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Property Taxes And Personal Savings Rates Shape Your Future Finances

Sunday, November 14th, 2010 at 5:13 am  
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Retirement stock index fund investing and investment rates predetermine future personal finance goals. Know just how your current personal savings rate dictates your family’s financial security. Beyond your efforts to increase your earned income, your rate of savings primarily dictates your family’s long-term financial health by methodically increasing your financial assets.

You consistently should spend currently at rates that are highly likely to guarantee a sustainable life-long personal finance plan. The attempt to be clever at selecting certain better investment securities is a far less reliable, unimportant, and most often negative factor in your lifetime personal finance success.

Worthwhile net worth and possible investment portfolio returns which people allow to vanish will fall from their wallets at the checking counter every day. Simply put, most individuals ought to spend less and save more than they do. However, how much current saving and budgeting do you need to do

Because your finances offers no guarantees and no reliability about outcomes, you are wise to constrain today’s buying to build up substantial investment portfolio assets. They are the investment portfolio assets which will enable safety buffers for times of future difficulty, can pay for your old age, and can fund an estate, if desired.

Saving and mutual fund investments rule future personal finance goals. The top home retirement planning tool will help you to establish sustainable personal budget consumption amounts which would permit you to achieve your life-long personal finance goals. You must have a way to analyze what is a durable lifetime expenditure rate. Comprehensive family financial software programs can give you such an estimate by automatically developing very personalized lifetime personal finance planning projections for your family. When you use an automated personal finance application, it should be obvious that relatively small percentage changes in your personal expenditures that are help to through the years will have a huge cumulative impact on your full-life family financial plan.

While the great majority of people tend not to budget and save adequately, you should use financial software that do not require that “you must always save more” as part of the financial plan. You need financial software programs that will project your future investment assets until you are 100 years old. Your financial software program should enable you to change any projection parameters and allow you to decide by yourself where to set the asset projection balance between your purchases today and the size of your estimated financial assets in the future. Those who save and budget at a higher rate can pick whether to increase current consumption to improve their current lifestyle versus tomorrow.

A fully automated, do-it-yourself financial planner and retirement planning software application is vital. A comprehensive and automated lifetime planner with a personal finance saving program application is required to develop a really useful plan for your financial freedom. In addition, to develop a very high quality lifetime financial plan requires that you use the top financial planning worksheet with a high quality investment planning software and the top financial planning tools.

Find an excellent all-in-one retirement tax calculators home software product with high quality 401k retirement calculator program, the top personal budgeting software, and the best investment software for your do-it-yourself life time personal financial planning.

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Tax Shelter Incorporating – Finding A Good Tax Attorner

Tuesday, February 17th, 2009 at 1:27 pm  
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Small Business Tax Attorney – What You Need To Know

No one plans to rack up tens of thousands of dollars of debt with the IRS when they open their business. Most of these problems start small. Little things, like maybe forgetting taxes for one or two payroll periods. Eventually things spiraled out of control. Now you’re up to your eyeballs in debt to the IRS with no idea where to turn for help. For serious tax problems, including large IRS debts, payroll and other employment tax problems, you need a tax attorney.

Here are some tips for finding an attorney who can successfully go to bat for you against the IRS. Why you can’t go with a typical lawyerTax law is one of the most complicated fields of law. Taking one or two tax law classes in law school doesn’t give an attorney the training or experience necessary to represent you tax helpeffectively against the IRS. It would be like going to an obstetrician for brain surgery. They’re both doctors, yes, but with very different specialties. Good tax lawyers know the IRS’s rules, and they can use those against them. They have specialized data bases/libraries they subscribe to and know how to utilize to have access to the very complicated, and constantly changing, laws and rules governing tax laws and procedures.

The stakes are too high to gamble on a lawyer without these specialized tools, training and experience in tax law. If things go wrong, the business you’ve worked so hard to build could be shut down. You personally could even go to jail. Your CPA can’t help you, either CPAs know the day-to-day accounting stuff needed to run a business and to file its tax returns. But when it comes to actually going head-to-head in controversies with the IRS, you need someone with both real litigation training and experience and a broad knowledge of how tax shelters protect incorporated businesses.

