Refinancing? Understand the Tax Issues
Are you thinking of refinancing your home mortgage? Keep the tax rules in mind. Track “points.” A point is a fee equal to one percent of the loan amount. While you can fully deduct the points you pay when you buy your home, points paid on a refinancing are generally...
Monitor Your Accounts Receivable
Monitoring your accounts receivable may seem like one more chore in an already busy workday. But this simple activity is important. Here’s an illustration. Say you’re operating with a gross profit margin of 20% and your uncollectible receivables are $10,000. Your...
Review Your Beneficiary Choices
Are you storing the documents that designate the beneficiaries of your retirement plans, IRAs, and insurance policies in a safe deposit box? If so, it’s time to dust off these important papers and review them. Why? You probably made decisions about who will receive...
Understand Business Financial Ratios
Financial ratios provide a useful way to pinpoint strengths and weaknesses in the performance and solvency of your business. Here are four types of ratios that you can monitor using the figures from your balance sheet. Liquidity ratios, such as the current ratio,...
Know the Tax Rules for Summer Travel
Are you traveling for business this summer? If you’re planning to take a tax deduction for your expenses, the rules may be more complicated than you think. Here’s a refresher. The general rule. “Travel” expenses are ordinary and necessary costs incurred while away...
Get a Tax Credit for Dependent Care Expenses
Did you know that federal tax law allows you to claim a credit when you pay someone to care for your kids while you’re at work? The child and dependent care credit is valuable because it reduces the amount of tax you owe dollar for dollar. Here’s an overview of the...
Identity Theft: What to Do If It Happens to You
Tax identity theft once again topped the IRS list of tax scams for 2015. Here’s what you need to know if it happens to you. The warning signs. Have you gotten a tax bill you weren’t expecting based on income you never received? Has your return been rejected or your...
Save Taxes with Summertime Planning
Looking to reduce your 2015 income taxes? Consider these summertime strategies. Take a credit for summer day care. If you have one or more children under age 13, your costs of in-home childcare, a day care facility, or sending the kids to day camp may qualify for the...
Self Employed? Start Saving for Retirement
If you're self-employed, retirement may be the last thing on your mind. When financial gurus recommend setting aside 15-20% of your income toward retirement, your eyes may glaze over. After all, as an independent contractor or small business owner, you know income is...
Standard or Itemized: Which Should You Choose?
Each year when you file your federal income tax return, you have a choice to make: claiming the standard deduction or using an itemized list of qualified deductions to calculate your taxable income. Sometimes the decision is easy. For instance, if you have a large...