What do you think is better, 100 customers or 200 customers? It might actually be the lower number, and I’ll explain why. Let’s say that a small business provides landscaping and maintenance services for both businesses and for residential customers. Most of the customers are within a reasonable driving distance from the main office, and […]
New Jersey Tax
Never Pay Taxes on Your Real Estate Investment
Real estate can be a great investment, especially with all of the tax benefits. You can generally deduct interest, property taxes, repairs, and depreciation. Sometimes, a rental property may even generate a tax loss, while being cash-flow positive. But what happens when you sell your property? If you sell your property as a loss, then […]
Frivolous Tax Arguments
I don’t know anyone who likes to pay taxes. But, you won’t win with these arguments: Filing tax returns are voluntary: Filing tax returns are not voluntary. The IRS uses the word voluntary to mean that you determine your own initial tax liability by filing your own tax returns, and not have the government determine […]
Correct Your Mistakes Before It’s Too Late!
The end of the year is approaching, and now is the time for some last minute tax planning before it is too late. Almost every time a financial transaction is made it has an impact on your taxes. Here are some things to look out for and consider: Don’t hesitate to ask questions. If you […]
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 […]
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, […]
Did You Get a Surprise After Filing Your Return?
Everyone loves to receive a much larger than anticipated tax refund, but what if you unexpectedly had to pay when you filed this year? There could be several reasons why, but it’s not too late to fix it for 2015, including: Your filing status or dependents may have changed, perhaps from married to single, which […]