The Small Business Tax Help Blog

Posts Tagged ‘government’

Question: Why Not give Tax credits instead of Giving Bush Tax cuts?

Why Not give a 10,000 Tax credit To business who Hire New employees? In 2009 Obama set a 5k Tax credit to small businesses who hire new employees. Why Not scratch the Bush Tax cuts and just set up tax cut incentive? Corporate Profits are up 28% This Quarter, I know alot of that has to do with seasonal stuff, but Obviously there is no reason to hire more employees because the unemployment numbers would drop. So What’s the Catch? The Private Sector is not really Acting like the Bush Tax cuts are really helping the employment situation.

Answer: The CBO has already determined that a tax credit for hiring creates far more jobs per dollar spent than most other options, including tax cuts. As you point out, such a tax credit is already in existence. Expanding it might help but the real incentive to hire is to meet the increased demand for more goods and services. The demand does not appear to be there.

R&D Tax Credit and Small Businesses – 1

Question: What does anyone think about Obama wanting to put the Coal industries out of busniess?

Here is what Obama told Iowa public television last year (courtesy of Little Green Footballs): “I think it is important to send some price signals to change behavior. It’s not going to be painless. Power plants are going to have to adjust how they generate power. They will pass on those costs to consumers…. A lot of us who can afford it are going to pay more for a unit of electricity; over time the electricity bill goes back down as technology catches back up.”

Me: See, Obama’s little-discussed cap-and-trade plan would raise costs on businesses for using energy, like the entire coal industry—and they would then pass on those costs to you and me. Those “price signals” effectively are $100 billion a year in energy taxes, which would wipe out Obama’s middle-class tax cut/credit.

WWW.USnews.com

Answer: It makes you wonder which industry is next to be destroyed by Obama. It’s not a good thing to hear from a presidential candidate.

(Golf Cart Dealers) (Green Business Opportunities) (Solar Golf Carts)!!

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

Question: Do I have to charge sales tax in California for doing savings analysis for customers?

I own my own home business doing price quotes for other companies. I charge them a small fee for each instance and return a file to them in pdf. Do I have to charge sales tax for this service?

Answer: No. Sales tax is only due for the sale of tangible personal property and some services in connection with the sale of tangible personal property. It sounds like you’re only selling a business service, so you won’t owe any sales tax.

Business Solutions PT DVD.wmv

Question: If I get a Tax ID number, will creditors be able to track me down for owed money?

I have looked at the Tax ID number (Federal Tax ID) form online, and it asks for the Social Security Number. Will vendors that I owe money, still be able to find me, if I put the Tax ID number on for example my new bank account?

Thanks!

Answer: what reason are you requesting a tax id #, are you in business for yourself, and paying employees, or have you formed a corp, a partnership or LLC?
if not you have no reason for one, your SS# is sufficient
if you owe money they will find you one way or another, with or without a number, any number

Healdsburg Literary Guild part 2