Archive for Tax
Husband & Wife Ownership of LLCs in Community Property States
Posted by: | CommentsI am frequently asked about the impact of a husband and wife owning the membership interest in an LLC in a community property state. It is and interesting issue that is unresolved in many respects.
Similar Wikipedia Articles
Related Posts -
11 Ways to Protect Yourself in Business Business is riskier than ever these days. The economy is a mess, credit markets are tight, taxes are high - and likely to go higher, the courts are clogged with frivolous lawsuits, and attorneys seem to rule the world. What can you and I do about it? Fortunately, we......
-
11 Steps to Giving Employee Negative Feedback Every successful entrepreneur eventually has the experience of giving what is perceived to be negative feedback to an employee, manager, vendor, or partner. Providing this kind of feedback is essential to leadership, and it is the most direct way to provide direct reports with information on how they are performing. ......
Related Websites
Charitable Giving Statistics
Posted by: | CommentsAmericans give billions of dollars per year to charities. In fact, charitable deductions in 2002 totaled over $136 billion. According to the IRS Statistics of Income Bulletin (winter 2003-04), here are the average breakdown of claimed deductions for charitable contributions on 2002 tax returns:
- Taxpayers with Adjusted Gross Income between $15,000 to $30,000 averaged charitable contributions of $1,890.
- Taxpayers with AGI between $30,000 and $50,000 averaged $2,006 in charitable contributions.
- Taxpayers with AGI between $50,000 and $100,000 averaged $2,530 in charitable contributions.
- Taxpayers with AGI between $100,000 and $200,000 averaged $3,875 in charitable contributions.
- Taxpayers with AGI over $200,000 averaged $17,354 in charitable contributions.
Related Posts -
11 questions that can help you choose the best business entity for you Small business veterans may differ on politics, taxes, management styles and even on business models. But one thing they generally agree on is this: the business world is a dangerous place. In business, there is potential trouble literally everywhere - contracts, product liabilities, employee problems, intellectual property mistakes, etc. -...... - Financial Statements and Fund-ability Disraeli once said that "there are three kinds of lies: lies, damned lies, and statistics." In business, some of the "statistics" that can tell such damning lies are the numbers found on company balance sheets and income statements. Too often, the reality is not accurately reflected in the numbers. Accounting......
Related Websites
Dealing with medical expenses
Posted by: | CommentsEscalating medical costs leave even insured families left to cover increasing out-of-pocket costs. While there are a number of strategies for small businesses and self-employed individuals to deduct the cost of health insurance coverage, the tax code also provides some relief allowing taxpayers to deduct medical costs.
Anyone who has prepared their own tax return is probably familiar with the rule that out-of-pocket deductions are generally only deductible if they exceed 7.5% of the adjusted gross income (AGI). But for taxpayers who are subject to the Alternative Minimum Tax, medical expenses are only deductible in excess of 10% of their AGI. This means that many higher income taxpayers are unable to take any medical expense deduction.
One terrific, if under-utilized fringe benefit that the tax code allows is for the use of a Medical Reimbursement Plan by small business corporations. If a corporation sets up an uninsured medical reimbursement plan to pay for non covered medical costs, the direct payment of medical expenses is not taxable to the employees for coverage for employees, spouses, and dependents. The only exceptions to this rule are for owners of more than 2% of S corporation stock, and payment of expenses for domestic partners. For the company providing the medical reimbursement, the payment of medical expenses are dedeductible from the first dollar.
Similar Wikipedia Articles
Related Posts - Employees underestimate employer medical insurance costs According to a report issued by CCH, very few employees realize the magnitude of the expense incurred by employers who pay medical insurance benefits, even though it is generally a well-publicized fact that medical insurance costs are skyrocketing. A 2004 study by MetLife on Employee Benefits Trends showed that 28%......
- Charitable Giving Statistics Americans give billions of dollars per year to charities. In fact, charitable deductions in 2002 totaled over $136 billion. According to the IRS Statistics of Income Bulletin (winter 2003-04), here are the average breakdown of claimed deductions for charitable contributions on 2002 tax returns: Taxpayers with Adjusted Gross Income between......
Related Websites
What are “Start-Up” costs?
Posted by: | CommentsTo the IRS, qualified start-up costs are those expenses that a business incurs while in the process of determining whether or not to start a new business, and which new business to begin. This is often called the “whether or which test”. See IRS Rev. Rul. 99-23, 1999-1 CB 998. Any expenses incurred after this decision is made are not considered part of the search and decision-making process, but are assumed to be used to consummate the transaction, and therefore they must be capitalized.
Start-up expenses are fully deductible up to $5,000, with any additional balance amortized over a period of 180 months. Taxpayers make an election to amortize start-up expenses by attaching a statement to the initial tax return of the business.
Related Posts -
- The Problem with Series LLCs The new, Series LLC abandons the comforts of asset protection precedent, and introduces a new, completely untried and untested concept into which uninformed promoters and unwary business owners are stumbling. The Series LLC is an exciting new development in business entity law that is currently getting a lot of attention......
Related Websites
