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Tax Advice

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Why Revolving Credit Is Important for Your Business

By Tax Advice

As a business owner, you have probably bumped up against the fact that you won’t be successful unless you have access to capital. Capital is generated by cash flow from sales and may also come from injections of cash from your personal investments and savings. However, what happens when you have a cash-flow shortage, and you have no more available personal credit, but you still need funds to keep your business going? One way to solve this dilemma is with…

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4 Tips for Hiring the Best Tax Accountant for Your Business

By Tax Advice

Do you think one accountant is just as good as another accountant because they’ve all taken the same exams? The reality is that accountants vary greatly, and when looking for the best tax accounting specialist for your business, you want to avoid picking the wrong one.  Although an accountant needs to understand the tax laws, your tax liability can change based on your current financial position and your strategy for the future. The best CPA is one that understands this….

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Child Daycare and Taxes

By Tax Advice

Article Highlights: Daycare Providers Simplified Food Deduction Special Rules for Business Use of the Provider’s Home Home Sale Consequences Other Expenses Other Daycare Provider Issues Daycare User Credit Employer Dependent Care Benefits Other Credit Criteria When discussing daycare for children so their parents can work, there are two primary areas of discussion: one from the viewpoint of the individual providing the daycare services and another from the parents using a daycare provider’s services. Tax law provides special benefits for both….

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Tax Issues Related to Hobbies

By Tax Advice

Article Highlights: Hobby Losses Not-for-Profit Rules Determining Factors Trade or Business Presumption Hobby Tax Reporting Self-Employment Tax Generally, when individuals have a hobby, they have it because they enjoy it and are not involved in their hobby with the goal of making money. In fact, most hobbies never make money or don’t even create any income, for that matter. Tax law generally does not allow deductions for personal expenses except those allowed as itemized deductions on the 1040 Schedule A,…

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Earned Income Tax Credit: Used, Abused and Altered

By Tax Advice

Article Highlights: Purpose of the Earned Income Tax Credit Qualifications Earned Income Qualified Child Credit Phaseout Computing the Credit Investment Income Limit Combat Pay Election Fraud Safeguards Any discussion of the earned income tax credit (EITC) needs to begin with a discussion of why Congress created it in the first place. It has a twofold purpose: first, as an incentive for people to work and get off public assistance, and second, to provide financial assistance for low-income taxpayers and their…

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What Is the Statute of Limitations on Unpaid Taxes?

By Tax Advice

If you have unpaid taxes that you haven’t yet been making payments toward, it might make you fearful that the IRS will come a-knocking one day to collect on what you owe. Tax debt can quickly snowball from interest, penalties, late fees, and the amount of the taxes due. However, a lot of the scaremongering surrounding the IRS is largely sensationalized in media and daily conversation. Agents won’t come bursting through your door just because you have tax debt. Instead,…

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