A relatively new federal income tax on investment income became effective in 2013 for some tax filers. The tax is applicable to individuals with higher incomes. Some tax filers must now complete an additional tax form to report and pay the additional tax on net investment income.
Investment income includes items such as interest, dividends, capital gains, and rental income. Net investment income is derived by subtracting investment expenses from investment income.
When starting a small business, you will have a lot of different choices to make. Most small business owners take on many roles themselves, from manager to accountant to marketer. This is especially true if you starting the business entirely by yourself and without the help of a franchise. It is important to get the help you need when it comes to your finances. Entrepreneur.com recommends that you should find a certified public accountant to help you get your finances in order.
Applying for any job is stressful, but when you are in the world of finance and accounting, you are interviewing for positions that will allow you to take care of huge sums of money, which can make the interview process especially taxing. Here are some commonly asked accounting interview questions and what you can do to prepare for them.
1. If you were working for a company that just received an investment of five million dollars, what would your spending and investing plan be to make the most of it?
Dealing with taxes as a freelance worker can be a mess. The complexity of filing your taxes is often similar to running a small business, but you only have one person to do all the work. Here are some tips for simplifying the tax return process as a freelance worker.
Forecasting Your Tax Bill
As a freelancer, you'll have to pay a bit more in taxes to cover your social security costs.
When deductions on a return look a bit suspicious, an audit may be unavoidable. In addition to seeing a tax rate go up, a civil penalty (fine) may be levied if the agency deems the error to be egregious. In some cases, the deductions are so inappropriate, the IRS might suspect fraud and initiate a criminal investigation. To avoid any legal problems, taxpayers are advised to make sure any business-related clothing deductions are 100% legitimate.