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Articles about federal tax reduction (0-50 of 192)
- Buy Your First Home Now And Get The Federal Government To Help Pay For It - Don't Miss This Boat!
By: Safiur Rahman | - Buying a new home is a huge commitment in any economy let alone one where foreclosures and job cuts are running rampant. Ordinarily, you would be quite right to be wary about purchasing a home under these circumstances. The good news, however, is that President Obama's stimulus package has really sweetened the deal for prospective first time home buyers or buyers who haven't purchased a home in the last three years. There are essentially three ways the government can help you, which in conjun ...
Tags: first time home buyer credit, tax credit, new home buyer, first time home buyer credit qualification
- It's Beneficial To Get Tax Relief
By: Tom Selwick | - What is Tax Relief? Tax relief is exactly what it states: economic relief from paying taxes, referring to write-offs or tax-breaks that reduce the total amount of taxes one has to pay.
Tax relief is literally the reduction from a person's annual income to reduce the amount of money a person needs to pay in taxes. Or in other words, to place the person in a lower tax bracket than they might already be in.
Relief is most commonly given on the federal level in the Uni ...
Tags: tax relief
- Cost Segregation - Tax Deductions (the Tax Code Allows Deductions From Gross Income)
By: Patrick O Connor | - By understanding business tax deductions, business owners may enjoy personal benefits from business expenditures - a nice car to drive, a combination business trip/vacation, retirement savings plan - if they follow the myriad tax rules.
The tax code allows deductions from gross income, which reduce income taxes. Increasing tax deductions reduces taxable income and income taxes. Therefore, knowing how to maximize your deductible business expenses enables you to lower taxes.
Tags: Cost segregation, federal tax reduction, tax reduction.
- Tax Reduction Affected By Cost Segregation
By: Patrick O Connor | - Tax reduction is just one of the benefits of cost segregation. Many real estate owners and tax preparers believe cost segregation simply defers payment of taxes. While they recognize it effectively generates an interest-free loan from the government, they do not understand it also provides tax reductions in most cases.
For most real estate owners (corporations are the exception) income is characterized as either ordinary income or capital gains income. It is not intuitive, but cost ...
Tags: Cost segregation, federal tax reduction, tax reduction.
- Tax Relief Is Not Hazardous If Move On Systematically
By: Leo Miller | - Most of senior citizens are ruling it harder and more solid to stay alive in today's financially viable world. They are resulting that their giving up work years are turning out to be awful and not at all, what they had considered for. They are seeking that it is without a solution to live on the income they take delivery of. They are searching for chances that they can hit upon as much as necessary money to live out their lives with some sort of dignity. A majority of these people are looking f ...
Tags: Tax Relief
- Tax Reductions And The Irs Position On Cost Segregation
By: Patrick O Connor | - Tax reductions and tax deductions are a common benefit of cost segregation. When real estate investors and tax practitioners learn about the income tax deductions and tax reductions resulting from cost segregation they are sometimes skeptical; they are concerned it is a tax shelter or tax scheme. This simply is not true. Cost Segregation provides a legitimate tax reduction.
The IRS has published the Audit Techniques Guide (ATG) describing cost segregation and the proper methodology ...
Tags: Cost segregation, federal tax reduction, tax reduction.
- Cost Segregation - Tax Deductions (take Every Legal Tax Deduction You Can)
By: Patrick O Connor | - Tax Rule No.1: Dont cheat the IRS. But that doesnt mean you should cheat yourself. Take every legal tax deduction you can.
In addition to the numerous tax deductions the Internal Revenue Service allows, research indicates that most U.S. taxpayers do not claim all deductions to which they are entitled. Some of the tax deductions business owners can claim fall under categories such as charitable contributions/donation deductions, medical and dental deductions, moving ...
Tags: Cost segregation, federal tax reduction, tax reduction, redu
- Arcane Income Tax Tip
By: Patrick O Connor | - Sam sold 2 commercial properties in June 2008 and was discussing tax planning with his CPA and cost segregation provider. The sales price for the properties was $5.2 million and $3.3 million. Sam had owned both properties for about 8 years. The cost segregation specialist estimated Sam could save more than $175,000 in 2008 income taxes. This would be accomplished by using cost segregation and catching-up previously under-reported depreciation.
