For the self-employed, taxes are a huge deal. The total tax on your last dollar of income as a sole proprietor can be over 50 percent. That's because the top marginal federal tax rate is 35 percent and the Self-Employment, or SE, tax rate is 15.3 percent on every dollar of net profit earned up to $128,400 in 2018. On top of that you may have to add state and local income tax. For example, income taxes for New York City residents can be 10.5 percent, or more. The good news is that when you're self-employed, you can claim many deductions that aren't available to those who earn income only from wages. Here are several deductions that will directly reduce your net income from self-employment and lower your federal tax and your SE tax liability. Retirement plan contributionsAmong the biggest deductions the self-employed can claim are the contributions they make to their retirement plan. This deduction can be claimed as an adjustment to income on line 28 of Schedule 1, which then reduces … [Read more...] about Claim these tax deductions if you’re self-employed
Preparing business taxes
Susan Tompor Detroit Free Press Published 8:15 AM EDT Mar 14, 2019 Just a month before the April 15 tax deadline, the future of some key tax breaks that might trigger a bigger federal income tax refund for 2018 remains in limbo. Do you have a kid in college and think you could qualify for a tuition and fees deduction? Did you go through a foreclosure? Did you spend money for a qualified energy improvement, such as adding home insulation or energy efficient windows ? Did you pay private mortgage insurance — or what's known as PMI? Well, there's a shot that Congress could take action in the coming days or weeks regarding some tax breaks that could help many people but officially expired at the end of 2017. Efforts are underway in Washington to extend those tax breaks retroactively to 2018 tax returns — including a bill called the Tax Extenders and Disaster Relief Act of 2019. James O'Rilley, tax director for Doeren Mayhew & Co. in … [Read more...] about Tax refund: 4 breaks that could return, and give you a boost
We're well into 2019 and what a year it’s shaping up to be – especially for all these talented business people. Down here in Plymouth and the South West, we may get overlooked by other, more populated, parts of the UK, but the region is full of highly-skilled and ambitious individuals who are on top of their game. From property professionals and bankers, to lawyers and accountants, this city and county has a lot of people to be proud of. Here are 25 movers and shakers who have all started 2019 with great news, and are going up in the world with something to smile about. Katy McKenna - loves going to work Multi-million pound law firm GA Solicitors has promoted Katy McKenna, a marketing professional with 15 years of experience, to marketing and communications director. Having previously undertaken a number of in-house and agency roles, Mrs McKenna has worked with a wide range of regional, national and international brands securing press coverage in the US and China, and … [Read more...] about The business people who have started 2019 with a bang
0 Have your say Even those who supported the Community Charge would have to admit that what started out as a well-intended reform of domestic rates became a public relations disaster for Margaret Thatcher and her government. What was originally conceived by Douglas Mason, a Fife councillor, as a low flat rate levy to be paid by all, akin to the television licence, eventually mutated in the hands of Whitehall officials into a highly expensive charge that became so punitive it required discounts for those on benefits or low incomes. Branded the “Poll Tax” by its opponents, who organised a number of highly effective political campaigns that had at their heart the fact the tax did not reflect a person’s ability to pay, it spawned its own mythology that demonised the Conservatives, especially in Scotland, for a generation. So powerful was the narrative that surrounds the Poll Tax that young voters of today can be found railing passionately against … [Read more...] about The SNP’s Car Tax is a Poll Tax on wheels
Answer: An inheritance can only be received on death, while a gift is received at any other time. If you receive your parents' primary residence while your parents are still alive, you would be receiving a gift from your parents. This gift would be subject to Capital Acquisitions Tax (CAT) at a rate of 33pc. There is a lifetime inheritance threshold limit of €320,000 which you can receive from your parents tax-free. Assuming that no other gifts have previously been received from them, you will pay CAT on the value of the property at the date of gift - less the current lifetime threshold of €320,000. So, you can be gifted a property worth up to €320,000 from your parents tax-free - as long as you have not received any other gifts or inheritances from them over your lifetime. If the property is received as an inheritance on your parents' death, there is an exemption from CAT referred to as the dwelling house exemption. This exemption will apply if you have lived in the … [Read more...] about Can I inherit my parents’ home tax-free?