Also, be advised: you have no confidentiality privilege covering potential criminal liability with your CPA. In fact, your accountant is required by law to disclose certain accounting errors, which may land you in even bigger trouble. Consider the ramifications of having your CPA called in as the star witness against you if your case goes to trial. Look for specialized education Diplomas don’t lie. Look for specific tax experience and training. Look for a lawyer that specializes in tax law, and preferably one who graduated from a highly-rated law school, such as NYU School of Law. Try to find a lawyer with a Master’s law degree specializing in tax law (LL.M. in Taxation). Make sure they are staying current in their field as well. Laws constantly change, and you want to make sure your business doesn’t suffer with a tax attorney who’s behind the times.

References count Ask around. If you know a good lawyer or judge you trust, ask if he or she knows someone who specializes in tax cases who he or she feels comfortable recommending to you. Peer-reviewed ratings, like Martindale-Hubbell, can also give you an idea of what other lawyers are saying about the one you’re considering hiring. Ask what the Better Business Bureau has to say about the lawyer. Field experience is absolutely necessary Any time you have a controversy or a fight, you want a litigator. If you have a dangerous or complicated controversy with the IRS, your tax lawyer should also have extensive litigation experience, though very few do. You need someone who has real training and experience in dealing with conflicts and proceedings with someone who’s after you.

A significant reason why the IRS settles is because they have to consider the hazard of litigation. They are going to want to get things settled and avoid a lengthy court battle — but only if your case poses a risk to them. You need a credible threat of being able to go to court and really stand up to the IRS to get leverage to make them settle.

By: Clifford N. Ribner

Article Directory: http://www.articledashboard.com

Clifford N. Ribner serves as a tax attorney in Tulsa, Oklahoma. For more than 28 years, he has helped people with serious tax problems fight the government and win. If you’re in danger of losing your business because of tax problems, visit him online at www.cnribneratty.com.

The Stimulus’ Key Small Business Tax Provisions

17, formally known as the American Recovery & Reinvestment Act, provides $288 billion in tax relief to individuals and companies. But how much of that will benefit small business owners—and how? 

IRS Vows to Intensify Enforcement of Employment Tax Evasion

by Elizabeth Milito, senior executive counsel, NFIB Small Business Legal Center. Tools to include criminal prosecutions. The head of the U.S. Justice Department’s Tax Division has warned a group of tax attorneys that the IRS and DOJ …  

I don’t need an Attorney; I’m not in trouble

Oh yeah, and access to GoSmallBiz, the top business resource for small business owners, with answers to tax questions and much more. 

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Taxes For Small Business

Tuesday, February 17th, 2009 at 1:22 pm  
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Small Business Taxes – How To Lower Your Bills

Financial record keeping and bookkeeping by small business is occasionally accurate but often produced once a year for tax purposes. By maintaining a diary, retaining all receipts and updating the accounting records on a regular weekly or monthly basis small business can seriously account for all costs and reduce the final tax bill.

Tax authorities are often relaxed about the need for small business to prepare and produce formal accounting records. Often the requirement is simply that each business retains sufficient financial records to support the accounts submitted.

Such advice from tax authorities places a burden upon small business in that the vast majority are honest hard working people who are meticulous about keeping accounting records of sales made during the financial year. Unfortunately many small businesses are not so meticulous about keeping financial records of business expenses in their accounts.

A typical taxi driver may for instance keep a diary and record the daily receipts from his fares. If those recorded receipts are accurate then the total sales turnover for the year will show the correct total. The same may not be true of expenses and the accounts thereby overstated.

The total business expenses of the taxi driver would mainly include the fuel receipts plus the other running costs of the business. Typically a receipt for fuel will be obtained and kept in a file or shoe box. Some may get mislaid and lost and be missing from the final accounts preparation.