Sam has passive inco ...
Tags: Cost segregation, federal tax reduction, tax reduction, reducing income tax, appealing property tax, arcane tax tip and tax deduction.
- Tax Reductions Through Cost Segregation
By: Patrick O Connor | - Tax reductions and tax deductions are both benefits of cost segregation. However, it would be inaccurate to term cost segregation a tax shelter. The IRS has written a manual titled Audit Techniques Guide that delineates methods to establish depreciation schedules and increase tax reductions.
Tax shelter is a moniker that implies a scheme designed to avoid taxes. Some tax shelters were legal and some were clearly illegal. Most of the tax shelters focused exclusively on tax benefits ...
Tags: Cost segregation, federal tax reduction, tax reduction, reducing income tax, appealing property tax, arcane tax tip and tax deduction.
- Cost Segregation - Tax Deductions (taxes Are The Great Bane Of Most Businesses)
By: Patrick O Connor | - Taxes are your enemy, but tax deductions are your friends. Taxes are the great bane of most businesses. Alas, business deductions act as a salve to cool the burning and itching of your bank account.
Business taxes can be summarized simply as calculating your total revenue, reducing this amount by as many tax deductions as you can and then paying tax on the remaining amount.
Most people are not aware of all business deductions and miss out on various claims. To this en ...
Tags: Cost segregation, federal tax reduction, tax reduction, reducing income tax, appealing property tax, arcane tax tip and tax deduction.
- Tax Tips: When You Need A California Tax Debt Attorney
By: John Spurgeon | - A taxpayer faced with a tax debt problem arising from income tax assessments from the IRS and/or the Franchise Tax Board should apprise themselves with the various remedies available. What is not an option is to do nothing. Taxpayers should consider retaining a tax debt attorney in situations where the IRS has begun aggressive collection action such as a tax lien on assets including bank accounts, investments and property. The IRS will go for the taxpayer assets that they can convert into cash a ...
Tags: Tax Debt Attorney, Los Angeles Tax Attorney, CPA, IRS, Franchise Tax Board
- Cost Segregation - Tax Deductions (taxes Are Your Enemy, But Tax Deductions Are Your Friends)
By: Patrick O Connor | - Taxes are your enemy, but tax deductions are your friends. Taxes are the great bane of most businesses. Alas, business deductions act as a salve to cool the burning and itching of your bank account.
Business taxes can be summarized simply as calculating your total revenue, reducing this amount by as many tax deductions as you can and then paying tax on the remaining amount.
Most people are not aware of all business deductions and miss out on various claims. To thi ...
Tags: Cost segregation, federal tax reduction, tax reduction.
- Last Minute Tax Tips: How To File An Extension For Your Personal Tax Return
By: Wayne Davies | - Do you need more time to prepare your personal tax return? Look no further than Form 4868. And if you need help completing Form 4868, look no further than this article. Here are five tips for completing the extension form without a glitch.
Tip 1: Relax. This form is one of the easiest tax forms on the planet.
Tip 2: Go to the IRS website to print out a copy of Form 4868. Or you can use your tax preparation software program to fill it out. Either way, have a copy o ...
Tags: form 4868, personal income tax return extension, filing extension
- Self Employment Tax Deductions...which Ones Are You Missing
By: Pyt740 | - Self Employment Tax Deductions....Discover the Unclaimed Deductions that lie secretly Hidden in your Home Business Tax Returns
Tax Write Offs for the Self Employed...Discover 101 Ways To Reduce your Taxes Legally..
Unfortunately, we had been students of self-employment tax deductions strategies for over 20 years before we learned what Im about to share with you regarding home business tax reduction tips.
I was shocked when we first fo ...
Tags: self employment tax, deductions, small business, IRS, home
- Small Business Taxes: Are You Ready For The March 15 Deadline?
By: Wayne Davies | - If your small business is a corporation, March 15 is the most critical tax return deadline of the year - even more important than April 15. Find out why in this article.
First, some good news. The March 15 deadline is actually March 16. Go ahead and breathe a big sigh of relief, now that you know you have an extra 24 hours to get your act together. Here's why: Whenever a federal tax deadline falls on a Saturday, Sunday or federal holiday, the deadline is automatically moved to the ...
