Darlees.com

Question by JT289385: How good of a idea is it to use the tax act website to file for income taxes , small business , and 1040EZ ?

Best answer:

Answer by Elizabeth99
I love TaxAct but I’ve never used their website to file. I always buy and download the 1040 deluxe (so I can import previous years’ returns) and the 1120 and the 1065 for businesses. But their interview process is great – it asks the right questions that I never would have figured out, without their guidance. I expect their online interface would be equally fabulous, and you would have your files stored in a more secure location than your home PC. (hm…)

What do you think? Answer below!

Question by RamINC: I have small business tax deduction question ?

Best answer:

Answer by DemocracyDog
No???

Add your own answer in the comments!

Question by paquesman: How are small businesses handling Michigans new Business Entity Tax?
My accountant indicated that even LLCs and LLPs are subject to this tax, and it is on INCOME, not profit. Seems to me that lots of small businesses are going to pay a LOT of taxes in Michigan. Does anyone have a good way to avoid this besides moving out of the state?

Best answer:

Answer by if ya don’t like me email me
my iq is 75 so i don’t know

What do you think? Answer below!

Question by j3z7kd1j09aj: can i pay my income tax and my small business tax at the same time?

Best answer:

Answer by cpsdus
Yes. I know of people who have in-home businesses (day care, toy sales). They do all of their taxes on one form. Check the IRS site for the specific forms you need. You might want to try a tax program as well.

What do you think? Answer below!

Question by mbush40: Is Obama Lying when he says he’ll remove the Capital Gains tax off Small Business?
I didn’t think Small Business had a Capital Gains tax.

http://www.topix.com/news/2008-presidential-election/2008/09/obama-tax-cuts-for-the-middle-class

he said it, check your facts don.

Best answer:

Answer by Don
I don’t think you have your fact right. First, Obama has never said anything about removing capital gains, in fact he has talked about increasing them and you are right there is no capital gains on a small business, so obviously he never addressed this issue.

Add your own answer in the comments!

Question by monaya: Are equipment purchases for a small business tax free?
Do you not pay taxes during transaction or do you pay and deduct it at the end of the year? If you deduct at the end of the year do you include the taxes paid or only the original retail cost?
United States NJ

Best answer:

Answer by delightful
If you are UK then you pay the tax when you purchase and then claim it back quarter yearly

What do you think? Answer below!

Article by Wayne M 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 applies to any type of small business entity: sole proprietorships, partnerships, corporations, and limited liability companies.

The second requirement is somewhat trickier and will be the focus of this article.

To deduct any U.S. trip, you can combine business and pleasure, but the primary purpose of the trip must be business. And here’s how the IRS defines a trip taken primarily for business purposes: the number of “business days” must be greater than the number of “personal days”. To complete the definition, travel days are considered “business days”.

Here’s an example to clarify the rules: You take a 10-day “vacation” to Orlando. You spend one day getting there and one day getting back. You spend four days attending a seminar. The other four days are spent with Mickey Mouse & Company.

Let’s tally up the days:

Business Days = 6 (2 travel days + 4 seminar days)Personal Days = 4 (doing theme parks)

So, are the number of business days greater than 50% of the total days? Yes. So here’s what you get to deduct: 100% of your transportation expenses (even though 40% of your days were personal days) and 100% of your “on-the-road” expenses for the six business days, including hotel bills, cab fares, rental car, seminar fees, dry cleaning, laundry and meals.

Keep in mind that the meal expenses are still subject to the 50% rule. In other words, when we say that “100% of your on-the-road expenses” (including meals) for the business days are deductible, the actual amount of the meal deduction will be 50% of the meals cost.

Also realize that transportation expenses include air fare to and from your destination (if you take a plane). If you drive to the vacation spot, you can deduct the actual cost of gas or take a deduction based on the current IRS-approved mileage rate.

The on-the-road expenses for the four personal days are not deductible. But you’re still getting a great tax break here. Assuming you spend ,000 for transportation and the six business day expenses, a sole proprietor in the 35% tax bracket (15% federal tax + 15% self-employment tax + 5% state tax) saves 0.

Before you take your next trip, do some planning to include business activities and let Uncle Sam help you pay for it.

Article by Wayne M Davies

For most small business owners and 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 business? Is it per hour? per hour? per hour? Make a mental note of that amount. Now, let’s say by “keeping the books” this month, you are able to find ,000 worth of deductible expenses.

Let’s also assume you are in the 35% tax bracket (15% federal income tax plus 15% self-employment tax plus 5% state tax). So, for every ,000 of deductions, you save yourself about 0 in taxes (,000 x 35% tax rate).

One more assumption: it takes you about 2 hours to properly record and document that ,000 of deductions. Hmm. You spend 2 hours and save 0 bucks.

How much money did you just make for yourself — per hour? 5 per hour. Now compare that to how much you make per hour working in your business or at an employee job. Which “job” paid you more? Even if it takes you 4 hours — it’s like having a job that pays you .50 per hour. Still a pretty good hourly wage, don’t you think?

How does that make you feel about bookkeeping? Not such a bad deal after all, is it?

Still not convinced? Making .50/hour or 5/hour isn’t enough motivation? I understand. I know how painful it can be to crunch those numbers. It’s not for everyone, especially if you prefer not to touch anything financial with a 10-foot pole.

If just the thought of doing the books makes you break out into a sweat, please consider this advice: outsource it. Hire someone else to do it. If you really hate it that much, why torture yourself?

“But I don’t want to pay someone else to do it.” Is that what you’re thinking now?

Let’s go back to the numbers above. You can find a good bookkeeper for /hour (or less). If tracking your expenses is saving you 5/hour and you pay someone else /hour to do the books, you’re still coming out ahead by 0/hour. The cost of the bookkeeper is covered by the tax savings it creates.

Either way, whether you do it yourself or outsource it, bookkeeping is the best money-saving activity in your small business arsenal. Take advantage of it.

The IRS today released a final guidance for small employers eligible to claim the new small business health care tax credit for the 2010 tax year. Included in the Affordable Care Act enacted in March, the small businesses health care tax credit is designed to encourage both small businesses and small tax-exempt organizations to offer health insurance coverage to their employees for the first time or maintain coverage they already have.

The new guidance addresses small businesses questions about which firms qualify for the credit by clarifying that a broad range of employers meet the eligibility requirements, including religious institutions that provide coverage through denominational organizations, small employers that cover their workers through insured multiemployer health and welfare plans, and employers that subsidize their employees’ health care costs through a broad range of contribution arrangements.

In general, the credit is available to small employers that pay at least half of the premiums for single health insurance coverage for their employees.

It is specifically targeted to help small businesses and tax-exempt organizations.

The maximum credit goes to smaller employers – those with 10 or fewer full-time equivalent (FTE) employees – paying annual average wages of ,000 or less. The credit is completely phased out for employers that have 25 or more FTEs or that pay average wages of ,000 or more per year. Because the eligibility rules are based in part on the number of FTEs, not the number of employees, employers that use part time workers may qualify even if they employ more than 25 individuals.  For more tax updates visit us at Monster Tax.

Question by g l: does a small business owe sales tax to a manufacturer if it is reselling the product to federal goverment?
I run a small business and purchasing equipment from a manufacturer to sell to the federal govement – will I owe sales tax to the manufacturer if the end user is the federal goverment?

Best answer:

Answer by Paint Guru
You need a sales tax exempt letter from the purchaser (government) in order to provide to the manufacturer. They need to keep a copy of that form on file to show why they did not collect sales tax from you.

You may want to contact your client and ask them for the form. They will know what it is.

Best of luck.

What do you think? Answer below!