What is the Alternative Minimum Tax (AMT)?
Tax imposed to back up the regular income tax imposed on CORPORATION and individuals to assure that taxpayers with economically measured income exceeding certain thresholds pay at least some income tax.
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A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty. -Sir Winston Churchill
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Accounting 101: Accelerated Depreciation –
Method that records greater DEPRECIATION than STRAIGHT-LINE DEPRECIATION in the early years and less depreciation than straight-line in the later years of an ASSET’S HOLDING PERIOD.
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What is the Medicare Hospital Insurance Tax? A tax under the Federal Insurance Contributions Act (FICA) that is a United States payroll tax imposed by the Federal government on both employees and employers to fund Medicare.
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When beginning a business, you must decide what form of business entity to establish. Your form of business determines which income tax return form you have to file. The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a business structure allowed by state statute. Legal and tax considerations enter into selecting a business structure. Click to learn more: http://ift.tt/2bnxqHM
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Why was I notified by the IRS?
The IRS sends notices and letters for the following reasons:
• You have a balance due.
• You are due a larger or smaller refund.
• We have a question about your tax return.
• We need to verify your identity.
• We need additional information.
• We changed your return.
• We need to notify you of delays in processing your return.
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What Do They Mean By FICA taxes?
The Federal Insurance Compensation Act imposes a tax on employers and employees in equal amounts to provide funding to the federal government in support of the Social Security and Medicare programs in the United States. Self-employed individuals must pay the entire tax themselves.
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What Do They Mean By FICA taxes?
The Federal Insurance Compensation Act imposes a tax on employers and employees in equal amounts to provide funding to the federal government in support of the Social Security and Medicare programs in the United States. Self-employed individuals must pay the entire tax themselves.
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What Do They Mean By Franchise rights?
An exclusive right to produce and/or sell a certain product or service within a designated geographic area. Franchise rights are typically purchased and accounted for as intangible assets on the books of the franchisee (the buyer of the franchise) at the price paid for the rights. This capitalized cost is amortized to expense over the legal term of the franchise rights on a straight-line basis. The amount of accumulated amortization is maintained in a contra-asset account appearing on the balance sheet as an offset against the franchise right’s original capitalized cost. The resulting net balance sheet amount is referred to as the franchise’s “book value.”
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IRS Acquiescence Gives Unmarried Couples a Double Deduction.
Mortgage interest deduction limit applies on per taxpayer basis. http://ift.tt/2aQh8qy
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Deadline Update: Form W-2 is due to the Social Security Administration on January 31, 2017, instead of February 28, whether you file electronically or by paper. (If you file 250 or more forms, you must file electronically.)
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Don’t ask yourself what the world needs. Ask yourself what makes you come alive and then go do that. Because what the world needs is people who have come alive. -Howard Thurman
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September 15 Tax Deadline Reminder:
• Final deadline to file corporate tax returns for the year 2015 if an extension was requested. (Forms 1120, 1120A, 1120S).
• Final deadline to file trust income tax returns (Form 1041) for the year 2015 if an extension was requested.
• Final deadline to file partnership tax returns (Form 1065) for the year 2015 if an extension was requested.
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If you or anyone in your family are getting advance payments of the premium tax credit, it’s that time of year for a checkup to see if you need to adjust your premium assistance. Since the advance payments are paid directly to your insurance company and lower the out-of-pocket cost for your health insurance premiums, changes in your income or family size may affect your credit. You should report changes that have occurred since the time that you signed up for your health insurance plan.
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