Income tax season does not have to be the worst time of year. The Internal Revenue Service has provided six easy tips that will help people file their taxes this season.
1) Do not leave your taxes until the last minute. Many people avoid filing their tax return until the end of tax season. People who wait until the deadline are more likely to make tax filing mistakes and miss tax savings opportunities. Early filers are less likely to make costly mistakes and the earlier you file your 2010 taxes the sooner you will receive your tax refund.
2) Take advantage of the tax filing information that the IRS is offering via their official website at www.irs.gov. The site lists helpful information, including any recent tax news.
3) Use the tax software and online forms that are available at the www.irs.gov website to make the filing process easier. People who earn under $58,000 per year are eligible for free income tax software access, and anyone can use the e-file service to file their tax return online for free.
4) Nearly 100 million Americans used e-file last year. The online service has become the most popular tax return filing method because it is safe, quick and highly effective. If you want to receive a quick tax refund this year, e-file is the best tax filing option.
5) Do not worry about paying the full income tax amount owed by the April deadline. You can still file your income tax on time, paying as much money as possible. If you do not have enough money to pay your full taxes you should call the IRS at 800-829-1040 to set up a payment system that you can afford. Many people pay their income tax in convenient installments.
6) Those who do not pay their taxes owed by the April due date may have to pay a tax penalty. To avoid the penalty people should request a filing extension by filling out the Form 4868 and sending it to the IRS. To find out more about tax filing extensions you can call the IRS at 800-829-3676 or visit the IRS website.
As an employer, small business owner or self-employed individual, there are a lot of factors that you need to work out to keep the company and/or the business growing. You have to monitor employee’s performance, keep expenses within the budget, and many more more. Another possible source of problems and worry is which type of retirement plan to choose for yourself and for those under you. Of all plans tailored for small business owners and the self-employed, a SEP IRA is probably the best retirement plan you could choose. But does is suit your needs and preferences? Here are 3 common concerns of people choosing their retirement plan:
Do you want a plan that is easy to setup?
A SEP plan is very easy to set up. As an employer, you will be responsible for setting up the SEP by filling up Form 5305-SEP. Employees on the hand are the ones who will open their individual IRA accounts that will fall under the SEP. Both parties must agree to the terms of the SEP.
Are you concerned of contribution rules?
With a SEP, contribution rules are very flexible. In this plan, only employers are allowed to contribute to their employees’ IRAs. All contributions made by the employer cannot be deducted from the employee’s salaries. While this may seem like a loss for the employer, any contribution made is 100% tax deductible.
When I am at retiring age, how will the money be distributed?
In the SEP plan, withdrawals can be done starting age 59 ½ and required distributions start at 70 ½. Any withdrawal done before age 59 ½ is subject to penalties and taxes. Since required distributions start a later time (10 years) compared to other retirement plans, your money has more time to grow until the required distributions start.
even if your moving from one company to be self employed, you can do a rollover 401k into a sep ira.
Some of the best options in the real estate and property investment markets today happen to be in rental, leasing and lease-to-own options, as there are a surplus of cheap homes all around the country, but the sales rates are still lagging behind. This is due to a wide range of reasons, including the desire to avoid more debt, liability and expense, just to name a few. The economy and housing markets are on the mend, although it is a slow mend, and the outcomes of these options are particularly beneficial to owners and tenants.
The lease-to-own option, while at one time was a last-resort for most property owners, has proven one of the best ways to lock in a good price and gain a steady income from the property at the same time. Many property holders have taken this route to cover the costs of holding a property, and today, it is very sound property investment advice. These options have become very effective from regions in the Midwest and on the East Coast, that still have many cheap and foreclosed properties, but not many in a position to buy at the present time. Utilizing the services of resources like Country Cottage Furniture to decorate properties for viewing with unfinished furniture NH, for example, are some of the better tactics for attracting tenants, as the first impressions are usually what determines their final decision.
Property investment companies are some of the best options for investors not holding their own properties, but still wanting to take advantage of the property investment market. These options not only allow for a broad range of investments, but also a diverse range as well, and this diversity is responsible for the added stability of these organizations.
One of the most overlooked options in real estate investment today is the overseasproperty investment options that have been increasing steadily in popularity. While some of the most lucrative commercial options, like Dubai, may be more than most individual investors are looking for, there are serious profits to be made in vacation homes and tourist rentals all over the world, and these are also particularly popular within the U.S. as well.
