Practically every business owner will tell you that it takes more than one person to build a profitable business. It’s likely that several “key employees” will contribute to the success of an operation. However, while a business owner may be careful to make sure that he or she is adequately insured, the need to protect…
The middle of the year is often a good time to “make hay” for income tax purposes. Here are 10 popular strategies that may appeal to individuals and small-business owners: Offset capital gains and losses. Currently, the maximum tax rate for long-term capital gains is 15% for most taxpayers and 20% for those in the…
Higher Wage Base—No surprise: The Social Security wage base has increased again to $117,000 in 2014 (up from $113,700 in 2013). At least the tax rate for employers and employees remains the same at 7.65% on amounts up to the base and 1.45% above that. Another payroll factor: A 0.9% Medicare surtax applies to single…
How do you separate interest expenses on your 2013 tax return? There are four main categories for taxpayers to consider. (Technically, there are several other types of “interest” in the tax law.) Here is how it breaks down. 1. Personal interest: If an interest expense does not fall into one of the other three categories,…
Don’t be fooled by the term commonly used to describe an extra tax liability a family may have to pay. The so-called “kiddie tax” is not limited to children in diapers or even those in the lowest school grades. It may continue to apply to children well into their 20s. Fortunately, there are several ways…
Remember those generous personal and dependency exemptions you have claimed in the past? Under new rules taking effect on 2013 federal income tax returns, exemptions are reduced for certain high-income taxpayers. However, depending on your circumstances, you may still be in line for a significant tax break. Basic rules:For starters, every taxpayer is entitled to…
