Archive for Tax Talk
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Posted by: | CommentsIntro to http://www.HomeGrownWealth.TV info on Mike Keeney and how he can help you build a Cash Gifting community
How to Get Tax-Free Profit From Your Rental Home
Posted by: | CommentsTo get tax-free profit from selling a rental property the owner needs to have used and lived in the rental property for at least 24 months out of the past five years. Discover all the requirements to getting tax-free profit from a rental property safely and legally with tips from an experienced tax professional in this free video on taxes.
TaxPlus – Tax Tips “Business Use of Vehicle”
Posted by: | CommentsTaxPlus1040.Com – Tax Tip Concerning the business use of your vehicle.
37. Transaction Costs
Posted by: | CommentsOne of the things that can damage our returns is transaction costs – a brief video on this subject.
Business Use of Your Home
Posted by: | CommentsTo deduct expenses related to the business use of part of your home, you must meet specific requirements. Even then, your deduction may be limited.
To qualify to claim expenses for business use of your home, you must meet both the following tests.
1. Your use of the business part of your home must be:
a. Exclusive (however, see Exceptions to exclusive use, later),
b. Regular,
c. For your trade or business, AND
2. The business part of your home must be one of the following:
a. Your principal place of business (defined later),
b. A place where you meet or deal with patients, clients, or customers in the normal course of your trade or business, or
c. A separate structure (not attached to your home) you use in connection with your trade or business.
Exclusive use. To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. The area used for business can be a room or other separately identifiable space. The space does not need to be marked off by a permanent partition.
You do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes.
Exceptions to exclusive use. You do not have to meet the exclusive use test if either of the following applies.
1. You use part of your home for the storage of inventory or product samples.
2. You use part of your home as a daycare facility.
For an explanation of these exceptions, see Publication 587, Business Use of Your Home (Including Use by Daycare Providers).
Principal place of business. Your home office will qualify as your principal place of business for deducting expenses for its use if you meet the following requirements.
· You use it exclusively and regularly for administrative or management activities of your trade or business.
· You have no other fixed location where you conduct substantial administrative or management activities of your trade or business.
Alternatively, if you use your home exclusively and regularly for your business, but your home office does not qualify as your principal place of business based on the previous rules, you determine your principal place of business based on the following factors.
· The relative importance of the activities performed at each location.
· If the relative importance factor does not determine your principal place of business, the time spent at each location.
If, after considering your business locations, your home cannot be identified as your principal place of business, you cannot deduct home office expenses. However, for other ways to qualify to deduct home office expenses, see Publication 587.
Which form do I file? If you file Schedule C (Form 1040), use Form 8829, Expenses for Business Use of Your Home, to figure your deduction. If you file Schedule F (Form 1040) or you are a partner, you can use the worksheet in Publication 587.
More information. For more information about business use of your home, see Publication 587.
Roni Deutch on FOX Business News
Posted by: | CommentsThe Tax Lady Roni Deutch gives last minute tax tips to viewers of FOX Business New’s Money for Breakfast.
Car and Truck Expenses
Posted by: | CommentsIf you use your car or truck in your business, you can deduct the costs of operating and maintaining it. You generally can deduct either your actual expenses or the standard mileage rate.
Actual expenses. If you deduct actual expenses, you can deduct the cost of the following items:
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Depreciation |
Lease payments |
Registration |
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Garage rent |
Licenses |
Repairs |
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Gas |
Oil |
Tires |
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Insurance |
Parking fees |
Tolls |
If you use your vehicle for both business and personal purposes, you must divide your expenses between business and personal use. You can divide your expenses based on the miles driven for each purpose.
You are the sole proprietor of a flower shop. You drove your van 20,000 miles during the year. 16,000 miles were for delivering flowers to customers and 4,000 miles were for personal use. You can claim only 80% (16,000 ÷ 20,000) of the cost of operating your van as a business expense.
Standard mileage rate. Instead of figuring actual expenses, you may be able to use the standard mileage rate to figure the deductible costs of operating your car, van, pickup, or panel truck for business purposes. You can use the standard mileage rate for a vehicle you own or lease. The standard mileage rate is a specified amount of money you can deduct for each business mile you drive. It is announced annually by the IRS. To figure your deduction, multiply your business miles by the standard mileage rate for the year.
Generally, if you use the standard mileage rate, you cannot deduct your actual expenses. However, you may be able to deduct business-related parking fees, tolls, interest on your car loan, and certain state and local taxes.
Choosing the standard mileage rate. If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. In later years, you can choose to use either the standard mileage rate or actual expenses.
If you use the standard mileage rate for a car you lease, you must choose to use it for the entire lease period (including renewals).
Additional information. For more information about the rules for claiming car and truck expenses, see Publication 463, Travel, Entertainment, Gift, and Car Expenses.
Tax savings Home Based Business – Business Use Percentage BUP
Posted by: | Commentshttp://www.getpaidquick.com
http://www.lessworkmorewealth.com
Tax deductions and savings for the home based business owner are endless. Making money online and tax savings go hand in hand with business owners whether you are online or local.
Business Use Percentages or BUPs are being discuss to learn how to calculate your write off and tax deductions.
Tax savings are beneficial to the home based business and anyone looking to make money online. The tax laws are written for the business owner so why not take advantage of these tax savings.
This presents the perfect opportunity to work from home.
Filing Requirements for Self-Employed Individuals
Posted by: | CommentsSelf-employed individuals, sole-proprietors, independent contractors and persons who have net earnings of $400 or more are required to pay self-employment tax by filing Schedule SE (PDF), attached to their Form 1040, U.S. Individual Income Tax Return. Employees of a church that receive income of $108.28 or more, but do not receive a Form W-2 for the earnings must also pay self-employment tax by filing a Schedule SE, attached to Form 1040, U.S. Individual Income Tax Return.
As a self-employed individual (someone who owns an unincorporated business) or an independent contractor, you are required to report income and expenses on a Schedule C (PDF) or C-EZ (PDF). Your net profit may be subject to SE tax. You must file a completed Schedule SE attached to your Form 1040, U.S. Individual Income Tax Return.
As a member of a partnership that carries on a trade or business, or as a member of a Limited Liability Company (LLC) that chooses to be treated as a partnership, your distributive share of its income or loss from that trade or business is included in your net earning from self-employment. These entities must report the business income and expenses on Form 1065, U.S. Return of Partnership Income, along with a Schedule K-1 reporting each partner’s net income or loss. You must file a completed Schedule SE attached to your Form 1040, U.S. Individual Income Tax Return.
If you have employees, you must pay employment taxes, including Federal income, Social Security, and Medicare taxes.
If you manufacture or sell certain products, operate certain kinds of businesses, use various kinds of equipment, facilities, or products, or receive payment for certain services, you may need to pay excise taxes.
Estimated tax is the method used to pay (including SE tax) on income not subject to withholding. You generally have to make estimated tax payments if you expect to owe taxes, including self-employment tax, of $1,000 or more when you file your return. Use Form 1040-ES (PDF) to figure and pay the tax.