Tags: small business taxes, corporate income tax returns, form 7004, corporate return extension
- Small Business Taxes: Are You Ready For The March 15 Deadline?
By: Wayne M Davies | - If your small business is a corporation, March 15 is the most critical tax return deadline of the year - even more important than April 15. Find out why in this article.
First, some good news. The March 15 deadline is actually March 16. Go ahead and breathe a big sigh of relief, now that you know you have an extra 24 hours to get your act together. Here's why: Whenever a federal tax deadline falls on a Saturday, Sunday or federal holiday, the deadline is automatically moved to the ...
Tags: small business taxes, corporate income tax returns, form 7004, corporate return extension
- Alternative Minimum Tax Consequences Are Not A Result Of Cost Segregation
By: Patrick O Connor | - Alternative Minimum Tax consequences are not a result of cost segregation. Nor is cost segregation accelerated depreciation. Decisions regarding cost segregation and accelerated depreciation are independent by the four options as illustrated in the following matrix:
Accelerated depreciation increases the amount of depreciation taken in early years of ownership but triggers alternative minimum tax consequences. The alternative minimum tax consequences are severe enough that many in ...
Tags: Federal tax reduction, cost segregation studies.
- Small Business Taxes - How To Pay Less Self-employment Tax
By: Wayne M Davies | - If you fall into one of these three categories, this article is for you: 1) you own a sole proprietorship; 2) you are a partner in a partnership; or 3) you are the owner of a limited liability company being taxed like a sole proprietorship or a partnership.
What do these three types of business owners have in common? They are all faced with the dreaded self-employment (SE) tax on the profits of their business.
If you're new to the world of small business taxes, here ...
Tags: small business taxes, self-employment tax, se tax
- Schedule C Tax Tips: 3 Easy Ways To Reduce Self-employment Tax
By: Wayne Davies | - Frustrated with the amount of self-employment (SE) tax you pay each year? You should be. The sole proprietor pays twice as much in SE tax (15.3%) as the employee pays in federal payroll taxes (7.65%). What's a Schedule C filer to do? Here are three ways to reduce the dreaded SE tax.
1. Take the home office deduction. Have you been mislead by the never-ending rumor that the home office deduction increases the chances of an audit? Such talk is bogus, and to believe it is to needless ...
Tags: self-employment tax, se tax, schedule c, schedule se
- Preparing For Binding Arbitration
By: Patrick O Connor | - For many homeowners, the property tax appeal process can seem too difficult and therefore only about 8% appeal even though 70% of those who do appeal are successful. Most homeowners also do not realize that their appeal can be resolved at the informal hearing.
Here are some tips on attending an informal hearing for property tax appeals:
Before you attend the hearing it is important to make sure you are prepared and can provide evidence to back up your request for ...
Tags: Tax, tax reduction, income tax, property tax, federal taX.
- Small Business Taxes: How To Pay Less Self-employment Tax
By: Wayne Davies | - If you fall into one of these three categories, this article is for you: 1) you own a sole proprietorship; 2) you are a partner in a partnership; or 3) you are the owner of a limited liability company being taxed like a sole proprietorship or a partnership.
What do these three types of business owners have in common? They are all faced with the dreaded self-employment (SE) tax on the profits of their business.
If you're new to the world of small business taxes, he ...
Tags: small business taxes, self-employment tax, se tax
- Small Business Taxes: What Happens If You Don't Make Quarterly Estimated Tax Payments?
By: Wayne Davies | - How about a quick multiple-choice question on the world's most complicated subject: taxes.
Here's the question: As a sole proprietor or self-employed person, what will the IRS do to you if you don't make federal quarterly estimated tax payments?
Here's the possible answers:
a. Carry you off to prison
b. Fifty lashes with a wet noodle
c. Nothing
d. Assess a penalty
Depending on your particular tax situation, the corr ...
Tags: quarterly estimated tax payments, form 1040-es
- Small Business Taxes: What Are Quarterly Estimated Tax Payments And Why Must You Pay Them?
By: Wayne Davies | - If you are a sole proprietor, a self-employed person or an independent contractor, you are faced with the probability of making federal quarterly estimated tax payments.
These are called "quarterly" payments, but don't that word fool you. In typically confusing IRS jargon, here are the due dates:
1st Quarter payment is due April 15. (So far, so good. The first quarter corresponds with the calendar quarter.)
