Business | Best Tax Tips

Tax reminders

With 2009 nearly half over, the Internal Revenue Service reminds individual taxpayers there is no better time to check their 2009 federal income tax withholding levels to make sure they do not face any surprises when returns are due next spring. The Making Work Pay Credit lowered tax withholding rates this year for 120 million American households. However, particular taxpayers who fall into any of...

June 24th, 2009 by The Tax Man

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Home Based Business Tax Reminders

If you use part of your home for business, you may be able to deduct expenses for the business use of your home. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation. The Image by fensterbme via Flickr home office deduction is available for homeowners and renters, and applies to all types of homes, from apartments to mobile homes. However, the Internet...

April 2nd, 2009 by The Tax Man

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Did you sell stock in an Insurance Company that had demutualized?

What does this recent case mean for you? If you sold shares from a demutualization, you may also be eligible for a refund of tax paid. You must file an amended federal tax return and it must be timely filed. The rules for filing amended returns, just like the facts of this case, are complex. Also, keep in mind that the IRS Image via Wikipedia may appeal the court’s decision. A higher...

April 2nd, 2009 by The Tax Man

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FDIC Deposit Insurance Coverage

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects against the loss of insured deposits if an FDIC-insured bank or savings association fails. FDIC deposit insurance is backed by the full faith and credit of the United States government. Since the FDIC was established, no depositor has ever lost a single penny of FDIC-insured funds. Image...

February 25th, 2009 by The Tax Man

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Independent Contractor vs. Employee

Understanding the difference between an employee and an independent contractor is very important. If you are an employer, you are required to withhold and contribute a matching amount of FICA and Medicare taxes from your employee’s income. However, if your workers are independent contractors, you are only required to report payments of $600 or more on a Form 1099-MISC (Miscellaneous Income)....

January 15th, 2009 by The Tax Man

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The Economic Stimulus Act of 2008 Business Tax Benefits

The The Economic Stimulus Act of 2008 included bonus depreciation to encourage businesses to increase investment. However, companies in a loss position cannot take advantage of bonus depreciation because they do not have any taxable income against which to take the deductions. Image by cbcastro via Flickr The housing act allows taxpayers (corporations) to use accumulated alternative minimum...

January 10th, 2009 by The Tax Man

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Increased Vehicle Depreciation Deduction Limits

As part of the Economic Stimulus Act of 2008, Congress enacted a temporary increase in the allowable depreciation deduction for passenger vehicles under the luxury car rules. Under this law, taxpayers will be able to deduct just over $11,000 as first-year depreciation on business use vehicles purchased and placed in service in 2008. This increase in the luxury car limitation may be relevant if you...

January 5th, 2009 by The Tax Man

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2008 Economic Stimulus Act – Code Sec. 179 Expense and Bonus Depreciation

Congress has passed the Economic Stimulus Act of 2008 (2008 Economic Stimulus Act), which increases the limitation on expensing depreciable assets and also provides for 50% bonus depreciation on new equipment for the year it is placed in service. More specifically, the 2008 Economic Stimulus Act provides an increase in the expense deduction limitation under Code Sec. 179 from $128,000 to $250,000 and...

December 30th, 2008 by The Tax Man

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Alternative Minimum Tax (AMT)

Image via Wikipedia The Alternative Minimum Tax parallels the regular income tax: taxpayers whose AMT liability exceeds their regular tax liability pay the difference as AMT. The AMT replaces personal exemptions and some deductions (most notably, the standard deduction and the deduction of state and local taxes) with an AMT exemption and applies two tax rates-26% on the first $175,000 and 28%...

December 4th, 2008 by The Tax Man

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