Colorado Now Assessing Sales Tax of 1.4% on Prepaid Wireless Telecommunication Services

Hmmm..... Leave it to Colorado to slide this tax in ....... It is common knowledge that for the most part people purchasing prepaid wireless services tend to be socioeconomically challenged to begin with, so lets keep taxing them, keep kicking

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Posted in Colorado Department of Revenue, Use Tax

Forgiven Debt Exempt From Income Requires Tax Attribute Consideration IRS Form 982

If you are forgiven debt and that forgiven debt is not considered income then you should prepare and file IRS Form 982 - Reduction of Tax Attributes Due to Discharge of Indebtedness. Generally, the amount by which you benefit from the discharge of indebtedness

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Posted in Cancelled Debt, Debt

How to Report Net Operating Loss (NOL) Carry Forward on an IRS Form 1040

If you carry forward your NOL to a tax year after the NOL year, list your NOL deduction as a negative figure on the Other income line of Form 1040 or Form 1040NR (line 21 for 2009). Estates and trusts

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Posted in Net Operating Loss, NOL

What is Self Employment Income

Some kinds of income may or may not be self-employment income. The source of your income and your involvement in the activity from which your income is received will determine whether it is self-employment income. INTEREST - Interest is not

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Posted in Self Employ

IRS Examination Techniques for Cash based business

Since many businesses in industry are cash oriented, have weak internal controls, lack an audit trail, and have inadequate books and records, the examiner’s audit should focus on probing for unreported income.  It is the responsibility of the business owner

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Posted in IRS Appeal, IRS Audit, IRS Collections, IRS Examination, IRS Penalties

Estate Tax Planning Opportunities

Being able to make transfers of up to $5 million ($10 million per couple) without having to pay gift taxes allows for planning opportunities that, combined with leveraging strategies, can transfer huge amounts of wealth. These include: Simple Gifts -

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Posted in Estate Tax

American Opportunity and Lifetime Learning Tax Credits

Two federal tax credits available to help you offset the costs of higher education for yourself or your dependents.  To qualify for either credit, you must pay postsecondary tuition and fees for yourself, your spouse or your dependent.  The credit

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Posted in Tax Credit

Estate, Gift and Generation Skipping Transfer Tax

For 2011 and 2012, the gift, estate and GST tax exemptions are unified again, with the exemption set at $5 million and the tax rate at 35%. The $5 million exclusion is indexed for inflation beginning in 2012.  Remember these changes are

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Posted in Estate Tax

Capital Equipment Expense example – Bonus Depreciation

If in December 2010 you purchased and placed in service a new piece of capital equipment to use in your business - say for example a farmer buys a new tractor and placed it in service in his farming business.

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Posted in Depreciation

Tax Filing Status

The first step to filing your federal income tax return is to determine which filing status to use. Your filing status is used to determine your filing requirements, standard deduction, eligibility for certain credits and deductions, and your correct tax.

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Posted in Tax Filing Status
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