2nd Quarter payment is due June 15. (Confuse ...
Tags: quarterly estimated tax payments, form 1040-es
- Property Tax Myth
By: Patrick O Connor | - Time spent protesting your property taxes can be very profitable to you. In fact, the average property tax savings for homeowners is $450. However, the uncertainty of how the process works and what results are achievable intimidates many into not attempting to protest their property taxes.
The following steps will provide you insight into the appeal process and put you on your way to a successful appeal:
Either send a written notice of appeal to the ARB for the co ...
Tags: Tax, tax reduction, income tax, property tax, federal tax.
- Small Business Taxes: What Is Self-employment Tax And Why Must You Pay It?
By: Wayne Davies | - If you are new to the world of self-employment, it's time for you to meet an old nemesis known as Self-employment tax.
Self-employment (SE) tax is the sole proprietor's version of the social security and Medicare tax paid by employees.
In case you didn't realize it, in 2008 employees were required to pay 6.2% social security tax on the first $102,000 of wages or salary. In 2009, the amount subject to social security tax increases to $106,800. And they were also requ ...
Tags: self-employment tax, se tax, schedule se
- Small Business Taxes: 6 Compelling Reasons To Pay Your Taxes Electronically
By: Wayne Davies | - Did you know that the IRS has made it significantly easier to make your federal tax payments on time?
Let me introduce you to EFTPS - the Electronic Federal Tax Payment System. It's been running along quite smoothly for many years now, and if you're not using it, here are six compelling reasons to sign up today.
Reason #1: It works.
Millions of small businesses use it successfully every day.
Reason #2: It saves time.
No ...
Tags: EFTPS, Electronic Federal Tax Payment System
- Disabled Veteran Tax Exemptions In Texas
By: Patrick O Connor | - In Texas a disabled veteran's tax exemption is not the same as a disabled person's tax exemption.
To receive a disabled veteran tax exemption, you must be either a veteran who was disabled while serving with the U.S. armed forces or the surviving spouse or child (under 18 years of age and unmarried) of either a disabled veteran or of a member of the armed forces who was killed while on active duty.
In order to qualify for a disabled person tax exemption, you canno ...
Tags: Tax, tax reduction, property tax, federal tax and cost segre
- Schedule C Tax Tips: What Income Tax Forms Should You File?
By: Wayne Davies | - Are you running a small business as a sole proprietor? Are you confused about which tax forms you are required to file? Here's an overview of the most common forms you'll need to prepare this tax season.
1. Schedule C, Profit or Loss From Business.
Be sure you really are a sole proprietor before using this form. If your business entity is not a corporation or a partnership, then your small business could be a sole proprietorship. Other common synonyms for sole proprietor i ...
Tags: sole proprietor tax return, schedule c, form 4562, form 8829, schedule se
- Schedule C Tax Tips: What Payroll Tax Forms Should You File?
By: Wayne Davies | - If you own a sole proprietorship and have employees, what payroll-related tax forms are you required to file? This article will answer that question.
First things first. Let's check to make sure you really have employees. Take a look at Schedule C, Line 26, Wages. If there's an amount on that line, then you are reporting wages and/or salaries as a business expense, and that usually means your business has employees.
Now take a look at Schedule C, Line 11, Contract ...
Tags: payroll taxes, payroll tax forms, form 941, form 940, form w-2, form w-3
- Small Business Tax Tips: Are You Ready For The January 31 Deadline?
By: Wayne Davies | - April 15 is not the only critical tax deadline. If you are a small business owner with employees or independent contractors, January 31 is an important tax deadline you cannot afford to ignore.
The end of January is the due date for several payroll-related tax forms and tax payments. Before reviewing them, here's some good news. Whenever a federal tax deadline falls on a Saturday, Sunday or legal holiday, the due date is automatically moved to the next business day.
Tags: payroll taxes, payroll tax returns, payroll tax payments, Form 940, Form 941, Form W-2, Form 1099
- Small Business Tax Tips: Are You Ready For The January 31 Deadline?
By: Wayne M Davies | - April 15 is not the only critical tax deadline. If you are a small business owner with employees or independent contractors, January 31 is an important tax deadline you cannot afford to ignore.
