Information About the Hobby Loss Rules
Like many of us, you've probably dreamed of turning a hobby or avocation into a regular business. You won't have any unusual tax headaches if your new business is profitable. However, if the new enterprise consistently generates losses (deductions exceed income), IRS may step in and say it's a hobby—an activity not engaged in for…
6 Common Myths Regarding 401(k) Plans
As a business owner, you understand the importance of attracting and retaining high quality employees. One of the best ways to do this is by offering a 401(k) plan. In fact, research shows that employees are more likely to join a company if they offer a retirement savings plan. Unfortunately, many small business owners have…
The 2012 gift tax annual exclusion: Use it or lose it
The 2012 gift tax annual exclusion allows you to give up to $13,000 per recipient tax-free without using up any of your lifetime gift tax exemption. If you and your spouse “split” the gift, you can give $26,000 per recipient. The exclusion is scheduled to increase to $14,000 ($28,000 for split gifts) in 2013. The…
IRS Delays Date on Temporary Regulations
Earlier this month, the IRS announced that it is delaying the effective date of the temporary regulations it issued in December 2011, in regards to whether property expenses could be deducted or had to be capitalized. The regulations originally applied to tax years beginning on or after Jan 1, 2012, but have now been amended…
Self-employed? Set up a retirement plan by Dec. 31!
If you’re self-employed, you may be able to set up a retirement plan that allows you to make much larger contributions than you could make as an employee. Plus, if you set up one of the following plans by Dec. 31, 2012, you can make deductible 2012 contributions until the 2013 due date of your…
Year-End Moves to Trim Your Tax Bill
With the fate of future tax breaks in Congress’ hands, this year is anything but ordinary for taxpayers. Unless Congresses reaches an agreement by December 31, nearly 90% of Americans should expect to pay higher taxes in 2013. With that in mind, it is crucial that you do everything you can to trim your tax…
Save more tax with donations of appreciated stock
Publicly traded stock and other securities you’ve held more than one year are long-term capital gains property, which can make one of the best charitable gifts. Why? Because you can deduct the current fair market value and avoid the capital gains tax you’d pay if you sold the property. Donations of long-term capital gains property…
Improve Your Finances Starting with Your Banking Habits
As online banking becomes more and more popular, the harder it is for people to keep track of multiple accounts. The more accounts you have, the more likely you are to miss a payment, pay off debt and make mistakes. By simplifying your online banking accounts, you will minimize those mistakes and maybe even be…