Equipment leasing can be an attractive option when buying and maintaining equipment is too big of an expense for your small business. You don’t want to make an investment just for a new version to be released, possibly making the old one obsolete. Leasing can come with low upfront costs and low regular payments, but it can also result in paying more over time than if you paid for the equipment outright.
When it comes to your federal income taxes, you pay the same rate no matter where you live, but each state – and sometimes locality – can set its own tax rules that apply to its residents. That means the property taxes, state income taxes, and sales taxes Florida residents pay differ vastly from those that California residents pay.
Debt consolidation is the process of combining several debts into one, with one monthly payment. This can help simplify your finances, lower your overall cost of debt and even help you pay down your debt faster — but it can also come with some potential pitfalls if you don’t know what to look out for.
According to the IRS, there is no blanket category called “small business.” Instead, your business is taxed as either a sole proprietorship, partnership, LLC, S corp, or C corp.
Whatever your business structure, we’ll walk you through the tax rates so you can understand how your company is taxed.
When you filed your taxes in 2019, you may have found that your return was easier to prepare, thanks to a redesigned tax form and a larger standard deduction.
But you may have also run into headaches over lost deductions, new schedules, and the slow trickle of IRS guidance on tax reform over the course of the year.
So, how can you avoid the same difficulties in 2020? Here’s what’s changing this year—and what you can do to ease the pain of filing your return.
Form 1040, the tax form used by individual taxpayers, was first introduced in 1913. The form’s basic setup has remained mostly the same over the past century. For the most part, Form 1040 conveniently collects information about your income, credits, and deductions in one place. However, over the years, the IRS has added dozens of supplementary forms and schedules you can use for additional calculations.
Accumulated depreciation is the total amount of depreciation expense that has been allocated to an asset since it was put in use.
For every asset you have in use, there is the “original basis” (how much it initially cost) and then there’s the “accumulated depreciation” (essentially, how much value it has lost, which is now considered an expense on your books).
If you have investments, you may be wondering where you can deduct investment fees on your tax return. Don’t spend a lot of time hunting around for the right place to enter them. Thanks to the Tax Cuts and Jobs Act of 2017 (TCJA), most investment-related expenses are no longer deductible. But in certain circumstances, you may still be able to get a tax break.
For many small business owners, dealing with taxes is one of the most challenging aspects of entrepreneurship – especially when tax forms, rules, rates and deductions seem to change every year.
The good news is after the major changes that resulted from the Tax Cuts and Jobs Act of 2017 (TCJA), there aren’t any significant changes to the small business tax code for the 2019 tax year. You can still take advantage of the usual tax write-offs to reduce the amount you owe.
Going through a divorce can be stressful, even when it involves two decent people who are simply not meant to be married anymore.
Part of that stress comes from splitting a couple’s finances in two. Over the course of a marriage, a couple often shares income, assets, and debts. And deciding who gets what can be one of the most difficult tasks.
Small business owners often confuse profit margin and markup. Both of these metrics help a business set prices and measure profitability, but it’s important to know the difference—and know how to calculate the two numbers.
Do you need to borrow money but don’t want to deal with a high-interest credit card or personal loan? If you’ve been saving for retirement with a 401(k) plan through work (and your plan allows it), taking a loan from your 401(k) can be a low-cost way to borrow money from yourself and pay yourself back — with interest.