A Tutorial on Business Entities
A TUTORIAL ON BUSINESS ENTITIES Sole Proprietorship: This is a business you operate yourself, in your own name or a trade name, with no partners or formal business entity. You remain personally liable for business debts. You report income and expenses on your personal tax return by filing a Schedule C. You pay self-employment taxes […]
So Far, So Good!
So Far, So Good! Have you heard the one about a man who jumped out off the 20th floor of a building? As he was falling past the 10th floor, someone yelled out to him, “How’s it going?” He replied “so far, so good.” A few days ago I just had a conversation with […]
Office in Home expense
Have you ever heard anyone, including your tax professional say, “don’t take the home office deduction because it is a red flag to the IRS?” Several years ago there was a lot of emphasis by the IRS on the Office in Home (OIH) deduction and it scared a lot of taxpayers from taking it. IRS […]
Income and self employment taxes for small businesses
Small business taxes Federal taxes: income and self employment taxes Impact on personal income tax. When you own and operate your own business, in almost all cases [the exception is a C Corporation], the income or (loss) from the business passes through to your individual income tax return (Form 1040). Business income increases the […]