Other receipts for miscellaneous items may not even be retained as forgotten, lost or not thought of at the time of purchase. Examples may be purchase of the diary in which sales records are kept, business cards, other stationery, and cash payments for a whole variety of miscellaneous items.

The same practice is also often applicable to not just taxi drivers but many small businesses.
A small business owner may visit a supermarket for groceries and also buy an item of stationery for business use the cost of which is lost when the grocery receipt is discarded. If close attention is paid then the stationery item could have been obtained on a separate receipt and the cost of the journey to purchase it also included in the business expenses.

The stationery item is just one example which could be multiplied hundreds of times with hundreds of different items during the financial year. While each item missed and unrecorded may not be significant the total could well be sufficient to significantly reduce the taxes small business will need to pay.

Having retained a separate receipt for everything it is useful if the receipts are filed and the bookkeeping system employed updated at least once a month and preferably each week. By updating the accounting records on a regular basis more expenses will be recorded as the memory will remember recent expenses more clearly and accurately.

Another useful method to ensure all business expenses are maximized is to keep a daily diary of all expenses incurred. Use the entries in the diary when updating the bookkeeping records to ensure nothing has been missed in the accounts.

The essential message is to be meticulous about keeping receipts for everything, no matter how small, and recording both income and expenditure on a regular basis so that items are not lost or forgotten and included in the bookkeeping records. By also keeping a diary of financial records even if a receipt has been mislaid the amount should still be included in the accounts. It could be disallowed later if the tax records are inquired into but that is a matter of negotiation with the tax authority from a standpoint where the financial records are correct.

In addition all small business should take some time to review all potential expenditure which can be claimed under the tax rules. Many valid expense items can be missed having been dismissed as ordinary expenses which may be business related and therefore claimable in the financial accounts.

Terry Cartwright is a qualified accountant in the UK designs Accounting Software on excel spreadsheets providing complete Small Business Accounting Software solutions for with single and double entry Bookkeeping solutions for limited companies and self-employed business.

  

By Terry Cartwright

Published: 5/24/2008
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Payment Taxes – Three Ways To Lighten The Load

Tuesday, January 27th, 2009 at 4:35 pm  
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Three Ways Pay Less Taxes On Your Tax Due Date

There are three possible ways to pay lower taxes. These three options are all legal and provided by the law. The options are: the first is through a Belize offshore company, second option is to set up a Limited Liability Partnership UK, and the third is to have an agent company.

Whether you are an individual or you are part of a company, the law states that tax payment is a must. Each country has laws that require individuals and companies to pay the necessary taxes on a specific tax due date. If the required amount of tax is not paid, then, that is tax evasion. Tax evasion is considered a crime in all countries. tax due dateDespite tax laws implemented in each country, it is not a crime nor is it illegal to pay lower taxes as long as the law allows that. The law itself allows some people and groups to pay lower taxes which would prove beneficial to them. In fact, there are three situations which allow you to lower your payment on taxes as defined and as allowed by the law. Let us take a look at each situation so you can take advantage of the benefits the law allows.

The first option is through an offshore company in Belize. Belize, formerly known as the British Honduras, is a political and economically stable country. It is located in Central America and it is known to be one great and safe place to have an offshore company. With an offshore company in Belize, there are no accountancy and audit services needed for your company.

The second option is to set up a Limited Liability Partnership UK (LLP). This can be done by setting up two offshore companies under a Limited Liability Partnership UK (LLP). With a Limited Liability Partnership (LLP), the offshore companies only need to pay an offshore flat rate tax. With a UK Limited Liability Partnership, the law allows the companies to have a pass through tax which means that the companies do not pay tax directly but only the members. This means that the tax amount to be paid would be much lower than the regular tax.

The last option is called an agent company. In this scheme, two companies are involved. The first company is the UK Ltd Company and the second one involved is the Belize offshore company. Based on an agent agreement UK, a UK company can sign a business agreement on behalf of the offshore company. With this, the company is allowed to keep 5% from the price of business agreement and the 95% to the offshore company.

