ABOUT TAXES, THE FUNDAMENTAL OF TEXESFOR
BUSINESS
BUSINESS
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THE FUNDAMENTAL OF TAXES
C Corporation
Pros
Cons
Liability limited in case of lawsuit
Double taxation occurs when dividends are paid to shareholders
Shareholders risk only their investment
Corporations must comply with recordkeeping and other government regulations
Corporation can survive the death of owner, officer, or shareholder
State laws can limit operating flexibility
Easy to sell small portions of stock to raise capital
Tax rate may be lower
Corporation can elect different year-ends than shareholders—helpful for tax planning
Corporation can provide certain benefits not available to other entities
Also named from a chapter in the tax code, S corporations offer the same legal protection as C
corporations but don’t pay corporate taxes. Instead, shareholders report the company’s income and
losses on their individual tax returns. The tax may be higher at the individual level than it would have
been at the C corporate level, but because the S corporation itself pays no taxes, the income is only
taxed once, not twice as it can be with the C corporation.
Let’s say your business isn’t yet profitable and you’re earning money from another source, such as a
part-time job. The money from this other source is taxable, but if you have an S corporation, you can
reduce the amount of your total tax by deducting your S corporation operating loss from income
being earned from other sources. Reducing the amount of taxable income in this way may add up to
significant tax savings.
S Corporation
Pros
Cons
No double taxation
Company must be registered as a domestic corporation
Changing from C to S and from S to C is possible
Corporation can issue only one class of stock
Limited number of shareholders can own stock
Limitations on who qualifies for shareholder status
Limited-Liability Company (LLC)
This relatively new type of business is a cross between a C corporation and a partnership. An LLC
gives its shareholders, or members, all the legal protection that a corporation offers, but an LLC may
elect how it is to be taxed, whether as a corporation or as a partnership. This is called the “check the
box” election. If the LLC elects to be taxed as a partnership, it means that profits earned by the LLC
are passed through to the members, who report them on their individual tax returns.
If the legal protection and the tax setup are the same for both an LLC and an S corporation, how is
an LLC different? In an S corporation, there are certain laws restricting the number of shareholders
and also the type of stock that can be issued. With an LLC, none of that applies. Thus an LLC has
more flexibility than an S corporation. But there’s a downside. Because LLCs are relatively new, there
is no solid history of legal test cases, and laws governing LLCs vary from state to state. Some states
have “bulletproof” laws, meaning that if you establish an LLC and follow all the rules, you’ll
automatically be given favorable tax status. In other states you may follow all the rules but not gain
favorable tax status. It’s best to check with a legal expert before forming an LLC.
Limited-Liability Company
Pros
Cons
Owners or members have management authority
More expensive to open than a partnership
Allows an unlimited number of shareholders
Rules may vary by state
Can elect to have income or loss pass through to members’ returns
Must have consent of members to transfer interest to another person
Liability protection of a corporation with no responsibility for debts
The Secret of the Rich
Now that you know something about corporations, you have more insight into the secret of the rich.
This secret has been around ever since the days of sailing ships, when the rich created the
corporation as a vehicle to limit their risk. The rich would put their money into a corporation to
finance a voyage. If the ship was lost the crew lost their lives, but the loss to the rich would be limited
to the money they invested for that particular voyage. Corporations can protect assets and serve as
vehicles for the creation of new assets. If you understand that basic secret, then you’re ready to
master the art of building the B-I triangle.
C Corporation
Pros
Cons
Liability limited in case of lawsuit
Double taxation occurs when dividends are paid to shareholders
Shareholders risk only their investment
Corporations must comply with recordkeeping and other government regulations
Corporation can survive the death of owner, officer, or shareholder
State laws can limit operating flexibility
Easy to sell small portions of stock to raise capital
Tax rate may be lower
Corporation can elect different year-ends than shareholders—helpful for tax planning
Corporation can provide certain benefits not available to other entities
Also named from a chapter in the tax code, S corporations offer the same legal protection as C
corporations but don’t pay corporate taxes. Instead, shareholders report the company’s income and
losses on their individual tax returns. The tax may be higher at the individual level than it would have
been at the C corporate level, but because the S corporation itself pays no taxes, the income is only
taxed once, not twice as it can be with the C corporation.
Let’s say your business isn’t yet profitable and you’re earning money from another source, such as a
part-time job. The money from this other source is taxable, but if you have an S corporation, you can
reduce the amount of your total tax by deducting your S corporation operating loss from income
being earned from other sources. Reducing the amount of taxable income in this way may add up to
significant tax savings.
S Corporation
Pros
Cons
No double taxation
Company must be registered as a domestic corporation
Changing from C to S and from S to C is possible
Corporation can issue only one class of stock
Limited number of shareholders can own stock
Limitations on who qualifies for shareholder status
Limited-Liability Company (LLC)
This relatively new type of business is a cross between a C corporation and a partnership. An LLC
gives its shareholders, or members, all the legal protection that a corporation offers, but an LLC may
elect how it is to be taxed, whether as a corporation or as a partnership. This is called the “check the
box” election. If the LLC elects to be taxed as a partnership, it means that profits earned by the LLC
are passed through to the members, who report them on their individual tax returns.
If the legal protection and the tax setup are the same for both an LLC and an S corporation, how is
an LLC different? In an S corporation, there are certain laws restricting the number of shareholders
and also the type of stock that can be issued. With an LLC, none of that applies. Thus an LLC has
more flexibility than an S corporation. But there’s a downside. Because LLCs are relatively new, there
is no solid history of legal test cases, and laws governing LLCs vary from state to state. Some states
have “bulletproof” laws, meaning that if you establish an LLC and follow all the rules, you’ll
automatically be given favorable tax status. In other states you may follow all the rules but not gain
favorable tax status. It’s best to check with a legal expert before forming an LLC.
Limited-Liability Company
Pros
Cons
Owners or members have management authority
More expensive to open than a partnership
Allows an unlimited number of shareholders
Rules may vary by state
Can elect to have income or loss pass through to members’ returns
Must have consent of members to transfer interest to another person
Liability protection of a corporation with no responsibility for debts
The Secret of the Rich
Now that you know something about corporations, you have more insight into the secret of the rich.
This secret has been around ever since the days of sailing ships, when the rich created the
corporation as a vehicle to limit their risk. The rich would put their money into a corporation to
finance a voyage. If the ship was lost the crew lost their lives, but the loss to the rich would be limited
to the money they invested for that particular voyage. Corporations can protect assets and serve as
vehicles for the creation of new assets. If you understand that basic secret, then you’re ready to
master the art of building the B-I triangle.
THE FUNDAMENTAL OF TAXES----- PART TWO
“In this world nothing
can be said to be certain,
except death and taxes.”
— Benjamin Franklin
Nobody likes taxes. Ever since the Boston Tea Party in 1773, when colonists dumped British tea into
Boston Harbor rather than paying the tax on it, Americans have been seeking ways to avoid giving
their hard-earned money to the government. Their efforts have been in vain. Today the Internal
Revenue Service is a fact of life, and we all have to pay taxes. But there’s no reason you have to
hand over more than your fair share. If you take the time to learn some of the basics of tax law, you’ll
reduce your burden and keep more of your money. By becoming financially literate, you’ll learn what
the rich already know: While you can’t beat the IRS, you can turn it to your advantage.
“That the institution of the income tax will tend to silence all boasting about wealth may ... be
regarded as one blessing associated with it; we know at present of no others.”
—The New York Times in 1913, the year income tax was introduced
Income Tax: A Pocket History
Personal income tax is a relatively new phenomenon in American life. It wasn’t until 1863 that the
federal government even began collecting income tax to fund the war effort, and nine years later the
tax was repealed. For the next forty-one years the government funded most of its activities by levying
duties on imported goods such as wool and shoes. The system of duties, however, prevented the
United States from gaining a competitive edge in world trade. Thus in 1913 Congress reduced duties
on imported goods and, to make up for the loss in revenue, ratified the 16th Amendment to the
Constitution legalizing personal income tax.
During World War II, paycheck withholding was introduced. Under this system, taxes were taken out of
a person’s paycheck each payday instead of annually, giving the government enough ready cash to
cover the cost of the war. To reduce government borrowing, the tax rate was also raised, in some
cases to a whopping 94 percent of personal income. Since then rates have settled back down, but
not—as the tax wars of the last few decades suggest—to everyone’s satisfaction.
