Category Archives: State Tax

Tax Made Easy – 7 Usefull Tips For Business

For many businesses, especially small businesses, taxes can be quite a handful. Moreover, it’s not just paying taxes, it’s knowing what can be taxed and/or deducted. So, we made a list of things every business should know about taxes, along with various tips for your business tax. This will help make our tax life a lot easier.

Make sure you keep Track of Everything

While we realize this may seem like one of the most obvious tips for your business tax, many businesses forget to keep track of everything. Every expense, purchase, deduction, refund and even car mileage –  keep track of them all. This helps you file accurate taxes. Remember, an inaccurate tax filing can lead to legal problems.

Separate your Expenses

One of the most important tips for your business tax is to always set apart your business expenses from your personal ones. Your personal expenses are not tax deductible while your business expenses are. Therefore, always keep them separate so you know how much you can deduct from your taxes.

Be Generous

If you have unsellable software, goods or equipment just sitting idly in your office, donate them to another business or to individuals. This will enable you to be eligible for a number of tax deductions.

Provide Benefits rather than Raises

One of the most basic tips for your business tax is that many goods and services are tax deductible. For example, if you purchase a business car, it’s tax deductible. If you purchase health insurance for your employees, even that is tax deductible. Therefore, instead of giving salary raises at your next performance evaluation, provide benefits instead. Not only do you have happier employees, you save on your taxes.

Make your Car a Business Car

This has got to be one of the best tips for your business tax. Many of us require a car to commute to and from work. In fact, we need the car to travel around the city when we are working. If you require a car, purchase one for ‘business purposes’ and log its miles as a mileage deduction. Since the car is registered to your business, it becomes a business expense and hence, tax deductible.

Pay for your Benefits, Deduct them from your Business Tax

One of the best tips for your business tax may seem rather awkward at first. If you have your own business, one of the best things you can do is hire your spouse. Once you have hired your spouse, provide them health insurance. Inadvertently, you are providing yourself and your family health insurance. Best of all, this is tax deductible. This could just be the most affordable health insurance ever!

Save yourself from Bad Debt

There are many tips for your business tax that are not well known. For example, deducting bad debts. Many businesses provide loans and lines of credit to their customers. For example, clothes bought with a credit card. If you can prove that a customer bought goods and cannot pay it back, if it’s an noncollectable account expense, you can claim for a business tax deduction.

Business Owners Leaving California Due To High State Taxes

Bailing On California Due To High State Taxes

Many top-earning residents in California are ready to leave for good due to the excessive taxes they are required to pay. From winery owners in Napa Valley to popular sports figures, high-income residents who have been loyal to “The Golden State” are simply fed up.

Business Owners Leaving California Due To High State Taxes

English: Napa_Valley_Photo_D_Ramey_Logan If used outside of Wikipedia please credit Photographer: D Ramey Logan (Photo credit: Wikipedia)

Golfer Phil Mickelson has openly voiced his feelings about the issue and did not hesitate to disclose that he has considered leaving California, although he later regretted being so vocal. Other top earners are also speaking out about their plans to leave the state, and these residents have plenty of options that will be much easier on their pockets.

The southern state of Texas is a very attractive option for many high-income residents of California. The income-tax rate in this state is zero, which is a huge difference from the excessively high 13.3% tax rate that the top-earning residents in California are required to pay.

Nevada is another option that many California residents  are considering. According to Nevada accountant George Ashley, his office has recently received over one-hundred inquiries from residents of California who want to know the tax advantages of relocating from California to Nevada.

This increase in state taxes will have the greatest impact on individuals or families earning $250,000 yearly. They are already required to pay 62% of the states income tax, and this increase will lead to them paying much more, which is why many residents want to bail.

Many blame Proposition 30 for this dramatic change in California’s tax laws, and top earners of the state simply believe that increasing their taxes is simply unfair. Many residents have already bailed, according to Fox News. Although those being interviewed chose to remain anonymous, they were very vocal about their frustration with paying excessively high taxes.

According to tax experts, many more residents are likely to leave the state by the year 2014. Some are still trying to figure out how to relocate legally without completely cutting ties with California State.

State Income Tax Worries On The Rise

State Income Tax

State Income Taxes Could Possibly be Eliminated by Selective States:

Many States are hoping to experiment with their plan to eliminated State tax returns. The States which consist of mainly Republicans are clinging tightly to this idea praying that it is a success.

State Income Tax Worries On The Rise

President Barack Obama talks with U.S. Coast Guard Commandant Admiral Thad Allen, who is serving as the National Incident Commander, and Louisiana Gov. Bobby Jindal, aboard Marine One as they fly along the coastline from Venice to New Orleans, La., May 2, 2010. John Brennan, Assistant to the President for Homeland Security and Counterterrorism, is in the background. (Photo credit: Wikipedia)

Across the U.S. as well as the South and Midwest, numerous Republicans have gained a majority of control when it comes down to state legislatures and governorships, thus gaining the power to test highly debated tax ideas.

Republican Governor Bobby Jindal of Louisiana, for example, has called on ending Louisiana residents income tax as well as corporate taxes, leaving sales taxes to make up for lost profits.

One thing is certain and that is that Tax Filing is becoming a hot topic for many individuals of the United states. Some say cutting Tax Refunds will eventually help all of America, while others see only hard times getting harder for the less privileged.

Eliminating even cutting income taxes could possibly alter the overall tax burden by causing higher sales taxes this is a long time goal of many tax experts. Critics argue fearing that this particular approach will be much too regressive and will unfairly burden the middle class and the poor which is much more than the fortunate or the rich, as the poor are estimated to spend more of their hard earned money on more items that are subject to these sales taxes.

While many are against this idea others are all for it, as others are trying to take a side; where do you stand?