Deferring taxes with retirement savings is a key selling point for financial advisors. I mean, who doesn't want to save taxes? But, is deferring taxes for retirement savings always the best plan? That answer is not so simple.
Managing your assets in terms of taxes can seem intimidating at first glance. A simple mistake can cause significant damage to your business. However, understanding concepts like depreciation and amortization can help avoid potential issues in the future. This guide explains the various aspects of amortization and depreciation to help navigate your assets.
There are many reasons you can choose to file an extension for your income taxes. Most likely, you simply need more time to gather all of your information or meet with your accountant. But is there a downside to filing an extension?
For tax year 2021, the Child Tax Credit increased from $2,000 per eligible child to $3,600 per child ages five and younger and $3000 for children ages six to 17. The amount of Advanced Child Tax Credits is half of the new credit amounts. So, starting July 2021, if you are eligible, you will start to receive monthly Advanced Child Tax Credit payments. If your child is five years old or younger, the payment would be $300 per month through December. That is $1,800, or half of the new Child Tax Credit amount. If you have children between the ages of six and 17, your monthly payment will be $250 per month through December, or $1,500 total.
Tax deductions are great, but tax credits are even better! So what's the difference? Glad you asked!
You filed your return, and you forgot something, or you realize the return was wrong. How do you fix?
You are forgiven for not being able to keep up with all of the changes in small business taxes. It has been a chore to digest everything even for professionals. Here is a recap of recent small business expense changes.
Profit First can truly change your business, and it is 100% effective when implemented. But there's the catch! You have to implement it.
An S corporation is a type of corporation that meets the specified requirements of the Internal Revenue Code (IRS). An S corporation passes through most of its business income and loss to its shareholders like a sole proprietor. The owners are not liable to pay double tax, at the corporate level and then on the individual shareholder level.
Accountants are weird. They use funny words and use lots of spreadsheets. One common word is Capital Improvements. Similar words that they use to describe the same things: Capital Assets, Fixed Assets, Property, Real Estate, FF&E (Furniture, Fixtures, & Equipment). In the accounting tax world, all of these terms describe something with an economic benefit beyond one year.