Becoming Tax LiterateThe U.S. tax system is progressive, meaning people earning more money pay
tax at a higher rate than people earning less. If only it were that simple ... The present Byzantine tax
code may have your money passing through more than one tax bracket before your final tax bill is
calculated. The rate you pay depends on many factors, not just your income but whether you’re
married or single, how many children you have, and so forth. So complicated is the tax system that
some lawmakers in Washington have repeatedly called for a straightforward proportional tax, that is, a
tax that takes the same percentage of each person’s income. It is often called the flat tax.
Instead of overhauling the tax code, Congress is forever tinkering with it, changing this and adding
that. The result resembles a house built without blueprints. Doors give way to walls, and staircases
lead nowhere. Many laws are written to favor investors, others are not. It’s important to know the laws,
and it can be very expensive if you don’t.
For instance, in 1986 Congress passed the Tax Reform Act which eliminated the tax break for real
estate investors whose expenses on rental properties exceeded the rents they collected. When the law
changed and the government stopped subsidizing people for losing money, some people went
bankrupt and the stock market took a steep dive. It’s never a good idea to invest in something just to
avoid paying taxes or in something that’s losing money. The idea is to make money, not lose it. The
1997 Taxpayer Relief Act introduced a whole new set of rules, and it contained some good news for
some. For example, now if you’re married and you sell your house, you can avoid paying capital
gains tax on profits up to $500,000. The law is always changing, and the best way to reduce your tax
burden is to keep abreast of developments. How? By watching the financial news on television,
reading the financial section of your newspaper, or consulting your tax attorney or accountant.
“In this world nothing
can be said to be certain,
except death and taxes.”
— Benjamin Franklin
Nobody likes taxes. Ever since the Boston Tea Party in 1773, when colonists dumped British tea into
Boston Harbor rather than paying the tax on it, Americans have been seeking ways to avoid giving
their hard-earned money to the government. Their efforts have been in vain. Today the Internal
Revenue Service is a fact of life, and we all have to pay taxes. But there’s no reason you have to
hand over more than your fair share. If you take the time to learn some of the basics of tax law, you’ll
reduce your burden and keep more of your money. By becoming financially literate, you’ll learn what
the rich already know: While you can’t beat the IRS, you can turn it to your advantage.
“That the institution of the income tax will tend to silence all boasting about wealth may ... be
regarded as one blessing associated with it; we know at present of no others.”
—The New York Times in 1913, the year income tax was introduced
Income Tax: A Pocket History
Personal income tax is a relatively new phenomenon in American life. It wasn’t until 1863 that the
federal government even began collecting income tax to fund the war effort, and nine years later the
tax was repealed. For the next forty-one years the government funded most of its activities by levying
duties on imported goods such as wool and shoes. The system of duties, however, prevented the
United States from gaining a competitive edge in world trade. Thus in 1913 Congress reduced duties
on imported goods and, to make up for the loss in revenue, ratified the 16th Amendment to the
Constitution legalizing personal income tax.
During World War II, paycheck withholding was introduced. Under this system, taxes were taken out of
a person’s paycheck each payday instead of annually, giving the government enough ready cash to
cover the cost of the war. To reduce government borrowing, the tax rate was also raised, in some
cases to a whopping 94 percent of personal income. Since then rates have settled back down, but
not—as the tax wars of the last few decades suggest—to everyone’s satisfaction.
Becoming Tax LiterateThe U.S. tax system is progressive, meaning people earning more money pay
tax at a higher rate than people earning less. If only it were that simple ... The present Byzantine tax
code may have your money passing through more than one tax bracket before your final tax bill is
calculated. The rate you pay depends on many factors, not just your income but whether you’re
married or single, how many children you have, and so forth. So complicated is the tax system that
some lawmakers in Washington have repeatedly called for a straightforward proportional tax, that is, a
tax that takes the same percentage of each person’s income. It is often called the flat tax.
Instead of overhauling the tax code, Congress is forever tinkering with it, changing this and adding
that. The result resembles a house built without blueprints. Doors give way to walls, and staircases
lead nowhere. Many laws are written to favor investors, others are not. It’s important to know the laws,
and it can be very expensive if you don’t.
For instance, in 1986 Congress passed the Tax Reform Act which eliminated the tax break for real
estate investors whose expenses on rental properties exceeded the rents they collected. When the law
changed and the government stopped subsidizing people for losing money, some people went
bankrupt and the stock market took a steep dive. It’s never a good idea to invest in something just to
avoid paying taxes or in something that’s losing money. The idea is to make money, not lose it. The
1997 Taxpayer Relief Act introduced a whole new set of rules, and it contained some good news for
some. For example, now if you’re married and you sell your house, you can avoid paying capital
gains tax on profits up to $500,000. The law is always changing, and the best way to reduce your tax
burden is to keep abreast of developments. How? By watching the financial news on television,
reading the financial section of your newspaper, or consulting your tax attorney or accountant.
THE FUNDAMENTAL OF TAXES---- PART THREE
Partnership
A partnership is two or more people co-owning a business for profit. The partners agree to
establish and run the business, sharing in profits, assuming responsibility for all losses and
liabilities, and paying all taxes, which are paid at the individual rate. There are two types of
partnerships: general and limited.
In a general partnership, the partners have full rights to control all the day-to-day affairs of the
business. They also share all the liability for the partnership’s debts or obligations. If the
partnership’s assets are insufficient to meet its obligations to creditors, or if a third party is
damaged or injured, then each partner’s personal assets can be taken to satisfy the debt.
Partnership
Pros
Cons
Combined assets and expertise
Partnership terminates on death or withdrawal of any partner
Flexible decision making
Partners totally liable
Partners, not partnership, taxed at the individual level
Each partner can enter into other business agreements, so control is difficult
Business expenses deductible
Each partner is individually liable for agreements made by any partner
Ease of formation
A limited partnership has both general partners, who run the daily business and make all the
decisions, and limited or silent partners, who generally put up the money in hopes of profit.
Limited partners have limited financial liability, meaning that if a creditor or an injured party
sues, limited partners can’t be held responsible for any more than the amount they originally
invested. When it comes to taxes, general partners and limited partners are treated the same
way. Any profits from the business go directly to them, that is, they are “passed through” to all
the partners, who report their share of the partnership net income on their individual tax returns.
Limited Partnership
Pros
Cons
Limited partners are not personally liable for the partnership’s debts and obligations
Transfer of interest usually requires general partner approval
Partnership does not dissolve with death of limited partner
Complete and separate paperwork filings
Number of partners/owners unlimited
Limited partners have little, if any, control over daily operations
Corporation
Most people think of a corporation as a business in a big building with lots of employees. A
corporation is really nothing more than a way of doing business. It is a legal entity regarded as
separate from the owner, one that offers distinct tax advantages as well as liability protection
from creditors and others who might sue. The owner controls the corporation and is a
shareholder, possibly the only shareholder. As owner and shareholder, the owner is the boss.
KNOWLEDGE FINANCIAL Tip
“Utilizing the corporation is one of the secrets of the rich: Own nothing, but control everything.”
The owner controls what happens in the corporation, but because the corporation is a separate
entity, the owner doesn’t own any of the corporation’s assets and therefore doesn’t have to
assume any of the corporation’s debts. The corporation owns its own assets and pays its own
debts. This is one of the secrets of the rich: Own nothing, but control everything. This was Rich
Dad’s favorite form of entity in which to build businesses.
There are two types of corporations: C and S. The C corporation, named for Subchapter C of the
federal tax code, is also known as a regular corporation. It offers all the legal protection just
mentioned but is taxed as a separate entity. In general, income tax rates for a corporation are
lower than rates for individuals. After the C corporation deducts business expenses from its
income, tax is paid on the corporation’s profits. The owner/shareholder in turn pays tax on any
money received from the corporation, usually in the form of a salary or bonus, and the
corporation can deduct these payments as expenses on its tax return. However, when a
corporation pays a dividend to its shareholders, the dividends are taxable to the shareholders
but not deductible by the corporation. This is often called double taxation, that is, tax is paid on
the income by the corporation when it earns the money, and tax is paid again by the shareholder
when the corporation pays a dividend with that same money.
