Do you need to make Quarterly Estimated Tax Payments? What are they? How are they calculated? Read on for all the deets! What is Estimated Tax? It’s the method used to pay tax on income that is not subject to withholding. W-2 income has taxes withheld. On the other hand, 1099 income typically has no tax […]
Ultimately, there are two kinds of dollars in this world. Pre-tax dollars, and after-tax dollars. Pre-tax dollars are great. And after-tax dollars aren’t bad. But they’re not as good as pre-tax dollars. In fact, you lose every time you spend after-tax dollars . . . that could have been pre-tax dollars. (Huh? What?…) Let’s take a
If you’re a real estate agent, or small business owner, or self-employed contractor, you may be missing a powerful tax deduction because your accountant is too conservative. Too conservative to take meals and entertainment write-offs that are totally legal and 100% compliant with the rules outlined in the IRS code. Here’s the basic rule.
Knowing what expenses you can write-off in your small business can make a huge difference on your tax bill. Whether you’re a real estate agent, freelancer, retail shop owner, or work-from-home mom–it pays to know what business expenses are deductible, and what’s not. Owning a small business is what I call the “#1 tax shelter for the little guy”.
If you own a small business, you probably operate either as a sole proprietor, or Single Member LLC. 85% of businesses do. But neither is the best way to structure your business if you’re looking to save on Self Employment tax. What’s Self employment tax? It’s just a fancy name for the medicare and social security
It’s not easy to deduct medical costs on your tax return. In fact, unless your medical expenses are 10% os your Adjusted Gross Income, you can’t itemize them on your Form 1040. I explain one tax strategy Here, which many taxpayers can use to pay for out of pocket medical costs with pre-tax dollars. But
Unless you have substantial out of pocket costs, IRS rules make it very difficult to deduct your medical expenses. The reason: If you itemize your deductions, you can deduct your family’s medical costs, but only if those costs exceed 10% of your adjusted gross income. Example: your adjusted gross income is $50,000. You must spend
It’s year end, your business prospered during the year, and you’re looking for tax write-offs to help reduce Uncle Sam’s tax bite on your income tax return. Your accountant suggests you buy a new business vehicle. (Your car dealer agrees!) But which vehicle or truck should you buy to get the fastest write-off? Here are
I’m often asked what’s the best way to go when it comes to your business vehicle. Is it best for you to own or lease? Many self employed taxpayers reason that since lease terms are often shorter — and lease payments higher than monthly loan payments — they can write off the entire lease payment
This morning I met with a client who’s hit a rough patch in life. A little over 3 years ago, painfully, suddenly, his marriage ended. Subsequently, his business suffered. His income plummeted, his legal fees skyrocketed, and his emotions fell through the floor. Over time, he’s been able to get back on his feet and