The Small Business Tax Help Blog

Posts Tagged ‘taxes’

Question: Why can’t democrats agree to this sensible tax rates, like republicans do?

Israel Income Tax for an Individual ( 2010)

Tax % Income (IS)
10% 1-57,240
14% 57,241-101,640
23% 101,641-152,640
30% 152,641-219,000
33% 219,001-472,080
45% 472,081 and over

Israel Corporate Tax
Corporate tax, including income tax and corporate tax is fixed at the rate of 25% in 2010 (previous rate-26%).
This rate refers to the undistributed profits of the corporation.
In certain cases, a reduced rate of tax is payable or an exemption granted, mainly to certain industrial companies defined as “approved enterprises”, as will be specified below.

Israel Social Securuty
Social security payments are subject to a monthly ceiling of I.S. 76,830. The top rates are:

* Employer – 5.43%
* Employee -12.0%

Israel Tax Withholding
The Tax Withholding rates for payments to non-residents are:

* Dividend – 20% /25%
* Royalties – 25%
* Interest – 15%/20%/25%
Democrats will you agree to this tax rate for the love of God? And we can move beyond the issue on taxes.

Answer: Democrats have an agenda, and nothing will stand in their path even if it means their own demise.

Live chat: TFSAs take on the mighty RRSP

Financial Post’s Jonathan Chevreau and CIBC Wealth’s vice-president of tax and estate planning, Jamie Golombek, will host a live chat on the burning questions of this RRSP season, Wednesday, Jan. 19 from 12 noon to 1 p.m. at financialpost.com.

2010, 2011 Payroll Tax Rates

Question: What components(questions) should be in a commercial account application?

I am helping a friend refine their account application for his company. I would appreciate help from anyone with accounting experience. Here is what is currently in the application:

ACCOUNT NAME
ADDRESS
CITY/STATE/ZIP
TELEPHONE/FAX/EMAIL
CONTACT NAME
LENGTH OF TIME IN BUSINESS
BUSINESS FORM (I.E. CORP., PROPRIETORSHIP, PARTNERSHIP, IND.)
OFFICER OF FIRM/TITLE/SIGNATURE
BANK REFERENCES
TRADE REFERENCES

*I know we need to request the Fed. EIN/SS# of owner.

Any suggestions?

Answer: Depending on the type of business, there are other documents that banks typically require to open an account.

For example, a Corporation requires a security agreement, articles of incorporation and fictitious business name statement.

A sole proprietorship does not require a TIN, but it does require a fictitious business name statement unless the business name has the last name of the account owner.

A partnership account requires a partnership agreement, TIN, and a fictitious business name statement.

Palestine News & Info Agency – WAFA

SAIDA (LEBANON), October 16, 2010 (WAFA) – August was particularly long for the family of Kamilia Abu Hawwash, a student from Saida in Lebanon: they spent the month praying for good news concerning Kamilia’s scholarship application. They need not have worried.

Hoccer: Your ad-hoc data sharing application

Question: Business Meals Accounting Question?

My wife runs a very small sole proprietorship business. I have for tax year 2008 started tracking her business transactions in Quicken Home and Business. My question is how to allocate business meal expenses in the program. Since normally only 50% of meal costs are deductible as an expense, how is the other 50% categorized / allocated? I assume it is still considered a business expense, but just not deductible. Should I establish a category for non deductible business expenses??
Would appreciate any advice. Thank you.

Answer: Read the irs information regarding Deductible Meals for Small Business. www.irs.gov Depending on the type of business, some times meal expenses are 100% deductible. It depends on the reason for the meal. Are they travel related? Are they entertainment related? Publication 463 discusses Travel/Entertainment expenses. See Page 11/12. Hope this helps. Let me know. Anything not deductible is simply a personal expense. Categorize as Owner equity: Input.

Shaw Announces First Quarter Financial and Operating Results, Updated 2011 Guidance to Include Shaw Media, and …

CALGARY, ALBERTA–(Marketwire – Jan. 13, 2011) – Shaw Communications Inc. (TSX:SJR.B) (NYSE:SJR) announced results for the first quarter ended November 30, 2010. Consolidated revenue for the three month period of $1.08 billion was up 19% over the comparable period last year. Total operating income before amortization(1) of $473 million was comparable to the prior year. Excluding a one-time CRTC …

Tax Deduction Tips for Businesses : Basics of Tax Deductible Business Expenses

Question: I need some clarifications about the rules/laws of Canadian sole proprietorship Business Tax filing… Please…?

I started a Canadian sole proprietorship business about 13 months ago but only made $5500 in the first year. Do I still need to file my taxes for the company this year? I thought I could just keep track of that income and add it to next year’s revenue and tax filing. I also heard a couple years ago that a small business company does not need to file taxes for the first 3 years or something because the government assumes that you probably won’t turn a major profit in your first year or two. Is that true? Any clarifications to all this would be greatly appreciated.

Answer: No, you need to file tax returns every single year. You cannot carry forward income, although you can carry forward losses.

You will occasionally see individual provinces offering tax holidays for new business, but even in those cases, you have to file a return, and in any event you still have to pay federal taxes.

If you’re this unclear on the process, I strongly suggest you speak with a qualified accountant. Mistakes can be very costly.

Small business owners avoid tax season panic by planning ahead

Here are some comforting words for small business owners: It’s not inevitable that you’ll have a tax season panic attack. Planning now will make the process of completing and filing your tax return less of an ordeal.If you’re the kind who’s always rushing at the end to get your tax forms filled out, the first thing you need to do is figure out, right now, what the problems are. And figure out …

Small Business Tax Laws 2011

Question: Estimated quarterly tax payments…?

One of my friends lives in MA and is only due to make about $6600/$6700 this year. Does he owe any state and federal tax? As well as S.S., Medicare and Self employment tax? If so, when does he have to pay the SE and FICA tax and how des he go about doing that? He’s paying federal tax payments through tax vouchers. Any help for him, thanx…

Answer: 6,600-6,700 should not generate a lot of taxes.

If he’s already paying federal via estimated tax vouchers (1040ES), then he should be okay, based on the income amount. By the way, self-employment tax (FICA is part of SE tax) is combined with income tax to make the Estimated Tax Payments.

You can have your friend read over publication 505 on estimated taxes:

http://www.irs.gov/publications/p505/index.html

MA should have similar publication on estimated taxes. Do a quick google search.

Calendar

Submissions for “Community Calendar” are required two weeks preceding the date of publication. Send to: Mary Ann Bottari, Pioneer Press, 3701 W. Lake Ave., Glenview IL 60026; mbottari@pioneerlocal.com. Information may be faxed to (847) 486-7495.

The Economy and the American Family