As a general rule, travel expenses are deductible as a business expense as long as the expense is considered by the IRS to be an ordinary and necessary business expense under (IRC section 162). But when you incur a travel expense outside the United States, that is when the rules begin to change. Do not assume that 100% of your foreign travel expenses are tax deductible. And better yet, consult with your CPA during the planning phase of your foreign travel in order to maximize your opportunity for a tax deduction.

General Rules ...

<< MORE >>

You would think a simple thing like how to depreciate leasehold improvements would an easy thing to answer. Unfortunately, Congress has made it a very complex matter. There is no one, single method for depreciating leasehold improvements. And there is no one single number of years in which the life of leasehold improvements may be depreciated.

For example, depending on the facts and circumstances, leasehold improvements may be required to be depreciated under the straight line method, or eligible for 50% bonus depreciation, or eligible for 100% bonus depreciation or eligible to be expenses ... << MORE >>

www.richhabits.net 1103 Westfield Ave, Rahway, NJ 07065" align=left width=125 height=1060 v:dpi="96" v:shapes="_x0000_s1026">GOALS!

Learn the powerful goal-setting techniques used by wealthy individuals.

                                                    

 

By Thomas Corley

 

___________________________________________

<< MORE >>

Some of the most successful individuals in the world are dreamers. Or should I say, dreamers who succeeded. It's not easy being a dreamer and pursuing a dream. Many people are dreamers but few pursue their dreams. Upbringing has a lot to do with that. How you were raised by your parents, for the most part, dictates whether or not you will pursue your dreams. Many parents will tell their children then can become anything they want in life, but then put their thumb down on their children when they feel their children express an interest in pursuing ... << MORE >>

There are two permitted methods for deducting automobile expenses for employees who are not reimbursed by their employers for the business use of their vehicles:

1. Actual Method – Actual expenses multiplied by your business use %. Actual expenses include such things as depreciation (if you own the vehicle), or lease expense (if you lease the vehicle), gas, insurance, tolls, registration, repairs and maintenance or

<< MORE >>

Tom Corley is no ordinary CPA. Sure, like many other CPAs, he works hard for his clients in minimizing their taxes, managing their wealth and advising them in their businesses. But unlike any other CPA, Tom has a burning "man of fire" mission. Tom is out to change the world, or at least most of America. "Ninety-five percent of Americans struggle financially. They eke out a living. They live from one paycheck to the next. They are barely getting by. They are hanging on by a thread. And the saddest thing is that this reality perpetuates itself from ... << MORE >>

In today's business environment it is very difficult to survive if you do not take credit cards for payment. It doesn't matter if you are selling a product or service. Credit cards are ubiquitous and used by most everyone. Even those who shun credit cards will use the credit card processing system for their bank debit cards. There is really no escaping the reality: you need to accept credit cards in your business or your competition will eat your lunch. So how do you get started? This article will address the basics of opening a credit card merchant account, the bevy of merchants offering credit card processing services and the associated costs.

BASICS
A credit card processor provides the service of accepting credit cards either through a swipe machine, over the phone or through a Virtual Terminal. Credit card processors charge a fee, known as an Interchange Fee, or Discount Rate. This fee ranges from 1 to 4 percent, depending on charging volume and if you have the physical card present or are taking the credit card information over the phone or through the computer. There are three ways you can take credit cards:
#1  Swipe Machine or
#2  Calling it into the Credit Card Processor or
#3  Utilizing Proprietary Software of the Processor, known as a Virtual Terminal

Very often, retail businesses with high charge volume will use all three methods. Think of the virtual terminal as a web site you access that allows you to enter the credit card number and complete the transaction. Virtual Terminals are beginning to replace credit card swipe machines.

GETTING STARTED
The best place to start is to reach out to your banker. Most commercial banks have a relationship with credit card processors. Your bank's credit card processor business partner will set you up with a Merchant ID from Visa and Mastercard. If you want to accept American Express you will need to reach out to Amex directly (800-528-4800) in order to obtain a merchant ID prior to reaching out to your bank. Alternatively, you can reach out to American Express instead of your banker and have American Express act as your primary credit card processor. American Express will process most of the major credit card, in addition to its own.

