The Small Business Tax Help Blog

Archive for April, 2010

Question: How Does Tax Stimulus Package Work for Businesses?

I want to know if a specific provision in the stimulus package relates to purchases made in calendar year 2008 or made in calendar year 2007.

For instance a published report states:

“The cost of the final Business Tax break package was uncertain. The two leaders agreed to allow businesses to immediately write off 50 percent of purchases of plants and other capital equipment and to permit small businesses to write off additional purchases of equipment. It appeared that a provision to allow businesses suffering losses now to reclaim taxes previously paid might be dropped to reduce the cost of the business package.”

See report here: http://news.yahoo.com/s/ap/20080124/ap_on_go_co/economy_stimulus

Does this mean if I bought a plant and equipment in 2007 I can right off up to 50% on my taxes filed in 2008? Or does it mean if I bought a plant and equipment in 2008 I can write off up to 50% in 2009?

Please advise, thanks.

Answer: Dante, you may have scared off alot of answerers with your excellent question. It would be your taxes for 2009. However, you must look at deprecition over 5 years as the best option. That will get you the better tax break.

Vermonters Flood Stores For Tax Break

Another sales tax-free day in Vermont drew crowds as expected, as stores across the state aimed to cash in a boom in business.

House Monday 2/15/10 Business Tax break proposal on fast track

Question: 10. Indicate how each of the following would shift the (1) marginal-cost curve, (2) average-variable-cost?

curve, (3) average-fixed-cost curve, and (4) average-total-cost curve of a manufacturing fir. In each case specify the direction of the shift.

A. A reduction in business property taxes.
B. An increase in the hourly wage rates of production workers.
C. A decrease in the price of electricity.
D. An increase in transportation costs.

Answer: Who set u this? Einstein? grrrrr

Credit unions: Lift cap on loans

Credit unions say the economic downturn presents their best opportunity yet to persuade lawmakers to raise a federal limit on their business loans. But banks say it would give the tax-exempt credit unions an unfair advantage.

Environmental Tax Shifting - Green taxes and job creation

Question: would you vote for me and whats your party?

I would establish a flat tax of 15% which would be used for federal funding.
A national sales tax of 24 cents on the dollar which would be used for state funding along with property taxes
i Would give tax cuts to small businesses and farmers and those below the poverty line which i would redefine as $25,000 a year
i would make social security optional
I would propose a bill that prohibits moving American manufacturing businesses to other countries.
I would also propose a bill to establish a flat tax of 17% on all corporations which would be used for federal funding
Prohibit companies from using people in India and other countries for services like tech support, this would create American jobs and ensure better quality.
fine companies that employ illegal aliens
id use federal funds to invest in nuclear,wind and solar energy so that only 10% of houses run on oil.
That was only stuff on the economy which i think is the most important issue now.

Answer: Flat tax is a sales tax, very hard to collect I am an accountant
and see what is out there.

All though I vote Republican, I support economic isolstionism
and I am for regualtions against polution and gas guzzlers,

Yes I would vote for you,

Calendar

Submissions for the Community Calendar are required 10 days preceding the date of publication. Send to: Pioneer Press, 3701 W. Lake Ave., Glenview IL 60026. Information may be faxed to (847) 486-7495 or e-mailed to mbottari@pioneerlocal.com.

Mike Huckabee: Speech CPAC 02/09/08

Question: How to open US bank account and get Individual Taxpayer Identification Number (ITIN) for Non US Citizens?

Can I obtain an EIN ?? if I am not an US resident or citizen?
Im planing to join a network business via online which requires tax id and US bank account..

What are the details/document do i need?
What is the cost?
Can it be done via online???

Please give me an advise on this..Thanks

Answer: No, stop, don't do this.

1. If the entity you want to pay you only accepts US persons as members, do NOT pretend that you are. The entity would pay you, then issue you a 1099-Misc and a copy to the IRS. The IRS would, rightly, assume you are subject to US taxes and demand a tax return. (US taxes start at income of $400 for self-employment purposes.)

2. If the entity that is to pay you knows you are *not* a US person, they should also know they don't issue a 1099-Misc.

3. While there are US banks that will open accounts for you (and you DO NOT need an ITIN for a bank account, even if it pays interest), most won't do it unless you open the account in person, in the US.

Horizon Council: Consider these factors when doing business

The Fort Myers Regional Partnership, Lee County's Economic Development Office offers a wide range of business assistance and can also help businesses...

Curse ft. Jenny Lane - Nur Ein Ganz Kleines Bisschen

Question: question about starting an ebay business and filing taxes?

I’m thinking about starting a store on ebay and was wondering what it all entails. Do you have to get a licenses? How do you go about filing taxes for having our own business? Do I need a tax id for anything.. any advice would be great I’d like to get started on this.
Also, a portion of my profits will be going to charity. How will that be worked into my taxes?

Answer: You should have the appropriate licenses from the state in which you operate your business. If there is a state sales tax you will have to collect it from customers in your state.

As far as taxes are concerned you will have to pay any applicable state and federal income and self-employment tax and, perhaps, local Business Taxes.

As far as the feds are concerned you can use your social security number or, if your wish, get an IRS Employer Identification Number -- it's free.

As far as federal taxes are concerned you should file quarterly tax estimates and quarterly payments. You will have to keep good business records and come tax time complete a Schedule C for your business.

You can deduct your charitable donations on Schedule A of your personal tax return. Just be careful not to exceed the IRS limits on charitable donations unless you are donating money and have cancelled checks to prove it.

Sorry, I can't help you with the state stuff since each state has its own quirks.

Hope this helps
Jerry-the-bookkeeper

Rockaway mayor resigns

ROCKAWAY - Mayor Kathyann Snyder has resigned, effective Monday, March 1, due to family obligations and, she said, to make sure people interested in running have time to file to run for the remaining year on her term.

How to File a Tax Extension for Your Business Taxes