These three schemes are all legal as provided for and allowed by law. If you want to save on taxes and pay lower taxes instead of the regular ones, then it is possible to consider these three company formation schemes. Choose one that is best suited for you and your company and it is assured that you get to save more on taxes. Without any worries, these company and business schemes are all within the confines of the law. It is important to be guided by financial and business specialists when planning to set them up.

Tax avoidance
We help you to reduce or even avoid paying tax. Keep your money for your family

By Mike Novik
Published: 10/29/2008

How to Get Tax Penalties and Interest Reduced

However, this penalty can be applied only for the first five months following the return’s due date, up to a 25% maximum charge.

2009 TAX DUE DATE

2009 TAX DUE DATE. For Residential, Farmlands, Pipeline and Managed Forests Properties. The first instalment of the Interim tax billing for 2009 for the above noted properties is. due on:. February 13, 2009. 

Do It Yourself: Filing Taxes

I note the date of pick up on the sheet and toss it into our tax file. :: Speaking of our tax file… you NEED a tax file that is a handy place to just toss everything that you incur during the year related to you income taxes. 
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Tax Help – How To Pay Less

Tuesday, January 27th, 2009 at 4:35 pm  
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5 Tips to Help You Pay Lower Taxes This Year

One of the busiest times of the year, except for the Holidays is, the tax season. And every year, each tax institution reminds us to file smart and on time. Nowadays, some people prefer to do their own taxes, while others seek advice from professional, reliable and skilled tax companies.

Knowing what to do and how to do it is very important. I suggest doing your homework individual taxesfor your advantage. First thing is to learn and understand the current or updated tax procedures. This way, you know what you’re getting and expecting. Not only that, but a little advance planning will almost always help you reduce the taxes you owe come tax season. There a bunch of tips that you can use come year’s end to help lower your taxes.

Charity Contributions. If you have some stock that you’ve had for more than a year, it might be a good idea to keep the cash in your pocket, and donate the stock. This way, you avoid paying tax on the appreciation of the stock. At the same time, you can deduct the full value of the stock in your taxes. A sure winner! You get to keep your money. The charity receives a considerable donation. If you liked the stock you sold and still want to maintain a position in the shares after your donation, you can always buy new shares in the company.

Plan Ahead at Work. If you have a 401(k) plan with your current company, it is a good idea to state your contributions for the next year. Analyze your spending and needs then from your pay check, set aside as much as you can. $15,500 is the deductible maximum for 2008 ($20,500 if you will be age 50 or older at the end of the year).

Maximize your Flexible Spending Account. During this time of the year is when employees must specify how much from their salary they will contribute to their medical and child-care flexible spending accounts. Withdrawals taken from these accounts for medical and dental insurance premiums, uninsured premiums, uninsured medical and dental expenses, and child-care costs are tax-free. Keep in mind that you will lose your money at the end of the year if you still have balance in your spending account. Make sure to use the remaining balance. You can use it to purchase a new pair of glasses or new set of contacts, fill prescriptions, and get your overdue dental work.

Not a lot of people know that you may claim tax loses to activities IRS may consider hobbies. Its hobbies that may bring some revenue but not enough profit every year. Examples are restoring or selling vintage cars, or breeding dogs or horses, to name a few. So for hobbies that doesn’t qualify, you can’t subtract overall loses, but you can report expense to balance income.

Tax season could be a very stressful time. Planning ahead and being organized is the key to help lower you taxes. If possible, keep all records, invoices, etc… for references. Good luck!

Low tax
Reduce your tax and keep the money for your family

By Mike Novik
Published: 11/5/2008

‘A Plan to Lower Taxes
‘A Plan to Lower Taxes’. Jay Leno. Monologue

West Bengal plans lower taxes
West Bengal plans lower taxes on country spirits, The state government has been raising taxes on spirits to discourage consumption.
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Withholding Taxes? File Now!