But there’s a way around double taxation, and the rich use it all the time. When the C corporation
deducts legitimate business expenses and pays out profits in the form of compensation to its
shareholders, there may be no taxable income left. In that case, the corporation doesn’t have
enough income left to pay dividends. Shareholders must report any compensation (deducted on
the corporation’s return) on their individual tax returns, but they have no dividend income to
report. Taxation occurs once, not twice. Note: The shareholders must be performing duties for
the compensation they are receiving, and compensation should be reasonable, not excessive.
Another advantage of the C corporation is in the area of fringe benefits. The C corporation
usually gets a deduction for fringe benefits, and the employee does not recognize taxable
income. Many of the fringe benefits available to the C corporation are not available to, or are
restricted in, an S corporation, partnership, or LLC. For example, a C corporation can make
contributions towards life, accident, health, or other insurance deductibles and offer tax-free
benefits under a medical-expense reimbursement plan.
Partnership
A partnership is two or more people co-owning a business for profit. The partners agree to
establish and run the business, sharing in profits, assuming responsibility for all losses and
liabilities, and paying all taxes, which are paid at the individual rate. There are two types of
partnerships: general and limited.
In a general partnership, the partners have full rights to control all the day-to-day affairs of the
business. They also share all the liability for the partnership’s debts or obligations. If the
partnership’s assets are insufficient to meet its obligations to creditors, or if a third party is
damaged or injured, then each partner’s personal assets can be taken to satisfy the debt.
Partnership
Pros
Cons
Combined assets and expertise
Partnership terminates on death or withdrawal of any partner
Flexible decision making
Partners totally liable
Partners, not partnership, taxed at the individual level
Each partner can enter into other business agreements, so control is difficult
Business expenses deductible
Each partner is individually liable for agreements made by any partner
Ease of formation
A limited partnership has both general partners, who run the daily business and make all the
decisions, and limited or silent partners, who generally put up the money in hopes of profit.
Limited partners have limited financial liability, meaning that if a creditor or an injured party
sues, limited partners can’t be held responsible for any more than the amount they originally
invested. When it comes to taxes, general partners and limited partners are treated the same
way. Any profits from the business go directly to them, that is, they are “passed through” to all
the partners, who report their share of the partnership net income on their individual tax returns.
Limited Partnership
Pros
Cons
Limited partners are not personally liable for the partnership’s debts and obligations
Transfer of interest usually requires general partner approval
Partnership does not dissolve with death of limited partner
Complete and separate paperwork filings
Number of partners/owners unlimited
Limited partners have little, if any, control over daily operations
Corporation
Most people think of a corporation as a business in a big building with lots of employees. A
corporation is really nothing more than a way of doing business. It is a legal entity regarded as
separate from the owner, one that offers distinct tax advantages as well as liability protection
from creditors and others who might sue. The owner controls the corporation and is a
shareholder, possibly the only shareholder. As owner and shareholder, the owner is the boss.
KNOWLEDGE FINANCIAL Tip
“Utilizing the corporation is one of the secrets of the rich: Own nothing, but control everything.”
The owner controls what happens in the corporation, but because the corporation is a separate
entity, the owner doesn’t own any of the corporation’s assets and therefore doesn’t have to
assume any of the corporation’s debts. The corporation owns its own assets and pays its own
debts. This is one of the secrets of the rich: Own nothing, but control everything. This was Rich
Dad’s favorite form of entity in which to build businesses.
There are two types of corporations: C and S. The C corporation, named for Subchapter C of the
federal tax code, is also known as a regular corporation. It offers all the legal protection just
mentioned but is taxed as a separate entity. In general, income tax rates for a corporation are
lower than rates for individuals. After the C corporation deducts business expenses from its
income, tax is paid on the corporation’s profits. The owner/shareholder in turn pays tax on any
money received from the corporation, usually in the form of a salary or bonus, and the
corporation can deduct these payments as expenses on its tax return. However, when a
corporation pays a dividend to its shareholders, the dividends are taxable to the shareholders
but not deductible by the corporation. This is often called double taxation, that is, tax is paid on
the income by the corporation when it earns the money, and tax is paid again by the shareholder
when the corporation pays a dividend with that same money.
But there’s a way around double taxation, and the rich use it all the time. When the C corporation
deducts legitimate business expenses and pays out profits in the form of compensation to its
shareholders, there may be no taxable income left. In that case, the corporation doesn’t have
enough income left to pay dividends. Shareholders must report any compensation (deducted on
the corporation’s return) on their individual tax returns, but they have no dividend income to
report. Taxation occurs once, not twice. Note: The shareholders must be performing duties for
the compensation they are receiving, and compensation should be reasonable, not excessive.
Another advantage of the C corporation is in the area of fringe benefits. The C corporation
usually gets a deduction for fringe benefits, and the employee does not recognize taxable
income. Many of the fringe benefits available to the C corporation are not available to, or are
restricted in, an S corporation, partnership, or LLC. For example, a C corporation can make
contributions towards life, accident, health, or other insurance deductibles and offer tax-free
benefits under a medical-expense reimbursement plan.
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complete financing information to
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Five Insurance Policies Everyone Should
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Protecting your most important assets is
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Capital gains tax, Understanding Capital
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Make Your Financial Life Easier
FINANCE: THE BANKING AND THE AMERICAN
FINANCIAL SYSTEM HISTORY, SUCCESS
AND FAILURE
SAVING MONEY: THE SECRETS OF SAVING;
WAYS TO SAVE A LOT OF MONEY AND
GETTING RICHER
IRA / INDIVIDUAL RETIREMENT ACCOUNT.
What is an IRA? And what does it matter?
SOCIAL SECURITY; THE ULTIMATE
RETIREMENT GUIDE. HOW DOES SOCIAL
SECURITY WORK?
FINANCIAL REPORT: How to bring your
spending under control, so that you get the
most out of every dollar. 8 Reasons to get
pre-qualified for a mortgage loan!
ESTATE PLANNING: Estate planning, is it
really the process of accumulating and
disposing of an estate to maximize the goals
of the estate owner to avoid probate, to
lower the tax?
Assets Protection: Don't Get Sued: Five Tips
To Protect Your Company! Types of Asset-
Protection Vehicles;
Many different strategies have been
developed over the years claiming to protect
assets. How to protect yourself from...?
BUILDING WEALTH! How to Become Wealthy?
Nine Truths That Can Set You on the Path to
Financial Freedom
FINANCIAL KNOWLEDGE: The Successful
Investment Journey, Ten Tips For The
Successful Long-Term Investor
FINANCIAL SYSTEM: AMERICA’S MONEY
CRISIS / Bailout 101.
LEARN ABOUT: Top 6 Biggest U.S.
Government Financial Bailouts In History!
2-LEARN ABOUT MARKET CRASHES
HISTORY. HOW AND WHEN?
3-LEARN ABOUT: THE UNITED STATE, AND
THE WORLD MOST IMPORTANT FINANCIAL
INSTITUTIONS!
4-LEARN ABOUT THE COMPLETE FINANCIAL
TURMOIL, THE CREDIT CRISIS!
BANKING & FINANCE / Knowledge Financial.
com; an educational, a life changing website
with great ideas of small business, with
important things to know about our
economy, and investment
INVESTMENT: MAKE YOURSELF RICHER BY
INVESTING THE RIGHT WAY IN THE RIGHT
PRODUCTS. REAL ESTATE INVESTMENTS
CAN HELP
STOCK MARKET: STOCK MARKET A WAY TO
INVEST AND MULTIPLY YOUR PROFITS.
THESE INDUSTRIES HAS THOUSANDS OF
COMPANIES TO BUY STOCKS FROM.
FOREX MARKET: THE LARGEST MARKET IN
THE WORLD TO INVEST AND GET RICHER IF
YOU USE THE RIGHT TOOL.
TAX CERTIFICATES: / TAX DEED: A BETTER
WAY TO INVEST MONEY AND GET RICHER.
TAX LIENS: How Can You Safely Earn 18% to
240% Per Year On Your Investments? Yes
you can... By investing in Government
Issued Tax Liens, Tax deed, Tax Certificates.
REITs: REIT: Real Estate Investment Trust. A
GREAT WAY TO INVEST IN REAL ESTATE
WITHOUT TAKING A MORTGAGE LOAN
COMMERCIAL INVESTMENT. COMMERCIAL
REAL ESTATE; A BETTER WAY TO INVEST
AND GET RICHER! MULTI-WAYS TO WIN BIG
IN REAL ESTATE. WHAT IS COMMERCIAL
REAL ESTATE?
