Tax assessments determine the value of an item for tax purposes, with property, customs, income, and sales taxes being the most common types. The revenue from taxes is used to pay for public services, and tax assessments are conducted by qualified accountants to ensure fairness and consistency. A tax assessment is an unbiased determination of […]
Tax deferral allows individuals and businesses to delay paying taxes on income that is not actively used until a later date, often related to government-approved retirement plans. Taxes are only due when the funds are withdrawn for use. Tax deferrals are situations where the collection of taxes on generated income is delayed for a specified […]
Estate taxes can be as high as 46% and are collected on property left to surviving family members. An estate tax exclusion can reduce or eliminate these taxes, and there are tools to minimize them, such as the gift tax credit and charitable donations. Estate taxes are collected on property left to surviving family members […]
Tax deductions are legitimate expenses that can be subtracted from adjusted gross income for a given period. It’s important to understand what expenses can be claimed as tax deductible and to stay aware of changes in tax laws. Professional tax accountants can help, but taxpayers are ultimately responsible for their tax returns. To understand how […]
Tax fraud is intentionally avoiding paying the required amount of taxes, and it can have a detrimental effect on the economy. It is a crime in the US and other countries. To report tax fraud, complete Form 3949-A or send a letter to the IRS with the defendant’s information and a description of the violations. […]
Fuel taxes come in two forms: sales tax and excise duty. In the US, the federal government imposes an excise tax on fuel, while states levy taxes based on a flat rate or percentage. Canada has an excise duty and two sales taxes, while the UK charges a fuel sales tax and a value-added tax. […]
The US federal and state governments collect estate and inheritance taxes respectively, with exemptions for spouses, children, parents, and grandchildren. The inheritance tax has more exceptions and exemptions than most other tax laws combined, and only affects a select number of citizens. At one point in American history, wealthy families with names like Carnegie, Rockefeller, […]
Property tax consultants help homeowners minimize their property tax and challenge excessive assessments. They review appraised property values and compare them to similar properties in the area to determine if they are consistent with market values. Training comes from direct experience in property valuation, sales, and taxation, and compensation is typically a percentage of the […]
The accumulated earnings tax is an additional corporate tax paid by companies that choose to withhold earnings instead of paying dividends. It is calculated in addition to normal corporate income taxes and aims to encourage companies to pay dividends while providing the government with more tax revenue. The tax may discourage reinvesting earnings in the […]
Limited liability partnerships (LLPs) offer tax advantages in certain jurisdictions and provide partners with legal protection and the ability to actively manage the business. However, tax advantages may be nullified in areas with high personal income tax rates. LLPs do not require annual shareholder meetings but may not be recognized in all jurisdictions and can […]
Governments tax corporate income twice, through corporate income tax and individual tax on dividends. Companies may withhold profits to avoid double taxation, but governments combat this with a tax on accumulated profits. The tax comes into effect when a company has excess liquidity without justification, and the threshold and tax rates vary by jurisdiction. Companies […]
Tax credits and deductions are different ways to reduce the total tax paid. Deductions reduce taxable income, while credits are taken after tax is calculated. Tax credits can reduce the amount owed or result in a refund, but are subject to limits. It’s important to keep up with current tax laws to see if there […]
Employers pay state unemployment tax to fund unemployment compensation funds, which provide a living allowance to eligible unemployed workers. The state unemployment tax is based on a percentage of the company’s gross payroll, with varying fees and thresholds by state and company. Unemployment compensation is not indefinite and recipients must actively seek work. Employers pay […]
The US government offers tax credits for purchasing energy-efficient air conditioners, as part of the American Recovery and Reinvestment Act of 2009. The credit has different tiers and requires documentation of the purchase and specific tax forms to be submitted. The air conditioners must meet specific environmental standards to qualify. An air conditioning tax credit […]
The IRS can seize assets in exchange for unpaid state taxes, including property and wages. A state tax lien can be detrimental to a taxpayer’s financial situation and can result in wage garnishment or property seizure. Taxpayers have options to avoid a state tax lien, including appealing the fee, setting up a payment plan, or […]
Investors in rental properties can use tax breaks to reduce taxable income, including deductions for mortgage interest, property taxes, insurance premiums, property purchases, repairs and renovations. However, tax laws vary and investors should consult tax advisors and keep records to avoid penalties. People who own rental properties can use investment property tax breaks to reduce […]
The breakeven tax rate is the level of tax that does not motivate or discourage participation. It leaves investors indifferent and requires other means to entice participation. It is useful for investors uninterested in tax advantages and allows for focus on higher risk investments. Brokers can advise on balanced tax rate opportunities. The breakeven tax […]
US homeowners can receive a tax credit of up to 30% of insulation costs, with a maximum of $1,500, for adding insulation to their homes to improve energy efficiency. The added insulation must meet certain industry specifications and homeowners must provide receipts and certification documents with their tax returns. The credit does not include installation […]
Value-added tax (VAT) is a consumption tax imposed on most consumer products, collected at various points in the production and distribution process. The tax rate depends on the value added at each stage, with all taxpayers except the final consumer possibly reimbursed. VAT is common in many nations, but some question its impact on the […]
Tax deductions, also known as tax-deductible expenses or write-offs, offset costs accrued by taxpayers in earning money. They appear on a tax return as amounts that can be deducted from gross income, reducing taxable income and the amount of tax owed. Deductions can be above or below the line, and can be standard or itemized. […]
