A Personal Finance Blog for Regular Folks
Most people don't enjoy paying taxes. But the more we know about them the better we can plan for them. Articles here contain information on new tax rules as well as how to save and plan for your taxes.
One of the newest tax forms to be released is the 1099-K.
This new 1099 tax form is designed by the IRS to help catch those who under-report their income from online business transactions.
Concerns that sellers on eBay are not reporting their income, as well as other third-party transactions handled by banks and processors like PayPal, are being overlooked as income, the IRS is hoping that the 1099-K tax form can help them recapture lost revenue.
When it comes to reducing business income for tax purposes, the tax deduction is one of the most popular methods.
You can deduct some of the money you spend on business and lower your taxable income.
However, it’s important that you understand what makes an expense tax deductible for business purposes. Otherwise, you could find yourself red-flagged by the IRS.
[Read more…] about What Business Expenses are Tax Deductible?
It’s yet another example of something that most lawmakers agree on yet it most likely will not get done. Washington gridlock is alive and well even when there is no disagreement on the core issue.
That is the main problem with the corporate tax.
Currently, American corporations pay a 35% tax rate, higher than any other advanced country and most lawmakers, tax experts and, of course, corporate CEOs believe that this is too high.
Because of that, President Obama proposed lowering the tax rate to 28% in an attempt to make America a more corporate friendly place to do business.
The chances of this issue gaining enough traction to get through Congress is essentially none.
Here’s why. [Read more…] about Obama Proposed Corporate Tax Reform – Cut Tax Rate But Seal Up Loopholes
According to the U.S. Census bureau, up to 40 million people move from their current residence each year.
That represents just over 14% of the population and as everybody knows, moving is expensive, stressful, and back breaking.
For those who are moving because of a new job, the IRS softens the blow by allowing a portion of those moving expenses to be deducted on your tax filing— but be careful.
In order to deduct your moving expenses, you have to pass two important IRS tests.
[Read more…] about How to Deduct Your Moving Expenses
When you sell an investment, your gains or losses depends on your cost basis.
If you sell for more than your cost, you end up owning capital gains taxes on the increase. If you sell at a loss, you don’t have to pay taxes on the difference; instead, you might be able to claim a tax deduction for your investment loss.
[Read more…] about Cost Basis Reporting – How it Affects Your Taxes