PENSION PLANS: THE ULTIMATE
RETIREMENT GUIDE; HOW TO RETIRE EARLY
AND RETIRE REACH. WHAT ARE 401K, ROTH
401K, INDIVIDUAL 401K, 403B, 457 PLAN,
THRIFT SAVINGS PLAN.
IDENTITY THEFT: WATCH OUT, STOP IT FROM
HAPPENING, GET THE TOOLS YOU NEED TO
PREVENT IT RIGHT HERE! AT KNOWLEDGE
FINANCIAL.COM
INSURANCE 101: THE IMPORTANCE OF
INSURANCE IN SOMEONE'S LIFE.
EVERYTHING YOU NEED TO KNOW ABOUT
INSURANCE; NOW IS YOUR CHANCE TO
KNOW HOW TO SAVE MONEY ON YOUR
INSURANCE! LEARN ABOUT THE 15
INSURANCE POLICIES YOU DON'T NEED!
MONEY, MAKE MONEY, AND GET OUT OF
DEBT!
PERSONAL FINANCE. What are you doing
with your money in the wake of the financial
crisis? --- Where is the safe place to put
money? My personal finance!
FINANCIAL FREEDOM: A SMARTEST WAY TO
PREPARE A BETTER FUTURE. Money-Making
Information You'll Need to Succeed
US ECONOMY, THE FINANCIAL SYSTEM, THE
CREDIT MARKET. WHAT'S GOING?
MONEY MANAGEMENT. Ten Resolutions to
Make Your Financial Life Easier
FINANCE: THE BANKING AND THE AMERICAN
FINANCIAL SYSTEM HISTORY, SUCCESS
AND FAILURE
SAVING MONEY: THE SECRETS OF SAVING;
WAYS TO SAVE A LOT OF MONEY AND
GETTING RICHER
IRA / INDIVIDUAL RETIREMENT ACCOUNT.
What is an IRA? And what does it matter?
SOCIAL SECURITY; THE ULTIMATE
RETIREMENT GUIDE. HOW DOES SOCIAL
SECURITY WORK?
FINANCIAL REPORT: How to bring your
spending under control, so that you get the
most out of every dollar. 8 Reasons to get
pre-qualified for a mortgage loan!
ESTATE PLANNING: Estate planning, is it
really the process of accumulating and
disposing of an estate to maximize the goals
of the estate owner to avoid probate, to
lower the tax?
Assets Protection: Don't Get Sued: Five Tips
To Protect Your Company! Types of Asset-
Protection Vehicles;
Many different strategies have been
developed over the years claiming to protect
assets. How to protect yourself from...?
BUILDING WEALTH! How to Become Wealthy?
Nine Truths That Can Set You on the Path to
Financial Freedom
FINANCIAL KNOWLEDGE: The Successful
Investment Journey, Ten Tips For The
Successful Long-Term Investor
FINANCIAL SYSTEM: AMERICA’S MONEY
CRISIS / Bailout 101.
LEARN ABOUT: Top 6 Biggest U.S.
Government Financial Bailouts In History!
2-LEARN ABOUT MARKET CRASHES
HISTORY. HOW AND WHEN?
3-LEARN ABOUT: THE UNITED STATE, AND
THE WORLD MOST IMPORTANT FINANCIAL
INSTITUTIONS!
4-LEARN ABOUT THE COMPLETE FINANCIAL
TURMOIL, THE CREDIT CRISIS!
BANKING & FINANCE / Knowledge Financial.
com; an educational, a life changing website
with great ideas of small business, with
important things to know about our
economy, and investment
INVESTMENT: MAKE YOURSELF RICHER BY
INVESTING THE RIGHT WAY IN THE RIGHT
PRODUCTS. REAL ESTATE INVESTMENTS
CAN HELP
STOCK MARKET: STOCK MARKET A WAY TO
INVEST AND MULTIPLY YOUR PROFITS.
THESE INDUSTRIES HAS THOUSANDS OF
COMPANIES TO BUY STOCKS FROM.
FOREX MARKET: THE LARGEST MARKET IN
THE WORLD TO INVEST AND GET RICHER IF
YOU USE THE RIGHT TOOL.
TAX CERTIFICATES: / TAX DEED: A BETTER
WAY TO INVEST MONEY AND GET RICHER.
TAX LIENS: How Can You Safely Earn 18% to
240% Per Year On Your Investments? Yes
you can... By investing in Government
Issued Tax Liens, Tax deed, Tax Certificates.
REITs: REIT: Real Estate Investment Trust. A
GREAT WAY TO INVEST IN REAL ESTATE
WITHOUT TAKING A MORTGAGE LOAN
COMMERCIAL INVESTMENT. COMMERCIAL
REAL ESTATE; A BETTER WAY TO INVEST
AND GET RICHER! MULTI-WAYS TO WIN BIG
IN REAL ESTATE. WHAT IS COMMERCIAL
REAL ESTATE?
PENSION PLANS: THE ULTIMATE
RETIREMENT GUIDE; HOW TO RETIRE EARLY
AND RETIRE REACH. WHAT ARE 401K, ROTH
401K, INDIVIDUAL 401K, 403B, 457 PLAN,
THRIFT SAVINGS PLAN.
IDENTITY THEFT: WATCH OUT, STOP IT FROM
HAPPENING, GET THE TOOLS YOU NEED TO
PREVENT IT RIGHT HERE! AT KNOWLEDGE
FINANCIAL.COM
INSURANCE 101: THE IMPORTANCE OF
INSURANCE IN SOMEONE'S LIFE.
EVERYTHING YOU NEED TO KNOW ABOUT
INSURANCE; NOW IS YOUR CHANCE TO
KNOW HOW TO SAVE MONEY ON YOUR
INSURANCE! LEARN ABOUT THE 15
INSURANCE POLICIES YOU DON'T NEED!
ATTENTION, ATTENTION!
IMPORTANT INFORMATION ABOUT THE UNITED STATES FIVE [5] BIGGEST FINANCIAL
INSTITUTIONS...
Bank of America Financial Services
Wells Fargo Financial Services
PNC-National City Mortgage Financial Services
Citibank,Citifinancial, Citimortgage, Citigroup
JPMorgan-Chase Financial Services
How to make the Bank say, "Yes You're Approved"
Learn here the most effective ways to get the best loan rates, and the best terms
IMPORTANT INFORMATION ABOUT THE UNITED STATES FIVE [5] BIGGEST FINANCIAL
INSTITUTIONS...
Bank of America Financial Services
Wells Fargo Financial Services
PNC-National City Mortgage Financial Services
Citibank,Citifinancial, Citimortgage, Citigroup
JPMorgan-Chase Financial Services
How to make the Bank say, "Yes You're Approved"
Learn here the most effective ways to get the best loan rates, and the best terms
CREDIT:--- CREDIT: SAVE YOUR
CREDIT, RESCUE IT, PROTECT IT,
INCREASE YOUR SCORE. WE HAVE
VALUABLE INFORMATION TO HELP
YOU. LEARN MORE...
INVESTING:--- INVESMENT: METHOD
AND TECHNIQUES TO INVEST IN
TODAY'S MARKET FOR A BETTER
TOMORROW!
CREDIT REPORT:--- Consumer Credit
Report: What's On It? Your Access to
Free Credit Reports. How do I get my
free online Credit Report?
SAVING MONEY:---SAVING MONEY
IMPORTANT TIPS... 66 WAYS TO SAVE
MONEY
CREDIT INFO:--- REVEAL GUARDED
SECRETS OF AMERICAN CREDIT
SYSTEM. Your credit has to do with
everything in life today. Credit Repair:
Self Help May Be Best.
MORTGAGE GENERAL INFORMATION:
--- FLORIDA REAL ESTATE FINANCING
& REFINANCING, MORTGAGE HOME
LOANS...
ID-THEFT--- HOW TO PROTECT AND
DEFEND YOURSELF AGAINST
IDENTITY THEFT? -----DETER, DETECT
AND DEFEND?
REAL ESTATE INFORMATION CENTER:
--- Information You'll Need to Succeed
in Your Real Estate Investments.