Tuesday, January 27th, 2009 at 4:34 pm  
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Filing IRS Back Taxes Without Paying A Tax Penalty

withholding taxes

Scared of filing back taxes? Join the club. A club of millions of people who feel the same way you do. It’s like ripping off a band aid though, so you have to do it quickly. Even if you can’t send a check in, still file as soon as possible can save you some grief later on.

Showing initiative instead of avoiding the inevitable will help your situation. It’s like you are striking first. Not letting the IRS get any more of an edge than they already have. Don’t be intimidated by the IRS, owing taxes or dealing with the IRS won’t be the end of the world. But, you should seek out help when you file late. Help from tax professionals who know how to handle the IRS.

Not filing back taxes can lead to some of the worst situations the IRS has to offer. They really frown on people who don’t file taxes more than anyone else. Avoiding this kind of scrutiny is the key to keeping your relationship with the IRS running smoothly. Taking the first step gives you some control, and having control is a good thing when it comes to dealing with the IRS. As intimidating and scary and big as the IRS may seem, you as a tax payer have rights and options and knowing what those are will help immensely when filing back taxes.

Having expert help when filing old taxes can really be the difference between paying dearly and setting yourself up in the best possible pay back situation for you, not the IRS. The IRS will take out every tool in its collection tool box to get money owed from you. But, you need to also have a tool to use against them and that is tax experts who know how to deal with the IRS on their level. You can minimize the negative effect of being late on taxes by knowing and exercising your rights.

Don’t fear filing back taxes. Take the initiative and show the IRS you mean business. Click Here to learn about a program that can help you out!

Show them that you know your rights and are unwilling to give up more than you have to. Their intimidation tactics are formidable but your tax expert will know how to volley the next shot on your behalf. You will find your situation is not as grave as you thought it was. Filing back taxes doesn’t have to be stressful at all.

Filing Back Taxes
If you need help filing old taxes, please contact us and we can help.

By Manuel Davis Jr
Published: 1/10/2009

Residents Warned Against Withholding Taxes

TFSA & Non-Resident Withholding Taxes

How Common Is Tax Evasion?
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Benefits Under Federal Income Tax Principles

Tuesday, January 27th, 2009 at 4:34 pm  
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Looking For Another Tax Deduction? Here’s Some Tax Strategies To Check Out

Are you searching for another income tax deduction and wonder whether you qualify for an IRA? If so, here are the new contribution rules–some brand new as the result of the Pension Protection Act of 2006.

An additional income tax deduction may be available by contributing to an IRA. However, many people may not realize they qualify to have an IRA. So let’s take a look at the contribution rules.

One of the things that makes IRAs so complicated is trying to understand the eligibility, maximum contribution limits, contribution phaseouts, etc. of all the types of IRAs at one time. Technically, there are five types of IRAs: Traditional, Roth, SEPs, SAR-SEPs and SIMPLE. So we are going to limit the discussion here to the traditional IRA.

In this article, all of the rules pertain to 2007. Some of the numbers used in the calculation of how much you can contribute to an IRA are subject to indexing. So you need to obtain the proper figures for any year in question.

The determination of your eligibility for a traditional IRA, and the ability to calculate how much you could contribute, are dependent on several things:

1. Your age

If you are under 50, you can contribute a maximum of $4,000 to a traditional IRA. If you turn 50 during the year or are over 50, you can add another $1,000 which is called a "catch-up" contribution. If you turn 70 during the year, you can’t make any contribution.

2. Were you an active participant in an employer sponsored plan during the year?

If so, you still may be able to contribute to an IRA. The amount depends on how much money you made and your tax filing status (single, joint or separate).

Having "modified adjusted gross income" (MAGI) of certain levels requires applying a formula which calculates a gradually decreasing permissible deductible contribution. If your MAGI exceeds certain thresholds, you can’t contribute anything. These thresholds depend on how you file your taxes. Here they are:

Married filing jointly: Up to $83,000 of MAGI allows for a full contribution. Then a phrase out begins as income increases. For MAGI of $103,000 or above, no deductible contribution is allowed.

