IRS Penalties and Interest

If you owe taxes to the IRS, the first thing you need to know is that borrowing money to full pay your tax debt may have a lower interest rate than allowing IRS penalties and interest to accumulate. Even paying with a credit card might save…

What Is an S Corporation?

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What Is an S Corporation? An S Corporation is a C Corporation that elects "Subchapter S" status. All S Corporations begin their lives as C Corporations; Corporations elect to change their status to S Corporations.The S Corporation Election…

S Corporation Election

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How to Make the S Corporation Election All S Corporations begin their lives as C Corporations--no Secretary of State in the US makes a distinction between S Corporation and C Corporation. The S Corporation election is just that: an election.The…

LLC Tax Advantages - LLC Advantages

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First, a definition. An LLC is a statutorily created form of business entity that combine features of both partnerships and corporations. For more information on the differences between these business entities, please read: Corporation vs. LLC…

Federal Income Tax Brackets - Federal Tax Brackets

Federal Income Tax Brackets Federal Tax Brackets February 2008//////////// // Schedule X -- Single FilerIf taxable income is  over-- But not over-- The tax is:$0 $7,825 10% of the amount over $0$7,825 $31,850 $782.50…

Tax Advantages of LLCs

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LearnAboutLaw Staff July 2007Owners of businesses often inquire as to whether organizing as an LLC offers any tax benefits. The following are some ideas on how an LLC can be organized in a manner that gives a net tax savings. As with any…

Tax Advantages of Corporations

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LearnAboutLaw Staff July 2007Owners of businesses often inquire as to whether organizing as a Corporation offers any tax benefits. The following are some ideas on how a Corporation can be organized in a manner that gives a net tax savings.…

How to Maximize Medical Deductions

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July, 2007Had a root canal? Broke a bone? Well, what you spend on health care might be deductible.The Internal Revenue Service allows a deduction of medical costs if such costs are more than 7.5 percent of your adjusted gross income--that's…

1099 After Foreclosure - Cancellation of Debt & Anti-Deficiency

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Here we take a closer look at the phenomenon of 1099 Cancellation of Debt income following a foreclosure. Why Foreclosed Homeowners Receive 1099s for Cancelled Debt First, the basics: if you owe a debt to someone else, and that debt is forgiven,…

Use S-Corp Dividends and LLC Dividends to Minimize Taxes

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A Powerful Device for Business Owners to Keep Taxes Low A dividend is payment declared by a company's board of directors (or board of managers in the case of an LLC) and given to its shareholders or owners out of the company's current or retained…