MONEY MAKING MACHINE REAL
ESTATE INVESTMENT OPPORTUNITIES
FOR ALL!..
CREDIT CARDS:--- Six Smart Credit
Card Strategies. Have a questions
about credit cards? We have answers
the top ten most frequently asked
credit card questions.
PROTECTION AGAINST IDENTITY THEFT:
--- DEFEND YOURSELF AGAINST
IDENTITY THEFT; LEARN THE
IMPORTANT METHODS AND
TECHNIQUES TO RECOVER FROM ID
THEFT!
CREDIT HELP:--- Understanding Your
Debt Collection Rights. LEARN THE
REAL TRUTH ABOUT CREDIT REPAIR!
How to Use Your Credit Clout: Credit
Laws That are on Your Side?
BANKING FINANCE Knowledge:--- The
more you know the closer you are to
accomplish great success.
CREDIT RATING:--- THE IMPORTANCE
OF YOUR CREDIT RATING. Tips to
Improve or Maintain a High Credit
Score... Credit Card Fraud: 21 Tips to
Protect Yourself
TAXES:--- TAX KNOWLEDGE: MEANING
TAX SAVING, EQUAL
MORE MONEY FOR YOU! TAX SAVING,
TAX HELP: What to do if you Can’t Pay
your Tax Bill? How to Cut Your Property
Taxes
GOVERNMENT:--- Government's
general information;
Local, State, and Federal, and Housing
Finance Authority of Miami dade,
Monroe, Broward, and Palm Beach
County.
THE BLOG:--- WHERE AND HOW TO
FIND MONEY TO INVEST IN REAL
ESTATE? THE MOST LUCRATIVE,
SECURED PROFITABLE BUSINESS?
FINANCIAL HELP:--- FREE FINANCIAL
ADVICE. WAYS TO SAVE MONEY, TO
MAKE MONEY, AND GET OUT OF DEBT!
CREDIT, RESCUE IT, PROTECT IT,
INCREASE YOUR SCORE. WE HAVE
VALUABLE INFORMATION TO HELP
YOU. LEARN MORE...
INVESTING:--- INVESMENT: METHOD
AND TECHNIQUES TO INVEST IN
TODAY'S MARKET FOR A BETTER
TOMORROW!
CREDIT REPORT:--- Consumer Credit
Report: What's On It? Your Access to
Free Credit Reports. How do I get my
free online Credit Report?
SAVING MONEY:---SAVING MONEY
IMPORTANT TIPS... 66 WAYS TO SAVE
MONEY
CREDIT INFO:--- REVEAL GUARDED
SECRETS OF AMERICAN CREDIT
SYSTEM. Your credit has to do with
everything in life today. Credit Repair:
Self Help May Be Best.
MORTGAGE GENERAL INFORMATION:
--- FLORIDA REAL ESTATE FINANCING
& REFINANCING, MORTGAGE HOME
LOANS...
ID-THEFT--- HOW TO PROTECT AND
DEFEND YOURSELF AGAINST
IDENTITY THEFT? -----DETER, DETECT
AND DEFEND?
REAL ESTATE INFORMATION CENTER:
--- Information You'll Need to Succeed
in Your Real Estate Investments.
MONEY MAKING MACHINE REAL
ESTATE INVESTMENT OPPORTUNITIES
FOR ALL!..
CREDIT CARDS:--- Six Smart Credit
Card Strategies. Have a questions
about credit cards? We have answers
the top ten most frequently asked
credit card questions.
PROTECTION AGAINST IDENTITY THEFT:
--- DEFEND YOURSELF AGAINST
IDENTITY THEFT; LEARN THE
IMPORTANT METHODS AND
TECHNIQUES TO RECOVER FROM ID
THEFT!
CREDIT HELP:--- Understanding Your
Debt Collection Rights. LEARN THE
REAL TRUTH ABOUT CREDIT REPAIR!
How to Use Your Credit Clout: Credit
Laws That are on Your Side?
BANKING FINANCE Knowledge:--- The
more you know the closer you are to
accomplish great success.
CREDIT RATING:--- THE IMPORTANCE
OF YOUR CREDIT RATING. Tips to
Improve or Maintain a High Credit
Score... Credit Card Fraud: 21 Tips to
Protect Yourself
TAXES:--- TAX KNOWLEDGE: MEANING
TAX SAVING, EQUAL
MORE MONEY FOR YOU! TAX SAVING,
TAX HELP: What to do if you Can’t Pay
your Tax Bill? How to Cut Your Property
Taxes
GOVERNMENT:--- Government's
general information;
Local, State, and Federal, and Housing
Finance Authority of Miami dade,
Monroe, Broward, and Palm Beach
County.
THE BLOG:--- WHERE AND HOW TO
FIND MONEY TO INVEST IN REAL
ESTATE? THE MOST LUCRATIVE,
SECURED PROFITABLE BUSINESS?
FINANCIAL HELP:--- FREE FINANCIAL
ADVICE. WAYS TO SAVE MONEY, TO
MAKE MONEY, AND GET OUT OF DEBT!
WELCOME TO:
KNOWLEDGEFINANCIAL.COM
KNOWLEDGEFINANCIAL.COM
| THE FUNDAMENTAL OF TAXES--- PART ONE Type of business entities Most people earn money, pay taxes through withholding, and spend what little is left over. The rich do it differently. They earn money, spend it, and then pay taxes. The government gets less that way, and it’s legal. Employees of corporations: Earn → pay taxes → spend The rich who have corporations: Earn → spend → pay taxes What is the secret of the rich? They take advantage of the tax loopholes that allow individuals to choose different entities for their businesses. Loopholes, though they may have a negative connotation for some, are intended to help businesses grow and prosper. The tax law allows a corporation, for example, to earn, spend everything it can on legitimate business expenses, and then be taxed only on what remains. How can you get in on this secret? First by learning what business entities are available to you and what the advantages and disadvantages are of each. These entities include the sole proprietorship, the partnership, the corporation, and the limited-liability company, which is a hybrid partnership/corporation. KNOWLEDGE FINANCIAL'S Tip “You can’t beat the IRS. Concentrate instead on earning as much as you can, knowing that you can reduce, but not eliminate, your tax burden.” In the Rich Dad program, it is important that you be aware of the various entity choices and their primary attributes. Consult your legal and tax advisors about what entity may be most appropriate for you and your intended business, whether it is real estate, a purchased business, or a start-up. FEAR: My hard-earned profits will disappear in the black hole of the IRS. FACT: There are business entities available that may help counteract your tax burden. By consulting with your tax and legal advisors, you can structure your business in such a way as to maximize your tax deductions. FREEDOM: If you structure your business properly, you can protect more of your profits. “It’s a game. We (tax lawyers) teach the rich how to play it so they can stay rich—and the IRS keeps changing the rules so we can keep getting rich teaching them.” —John Grisham Sole Proprietorship This is the oldest and simplest form of business. The owner and the business are one and the same, enjoying all the benefits but assuming all the debts and tax responsibilities. Only one person is required to form a sole proprietorship, and since there is legally no difference between the owner and the business, all income generated by the business is regarded as personal income. The owner reports all business income and losses on a personal tax return (Schedule C) and is allowed to deduct business expenses. The owner is also personally liable for the business and can be sued by an unhappy customer or unpaid creditor. If business assets cannot satisfy such a claim, the owner’s house, car, and other personal assets are vulnerable. Sole Proprietorship Pros Cons Owner in complete control Owner completely liable for debts and suits Flexible decision making Business terminates with owner’s death Business expenses deductible Tax rate may be higher than other entities Owner earns all profits Easy and inexpensive to set up |
-- SOUTH FLORIDA REAL ESTATE
INVESTMENTS. ---
FIVE IMPORTANT THINGS EVERY
REAL ESTATE INVESTOR SHOULD
KNOW ABOUT?... ATTENTION,
ATTENTION HOME-BUYERS AND
SELLERS...
--- REAL ESTATE INVESTMENTS:
WHY INVESTING IN REAL ESTATE
TODAY IS A GOOD IDEA FOR FIRST
TIME HOME-BUYERS AND FOR
EVERYONE?
---... Federal Housing Administration
{FHA} Mortgage Loan Programs
Information Center. Help for
America's Homeowners! How to
make your home affordable?
