Let’s say you travel to a neighboring state and spend three days looking over some construction equipment you’re thinking of buying. The following month, you fly to a construction industry convention where you attend several daily workshops dealing with industry best practices. At tax time, you deduct as business expenses all the expenses you incurred…
The tax rules for offsetting capital gains and losses can be confusing, even for experienced investors. Saving grace: The new 2010 Tax Relief Act extends favorable tax treatment for long-term capital gains. This latest extension lasts through 2012. For simplicity, the following discussion is limited to capital gains and losses arising from sales of securities….
If you own or manage a small business, you are probably well aware that you can deduct the ordinary and necessary expenses of operating the business. But did you know that the definition of “ordinary and necessary” business expenses comprises a lot more than the usual laundry list of personal computers, staplers and labor costs?…
The thought of being incapacitated—either permanently or temporarily—certainly is not a pleasant one. Nevertheless, it is important to take precautions in the event you suddenly become incapable of managing your financial affairs. No one is immune. One common means of ensuring some measure of protection is to create a “power of attorney.” In particular, it…
Responding to a loud public outcry, Congress has repealed tough new 1099 reporting requirements for businesses that were supposed to take effect in 2012. The new federal legislation, called the “Comprehensive 1099 Taxpayer Protection and Replacement of Exchange Subsidy Overpayments Act of 2011,” was signed into law by the president on April 14, 2011. At…
At some point you will no longer be able to work, or want to work, due to health conditions, age or the economy—or all three. Thus, it is critical to “marry” long-term investment strategies to retirement planning. You cannot depend on Medicare, Social Security and other government-based programs to comfortably sustain you through retirement. The…
The flow of cash leaving your business can be a major concern during this economic slump. Of course, this is a sensitive matter, because you do not want to jeopardize long-standing relationships with suppliers or clients. With that in mind, here are several ideas to consider. Arrange to pay large bills at the latest date…
As the owner of a small business, you have probably realized the need for an Internet presence in this competitive business environment. However, after you have developed a website, it may become stale if you do not update it on a regular basis. And then there is no reason for clients and prospects to return…
Essentially, a “business plan” is a blueprint for running the company on an annual basis. But a comprehensive plan can do much more than that. Here are several benefits you may typically realize from a business plan: The plan can provide a needed sense of direction. It will show you where you are, where you’re…
Business Standard Mileage Rate for 2011 The IRS has announced the optional business standard mileage rate for 2011. The rate is 51 cents per mile for calculating the deductible costs of operating a car, van, or pickup or panel truck for business purposes. Taxpayers have the option of calculating and deducting the actual costs of…
