A friend is in a pickle and asks you for a loan of $5,000 because they hit some hard times and have some bills to pay. Do you help out your friend and say yes, or simply say no. If you say no, then your friend may get upset, get behind with bills, but hopefully they […]
Don’t Cut Your Expenses!
Shouldn’t a CPA be telling you to spend less and save more? Perhaps, but what if you are cutting back on your expenses too much and you are focusing way too much on not spending money? First, just to clarify, I do not advocate spending money foolishly or spending beyond your means. I am referring […]
Strange Tax Benefits
The tax laws are written with a purpose in mind, but at times, it may be used (loopholes) to receive unintended benefits. You may be able to rent out your home or vacation home tax-free if rented for less than two weeks during the year If you have a home office, you may be able […]
Should You Buy a Home or Rent?
Several years back when the real estate market was red hot, it was almost a no-brainer to buy a home. A year or two later your home appreciated by thousands of dollars and was worth much more than you paid for it. We all know that this is not true now, so does it make […]
Don’t Take “No” for an Answer!
What does not taking “no” for an answer have to do with financial matters? Plenty! Very often when we ask for something the response is “no” or is not what we wanted. This can happen when dealing with business or personal matters and it can cost you significantly. When applying for a loan, it is […]
Pay Less Tax on Your Investments
It’s great to accumulate wealth by investing and saving you money, but did you know that taxes can take a large bite from your investments? Every investor, including those with 401(k)’s, IRA’s, and traditional brokerage accounts need to be aware of the impact of taxes. Here are a few tips and items to watch out […]
Bad Tax Planning
Tax planning can prevent you from overpaying taxes, but it has to be done before the year is over. Good tax planning takes a proactive approach, and bad tax planning includes either not planning, breaking the law, or taking it upon yourself without using a competent tax professional. Without planning you may not be able […]
Taxable or Non-Taxable?
Which items do you think are taxable and which are not? The answers are below. Workers compensation Educational assistance Cancelled debt Expense reimbursements Fringe benefits Bartering Hosting a party and receiving payment (such as a candle party) Life insurance proceeds Unemployment benefits Federal income tax refund Taxable: cancelled debt (there are exceptions), fringe benefits, bartering, […]
Do You Watch Shark Tank?
You have probably heard of the show Shark Tank, which airs on ABC. The show is about entrepreneurs who pitch their products and ideas to a group of wealthy investors who are referred to as “sharks.” Hopefully, the sharks will bite and offer to invest some of their money in the fledgling businesses. Many […]
Tax-Free Income from Your Home!
Did you know that you can receive rental income without paying income taxes on it? Generally, if you rent your home or vacation home for less than 15 days then you do not have to include the rent as income.