--- ...REAL ESTATE ADVANTAGE AND
GREAT OPPORTUNITY FOR FIRST
TIME HOME-BUYERS IN SOUTH
FLORIDA! ———
-- FIRST TIME HOME-BUYERS.
METHODS, TECHNIQUES, AND
STRATEGIES TO SUCCEED -- THE
MOST IMPORTANT INFORMATION
FOR FIRST TIME BUYERS...
--- INVESTMENT GENERAL
KNOWLEDGE AND FINANCING
STRATEGY...
INVEST NOW AND GET RICHER
LATER. INVEST YOUR MONEY TODAY
AND GET RICHER TOMORROW
--- REAL ESTATE FINANCING:
WHERE AND HOW TO FIND MONEY
TO INVEST IN REAL ESTATE?
Bringing the Dream of Home-
ownership Within Reach... THE
DREAM NOW CAN BECOME A
REALITY.
--- SOUTH FLORIDA REAL ESTATE
INVESTMENTS. ---
FIVE IMPORTANT THINGS EVERY
REAL ESTATE INVESTOR SHOULD
KNOW ABOUT?... ATTENTION,
ATTENTION HOME-BUYERS AND
SELLERS...
--- NSP --- Neighborhood
Stabilization Program
Neighborhood Stabilization
Program: HUD's new Neighborhood
Stabilization Program provides
emergency assistance to state and
local governments to...
---... HOME-BUYER'S TAX CREDIT,
ASSISTANCE WITH DOWN-PAYMENT
AND CLOSING COST. {FLHOP}
FLORIDA HOUSING OPPORTUNITY
PROGRAM. Utilizing home buyer tax
credit to assist at closing
--- What are the advantages of
commercial property investment?
--- REAL ESTATE ADVANTAGE AND
GREAT OPPORTUNITY FOR
EVERYONE. LEARN MORE...
--- How to Step Up and Build Wealth
by Investing in Commercial Real
Estate?
INVESTMENTS. ---
FIVE IMPORTANT THINGS EVERY
REAL ESTATE INVESTOR SHOULD
KNOW ABOUT?... ATTENTION,
ATTENTION HOME-BUYERS AND
SELLERS...
--- REAL ESTATE INVESTMENTS:
WHY INVESTING IN REAL ESTATE
TODAY IS A GOOD IDEA FOR FIRST
TIME HOME-BUYERS AND FOR
EVERYONE?
---... Federal Housing Administration
{FHA} Mortgage Loan Programs
Information Center. Help for
America's Homeowners! How to
make your home affordable?
--- ...REAL ESTATE ADVANTAGE AND
GREAT OPPORTUNITY FOR FIRST
TIME HOME-BUYERS IN SOUTH
FLORIDA! ———
-- FIRST TIME HOME-BUYERS.
METHODS, TECHNIQUES, AND
STRATEGIES TO SUCCEED -- THE
MOST IMPORTANT INFORMATION
FOR FIRST TIME BUYERS...
--- INVESTMENT GENERAL
KNOWLEDGE AND FINANCING
STRATEGY...
INVEST NOW AND GET RICHER
LATER. INVEST YOUR MONEY TODAY
AND GET RICHER TOMORROW
--- REAL ESTATE FINANCING:
WHERE AND HOW TO FIND MONEY
TO INVEST IN REAL ESTATE?
Bringing the Dream of Home-
ownership Within Reach... THE
DREAM NOW CAN BECOME A
REALITY.
--- SOUTH FLORIDA REAL ESTATE
INVESTMENTS. ---
FIVE IMPORTANT THINGS EVERY
REAL ESTATE INVESTOR SHOULD
KNOW ABOUT?... ATTENTION,
ATTENTION HOME-BUYERS AND
SELLERS...
--- NSP --- Neighborhood
Stabilization Program
Neighborhood Stabilization
Program: HUD's new Neighborhood
Stabilization Program provides
emergency assistance to state and
local governments to...
---... HOME-BUYER'S TAX CREDIT,
ASSISTANCE WITH DOWN-PAYMENT
AND CLOSING COST. {FLHOP}
FLORIDA HOUSING OPPORTUNITY
PROGRAM. Utilizing home buyer tax
credit to assist at closing
--- What are the advantages of
commercial property investment?
--- REAL ESTATE ADVANTAGE AND
GREAT OPPORTUNITY FOR
EVERYONE. LEARN MORE...
--- How to Step Up and Build Wealth
by Investing in Commercial Real
Estate?
TAXES: THE FUNDAMENTAL OF TAXES. THE MORE YOU KNOW, THE LESS YOU PAY. Corporation can provide certain benefits not available to other entities.
How not to pay taxes on Real Estate?
1031 Exchange... CLICK HERE
What to do if you Can’t Pay your Tax
Bill? How to Cut Your Property Taxes
TAX CERTIFICATE / TAX DEED: A BETTER
WAY TO INVEST MONEY AND GET
RICHER
Tax strategies, Tax advantage, Tax
advice for all. HOW TO REDUCE YOUR
TAXES TO GET MAXIMUM RETURN
FROM THE I.R.S.?
TAXES: THE FUNDAMENTAL OF TAXES.
THE MORE YOU KNOW, THE LESS YOU
PAY. Corporation can provide certain
benefits not available to other entities.
What's New for Tax Savings?
Here are the tax law changes you need
to know to get more money from uncle
Sam..
TAX LIENS: ---Investing in Government
Issued Tax Lien Certificates! Do you
ever wonder what would happen if you
don't pay your property taxes? Can You
Safely Earn 18% or more Per Year On
Your Investments?
Education Tax Credit, Tax Saving, Tax
Reduction, Tax Benefits. How to
Maximize Your Tax Deductions
Ten Top Tax Tips!
TAX SAVING TIPS FOR INDIVIDUAL
INVESTOR, AND LANDLORDS; The More
You Know, the Less You’ll Pay. CLICK
HERE!
1031 Exchange... CLICK HERE
What to do if you Can’t Pay your Tax
Bill? How to Cut Your Property Taxes
TAX CERTIFICATE / TAX DEED: A BETTER
WAY TO INVEST MONEY AND GET
RICHER
Tax strategies, Tax advantage, Tax
advice for all. HOW TO REDUCE YOUR
TAXES TO GET MAXIMUM RETURN
FROM THE I.R.S.?
TAXES: THE FUNDAMENTAL OF TAXES.
THE MORE YOU KNOW, THE LESS YOU
PAY. Corporation can provide certain
benefits not available to other entities.
What's New for Tax Savings?
Here are the tax law changes you need
to know to get more money from uncle
Sam..
TAX LIENS: ---Investing in Government
Issued Tax Lien Certificates! Do you
ever wonder what would happen if you
don't pay your property taxes? Can You
Safely Earn 18% or more Per Year On
Your Investments?
Education Tax Credit, Tax Saving, Tax
Reduction, Tax Benefits. How to
Maximize Your Tax Deductions
Ten Top Tax Tips!
TAX SAVING TIPS FOR INDIVIDUAL
INVESTOR, AND LANDLORDS; The More
You Know, the Less You’ll Pay. CLICK
HERE!
..RICH GUIDE, WHY AREN'T RICH?
BUILDING FINANCIAL WEALTH, OBTAIN
FINANCIAL FREEDOM, BECOME A RICH
PERSON; YES YOU CAN...
..RULE OF 72: The compound interest and
financial success. Rule Of 72 is the most
important and simple rule of financial
success.
..MILLIONAIRE: How To Make Your First $1
Million? The Millionaire's Mindset
..FORTUNE: BEFORE INVESTING IN THE
STOCK MARKET LEARN THIS FIRST!...
..GOVERNMENT: Government's general
information; Local, State, and Federal.
Housing Finance Authority of Miami dade,
Monroe, Broward, and Palm Beach County
..EMPIRE: THE ABC's OF INVESTMENTS,
Ways to Save. THE TRIANGLE OF
SUCCESS...
..INVESTORS: CREATIVE FINANCING:
TOP 10 CREATIVE FINANCING
TECHNIQUES AND STRATEGIES TO FIND
MONEY TO INVEST!
The Five C’s of Credit: LEARN MORE..
CREATIVE FINANCE CAN AND WILL MAKE
ALL THE DIFFERENCE WHEN AN INVESTOR
DECIDES TO INVEST IN REAL ESTATE...
