The Tax Questions Blog

Archive for the ‘Business Taxes’ Category

Rental Property Tax Robert Barbariol Accountants Five Dock Sydney

Question: how much a tax preparation business can make during the year?

I am actually getting experience in tax preparation and I would like to open my own business 2 years from now. I have a BA in accounting and currently working on my masters degree in taxation.

I would like to know how much money would I be making doing taxes full time on my own?

Answer: It depends on the size of operation. When you're new into this business, you can expect to convince your friends and family members to become your first clients.

The average per clients is usually around $50 to $150 depending on what services you have available such as issuing the check before IRS payment.

The Fair Tax Book: Saying Goodbye to the Income Tax and the IRS $4.45 Wouldn't you love to abolish the IRS ... Keep all the money in your paycheck ... Pay taxes on what you spend, not what you earn ... And eliminate all the fraud, hassle, and waste of our current system? Then the FairTax is for you. In the face of the outlandish American tax burden, talk-radio firebrand Neal Boortz and Congressman John Linder are leading the charge to phase out our current, unfair s...

The Greedy Hand: How Taxes Drive Americans Crazy and What to Do About It $3.00 Americans are being taxed to death--literally, says author Amity Shlaes in The Greedy Hand. At work or out shopping, upon marriage or even after death, we are paying more in taxes than ever before, according to Shlaes, a Wall Street Journal editorial writer. The average family with two wage-earners is now seeing almost 40 percent of its money go to local, state, and federal taxes. "The greed...

Hatch peppered with questions at economic summit

The audience at Sen. Orrin Hatch's second annual Economic Summit had questions about much more than the economy, and the summit turned into a sort of town hall meeting.

President Obama's Deferral Proposal: Hamstringing American Companies, Reducing American Jobs

Quadra FNX Mining Ltd. Announces 2010 Second Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - 08/12/10) - (All figures, except per share amounts, are in $ US thousands unless otherwise stated or unless context requires otherwise) Quadra FNX Mining Ltd. (the "Company" or "Quadra FNX") (TSX: QUX - News ) announces net earnings of $21.7 million or $0.16 per share (basic) for the three months ended June 30, 2010 compared to a loss of $7.3 million or ...

Question: How does the US federal government raise money, besides taxes?

I'm wondering the different ways that the US government raises taxes, other than through taxing citizens (through wages, land, products, businesses, industries, etc.). I know that one way is to raise capital through foreign investing, but the US is always in the red and losing even more money through borrowing. Is there anything else, such as through selling currency to be used in other nations, arms sales (though these were purchased by the government and probably sold at a loss), perhaps military protection? I've always wondered what there is out there besides taxes to raise capital.

Answer: The big one now is the printing press. The Fed is running the presses like mad, and if this goes on long enough we will be swamped in massive price increases.

The US government also conducts Treasury auctions, where US securities are sold. This is where foreign investors buy US Treasury Securities, such as US bonds.

Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies $4.95 In her shocking new book, Malkin goes where the mainstream media refuse to tread. She digs deep into the records of President Obama's staff, revealing corrupt dealings, questionable pasts, and abuses of power throughout his administration....

Free Lunch: How the Wealthiest Americans Enrich Themselves at Government Expense (and Stick You with the Bill) $5.93 The bestselling author of Perfectly Legal returns with a powerful new exposé How does a strong and growing economy lend itself to job uncertainty, debt, bankruptcy, and economic fear for a vast number of Americans? Free Lunch provides answers to this great economic mystery of our time, revealing how today?s government policies and spending reach deep into the wallets of the many for the benefit o...

Perfectly Legal: The Covert Campaign to Rig Our Tax System to Benefit the Super Rich - and Cheat Everybody Else $10.80 Most Americans would agree that they are duty bound as beneficiaries of our democracy to pay taxes, and the majority of us do pay—-exorbitantly. But what about those who do not pay their fair share? David Cay Johnston, a Pulitzer Prize-winning reporter for the New York Times, here reveals how fairness and equity have eroded from the American tax system. Johnston describes in shocking detail the l...

Dismay over electricity tax increase

I was shocked when I opened my June electric bill and saw $27 of the $155 bill going to Montgomery County government as a "tax." Look at your latest bill when you get it if you want to verify the latest County Council tax outrage for yourself.

Obama Explains His Tax Cut Plans To Plumbing Business Owner

Question: Can my husband pay me for clerical support in his business?

I am not working following the birth of my 4th child. I receive carer's allowance for my son and know that I can still earn up to £95 without losing this. The thing is, my husband is self employed and I have never been paid for helping him in the business - general clerical support, running errands as necessary, doing his books, etc. This past year has been a fairly good year for him and we wondered whether he could pay me so that we can a) help reduce his tax liability legitimately and b) enable me to use the spare tax allowance I have, as whilst my carer's allowance is taxable, it does not use up all of my allowance. Do I show this as an expense in the P&L account if I can do it, and do I have to let anyone know? Thanks in advance.

Answer: Yes, it is possible, but you have to be careful how you do it. The only way you could do this on a self-employed basis would be for your husband to make you a partner formally in his business. You would need to keep records and complete an annual Tax Return. You can't just "decide" to be self employed, certain criteria have to be met for either status. Go to http://www.hmrc.gov.uk , then to individuals and other topics. On the next page look at employment status indicator.
A lot of self-employed businessmen employ their wives, to minimise their tax bill, especially if they are liable to Higher Rate Tax. What you have to bear in mind are the tax and NI limits before you decide what the pay will be. You can currently have income of £6475 a year before you have to pay tax (which will include your carer's allowance), and the limit before NIC is deducted is £110 a week. Tax is due on all income, but the NIC limit is at each job.
If your husband has to pay tax at Higher Rate, it may be worth while you receiving more, but you will pay tax at 20% and NIC of 11% if over limits, and husband has to pay 12.8% NIC for you.
When you start employment officially, you should download form P46 from same website, put "form P46" in search box. Then sign it, it will cover husband if you don't earn over limits. Otherwise he will have to register as an employer, and operate PAYE. Of course it is possible he has other employees and does that already for them. Form P46 should be kept in husband's records if you are under limit, otherwise sent to tax office.
Keep an eye on rate changes each year, you can find them on http://www.hmrc.gov.uk/rates.

Capital Gains Tax: Is it justified?

Will the Government increase Capital Gains Tax in tomorrow’s emergency Budget? But, as tax partner with UHY Hacker Young, Roy Maugham writes a rise in CGT could stifle entrepreneurship and the minimal benefit for the Treasury does not seem to justify a hike.