Some people are under the misconception that Social Security benefits are always free from federal income tax. However, depending on how much income you have from other sources, you may have to report up to 85% of your benefits as income on Form 1040 and pay the resulting federal income tax. If this happens, you’re effectively...
keep readingWhen you take out personal loans to buy a business, you want to maximize the tax write-offs for the resulting interest expense. The tax law in this area is tricky. But if you play your cards right, you can get the best possible outcome. First, you need to trace your interest expense outlays. Under tax law,...
keep readingDo you have an interest in — or authority over — a foreign financial account? If so, the IRS wants you to provide information about the account by filing a form called the “Report of Foreign Bank and Financial Accounts” (FBAR). The annual deadline for filing FBARs has been changed. It now coincides with the tax...
keep readingLocation, location, location. You know how important it is for your business. So when choosing a location, you probably research foot traffic, car traffic and the occupancy rates of the neighboring buildings. But if you don’t research zoning laws, all your good business judgment could go to waste. Before you sign a lease or buy a...
keep readingFiring someone in a big corporation is hard enough. In a smaller company, it can be a very personal issue. And if you do a bad job handling the firing of an executive in a close-knit company, the results can be disastrous. It’s difficult to get rid of a longtime — but no longer effective —...
keep readingIf you own a profitable, unincorporated business with your spouse, you’re probably fed up with high self-employment (SE) tax bills. An unincorporated business in which both spouses are active is typically treated as a partnership that’s owned 50/50 by the spouses — or a limited liability company (LLC) that’s treated as a partnership for tax...
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