..HOME INSPECTION: HOW TO GET THE
BEST OUT OF IT..
Top 10 home-buying mistakes to avoid!
HOW TO USE HOME INSPECTION
REPORTS TO NEGOTIATE SALE PRICE?...
...ACCOUNTING: The Basics of
Accounting...
...TAXES: THE FUNDAMENTAL OF TAXES.
THE MORE YOU KNOW, THE LESS YOU
PAY...
...ANALYTICS: Top 9 Real Estate Financial
Calculator Problems every investors
should know about...
...REAL ESTATE MARKET:
TODAY'S GREAT DEALS
FOR FIRST-TIME HOME-
BUYERS & FOR
EVERYONE AS NEVER
SEEN BEFORE!
WONDERFUL
OPPORTUNITY TO
CREATE TREMENDOUS
AMOUNT OF WEALTH...
BUILDING FINANCIAL WEALTH, OBTAIN
FINANCIAL FREEDOM, BECOME A RICH
PERSON; YES YOU CAN...
..RULE OF 72: The compound interest and
financial success. Rule Of 72 is the most
important and simple rule of financial
success.
..MILLIONAIRE: How To Make Your First $1
Million? The Millionaire's Mindset
..FORTUNE: BEFORE INVESTING IN THE
STOCK MARKET LEARN THIS FIRST!...
..GOVERNMENT: Government's general
information; Local, State, and Federal.
Housing Finance Authority of Miami dade,
Monroe, Broward, and Palm Beach County
..EMPIRE: THE ABC's OF INVESTMENTS,
Ways to Save. THE TRIANGLE OF
SUCCESS...
..INVESTORS: CREATIVE FINANCING:
TOP 10 CREATIVE FINANCING
TECHNIQUES AND STRATEGIES TO FIND
MONEY TO INVEST!
The Five C’s of Credit: LEARN MORE..
CREATIVE FINANCE CAN AND WILL MAKE
ALL THE DIFFERENCE WHEN AN INVESTOR
DECIDES TO INVEST IN REAL ESTATE...
..HOME INSPECTION: HOW TO GET THE
BEST OUT OF IT..
Top 10 home-buying mistakes to avoid!
HOW TO USE HOME INSPECTION
REPORTS TO NEGOTIATE SALE PRICE?...
...ACCOUNTING: The Basics of
Accounting...
...TAXES: THE FUNDAMENTAL OF TAXES.
THE MORE YOU KNOW, THE LESS YOU
PAY...
...ANALYTICS: Top 9 Real Estate Financial
Calculator Problems every investors
should know about...
...REAL ESTATE MARKET:
TODAY'S GREAT DEALS
FOR FIRST-TIME HOME-
BUYERS & FOR
EVERYONE AS NEVER
SEEN BEFORE!
WONDERFUL
OPPORTUNITY TO
CREATE TREMENDOUS
AMOUNT OF WEALTH...
| About Twitter Twitter is an easy way to keep up with the people, organizations, and events you care about - and to share your thoughts instantaneously. CLICK ON: Twitter-1 --Twitter-2 -- Twitter-3 About Facebook... Millions of people use Facebook everyday to keep up with friends, upload an unlimited number of photos, share links and videos, and learn more about the people they meet. Learn how to get richer on Facebook... About My Space Create a community on MySpace and you can share photos, journals and interests with your growing network of mutual friends! Click here to see how much you can accomplish... |
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Sexual Positions; Think Again... 365 Positions to Learn From.
..Sexuality-- Love Connection-- Relationship--
Free Dating Sites.--- Personal ---- Family ---
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| KNOWLEDGEFINANCIAL.COM ..Tax Return Preparer Review: The Return Preparer Review final report is now available. ..What's new for this filing season. Do You Need to File a Federal Income Tax Return? Even though they are not required to. Find out if your income is below the filing requirement. ..IRS e-file: Filing your taxes online was never easier! A quick, easy, smart way to get your taxes where you want them to be --- Done! Where to File Addresses for Tax Professionals for Use in Calendar Year 2010. Addresses for tax professionals use in mailing individual returns Address for the 2010 filing season. ..You can file online for free through the Free File program. ..Employer ID Numbers (EINs) How to get one? An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. Generally, businesses need an EIN. KNOWLEDGEFINANCIAL.COM |
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9 - ABSOLUTE Tax Moves in 2010 EVERYBODY SHOULD KNOW ABOUT!
Tip 1: Watch Out for Making Work Pay Complications --- 2010 --------knowledgefinancial.com
To get more money into taxpayers' hands, the American Recovery and Reinvestment Act included a new tax break, the Making Work
Pay credit. Rather than being a separate rebate check, this credit started showing up in worker paychecks last April. By the end of
2009, eligible employees received an extra $400.
Some workers, however, got more than they should have. This happened, for example, when a worker had two jobs. The new
withholding rates meant that employee got $400 at each job, or twice the allowable credit amount. Similarly, a husband and wife who
each had jobs could have received excess credit.
This filing season, taxpayers will have to fill out the new Schedule M to reconcile any credit overages. You might want to fill out the
form early to see just what kind of tax damage you might face.
If you did encounter a Making Work Pay problem in 2009, consider adjusting your withholding early in 2010.
Now about that 2010 payout. Even if you don't make any W-4 changes, you'll see more tax withheld from your paychecks than was
taken out after the Making Work Pay credit went into effect last year. When the credit took effect, the full $400 amount was paid out over
just the last nine months of the year. But with the credit being paid out over all 12 months of 2010, this year's per-paycheck bump will
be smaller.
Tip 2: Convert Your Traditional IRA to a Roth --------knowledgefinancial.com
With the arrival of 2010, anyone can now convert a traditional IRA to a Roth retirement account. Before, shifting tax-deferred traditional
IRA money into a tax-free Roth plan was not available to folks with adjusted gross income of $100,000 or more. That income limit has
been removed.
If you decide this is the right retirement move for you, note that you will have to pay taxes on the previously untaxed amounts you
convert. The good news is you can opt to pay half the conversion costs on your 2011 taxes, with the remainder in 2012.
Tip 3: Improve Your Home's Energy Efficiency
Thanks to another portion of last year's stimulus bill, the tax savings for energy-efficient home improvements were themselves
improved.
Instead of a complicated patchwork of credit amounts, homeowners can claim up to 30 percent of the first $5,000 spent on qualifying
residential energy upgrades, or up to $1,500 in tax credits. If you want to go even greener, for example by installing a solar home
heating system, you could get even bigger tax credits.
The new credit format took effect last year, but is running through 2010. This might be the last year, though, so if you need to make
home repairs, consider energy-efficient upgrades that could pay off at tax-filing time.
Tip 4: Hit the Road in a Hybrid
Gas prices stabilized over the last year, but there's no guarantee they won't once again nudge the $4 mark. If you're concerned about
it, consider a hybrid. Even better, these cars could pay off at tax time.
However, you have to shop carefully. The hybrid credit, which is available through 2010, was designed to phase out once an
automaker sold 60,000 eligible vehicles. That happened years ago with popular Toyota and Honda hybrids. Other auto
manufacturers, however, still offer an array of fuel-efficient cars, trucks and SUVs that could save you tax dollars.
Tip 5: Hire an Estate Tax Attorney -------knowledgefinancial.com
The estate tax died as scheduled in 2010, but look for a retroactive resurrection this year. Congress effectively has until September to
approve a new law since estate tax returns aren't due until nine months after a taxpayer dies. Most lawmakers agree that a tax should
be in place. The question is: How much of an estate's assets should be exempted? The congressional re-examination of the estate
tax highlights how estate planning can be complex, confusing and costly. Don't follow Congress' bad example and put off dealing with
your estate and potential tax ramifications. See an estate tax professional and get your affairs in order sooner rather than later so that
your heirs, not the IRS, are your ultimate beneficiaries.
Tip 6: Remember That RMDs Are Back
Tax-deferred savings plans such as traditional IRAs or workplace 401(k)s are great ways to build a retirement nest egg. But the IRS
won't wait for its cut of the account earnings forever. Once you turn 70-1/2, tax law demands you start taking money out of these
accounts via required minimum distributions, or RMDs.
In 2009, retirees didn't have to worry about RMDs thanks to a one-year waiver granted by Congress. In 2010, RMDs are back, so
make sure you take out the requisite money or you could pay a stiff penalty.
