The Small Business Tax Help Blog

Posts Tagged ‘finance’

What Qualifies as a Business Expense?

Question: Will Self-employment tax be considered as a tax liability for proposed rebates.?

Will the IRS figure the rebates due a person using just a federal tax liability? or will self-employement tax be consider in the calculation?

Answer: They will just use regular income tax liability. Not other taxes like SE tax.

Home-Based Business Meals and Entertainment Tax Deductions

Question: Where can I apply for a tax ID business credit card?

I just converted my DBA in to a LLC and need to build credit where can I apply for tax Identification credit cards ??

Answer: I know that this site has business cards. Of course they will require both your social security # and your tax ID # when you fill out the application. Once you get onto the site on the left hand side there are categories. Just go to “business” and you can browse multiple cards from different issuers. Compare the offers and see if any suit you. Good Luck!

http://morecreditoptions.NewCreditApplications.com

Community Economic Development Business Program

Question: What records should I keep for small Business Tax puposes?

I am a Real Estate Appraiser. Any advice on records to keep please. Are bank statements sufficient for deposits and expenses? Thanks

Answer: If you are serious about running a business, you need to learn how to do REAL research.

Yahoo is not research.

WHY WOULD YOU NOT GO TO THE IRS WEBSITE?
Seriously.
I want to know.

http://www.irs.gov/businesses/small/article/0,,id=98575,00.html

Small Business Tax Advice – Employee or Subcontractor

Question: A 501 (c)(3) non-profit org compliance question?

Under IRS 501 (c)(3), an organization is tax-exempt as long as it meets the requirements set forth in IRC 509(a)(2).

The “One-Third Limit On Gross Investment Income and Unrelated Business Income” test set out in IRC 509(a)(2) states that “An organization will meet this test only if it normally receives not more than one-third of its total support in each taxable year from gross investment income”

If a non-profit received $29 million dollars in donations last year, and earned another $26 million on investments from an endowment fund, has it violated the terms of the “One Third Limit”?
Tro, I’m afraid I’m not very good with the definitions. I do know that the principal began with money from donations and that more money is added from current donations and interest on the fund each year.

The non-profit claims that the fund was created to accumulate funds against the day when fund raising postage costs become prohibitive.

Answer: The answer to your question partially depends on whether or not the organization is a public charity or a private foundation. A 501(c)(3) that is a private foundation is not restricted to the limits under 509(a)(2).

If, however, the organization is a public charity, a violation has not necessarily happened just because the limit is exceeded in one year. Typically, the IRS looks at things in 5 year windows. As long as the organization on average stays within limits, it is OK.

One more wrinkle: not every public charity qualifies as a 501(c)(3) under 509(a)(2). Many are 509(a)(1) and 509(a)(3) organizations and are subject to different criteria altogether.

Confusing? I do this for a living and its confusing. Hope this helps!

PNM Business Cashbook Video