Inheritance tax planning could be very helpful for your beneficiary to pay little tax on their inheritance. Often people overlook this important aspect and their beneficiaries have to pay excessive taxes. The beneficiary who is named in the legal will is liable to pay inheritance tax. In simple words, inheritance tax is the tax on assets which you have received from the deceased ones. The tax rates involve a number of issues such as your relationship with the deceased, type of the assets and total value of the assets. As a beneficiary, you could claim several reductions on the tax owned on Inheritance. In U.S normally State Government collects inheritance tax. You may find hundreds of books, articles, websites and blogs which are helpful to get a proper understanding about inheritance tax. Many people have shared their real life stories related to inheritance tax in numerous blogs. You may read these stories to make a comparison with your particular case to get a proper understanding and right measures to deal with the situation. Often people do pay huge inheritance taxes which could be easily avoided. The modern technology of internet has made it very simple for you to get all information at the comfort of your home with the help of few mouse clicks. Taking the help of private wealth management advisors is also very effective tool to adopt the right procedure and steps towards reduction of inheritance tax. These wealth management advisors may charge minimal charges about their services. Your chosen advisor would help you in deciding the right you should try to look for the ones, who are reliable and trustworthy. Do a small research before hiring any advisors. You could make a use of major search engines to locate the private wealth advisors operating in your area.
Cash flow notes can be bought or sold and if you procure one, then the debtor will owe you the debt. Tax lien certificates, trust deeds, and home mortgages are examples. A great investment is business in tax lien certificates. Tax lien investing is attached to a property which makes it a low-risk investment. With the tax lien, the owner could never sell their property so the property would serve as your insurance that the owner will meet their commitments.
The certificate was bought at a discounted price and this is where you will get your profits. The owner may owe you the original amount but you bought it at a discounted amount. Your investments could then be placed in real estate or property inclined businesses.
Properties like houses and lots never lose their value and they could even increase over time, which makes real estate the benchmark amongst other business industries. It’s also considered the safest and most lucrative investment you could make.
You may want to pursue tax lien investing if you want to earn money through real estate investing because this would be a good strategy as foreclosure rises. The real estate rose in popularity in the 21st century where everyone, even without trying, was making real estate profits. If you bought a piece of property, you can sell or tap your equity after waiting a few months for appreciation.
Many people were comfortable taking on ARMs or adjustable state mortgages because of the real estate craze. But in the late 1990’s, nothing goes up 20-50%. The market is slowing down, so it’s time for a new strategy.
Tax lien investing is one strategy that works well in times of foreclosure rates. Real estate bills become delinquent when mortgage payments are delinquent which would cause cash flow problems for local governments. Because of this, an investor is allowed to pay the taxes and in turn, they would get the government property tax lien. The homeowner will have more time to find the money they need in order to pay the tax bill.
Investing in tax liens is profitable and safe. The interest rate fluctuations have no effect because they are set by state law. Also, you can take full ownership of the property if you don’t receive your money back plus interest.
Small business expenses are those expenses that you incur every other day as you run your business. These expenses are usually allowed as deductibles when filing your tax returns. The IRS has defined business expenses as those expenses that must exist and are therefore necessary and ordinary in the business.
In a business that produces goods, any costs that are incurred in the production of a good are considered to be deductibles. A business that deals in the production of quilts is expected to incur expenses in fabric, thread or even batting. Other expenses that it may encounter include freight charges as it receives the materials, storage costs, costs to the factory and even labor costs.
There are rules that are used to determine the expenses that need to be deducted as direct in a business as tax returns are being filed. In order to effectively identify the deductible expenses you should consider hiring a tax accountant who can guide you and determine the IRS laws and regulations that apply to your business. In the midst of all the costs you incur in your business, there are those that can not be included as expenses. The best example of such costs includes the capital expenditures which fall under different classes: Assets Start up costs and Improvements.
A common practice found in small business owners is the fact that they use their own personal income to operate their business. They also incur personal expenses as they run the business, such expenses are not deductible. Your tax accountant can guide you on how to differentiate these expenses and deduct them appropriately. You should follow the advice given as you also keep all the records of your business so that you have an easy time when filing your tax returns.