Client Question of the Week: If I Sell Copies of My Kindle Book on Amazon, Do I Owe Sales Taxes?

by | Sep 9, 2011 | Accounting & Bookkeeping, Books, Business Profit & Cash Flow Tips, Current Affairs, Income Taxes, Small Business Owners

The short answer is, maybe. Okay, I know that’s not very helpful. The basic rule is you must collect and pay sales taxes on goods or services in the state you sell the product or provide the services. Since my client lives in Texas, they would owe sales tax for any...

Tax Tip of the Week: Many Tax Breaks Set to Expire After 2011

by | Sep 7, 2011 | Accounting & Bookkeeping, Cash Flow, Current Affairs, Income Taxes, Tax Tip of The Week

The following is a list of tax breaks that are scheduled to expire at the end of this year: The 2 percent cut to the employee share of social security tax. College tuition write-offs. The $250 write-off of teacher supplies. The write-off of state sales tax. The 100...

Tax Tip of the Week: IRS Eliminates Two-Year Time Limit to Claim Innocent Spouse Tax Relief

by | Aug 30, 2011 | Current Affairs, Income Taxes, Tax Tip of The Week

Married taxpayers have many benefits when filing a joint tax return. But joint filing comes with a catch.  Each spouse is liable, jointly and separately, for any tax, interest, and penalties related to the return. This liability exists even after a divorce. This...

Tax Tip of the Week: What employer payments to an employee are not taxable to them?

by | Aug 16, 2011 | Accounting & Bookkeeping, Business Profit & Cash Flow Tips, Business Success Series, Cash Flow, Cost Cutting, Income Taxes, Small Business Owners

This is a frequent question I receive from both employers and employees. The debt fight in Washington has highlighted what the President calls, “tax loopholes that should be closed.” A “loophole” is a legal deduction that Washington has written in to the code to...

Tax Tip of the Week: Is All Cancelled Debt Taxable?

by | Aug 8, 2011 | Current Affairs, Income Taxes, Tax Tip of The Week

In this economy it is not unusual for a taxpayer’s debt to be forgiven or just written off. In general, cancelled debt that the taxpayer was personally liable for is taxable. But, there are the following exceptions where cancelled debt is not taxable: Cancelled debt...

Tax Tip of the Week: Is money I received from an inheritance taxable? Will I Owe Tax if I sell my parent’s house that I inherited?

by | Jul 29, 2011 | Books, Cash Flow, Current Affairs, Income Taxes, Personal financial planning, Tax Tip of The Week

These are common question from my clients. Like most things in tax law the answer is not simple. First, property received from an inheritance is not taxable. This includes cash, property, stocks & bonds, below-market sales, debts that are forgiven and partial...