Tip 7: Cash in on Low Capital Gains Rates ----KNOWLEDGEFINANCIAL.COM
The Bush administration tax cuts included reductions in capital gains tax rates based on taxpayer adjusted gross income. Currently,
the highest rate is 15 percent for individuals in the 25 percent to 35 percent tax brackets. Taxpayers in the 10 percent and 15 percent
tax brackets pay no capital gains.------knowledgefinancial.com
That's scheduled to change in 2011. The top rate will return to 20 percent; the zero rate will revert to 10 percent. There's always a
chance Congress could continue the current lower rates, but with the federal deficit, the top capital gains rate is likely to increase. If
you are in a higher income bracket and could eventually face higher capital gains taxes, speak with your tax and investment advisers
about whether cashing in now at the lower rates fits your portfolio plans.
Tip 8: Be Aware of Rising Income Tax Rates
Similarly, several other Bush administration tax cuts are set to expire at the end of 2010. As for income taxes, the top tax rate is
scheduled to return to 39.6 percent from the current 35 percent and the 10 percent bracket would be eliminated.
Will this happen? Right now, it looks as if the 10 percent bracket is safe, but higher-income individuals might be facing increased
taxes in 2011. If you could be affected, talk with your tax and financial advisers about what steps you can take to soften the tax blow.
There has been some talk that growing deficits could prompt rate hikes ahead of schedule. However, a still-sluggish economy and
upcoming 2010 midterm elections make that less likely. So pay attention to Congress and to Bankrate for the latest on where
personal income tax rates might go.
Tip 9: Keep an Eye on Health Care
President Barack Obama had hoped that health care reform would be resolved by now. But look for this debate to continue into the
early part of 2010. If or when lawmakers reach an agreement, you'll need to pay attention to what modifications might take effect.
Many changes, such as an increase in the amount of medical expenses necessary to deduct them, wouldn't show up for several
years. Others, however, are on a fast track. For example, the proposal to limit flexible spending account contributions to $2,500 a year
would take effect in 2011. If that change comes to pass, you'll need to account for it in 2010 as you make decisions about your
company health care benefits.
KNOWLEDGEFINANCIAL.COM
Tip 1: Watch Out for Making Work Pay Complications --- 2010 --------knowledgefinancial.com
To get more money into taxpayers' hands, the American Recovery and Reinvestment Act included a new tax break, the Making Work
Pay credit. Rather than being a separate rebate check, this credit started showing up in worker paychecks last April. By the end of
2009, eligible employees received an extra $400.
Some workers, however, got more than they should have. This happened, for example, when a worker had two jobs. The new
withholding rates meant that employee got $400 at each job, or twice the allowable credit amount. Similarly, a husband and wife who
each had jobs could have received excess credit.
This filing season, taxpayers will have to fill out the new Schedule M to reconcile any credit overages. You might want to fill out the
form early to see just what kind of tax damage you might face.
If you did encounter a Making Work Pay problem in 2009, consider adjusting your withholding early in 2010.
Now about that 2010 payout. Even if you don't make any W-4 changes, you'll see more tax withheld from your paychecks than was
taken out after the Making Work Pay credit went into effect last year. When the credit took effect, the full $400 amount was paid out over
just the last nine months of the year. But with the credit being paid out over all 12 months of 2010, this year's per-paycheck bump will
be smaller.
Tip 2: Convert Your Traditional IRA to a Roth --------knowledgefinancial.com
With the arrival of 2010, anyone can now convert a traditional IRA to a Roth retirement account. Before, shifting tax-deferred traditional
IRA money into a tax-free Roth plan was not available to folks with adjusted gross income of $100,000 or more. That income limit has
been removed.
If you decide this is the right retirement move for you, note that you will have to pay taxes on the previously untaxed amounts you
convert. The good news is you can opt to pay half the conversion costs on your 2011 taxes, with the remainder in 2012.
Tip 3: Improve Your Home's Energy Efficiency
Thanks to another portion of last year's stimulus bill, the tax savings for energy-efficient home improvements were themselves
improved.
Instead of a complicated patchwork of credit amounts, homeowners can claim up to 30 percent of the first $5,000 spent on qualifying
residential energy upgrades, or up to $1,500 in tax credits. If you want to go even greener, for example by installing a solar home
heating system, you could get even bigger tax credits.
The new credit format took effect last year, but is running through 2010. This might be the last year, though, so if you need to make
home repairs, consider energy-efficient upgrades that could pay off at tax-filing time.
Tip 4: Hit the Road in a Hybrid
Gas prices stabilized over the last year, but there's no guarantee they won't once again nudge the $4 mark. If you're concerned about
it, consider a hybrid. Even better, these cars could pay off at tax time.
However, you have to shop carefully. The hybrid credit, which is available through 2010, was designed to phase out once an
automaker sold 60,000 eligible vehicles. That happened years ago with popular Toyota and Honda hybrids. Other auto
manufacturers, however, still offer an array of fuel-efficient cars, trucks and SUVs that could save you tax dollars.
Tip 5: Hire an Estate Tax Attorney -------knowledgefinancial.com
The estate tax died as scheduled in 2010, but look for a retroactive resurrection this year. Congress effectively has until September to
approve a new law since estate tax returns aren't due until nine months after a taxpayer dies. Most lawmakers agree that a tax should
be in place. The question is: How much of an estate's assets should be exempted? The congressional re-examination of the estate
tax highlights how estate planning can be complex, confusing and costly. Don't follow Congress' bad example and put off dealing with
your estate and potential tax ramifications. See an estate tax professional and get your affairs in order sooner rather than later so that
your heirs, not the IRS, are your ultimate beneficiaries.
Tip 6: Remember That RMDs Are Back
Tax-deferred savings plans such as traditional IRAs or workplace 401(k)s are great ways to build a retirement nest egg. But the IRS
won't wait for its cut of the account earnings forever. Once you turn 70-1/2, tax law demands you start taking money out of these
accounts via required minimum distributions, or RMDs.
In 2009, retirees didn't have to worry about RMDs thanks to a one-year waiver granted by Congress. In 2010, RMDs are back, so
make sure you take out the requisite money or you could pay a stiff penalty.
Tip 7: Cash in on Low Capital Gains Rates ----KNOWLEDGEFINANCIAL.COM
The Bush administration tax cuts included reductions in capital gains tax rates based on taxpayer adjusted gross income. Currently,
the highest rate is 15 percent for individuals in the 25 percent to 35 percent tax brackets. Taxpayers in the 10 percent and 15 percent
tax brackets pay no capital gains.------knowledgefinancial.com
That's scheduled to change in 2011. The top rate will return to 20 percent; the zero rate will revert to 10 percent. There's always a
chance Congress could continue the current lower rates, but with the federal deficit, the top capital gains rate is likely to increase. If
you are in a higher income bracket and could eventually face higher capital gains taxes, speak with your tax and investment advisers
about whether cashing in now at the lower rates fits your portfolio plans.
Tip 8: Be Aware of Rising Income Tax Rates
Similarly, several other Bush administration tax cuts are set to expire at the end of 2010. As for income taxes, the top tax rate is
scheduled to return to 39.6 percent from the current 35 percent and the 10 percent bracket would be eliminated.
Will this happen? Right now, it looks as if the 10 percent bracket is safe, but higher-income individuals might be facing increased
taxes in 2011. If you could be affected, talk with your tax and financial advisers about what steps you can take to soften the tax blow.
There has been some talk that growing deficits could prompt rate hikes ahead of schedule. However, a still-sluggish economy and
upcoming 2010 midterm elections make that less likely. So pay attention to Congress and to Bankrate for the latest on where
personal income tax rates might go.
Tip 9: Keep an Eye on Health Care
President Barack Obama had hoped that health care reform would be resolved by now. But look for this debate to continue into the
early part of 2010. If or when lawmakers reach an agreement, you'll need to pay attention to what modifications might take effect.
Many changes, such as an increase in the amount of medical expenses necessary to deduct them, wouldn't show up for several
years. Others, however, are on a fast track. For example, the proposal to limit flexible spending account contributions to $2,500 a year
would take effect in 2011. If that change comes to pass, you'll need to account for it in 2010 as you make decisions about your
company health care benefits.
KNOWLEDGEFINANCIAL.COM