Latest Posts on USTaxAid's Blogs

  • What Happens if You Can’t Pay Your Tax?

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

    Ever so often it happens, you owe a whole lot more in taxes than you thought you would. Or, maybe if you’ve got a business that has been growing fast, all of your cash went into inventory, which isn’t immediately deductible. So, you’re cash poor, but taxable income rich. Now what?

    This is a question I hear every now and then, especially now since we’re so close to the final tax deadline for individual income... Read More »

  • When Should You Worry About Sales Tax?

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

    Most business owners have a general idea of how sales tax works. If you sell something to someone where your business and it’s something that sales tax would be applicable on, than you probably should collect and pay sales tax. But not everybody does those basic things. If you don’t pay sales tax, the state will come after you and they don’t play nice. In fact, a sales tax audit is much worse than... Read More »

  • Pay Less Tax By Doing These 5 Things in October

    September 29, 2014 | Posted in Diane's Blog, USTaxAid's Blogs | 2 Comments

    Congress allowed some important tax bills to expire this year. It’s turned traditional year-end tax planning upside down. Usually, we encourage our clients to do their tax planning in September, but this year we have to wait. Hopefully in November we’ll hear from Congress on these bills. Meanwhile, you can’t do a complete tax plan yet, but you can do some very important things to get you ahead of the game before year end.

    Read More »

  • The Real Estate Tax Issue Too Many People Are Getting Wrong

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

    Recently, I reviewed a tax return in anticipation of an audit for one of my tax consultation clients. They had received a notice that their 2012 tax return was being audited and they were concerned. Up until 2012, they had had a tax professional prepare their individual Form 1040 return, but then the CPA quit working and so they decided to do the return themselves. After all, they were going to get Turbo Tax... Read More »

  • 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 »

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