Archive by category Taxes

Obama Tries to Assuage Small Businesses’ Fiscal Fears

Obama Tries to Assuage Small Businesses’ Fiscal Fears

Photograph by Andrew Harrer/Bloomberg When President Barack Obama met with small business owners at the White House on Tuesday, he tried to reassure them that he’ll reach a deal with Republicans in Congress to keep tax cuts for the middle class from expiring Jan. 1. The 15 business owners who spent more than an hour […]

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Tax Laws Leave Small Government Contractors in Limbo

Tax Laws Leave Small Government Contractors in Limbo

Photograph by Reza Estakhrian Love it or hate it, the legislation passed to avoid the “fiscal cliff” brought a measure of certainty to most of America’s small business owners. But there was neither relief nor resignation for Velma Searcy. Her 12-employee company, Aerowire Technical Services, builds electrical components for military and commercial aircraft and depends […]

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Paying Yourself When You Start a Business

Paying Yourself When You Start a Business

Photograph by Simon Willms/Getty Images (Clarifies sixth paragraph to show two types of taxes would be owed.) I recently formed a recording studio as an LLC, but I am anxious about all the income going into accounts receivable and having less immediate income for me and my family. Does this money circulate within my business […]

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Time to Equalize Tax Breaks for Charitable Giving?

Time to Equalize Tax Breaks for Charitable Giving?

Photograph by Stephen Mallon/Getty Images Darren Schultz spends tens of thousands of dollars annually on paper for his digital printing business. During his yearly purge of leftover stock, he tries to sell on EBay (EBAY) whatever the $400,000 business hasn’t used. He donates what he can’t sell to free clinics and religious groups in his […]

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Why ‘Makers’ vs. ‘Takers’ Is the Wrong Conversation

Courtesy John D. & Catherine T. MacArthur Foundation. Maurice Lim Miller, 2012 MacArthur Fellow For Maurice Lim Miller, election season chatter about “makers vs. takers” misses the point. Miller, who was just awarded a MacArthur Foundation “genius” grant for studying how people in poverty improve their lives, says America’s poor are an entrepreneurial lot. They […]

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Tax Help for Housecleaners and Cabdrivers

Tax Help for Housecleaners and Cabdrivers

Photograph by Jan Johannessen/Getty Images People who need help filing taxes but can’t afford to hire a preparer can go to community groups funded by the IRS for free tax prep. Many people who work for themselves can’t use the help, though, because the programs are barred from preparing returns with substantial business income. That’s […]

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How to Get Ready for an IRS Audit

How to Get Ready for an IRS Audit

Photograph by Jim Corwin/Getty Images The IRS examined just over 1 percent of all individual tax returns for the 2011 tax year, but the self-employed are more likely to be asked to document their returns, says Jackie Perlman, principal tax analyst at the Tax Institute, the research and analysis division of tax prep company H&R […]

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More Reasons Not to Fudge Business Expenses

More Reasons Not to Fudge Business Expenses

Photograph by Smith Collection It’s easy for entrepreneurs hatching startups to fudge the line between personal and business expenses. Is that laptop really used for your company, or for your kids? Are you discussing business at lunch, or gossiping with a friend? Beyond the typical admonitions about tax audits, running personal expenses through your business […]

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How a New IRS Form Affects Americans With Overseas Businesses

How a New IRS Form Affects Americans With Overseas Businesses

Photograph by SuperStock/Getty Images What will the 1099-K mean for U.S. citizens trying to run a small business overseas, buying and selling in foreign currencies, to both U.S. and non-U.S. customers? —A.S., Geneva If you are living outside the U.S. and using a foreign address on your credit-card and electronic payment accounts, you will probably […]

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