Archive for August, 2011

Owners with Different Wants and Needs

The following is an excerpt from the book Smart Business, Stupid Business, written by Diane Kennedy of US TaxAid and Megan Hughes of Smart Business Incorporation. If you have a partner in your business and have ever had a conversation about saving taxe…

Tax Definition of Passive Income

The following is an excerpt from the book Smart Business, Stupid Business, written by Diane Kennedy of US TaxAid and Megan Hughes of Smart Business Incorporation. The term “passive income” gets thrown around a lot. From a tax perspective, t…

Controlled Group

The following is an excerpt from the book Smart Business, Stupid Business, written by Diane Kennedy of US TaxAid and Megan Hughes of Smart Business Incorporation. If you control multiple corporations, you probably have a controlled group issue. It&#821…

Accumulated Earnings (or Retained Earnings) Tax Part 2

The following is an excerpt from the book Smart Business, Stupid Business, written by Diane Kennedy of US TaxAid and Megan Hughes of Smart Business Incorporation. There has been significant case law supporting the Bardahl formula, which basically says …

How Do Your Deductions Stack Up?

The IRS has released their ‘average’ write-offs based on income. There is no hard and fast rule on how much you can deduct before the audit bells go off, but usually you’re safe if you stay at or under the average amount.
Adjusted Gross Income under $15,000: Taxable income is $2,739, Interest Expense ...

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  3. The High Cost of High Income