Latest Posts on USTaxAid's Blogs

  • If Nexus Isn’t Enough to Worry About, Now There is Trailing Nexus

    August 29, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

    Nexus means connection. If you have a connection with a state according to their state rules, you will likely have a sales tax or income tax connection as well. That means you owe tax. There are a lot of things that can trigger nexus with a state, including, but not limited to:

    • Employees in another state
    • Putting on a seminar or trade show in another state
    • Hosting your website in another state
    • Leasing property in another state
    • Having your inventory in... Read More »

    • The Latest in State Nexus and Why You Should Care

      August 27, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

      Back in 2008, when the economy was really taking a beating, there was another group who was getting hurt financially. It was the state governments. Unlike the federal government, the states can’t just print off more money. They have to make their budget balance. So they started doing everything they could to bring in revenue from online sales. Then, they started looking at rules that could let them tax out-of-state companies, even if they... Read More »

    • The Second Wave of the Cross-State Tax Grab

      August 25, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

      How many states do you owe tax in? You might be surprised. Many states are expanding their tax grab. The issue is nexus. Nexus means connection. If you have a connection, or nexus, with a state you may be required to withhold and pay sales tax for sales in that state and/or pay state income tax. Here are just a couple of recent real-life stories Cost-cutting Move Creates Tax Problem A bricks and mortar retail business in Maryland... Read More »

    • Freedom and the Three Types of Income

      July 4, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

      We talk a lot about freedom in the US: Freedom of speech, freedom of religion, freedom to do what we want, freedom to live where we want, etc. In my opinion, none of these freedoms make us free until we also have financial freedom. What’s the point of freedom to do what we want if we can’t afford to do anything? And that’s why I care so much about the way money is made. If you’re... Read More »

    • BREAKING! New Rules for Foreign Investors of US Real Estate

      July 3, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

      A brand new law goes into effect on July 1, 2014. It’s called Foreign Account Tax Compliance Act (FATCA for short). This affects Americans who have accounts in foreign countries and it affects foreign nationals who invest in the US. I’ve had several blog entries over the past month regarding the reporting for Americans. Today, I want to talk about the brand new instructions just handed down by the IRS for foreign nationals. The new... Read More »

    • IRS issues Final Rules on Tax Credit for Small Employers Offering Health Coverage to Employees

      July 2, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

      There has been a lot of talk about all of the problems with the Affordable Care Act (Obamacare) and the costs for taxpayers. There is one benefit for small business owners. If you furnish qualified insurance to your full time employees, you have less than 25 full-time equivalent employees and the average annual wage of all FTEs is less than double $25,400 (for 2014) you have a credit coming to you. There are some... Read More »

    • Hobby vs Business

      July 1, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

      When does your hobby become a business? If you’re just getting started selling a few things online, it almost always starts as a hobby. That’s especially true if you’re just selling things out of your garage or storage. But, at some point you’ve got to wonder if you have a business. This all leads up to a question that we received at USTaxAid.com. If you’ve got a question, please submit it through the website. You’ll... Read More »

    • Update on Real Estate Professional IRS Audits

      June 30, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

      If you have real estate rentals, you may have heard about the real estate professional (REP) loophole. One of the benefits of real estate investments is that you can create a tax loss legally while you still have cash flow that shows up every month. The problem is that you lose the ability to take that loss against your other income as your income goes up. If you make under $100K, you can take up to... Read More »

    • 6 Questions to Help You Identify the Best Business Structure

      June 27, 2014 | Posted in Diane's Blog, USTaxAid's Blogs | 3 Comments

      One of the most common questions we get at USTaxAid is, “What’s the best business structure for me?” Here are some questions that you need to answer first.

      1. Will you hold assets that you expect to appreciate? If that’s the case, you’ll want a single-member or multi-member LLC that takes a disregarded tax status. The corporation is not your friend.
      2. If you have real estate, are you planning to flip it, wholesale it or... Read More »

      3. New IRS Amnesty Program for Foreign Accounts

        June 26, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

        The IRS requires you to file certain reporting returns if you have an interest in foreign financial accounts, receive amounts from foreign sources, have a foreign trust, corporation or partnership or just generally own or do business in another country. Not everyone has to file. It’s only applicable if the amounts are above certain limits that vary based on whether you are single or married or if you live in the US or outside the... Read More »

      4. Change in Repair/Capitalization Rules – Part 2

        June 25, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

        The IRS has new rules for determining whether a repair expense is really a deduction or whether it is an improvement that you have to capitalize and then depreciate. Please make sure you check back on yesterday’s post for the Part 1 of this topic. And, of course, if we can help with this or any other small business or real estate topics, give us a call or drop us a note. We only work... Read More »

      5. Change in Repair/Capitalization Rules – Part 1

        June 24, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

        To deduct or not to deduct? That’s always been a question for real estate investors when it comes to repair expenses. In some cases, the expense is a deductible repair expense and in other cases, it’s a capital expense that you need to treat as an asset and then depreciate over a period of years. That period of years could be as long as 39.5 years. The IRS has new regulations that have become effective for... Read More »

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