Search

Blogs Blogs

Business Finance Blogs

Newest Most Active

In Accounting there are plenty of formulas, theories, and equations, but by far the most important is the following: Assets = Liabilities + Equity First, I will describe in layman’s terms the three variables within the equation above. An asset is a resource that will be used to operate a business (e.g. inventory, plant, machinery). A liability is a creditors right to the resources within the business (e.g. loan, accounts payable). Equity is the owner’s interest in the business (e.g. stock, retained earnings). Home ownership is an easy way to understand the relationship between the three variables. The house itself is an asset because it can be used to generate revenue from rent or a business can be ran within the home (e.g. daycare, tax preparation). The mortgage on the home is a liability because a mortgage is a loan from a bank. The home is collateral for the loan, so if the owner cannot pay back the loan the bank will be able to take ownership of the... read more

The Internal Revenue Service today reminded taxpayers who are unable to complete their tax returns on time that it’s easy to get more time to file their return. In fact, it can even be done online. For taxpayers who haven’t yet filed their taxes, the IRS has this advice: don’t panic. Taxpayers who need more time to complete their tax return can request an automatic six-month extension.    The fastest and easiest way to get the extra time is through the Free File link on IRS.gov. In a matter of minutes, anyone, regardless of income, can use this free service to electronically request an extension on Form 4868. Filing this form gives taxpayers until Oct. 15 to file a return. To get the extension, taxpayers must estimate their tax liability on this form and should also pay any amount due. The IRS cautions taxpayers that a request for an extension will give extra time to file a tax return; not extra time to pay any taxes owed. By filing either a... read more

The Internal Revenue Service today reminded taxpayers who are unable to complete their tax returns on time that it’s easy to get more time to file their return. In fact, it can even be done online. For taxpayers who haven’t yet filed their taxes, the IRS has this advice: don’t panic. Taxpayers who need more time to complete their tax return can request an automatic six-month extension.    The fastest and easiest way to get the extra time is through the Free File link on IRS.gov. In a matter of minutes, anyone, regardless of income, can use this free service to electronically request an extension on Form 4868. Filing this form gives taxpayers until Oct. 15 to file a return. To get the extension, taxpayers must estimate their tax liability on this form and should also pay any amount due. The IRS cautions taxpayers that a request for an extension will give extra time to file a tax return; not extra time to pay any taxes owed. By filing either a... read more

Many people who carry on a trade or business are self-employed. Sole proprietors and independent contractors are two examples of self-employment. If this applies to you, there are a few basic things you should know about how your income affects your federal tax return. Here are six important tips about income from self-employment: SE Income. Self-employment can include income you received for part-time work. This is in addition to income from your regular job. Schedule C or C-EZ. There are two forms to report self-employment income. You must file a Schedule C, Profit or Loss from Business, or Schedule C-EZ, Net Profit from Business, with your Form 1040. You may use Schedule C-EZ if you had expenses less than $5,000 and meet other conditions. See the form instructions to find out if you can use the form. SE Tax. You may have to pay self-employment tax as well as income tax if you made a profit. Self-employment tax includes Social Security and Medicare taxes. Use Schedule... read more

Business Finance Blogs RSS feed