Tax Tips
To be deductible, a business expense must be both ordinary and necessary…
If you have a large capital gain this year from an investment, it may be advisable to hold onto the investment until next year…
The interest gained from state and local bonds is usually exempt from federal income taxes…
You have the ability to invest some of the money that you would have paid in taxes to add to your retirement fund…
If you own your business you may want to postpone sending certain invoices to ensure that you will receive payment in the following tax year…
Record Keeping for Taxes
It is a good idea to keep all of your receipts and any other records that you may have of your income and expenses…
It is recommended that you keep these documents for three to four years…
If you are audited, it is very likely that the auditor will ask to see the last few tax returns…
If you purchased goods that you plan to sell later, you should keep the receipts to calculate your gain or loss on it correctly…
If you are an employee of a company, your system needn’t be complex…
Education Expenses
There are many different ways to use tax breaks for the higher education of your children…
You must make a choice between two types of tax education credit…
An education IRA is different than a standard IRA in these ways…
It is possible to have various 530 accounts for the same student, each opened by different family members or friends…
The Section 529 is a college savings program available in most states…
The Section 529 allows for much larger yearly investments…
Yes, you can take distributions from your IRAs for qualifying education expenses without having to pay the 10% additional tax penalty…
There is a limited deduction allowed for higher education and related expenses…
In certain instances, yes, although deductions need to adhere to a few guidelines…
If you are receiving this education to maintain or improve skills at your current job…