MERCHANTS
The following is a short list of the main credit card processors:
#1   Your Bank's credit card processor business partner
 #2  American Express
#3   PayPal
#4   Google Checkout
#5   Intuit

COSTS
For business accounts, PayPal charges a monthly fee of $30 as well as a transaction fee that ranges from 2.4 to 3.1 percent. Google Checkout has no monthly fee and transaction fees range from 1.9 to 2.9 percent. one advantage Google Checkout has over other credit card processors is its checkout guarantee. This guarantee protects 98 percent of your sales orders, on average, meaning you will get paid even if the transaction results in a chargeback.  Intuit charges $13 per month plus a transaction fee of 1.9 to 2.9 percent. When American Express processes your credit sales it will credit your bank account with a net sales amount. This net sales amount is your gross sales reduced by their transaction fee. For most other credit card processors your bank account will be credited with the gross sales amount and a separate charge will be automatically deducted from your bank account.

For more information on credit card processors go to www.merchantmaverick.com. This site provides information on the various online credit card processors, which includes reviews and a comparison tool.

When it comes to investments there are four types from a tax standpoint:
1.  Taxable Investments
2.  Tax-Free Investments
3.  Tax Advantaged Investments and
4.  Tax Deferred Investments

The purpose of this article is to provide an overview of the types of investments that are the most tax efficient.

FEDERAL AND STATE TAX-FREE INVESTMENTS
1.   Municipal Bonds - Exempt from state tax of the state in which the obligations are issued
2.   Municipal Bond Funds - Exempt from state tax of the state in which the obligations are issued
3.   Municipal Bond Trusts - Exempt from state tax of the state in which the obligations are issued
4.   Cash Surrender Value Loans
5.   Roth IRA
6.   Roth 401(k)
7.   529 Plan distributions used for qualified higher education expenses, including room and board
8.   Series I or EE Bonds - Earnings exempt if used for qualified higher education expenses
9.   Coverdell IRA (aka Education IRA) - Earnings exempt if used for qualified education expenses (tuition: elementary school, high
       school, tutoring and college)
10.  Earnings on investments held in Health Savings Arrangements used to pay for eligible medical expenses

STATE TAX-FREE INVESTMENTS
1.  Treasury Bills 
2.  Treasury Notes
3.  Treasury Bonds
4.  Sallie Mae Mortgage Backed Securities
5.  EE Bonds
6.  I Bonds

TAX ADVANTAGED INVESTMENTS
1.    Real Estate Investments
2.    Rental Properties
3.    Principal Residence - Up to $500,000 ($250,000 if single) of gain excluded
4.    Single Premium Life Insurance Products
5.    Traditional IRAs
6,    Stocks held more than one year
7.    Exchange Traded Funds held more than one year
8.    Mutual Funds held more than one year
9.    Vacation Homes
10.  Precious Metals/Collectibles/Coins - 28% maximum long-term capital gains tax rate 
11.  Real Estate Investment Trusts
12.  Qualified Small Business Stock - 50% gain exclusion. Balance subject to 15% long-term capital gains tax

TAX DEFERRED INVESTMENTS
1.   I Bonds
2.   Fixed Annuities
3.   Variable Annuities
4.   EE Bonds
5.   Traditional IRAs
6.   401(k) Plans
7.   403(b) Plans
8.   457 Plans
9.   Qualified Small Business Stock - Proceeds used to purchase new Qualified Small Business Stock
10. 529 Plan Investment earnings are deferred until used for qualified higher education expenses.

I wish to thank the 22 year old Congressional staff members who write the tax code and regulations, the IRS for their incomprehensible explanations thereof and the tax court rulings for making the U.S. income tax system as complex as it is, thus affording me and many other CPAs the opportunity to make a living in a completely unnecessary field.

In my five-year study on the daily habits of wealthy and poor individuals I made discoveries that shook me to the core. What I uncovered was nothing less than the secret to financial success. I shared these secrets in my ground breaking self-help book, Rich Habits. In this article I wish to highlight three principles that all wealthy individuals live by in achieving major purposes, or goals, that propel them to great wealth.

PASSIONATE PURPOSE
Ninety-five percent of Americans struggle financially.They eek out a living and live paycheck to paycheck. They do not like their jobs. ... << MORE >>

Effective immediately the federal reform law has permanently increased federal deposit insurance from $100,000 to $250,000. The $250,000 insurance coverage applies to each account category of a depositor per bank. The coverage ceiling was temporarily raised during the financial crisis back in October 2008 from $100,000 to $250,000. It had been scheduled to drop back down to $100,000 at the end of 2013. This law permanently increases the $250,000 coverage.This increase applies to each of four ownership account categories:
1. Individual Accounts and
2. Joint Accounts and
3. Certain Trust Accounts and ... << MORE >>