Single or Head of Household: If your MAGI is $62,000 or above, no deductible contribution is possible. The phase out starts at $52,000, so anything lower allows for a full contribution.

Married filing separately: For a MAGI of $10,000 or more, no contribution is permitted and the phase out starts at $0.

3. Do you live with your spouse or file a joint return and your spouse is a participant in a qualified plan, but you are not?

In this instance, your ability to make a contribution is reduced to zero if you have a MAGI over $166,000. Up to a MAGI of $156,000, you can take a full deductible contribution.

4. Did you receive "compensation" during the year?

Contributions must be made from compensation received. Sorry, if you were unemployed all year, sheltering that big day at the track is not permitted.

5. Do you have cash?

Contributions must be made in cash. You can’t contribute stock or any other type of asset.

6. Do you file a joint tax return and make less than your spouse?

benefits and burdens under federal income tax principles If so, you may be eligible to make a contribution. This rule was originally intended for a spouse who did not work; however, it may apply to a spouse who works as well.

You will need to apply the rules and work through the math. You may find a spouse has no compensation for the year can make the maximum (i.e. under age 50: $4,000) contribution.

7. Did your employer go bankrupt?

The rules here are pretty narrow, but if you qualify you could be in for a nice surprise. You would have to have been a participant in a 401(k) plan with specific attributes and your employer filed Chapter 11. If you qualify, you would be eligible for catch-up contributions of $3,000 for years 2007-2009. And these catch-up provisions apply to all ages-you don’t have to be 50 or older.

Armed with this information, you should be in a position to determine if an additional deduction is available to you by contributing to an IRA.

Robert D. Cavanaugh, CLU is a 36 year financial and estate planning veteran and author of the free newsletter, "The Estate Preservation Advisor". To subscribe and get the free video, "How to Sell Your Life Insurance Policy for More Than the Cash Value", please click here

By Robert D. Cavanaugh, CLU
Published: 3/2/2007

Tax Tips: Strategies for Saving Money on your 2008 Return

With IRAs, you can continue contributing for the 2008 tax year until April 15, 2009.

Tax strategies to get highest returns

If you phased out of the rebate because your income was too high, strategies like deferring income to 2009 or postponing IRA withdrawals could get you your rebate.

Uncovering the IRA goldmine using tax reduction strategies

Only three investments are found here: muni-bonds, Roth IRAs and properly designed life insurance.
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Tax Deduction Checklist

Tuesday, January 27th, 2009 at 4:33 pm  
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Need Help Saving The Most You Possibly Can This Tax Season?

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It’s Time To Stay Organized

Are you confident that you have the skills required to do your own income tax preparation? This article discusses the skills required to do the work yourself. So you can decide if it is worth the effort or should you get a professional to do the work for you.

There is one hassle that we all have to deal with each and every year and that is doing our income tax preparation. There are really only two choices we have in this matter. You can either do it yourself, or have someone else do it for you. There are, however, pros and cons to each method. Some people are fine with doing it themselves, while others have a tough time with it. The level of difficulty with tax preparation depends on a number of factors. For example, if you own your own company, or if you are self employed, then you will have a very complicated tax return. You simply, may just have one job and no assets, in which case your income tax preparation could be very easy. Whether you will be able to handle the task will depend on additional factors.

Are you good at working with numbers? Can you follow written directions? If you answered yes to either of these, and preferably both, then you will have no problems doing your own income tax preparation. A good thing to have is a tax deduction checklist. Those people who are just good at math can look at a problem work out a way to solve it. Tax preparation does require quite a bit of math the amount will depend on how complicated your tax situation turns out to be. If your tax deduction checklistlevel of math is sufficient and your affairs not very complicated then you will probably able to do it on your own. Tax preparation is not only about math. You need to be able to follow directions. To successfully fill out your taxes you need to be able to follow a variety of directions.