The end of January is the due date for several payroll-related tax forms and tax payments. Before reviewing them, here's some good news. Whenever a federal tax deadline falls on a Saturday, Sunday or legal holiday, the due date is automatically moved to the next business day.
...
Tags: payroll taxes, payroll tax returns, payroll tax payments, Form 940, Form 941, Form W-2, Form 1099
- Harris County Appraisal District's I-settle Program
By: Patrick O Connor | - Overview
Harris County Appraisal District's i-Settle program is worth considering. However, for most property owners it is a poor choice.
O'Connor & Associates' experience with i-Settle yielded three conclusions:
The settlement rate was very low (about seven percent)
When settlement offers were extended, the tax reduction was low
It was not worth the effort
Benefits of an Informal Hearing
Most property ...
Tags: Tax, tax reduction, proerty tax and federal tax.
- Small Business Tax Deductions: How To Deduct Your Next Vacation
By: Wayne Davies | - It is perfectly legal to deduct your next vacation. Here's how to do it.
To qualify for this deduction, you must meet the following two criteria:
1. You are self-employed or own a small business
2. On your next trip, you combine business with pleasure.
The first requirement is pretty cut and dried. By "small business" we are including any type of self-employment activity, full-time or part-time, home-based or "bricks and mortar". This deduction appli ...
Tags: small business tax deductions, travel expenses, travel deductions
- Small Business Tax Deductions: How To Deduct Non-deductible Commuting Mileage
By: Wayne Davies | - For most folks, commuting mileage is a non-deductible expense -- unless you know the legal tax loophole I'm about to reveal.
The non-deductibility of commuter miles is painfully true for the employee who fights rush hour traffic every day, twice a day, for 5 to 10 hours a week. All that hassle, and what does he have to show for it? Just gas money down the drain, not to mention the wear and tear on both his vehicle and his stress-o-meter.
You can deduct virtually a ...
Tags: small business tax deductions, commuting mileage
- Small Business Tax Tips: How To File An Extension For Your Income Tax Return
By: Wayne Davies | - For all you procrastinators out there, here's a nuts 'n bolts guide on how to legally postpone the filing of your 2008 income tax returns. When it comes to putting things off, you can never plan too far ahead.
In many cases the IRS allows you to file a no-questions-asked extension form. Which particular form you file depends on what type of entity your business happens to be.
SOLE PROPRIETORSHIP:
You need to file Form 4868 to get an automatic 6-month extensio ...
Tags: small business tax, extension form, Form 7004, Form 4868
- Payroll Taxes: How To Reduce The Likelihood Of A Tax Penalty By 31 Times
By: Wayne Davies | - Here's the latest version of the age-old story, "The Tale of Two Small Business Owners." It goes like this: Small Business Owner #1 is 31 times less likely to be penalized by the IRS than Small Biz Owner #2.
Hmmm. What gives? What is the difference between these two chaps? It's simple, really.
Small Biz Owner #1 makes his federal tax payments electronically, using the government's Electronic Federal Tax Payment System (aka EFTPS). Small Biz Owner #2 makes his federa ...
Tags: tax penalty, payroll tax, EFTPS
- Small Business Taxes: How To Pay The Right Amount Of Quarterly Estimated Tax
By: Wayne Davies | - Do you have trouble calculating quarterly estimated tax payments? Here are some helpful tips to make the process much easier and less stressful.
If you're newly self-employed and unfamiliar with the IRS' estimated tax payment schedule, here are the due dates for the Year 2009 quarterly estimated tax payments (made via Form 1040-ES):
QTR 1: April 15, 2009
QTR 2: June 15, 2009
QTR 3: September 15, 2009
QTR 4: January 15, 2010
By the ...
Tags: quarterly estimated tax payments, safe harbor method
- Tax Reduction Strategies: How To Turn Taxable Income Into Tax-free Income
By: Wayne Davies | - Believe it or not, there are ways to convert taxable income into non-taxable income, without any fear of an IRS audit. Here's one of my favorites. It's been part of our tax code for over 30 years, yet many still don't take advantage of it.
What am I talking about? The IRA -- Individual Retirement Account.
Now, before you say, "Oh, I know all about that one; what's so great about an IRA?", give me 10 minutes to explain 3 new benefits to the IRA rules that you may not ...
