The straight line

Have you been contemplating moving to another state with lower taxes? Your move could lower your state tax bill, but you want to make sure to establish that the new state is your place of legal residency (also known as your “domicile”) for state tax purposes. Otherwise, the old state could come after you for taxes...

The Internet has created a new set of challenges for your sales department. The opportunities go far beyond simply taking orders on a company website. Train your staff in the nuances of the electronic age and you’ll strengthen and extend your reach. Strategy 1: Narrow your prospects. Use the Internet to search for information about potential customers....

Does your business depend on salespeople? If the answer is yes, you probably rate and compensate them based on quotas. While that method of determining compensation is obviously fundamental and hard to dismiss, it’s also important to consider other measures of success. To encourage sales efforts that get results and grow your company, it’s worth paying...

Real estate owners who rent their properties often incur tax losses due to depreciation write-offs and other allowable deductions. However, the ability to deduct those losses might be postponed indefinitely by the passive activity loss (PAL) rules. In general, these rules limit deductions for rental property PALs to the amount of income that you have from...

Do you materially participate in a business or rental activity — or are you just a passive investor who isn’t directly involved in a project’s day-to-day operations? The IRS has prescribed seven tests to help individuals classify income, gains and losses from activities as passive or nonpassive. (See “PAL Basics” below.) The passive activity loss (PAL)...

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...