Perhaps you don’t have these skills. What should you do in this case? The best option is to have a professional handle your income tax preparation. Especially if you don’t trust you’re yourself when it comes to tax filing, have someone else do it for you. Because of the consequences associated with errors on a tax it may be prudent to let someone else handle the dirty work so that you don’t have to.

When it come to income tax preparation, you probably have to decide if the cost involved in having a professional do the work worth the reduction in stress for you. Generally speaking, if you expect a refund and are not to concerned about getting it right, then go ahead and do you own. If your taxes are more complicated or you get stressed about the whole situation you would be well advised to save your self the trouble and find someone else to do the work for you.

You need more information now on tax preparation and a copy of the FREE report on Reducing Personal Tax so now is the right time to head over to USTaxesGuide.com

By Gary Talbot
Published: 11/22/2007

Can I deduct Federal taxes paid in 2007 on my state tax return

State taxes paid 8 years late

Can I deduct business travel to a library for business use?

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Paying Taxes On Lottery Winnings

Monday, January 26th, 2009 at 4:37 pm  
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Need Help Saving The Most You Possibly Can This Tax Season?

Click Here To Get Started!

Have you ever seen or heard news reports about lottery winners becoming broke? Can you imagine? They have no money left!

Many lottery winners, especially those who take a lump sum are now poor. How could that possibly be? Many people think that if they could just win the lottery, their whole life would change for the best. They think that once they win all that cash, then all their problems will disappear. Therefore, week after week they buy lottery tickets, hoping to win. They also forget about paying taxes on lottery winnings.

I once read about a woman who won the New Jersey lottery twice! She won in 1985, and then again in 1986. She won millions. The money has been gone for a long, long time now, and she lives in a trailer. She said, "There are a lot of people out there like me who don’t know how to deal with money. Hey, some people went broke in six months. At least I held on for a few years."

There was a man in Pennsylvania who took home 16.2 million dollars after taxes. He had a lump sum of 16.2 million dollars! All of that money is gone and he now lives on social security. These are not isolated incidents. Circumstances just like these continue to happen repeatedly. What is the reason?

So many lottery winners are broke because winning the lottery did not change their mental attitude about finances. Receiving a big chunk of money did not change their poverty mentality. Their poor, poverty thoughts simply continued to bring to them what those thoughts have always brought to them – poverty. A recent study of people who come into a windfall shows that they will typically prioritize buying a house as number one in a list of twelve choices, while investing is at number eleven.

I’ve never met anyone who said, "I like being poor." It’s just the opposite, is it not? Most paying tax on lottery winningspoor people would readily admit that they don’t like being poor. They are tired of just getting by. They are tired of scrimping and doing without just to make ends meet. They are tired of one financial crisis after another.

Perhaps you have noticed that poor people tend to talk a lot about their lack. Therein lies the problem. Those who have great lack always talk about their great lack. They will tell you all day long how lousy things are, how they never get a break and how their boss is greedy. And, worst of all, they think that none of this plight is their fault. They see themselves as victims in this cruel life. They don’t see anything changing. They see themselves destined and shackled to a life of misery, unless of course, they win the lottery.

So, what happens if they do defy the almost impossible odds? Winning the lottery may give them some cash, but it doesn’t change their mind set. They may be distracted for a while, but they still carry the same mentality wherever they go, and whatever they do. Deep down inside, they see themselves as poor and having nothing. Even though they acquire a great increase, they end up throwing it away, spending it away, or giving it away.

It is our habitual mental attitudes that do shape our lives. Our lives can and will change as we change our thoughts, and change what we dwell on. This is true for positive and negative thinking. The Bible says, "As he thinks in his heart, so is he." That is absolutely true for positive thinking as well as negative thinking.

Negative thoughts are destructive thoughts that neutralize all your efforts and hard work. Positive thoughts are constructive thoughts that lead you to positive results.

Change your mind by focusing on the things you do desire, instead of thinking, focusing on and complaining about the way things are right now. Continue to think about where you desire to go and what you desire to accomplish.

