Business Opp / 7 posts found

Why Residual Income

by admin
As a Tax Practitioner I tell all my clients that having a homebased business is perhaps one of the most effective ways to reduce their taxes. When asked .. “what type of business should I start” I always recommend they start with a Network Marketing Businesses that favors building residual income. When you understand the power of residual income, especially residual; income built upon a Network Marketing Business Model you will break through a brick wall to get it. Let me explain why! There are two basic definitions of residual income; One refers to the income you have left after […]

Deducting Business Expenses

by admin
One of the huge benefits of Working from your home is that you are entitlled to deduct from your income the same business expenses as any other business.  Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business is operated to make a profit. So What Can I Deduct? To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or […]

10 Big Reasons Why Businesses Fail

by admin

"An English actor on his deathbed once muttered: "Dying is easy. Comedy is hard."

Apologies tbusiness_word_block_800_clr_7620o that expiring thespian, but watching a small business die is never easy, if for no other reason that it can happen in so many different ways. And, no matter the cause, it's never funny.

Here, in hopes that a bit of foreknowledge may make a dent in the death rate, are the top 10 reasons small businesses fail:

  1. Undercapitalization. Money's not only the root of all evil; it may well be the leading cause of small-business failures. Far too many small-business owners underestimate how much money they're going to need, not merely to get the business up and running, but also to sustain it as it struggles to gain a commercial foothold. Norman Scarborough, an associate professor of business administration at Presbyterian College in South Carolina, sys, "Once you start out undercapitalized, that can start a downward spiral from which you can never catch up."

Work Opportunity Tax Credit Extended

by admin

tax credit2The American Taxpayer Relief Act of 2012 (ATRA) (H.R. 8) extends the Work Opportunity Tax Credit (WOTC) for hiring certain workers through Dec. 31, 2013.

The VOW to Hire Heroes Act of 2011 made changes to the Work Opportunity Tax Credit (WOTC), including adding new categories to the qualified veterans targeted group and expanding the WOTC to make a reduced credit available to tax-exempt organizations for hiring qualified veterans. The VOW Act also extended the WOTC for qualified veterans hired before Jan.1, 2013.  The other targeted group categories were not extended by the VOW Act and expired for targeted group members other than qualified veterans hired after Dec.31, 2011. 

ATRA extends the WOTC for qualified veterans hired before Jan. 1, 2014.  ATRA also extends the WOTC for targeted group members, other than qualified veterans, hired after Dec.31, 2011, and before Jan.1, 2014.     

Pre-screening and Certification Requirements

All employers must obtain certification that an individual is a member of a targeted group, before the employer may claim the WOTC. The process for certifying the veterans for this credit is the same for all employers. To obtain certification, employers must file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit. 

Normally, an eligible employer must file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, with their respective state workforce agency within 28 days after the eligible worker begins work. However, as discussed below, the IRS has provided special transition rules for the recent legislative changes. 

IRS Offers Information, Support and Services for Small Businesses

by admin

Do you own or operate a small business? Or do you plan to start a business someday soon? If you answered yes to either question, the IRS has online information, support and services that may be helpful to you.

Small Business Week Webinars.  During National Small Business Week 2013, the IRS is hosting two free, live small business webinars. Go online to learn about the many tax benefits available to businesses. You will also learn how to avoid common mistakes made by small businesses. IRS staff will answer questions during each webinar. 

  • Attend the free live webinars on June 18 and June 20 at 2 p.m. (ET).uncle_sam_holding_money_pc_1600_clr
  • Register for the events at IRS Webinars for Small Businesses.
  • Although tax professionals will not get continuing education credits, they will receive lots of useful information.

If you’re unable to attend the live events, you can view the archived versions on the IRS Video Portal. They’ll be available about three weeks after the broadcasts.

Online Support Anytime.  The IRS offers many online products and services for small businesses. They’re available any day of the week throughout the year on IRS.gov. Here are just a few examples of the business resources the IRS offers:

  • The Online Learning and Educational Products page features useful small business tools. The Online Tax Calendar helps you keep track of important tax deadlines. You can subscribe to e-News for Small Businesses to help you stay on top of the latest tax news affecting small businesses.
  • The Self-Employed Individuals Tax Center is for sole proprietors, independent contractors, members of partnerships, and others who are in business for themselves. Check it out for self-employed tax information and more tools.
  • The Small Business and Self-Employed Tax Center is for small businesses with assets under $10 million. Visit this page for resources like Small Business Taxes: the Virtual Workshop. This popular class helps you learn the basics of federal taxes. It offers nine lessons to help you navigate tax issues so your small business can thrive.

Standard Mileage Rates for 2013

by admin

imagesThe Internal Revenue Service today issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 56.5 cents per mile for business miles driven.
  • 24 cents per mile driven for medical or moving purposes.
  • 14 cents per mile driven in service of charitable organizations.

The rate for business miles driven during 2013 increases 1 cent from the 2012 rate. The medical and moving rate is also up 1 cent per mile from the 2012 rate.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Affiliate Marketing Secrets

by admin
One of the easiest and fastest way to make money online in through affiliate marketing. This is when you send visitors to someone else’s product sales page, they make the sale and deliver the product, and you get a percentage of the sale price as you commission (usually 50% or more for digital products). The benefits of this are You can get started almost immediately because you don’t have to create a product, write the sales page, design the website, develop marketing materials, or set up the ordering, billing & delivery system. You have almost no investment of time because […]