When Can I Hire My Kids In The Business?

When you run a small business, you often look for almost any tax deduction that you can take off your bottom line that has a legitimacy when it comes to filing your taxes. For most business owners, there is always a blurred line between your personal life and your business life. Often, your children end up getting involved whether it comes to running errands, filing papers, or even assisting with your company Facebook page. So, the big question is when can your hire your children in the family business and how do you document this when it comes to filing your taxes? I truly believe that one of the most underutilized tax deductions for small business owners is getting their children engaged in the family business. By placing children (or even grandchildren) on the payroll who are under the age of 18, you can create a great opportunity to take advantage of something called income shifting. Your company can hire ...

Read More →

How Much Of My Mileage Can I Tax Deduct This Year?

During tax time, we often get the question from employees and business owners about how much of their auto mileage they can deduct on their tax return. This is one of the biggest questions where a slippery slope can occur without approaching this topic in the right manner. For most people including business owners, their automobile is not used 100% for business purposes. Thus, if you use the car for both business and personal purposes, you can only deduct the mileage related to the business portion of using the car. Here are some ‘your smart money moves’ guidelines when thinking about how much of your mileage you can deduct on your tax return. You can generally figure the amount of your deductible car expense by using one of two methods: the standard mileage rate method or the actual expense method. If you qualify to use both methods, you may want to figure your deduction both ways before choosing a method ...

Read More →

Do I Need To Make Estimated Tax Payments?

You recently lost your job or your job lost you and now you have decided to take some freelance consulting jobs to pick up some spare cash. You fill out a W-9 in order to get paid, and a few weeks later a check comes in the mail made out to you. You are really excited because no taxes have been taken out and you feel flush with cash. Now, you are beginning to file taxes for 2014 and are starting to wonder when the Government is going to ask you to pay taxes. The reality is that most of you who earned your first 1099 will likely file Schedule C (sole proprietor) with your first year of income. Some of you may set up an LLC, but are still uncertain how exactly money gets from the check that got deposited in your bank account to the IRS for federal taxes and your state for state income taxes. In order ...

Read More →

Score A “GOAL” With A 2014 Georgia State Tax Credit

Today people still don’t understand the different between a tax deduction (we sometimes call this an above the line deduction) and a tax credit (we sometimes call this a below the line deduction) which is impacted by the line on your tax return we call taxable income. The important distinction is that a credit is a ‘true’ dollar for dollar reduction of your total tax. Whenever these types of tax programs are available, you should pay close attention to see if you can qualify and take advantage of the program. In the state of Georgia GOAL Scholarship Program, Inc. is something you need to look at closely as we kick off the new year. In 2008, the Georgia General Assembly passed House Bill 1133 (HB 1133) and Governor Sonny Perdue signed it into law. The legislation was further amended in 2011 (HB 325) and 2013 (HB 283). The law provides for the creation of student scholarship organizations (SSOs) to which ...

Read More →

2013: 10 Overlooked Tax Deductions

It’s the most wonderful time of year again as 2013 comes to a close.  So you aren’t fretting at tax time, maybe it will make sense over the next 9 days to put together an effective year tax management strategy to keep as much of your hard earned dollars as possible in your wallet.  Every CPA or accountant seems to have a slightly different slant on the tax code, but here are your smart money moves tips that may be able to help you increase your bottom line.  Remember to talk with a qualified CPA or Financial Advisor before you decide to implement. Charitable Mileage– Most taxpayers are very good at keeping receipts of their cash donations that they make to the organizations they donate to during the course of the year.   One of the deductions few taxpayers pay attention to is the charitable mileage deduction.  For 2013, you can deduct .14 cents per mile driven for rendering gratuitous services ...

Read More →

How Long Can I Carry Forward My Capital Gain Losses?

We are almost two-thirds done with 2013 and some of you haven’t even completed your tax returns.  For those of you who filed and finished your tax returns in April, most of that paperwork is neatly tucked away in your home filing cabinet.   Since the stock market has run up over the past year most investors have made gains in their stock and stock mutual fund positions.   However, the majority of tax payers never look at their capital losses from prior years to do effective tax planning.  So just how long can you carry forward your capital gain losses? First, you should be aware that you can sponge up capital gains year to year against any capital losses or carry forward losses that you have on your tax return.   This means if you have a carry forward loss of $30,000 from a prior year and had $30,000 of long-term capital gains here in 2013, you would essentially have a wash.   ...

Read More →

3% Interest Rates Are Going, Going, Gone!

“The financial crisis that began in 2007 was the most intense period of global financial strains since the Great Depression, and it led to a deep and prolonged global economic downturn. The Federal Reserve took extraordinary actions in response to the financial crisis to help stabilize the U.S. economy and financial system. These actions included reducing the level of short-term interest rates to near zero. In addition, to reduce longer-term interest rates and thus provide further support for the U.S. economy, the Federal Reserve has purchased large quantities of longer-term Treasury securities and longer-term securities issued or guaranteed by government-sponsored agencies such as Fannie Mae or Freddie Mac. Low interest rates help households and businesses finance new spending and help support the prices of many other assets, such as stocks and houses. By law, the Federal Reserve conducts monetary policy to achieve maximum employment, stable prices, and moderate long-term interest rates” (source: federalreserve.gov) Does this all mean as the economy ...

Read More →

Can You Pay 0% Capital Gains Tax?

Most of us have heard through the major media outlets how tax law changes will adversely affect our overall income taxes here in 2013. It doesn’t take a rocket scientist to realize that when your expenses consistently exceed your revenue, cost cutting alone won’t improve your bottom line. This means that raising various types of taxes will definitely be one strategy to increase revenue in order to pay off the massive U.S. debt. The American Taxpayer Relief Act (ATRA) of 2012 was passed by Congress on January 1st, 2013 and was only a partial resolution to the fiscal cliff; just wait until fiscal cliff part II which will look more like ‘Hangover Part II’, Mike Tyson tattoo and all. While the ATRA did impose more taxes on the upper end of the scale and raised capital gains taxes on the very upper end of the income brackets, there is a unique opportunity for many Americans to look at their overall ...

Read More →

Five Deals On Tax Day!

It’s Monday and officially tax day. Some of us will be running out as late as 11:59 p.m. tonight to the post office to make sure our taxes are post marked on time. I suppose if you get a refund, tax day feels like a good day, however if you owe money it can feel as if you got pick-pocketed right outside of work. Now, some of you have been done for weeks and will just listen with amusement to the madness as a few of your colleagues scramble to finish everything today, April 15th. But, not all is lost as tax day also brings us some amazing deals. Here are five tax day deals you should look at this morning to see if you can make the most out of your day! FREE Cinnabon Bites– There are quite a few desserts that just seem necessary to indulge in from time to time. Every time I walk into the food court ...

Read More →