Change always starts with thoughts first. When those thoughts get into your heart there will be change.

 
News to Cromley: On lottery winners
On lottery winners. Chris Dillow points out that a study shows that those who won $50000 to $150000 in the Florida state lottery actually saw their bankruptcy rates increase 3 years after they did so.

‘It’s just another day’ for lottery winner
But he feels compelled to live up to a promise he made years ago to give $30000 each to five workers, who very likely thought the odds of that pledge being fulfilled were like, well, winning the lottery

Lottery Winner Killed by a Truck
Lottery Winner Killed by a Truck. This may be a little dark, a little macabre but its still very relevant and a warning to those people fortunate enough to win the lottery and have their life changed forever.

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Small Business Deductions

Monday, January 26th, 2009 at 4:37 pm  
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In an earlier article, I talked about how you, as a small business owner, can rightfully claim many small business deductions as a way to reduce your taxes. In this article, I’ll present several more. Check to see if you have included these in your tax planning.

1. Travel Expense Deductions

When flying on business, keep a detailed record of all your expenses. You can claim a deduction on your plane ticket, for example, if your business has not reimbursed you for it. Also, you can write off things like cab fare and mass transit tokens. You can even expense dry-cleaning. But for meals, you are only allowed claim a deduction for half the cost your incur for eating out.

You can even write off expenses you incur for employees and/or business associates that you are traveling with (friends and family members are out). Consult your tax professional for more details.

2. Deductions for Software

If your business uses customized computer software you can claim the expense of that software as long as you spread out the deduction over three years.

But…Section 179 of the IRS rules allow you take the write-off on computer software all in the first year, IF that software is "off-the-shelf," in other words, something like Microsoft Office.

3. Deductions for Charitable Contributions

When discussing this kind of deduction, the rules are a bit complicated. For starters, if your small business is a partnership, or if it is classified as an S corporation, or if you’re organized as a limited liability company, your members will be filing the company’s taxes on your personal forms including donations to charity that you have made. In other words, charitable donations are a "pass-through," as is the case with the company’s income. C corporations are entitled to corporate deductions.

[Note: if you don't know what kind of classification you fall under, consult your tax professional or your attorney.]

OK, then, now that is out of the way, here are the rules:

You, as an individual, can write off 30-50% of your adjusted gross income as long as the organization you are donating to qualifies as a 501(c)(3)charity or foundation.

A corporation can write off up to 10% of their taxable income.

tax prep bowling green ky If you donate more than $250 you’ll need to have a letter from that organization that confirms your contribution. Make sure you read IRS Publication 551 as well as the rules set forth in Section 179. Consult your tax professional for more details.

4. Deductions for Advertising

It’s true: you’ll either advertise your company now, or when you have your going out of business sale. Either way, advertising and marketing expenses are deductible if they are directly related to your business. They fall under the "Miscellaneous" category of write-offs. Check out IRS Publication 535 and consult your tax professional for more details.

5. Deductions for Legal and Professional Fees

OK, I saved this one for last because it relates directly to the thing I’ve said many times already: "Consult your tax professional for more details."

Fact is, fees you pay to your attorney and/or accountant are deductible under certain conditions. For example, you can’t write off professional fees you expend when you buy a business asset (e.g., equipment). In that case, you include the charges in the cost of the purchase.

If your business is organized with you as the sole proprietor, you can take a deduction for the costs you incur on tax preparation. You would claim the expense on your Schedule C or C-EZ. Not only that: you would use your Schedule A from your Form 1040. Call your CPA or tax professionals for all the details.

Last but not least:

Uncle Sam wants you to be a success at business. It’s good for the economy when you are. That said, they are more than willing to give you plenty of ways to reduce your tax liability through the use of write-offs and deductions. You have a great opportunity — if you choose to use it.

For More Small Business Tax Help, visit Ara Rubyan’s Your Tax Help Online.

By Ara Rubyan
Published: 11/28/2007

 
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