Tax Credit for Sending Your Child to Camp
You may be able to claim the child and dependent care tax credit if you pay expenses for the care of your under-age-13 child or another qualifying person to enable you (and your spouse, if filing a joint return) to work or look for work.
Child and Dependent Care Tax Credit
The tax credit is a percentage of the work-related expenses you paid during the year for the care of a qualifying person. Qualifying persons include dependent children under age 13. Physically or mentally incapable persons Read more [...]
Heavy Vehicle + Deductible Home Office = Major Tax Savings
You can reap major tax deductions with the heavy vehicle and home-office combo. The heavy vehicle produces quick tax savings. The home office that qualifies as a principal office eliminates commuting miles, and such an elimination can dramatically increase your business-use percentage of vehicles.
Tax Deductions
For example, say you bought a $50,000 vehicle that you use 60 percent for business. Your depreciation and expensing elections apply to $30,000. But if you can increase your business Read more [...]
What Is Reasonable Compensation?
For small businesses formed as an S Corporation and with plenty of profits, reasonable compensation is a term you may want to be familiar with.
Many small businesses have organized as an S Corporation form of entity. In many cases, the S Corp election allows a business owner to save money on self-employment taxes, especially if they are operating as a sole proprietor. S Corp profits, or distributions, are not subject to payroll taxes.
How Much is reasonable?
As a business owner taking Read more [...]
Do You Have Past Due Accounts?
If you perform a service or ship a product before you get paid, then you likely have a balance in your Accounts Receivable account. If customers pay when their invoice is due, all is right with the world. If they don’t, then your cash flow slows down and your bank balance is not as high as it should be. Here are some tips, preventive and supportive, to help you keep your accounts receivable current.
Granting Credit
When you deliver your service or product before your client pays you, you are Read more [...]