Do you complain about the amount of taxes you pay? Tax planning is the way to really make sure that you are minimizing the pain. A common strategy used in tax planning is to move taxable events into the future. That is a very dangerous strategy these days, one that can really backfire.

We live in a unique time in the United States. Despite our complaining, this is actually a period where tax rates have been near historical lows in the last 100 years. While this is not any help when you are writing out checks to Uncle Sam, it is a basic truth.

Unfortunately, we have continued to spend money at a staggering pace. If we were a teenager, our parents would have taken away our allowance and grounded us! The idea that the United States may not be able to pay its national debt is no longer a fringe idea. Our current debt is 12.3 trillion. The President is conservatively estimating another 10 trillion in debt this decade. Nobody is entirely sure who is going to buy all this debt and sooner or later it will have to be dealt with. (more…)

It’s that time of the year again when most people’s thoughts are focused on one of our least favorite topics – taxes.

That’s why I thought you might appreciate a little relief – both comic and financial.  (Bank On Yourself has numerous tax advantages I’ll explain in a moment.)

Let’s start with the comic relief first – a few snippets of advice and wisdom from humorist Dave Barry: (more…)

The Internet has become an essential tool these days that is very useful and efficient. These days, competition is increasing in every field. That is why people are planning and finding out new techniques and ways, with the help of which they can increase their profits and income. Affiliate marketing has become very popular these days because it can really increase the popularity of your website.

Due to inflation and recession, property and real estate taxes are increasing with a very rapid pace that is why people are trying to find out different ways through which they can reduce their property and real estate taxes.

If you want some tips and suggestions about lowering your property taxes you can easily take the help of various Real Estate websites that are operating on the internet these days. These sites have become very popular with the help of internet marketing. In this article, my main aim is to tell you about some tips with the help of which you can reduce your property and real estate taxes. (more…)

Tax settlements seem to be one of the most viable options when it comes to taxing debt relief. This is an excellent way to handle your tax debts by simply paying a portion of the amount owed. Since this is a case to case basis, the settled amount may vary.

If you want to face IRS for a possible negotiation, you should prepare the needed documents and other paperwork that can aid you in the settlement process. If you were not able to file your tax returns, the IRS will pursue you and will require you to settle your back taxes. This is not the time to panic.

You must keep in mind that once IRS sends out notifications repeatedly, you should already give it preferential attention. If you want to seek debt relief, you will undergo litigation, and it would be impossible to do this alone. An attorney who is well versed with tax laws can help you in getting out of this mess. (more…)

S-Corporations are not obligated to pay federal corporate income taxes, but they must file an income tax return. They file an Internal Revenue Service form 1120S to report profits and losses. The shareholders file K-1 forms and report profit or losses on their individual income tax returns.

S-Corp salaries and bonuses are taxable as income, but there is no self-employment tax applicable to an S-Corp. (more…)

Of course you know that you probably have to pay taxes when you inherit property from a will or as a gift. You will also have to pay taxes when you sell that property. There are key things to know about the sale of property from an inheritance and taxes, and it is best to know them before you decide to sell the property.

First of all, it does not matter what the decedent paid for the property, it will be taxed at today’s fair market value. So, if your grandfather paid $10,000 for a house and left it for you, you need to know its current value because that’s what you will be taxed on. Let’s say you have that house appraised at $100,000 – that is what you will pay taxes on, not the appreciated value. The house appreciated $90,000 but you will be taxed on the full $100,000 because gifts are calculated only on your gain or loss, not your grandfather’s. (more…)

Who would not want to save money on their taxes?

You may be surprised that some people think it is more patriotic to pay more tax than others. Though most of us are now watching our finances very well and would appreciate a tax tool that will help us save a few bucks.

So the following are my picks for best calculators and tools to help you save money.

1. Quicken Tax Tools – Simply Google “Quicken Tax Tools” and you will find some very comprehensive tools to calculate what Uncle Sam is going to be expecting from you.
2. Google Docs – Even if you do not have any spreadsheet software on your computer you can now easily create some pretty good ones with Google Docs. Their spreadsheet has steadily improved to the point that it is quite a serious tool.
3. Google Search – You would be surprised how many professionals are using Google to begin and sometimes end their tax research. Though a word to the wise is that do not always consider that everything that is on the web has been fact checked and is current. (more…)

The methods that local governments use to assess property tax differ from municipality to municipality. The first thing you need to do, in order to find ways to lower your property taxes, is to find out how the municipality in which you reside determines property value.

Review you property tax information. The municipality that governs your property tax, in most instances this is the county or parish, keeps records on your property. These records include things like lot size, square footage, number of rooms, additions or modifications, and architectural style of the home. Review this information to be certain its correct. If you have had recent additions or improvements that you do not see recorded here, you may want to avoid asking about it, because making them aware of these improvements could actually raise your property taxes.

If you are thinking of making major home renovations like building a pool, adding a deck, or even constructing a shed, remember that these improvements will, no doubt, raise your property taxes. In some areas this list extends to include property improvements like replacement windows, aluminum or vinyl siding, painting, and fencing. (more…)

Taxes, taxes, and more taxes–why not? Who would have known that the mere mention of “taxes” would set off very confusing thoughts, some of them very negative or just “uninformed” ideas towards taxes, charities, and the church and how it relates to their exemption status and historically, why. Recently I received an email with some very foul language because I took the position of siding with tax exemption status for the church. In researching the tax issue, I decided to substantiate the reason(s) for the exemption; further, I noticed that some very powerful organizations and/or foundations are also tax exempt but little to none public information is being made available that they are tax exempt.

Following is a partial list of non-profit charities, public and private foundations, and churches that IRS allows for tax exemption, under IRS Section 501(c)(3):

* schools;
* hospitals;
* social service agencies;
* The Red Cross;
* universities and colleges;
* scientific organizations;
* museums; (more…)

Being an individual contractor has its own rewards, but one should not forget the additional work that is involved in self employment. You will be preparing your own invoices and payment processing forms. As an individual contractor, you will have to file taxes with the Internal Revenue Service much differently than as an individual.

An independent contractor differs from a regular employee. They do not participate in the same activities, programs, or systems which are generally run by the company. Independent contractors may or may not work for a company but if they do, they are not subject to the same rules or restrictions as ordinary employees.

If you are just starting a job and want to be an independent contractor for a company, the first thing you should do is to make sure that the client or the company will be listing you on the tax forms as an independent employee. You can also check with the IRS to see if you will be classified as an independent contractor. You will be taking the “20 Questions Test” where a number of factors will be checked. This will help determine how much control the client or company has over you and the work that you do. (more…)