Tags: Traditional IRA, Roth IRA, tax-free income
- Small Business Taxes: 4 Simple Steps To Reduce Your Taxes In 2009
By: Wayne Davies | - As a tax professional, I prepare hundreds of tax returns every year. When I first started out, I used to think that the best way I could help people was to prepare a return as accurately and as quickly as possible. You know, provide great customer service.
And it is very important that your return be done "right" --all the numbers on the right lines, using the right forms, etc.
But no matter how good a job I did preparing tax returns, every year I would hear the sam ...
Tags: tax, tax reduction, small business tax
- The Abc's Of Small Business Taxes: Why Is Choice Of Entity So Important?
By: Wayne Davies | - The typical sole proprietor trying to find legal tax reduction strategies is faced with a daunting task. Our tax code is so complex, how can you even begin to unravel all the convoluted rules and regulations?
Just how complicated is the tax code? Consider this: Back in 1913, when federal income taxes first began, the entire tax code occupied a mere half-inch thick book. The first federal income tax return was a simple two-page form with four pages of instructions.
Tags: small business taxes, choice of entity, business tax strategies
- Appealing Your Property Taxes
By: Patrick O Connor | - How To Request Binding Arbitration
Thousands of Texas homeowners will go through the property tax appeal process this year because the appraisal district incorrectly assessed their home's value. Sometimes getting a satisfactory reduction takes some time, but it is important to utilize the options available until you are offered a fair reduction.
Effective September 1, 2005, the Texas Legislature amended the Texas Property Tax Code to allow property owners the option of ap ...
Tags: Tax, federal tax, cost segregation and tax reduction.
- Small Business Taxes: How To Eliminate Bookkeeping Drudgery
By: Wayne Davies | - For most self-employed people, bookkeeping is about as much fun as a root canal. But like it or not, it must be done, otherwise you'll end up overpaying your taxes big time.
Perhaps this article will help you see this tedious task in a new light. Follow along with me and let's turn your bookkeeping nightmare into the best paying part-time job you ever had.
First, a question: How much money do you make right now -- per hour -- at your "regular" daytime job or in your ...
Tags: small business taxes, bookkeeping, tax reduction
- Small Business Taxes: 2009 Tax Season Filing Checklist
By: Wayne Davies | - Sorry to crash your party, but as we bring in the New Year, it's also time to bring in a new tax season.
As a small business owner or self-employed person, one of the easiest ways to keep Uncle Sam off your back and out of your life is to file your forms, payments and other paperwork on time.
Over the next four months there are several key dates you dare not forget.
Here they are -- all in one place, along with links to the IRS PDF file for that parti ...
Tags: small business taxes, tax filing, tax returns
- Dare To Take A 2007 Income Tax Deduction This Year!
By: Sam Peters | - The great majority of states and many local government charge their residents an income tax. These taxes nay be considered tax deductions on a federal tax return. Total annual sales tax paid for local sales taxes can also be considered for a deduction. The sales tax deduction is beneficial to a great numbers of residents who live in a state with with a combination of high state and local sales tax..
A large number of job related expenses are also tax deductible. Union members are ...
Tags: irs, I.R.S., tax, taxes, tax deduction, deduction, 2007 tax deduction
- Understanding The Need For Proper Estate Tax Planning
By: Kris | - The government provides estate tax as a levy against the taxable estate of a deceased person. Taxable estate is gross estate that is reduced by some allowable deductions. The value of an asset is determined on the basis of "fair market value" or the amount that it would fetch if sold in the open market. Every benefactor needs to have a personal representative who will be choosing the date for valuation to ascertain the asset's value.
It can either be the date when the benefactor ...
Tags: Sacracmento CPA, Sacramento Estate Tax Planners, Tax Planning, Estate Tax Planning, Estate Planning
- 4 Simple Steps To Reduce Your Taxes In 2006
By: Wayne M. Davies | - Does Tax Season get you down?
Here are 4 simple steps that any small business owner can take to lower your tax bill this year.
STEP #1: Understand How Serious Your Tax Problem Is
Are you aware of just how much in taxes you are paying?
Here's how much the average family spends on various consumer categories -- as a percentage of income.
You must realize that it's not how much you spend on taxes that is important, it's ho ...
Tags: tax, tax reduction, small business tax
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