The Small Business Tax Help Blog

Archive for February, 2010

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AES Meets Full Year 2009 Adjusted Earnings Per Share and Proportional Free Cash Flow Guidance

ARLINGTON, Va.—-The AES Corporation today reported results for the full year 2009, during which the Company benefited from the diversity of its portfolio across markets and energy sources.

Question: I own a small business and would like to get some equity out of it. Dividend or lump sum wages?

I am unsure of the most tax effective way to get the money out. If I pay myself as a dividend, then I must pay business income tax on the equity. If I pay myself as wages, then I pay personal income tax on the wages. I am in a fairly high tax bracket (~$95000/yr) and the amount is $10000.

Answer: You can obvioulsy ignore "Mike L"'s suggestion, since (other than illegal false transactions) it offers no difference from your current dilema.

Without running specific numbers, it would appear that you will see little difference whichever way you choose to do this, and in fact, that is the intent of the tax laws, that income from either method will be roughly equivalent.

Since your income is a little below the maximum RRSP contribution threshold, I would suggest you take wages, which will increase your present or future RRSP room.

Wyden posts tax reform

Senators Ron Wyden (D-Ore.) and Judd Gregg (R-N.H.) introduced Tuesday a proposal to vastly simplify the nation’s tax code by cutting the number of personal income tax brackets in half and flattening the corporate tax rate.

Dems' Job-Killing Policies Highlighted at House GOP's "Where Are The Jobs?" Roundtable

Question: Is it possible to get a mortgage loan in a business name using the tax id number of that business?

The business is a sole proprietorship w/the owner having excellent credit. The business is real estate.

Answer: Yes, of course a business can get a mortgage. What effects whether they do it or not has to do with the members of the business, their indivdual financials, and the financials of the company. Yes, commercial loans are slightly higher, but very possible.

Spring-Ford Reporter/The Valley ItemDatebook

DateBook Notes

United Breaks Guitars - Steven from TakeLessons.com Shows Support for Dave

Question: Can someone read this and try to tell me how much my check is going to be for?

Claim 148158-7
Your check amount is $2,821.72
Your check date is 02-11-2010
Your check number is
Incentive payments may vary from the estimates provided during your counseling sessions since payments are based on actual weight shipped and current DTOD mileage. Your entitlement is 95% of the government’s constructive cost.

Your entitlement was $2191.75
Your entitlement was based on 3,240 pounds of household goods
You received an advance of $0.00
The remaining amount of $2,821.72 has been reduced by Federal Withholding Tax as required by law

Answer: you are getting the 2,821.72 minus a small (5%- 10%) amount of taxes takin but you can get that back next year at tax time

Storm Exploration Inc. Is Pleased to Announce Its Financial and Operating Results for the Three Months and Year Ended ...

CALGARY, ALBERTA--(Marketwire - Feb. 25, 2010) - Storm Exploration Inc. (TSX:SEO) /

HISTORY OF MEXICAN MAFIA (part 2)

Question: who or where do i return my earned income credit papers?

it was sent to me as i can qualify. after filling everything out my tax preparer said to give to my workplace manager/supervisor. is this correct?

Answer: If you're wanting to get an advance payment of the EIC, you have to give a W-5 to your payroll/HR dept.
The Schedule EIC, when filing your tax return, must be submitted with the other paperwork to the IRS.

Tax Center Offers Saturday Help

The Internal Revenue Service holds a special Saturday tax assistance event in downtown Omaha on Saturday to help taxpayers get answers to their questions.

Earned Income Tax Credit - A Better Way To Help Lower-Income Americans?