Somewhere in the world of small business we’ve come up with clever ideas to keep the IRS from getting all of the tax dollars due to them. I’m not sure why, but we think we can outsmart the highly trained and educated IRS auditor who makes his living investigating financial rabbit trails. You should know […]
Sole proprietor and Independent Contractors Prepare for Tax Season
As a sole proprietor/independent contractor, your income is the most heavily taxed of all wage earners. You will be assessed a federal tax, state tax, local tax, and a self-employment tax. The best way to lower your tax liability (the amount of tax dollars you owe to these entities) is for you to take time […]
When Businesses Barter Is it Taxable Income?
Due to our slow moving economy, we’ve seen an increase in businesses bartering with one another. Bartering occurs when you exchange goods or services without exchanging money. An example of bartering is a plumber doing repair work for a dentist in exchange for dental services. – IRS Topic 420 So, is this exchange considered taxable […]
Can You Claim The Big Earned Income Tax Credit?
EARNED INCOME TAX CREDIT-SCHMEDIT! In general, you most likely have received the Earned Income Tax Credit (EITC) in the past if you: (1) Earn money from working (2) Have an income amount that is considered “low income”, and (3) Usually receive a tax refund that is more than $2000. Sometimes the refund can be as […]