What’s cash vs accrual accounting? The cash basis of accounting is simple – you record your revenue as your deposit it in the bank and expenses when you make a purchase. The accrual basis instead determines revenue and expenses based on when they earn. We’ll explore the differences between the two methods and when each […]
Category: Tax Tips
Capital Gains Rollover: Tax Strategies Explained
If you make some wise investment decisions (or have just been lucky), you’ll face having to report capital gains and wondering, “what are capital gains.” While capital gains are welcome, surprise is the feeling many people have when they realize the amount of taxes due on a capital gain. So we’ll look at common strategies […]
Roth IRA for Kids: Rules and Contributions
Most people realize that a ROTH IRA is a good investment that allows retirement funds to grow tax-free. You can withdraw these funds tax-free in retirement. But what most people don’t realize that you can also start a ROTH IRA for kids. What Is a ROTH IRA for Children? A ROTH IRA for children works […]
UTMA Account Rules: Taxes on Investment Accounts for Minors
Starting an investment account for a child can give them a head-start in life, but when choosing the right account type, you need to consider your goals and the child’s financial situation. One of the most flexible types of accounts is a UTMA account. Let’s look at UTMA account rules and the rules for the […]
EV Tax Credit 2022 Updates
Indeed, electric vehicles (EVs) are becoming quite popular with those who can afford them, that is. Not only are they quiet, but they emit no carbon dioxide as they run. As a result, many activists and policymakers champion EVs as essential to mitigating the ill effects of climate change. An EV tax credit has been […]
What is Estate Tax, and How Can You Avoid It?
When someone dies, their estate (defined as all the assets they own) becomes subject to the estate tax. The federal estate tax only applies to estates over $11.7 million, so very few people need to worry about the federal estate tax. However, most of the estate over $11.7 million is taxed at 40%. So it […]
What is Excise Tax?
varItMak Most people are well aware of income tax and sales tax, but are less aware of excise taxes. So what is excise tax? What are Excise Taxes? An excise tax is an additional type of tax imposed on the sale of specific goods and services. Manufacturers and retailers collect most excise taxes, but there […]
Schedule C vs Schedule E for Airbnb Income
Many things set Airbnb hosting apart from other rental properties. Let’s discuss this big difference: some Airbnbs qualify as non-passive income and are reported on Schedule C. Furthermore, this post will cover Schedule C vs Schedule E for Airbnb hosts in detail. Schedule C vs Schedule E: What Are They For? Let’s look at Schedule […]
1099 NEC vs MISC: Key Differences and Uses
Modern businesses are increasingly relying on independent contractors to fill jobs and essential roles, and 1099 Forms are becoming more and more common on tax returns. However, determining the right 1099 Form to file can be challenging for small businesses thanks to the advent of new form options. So, what is the difference between a […]
SEP IRA: The Best Self-Employed Retirement Account?
According to the recent numbers in a Pew Research study, about 16 million people in the U.S. are self-employed. If you are one of them, you already know that building retirement savings is one of the greatest challenges you face. Fortunately, the SEP IRA offers options for building a retirement for the self-employed, so you […]