Business Type – Overview 101 There is no one legal structure that’s best for all small businesses. Whether you are better off beginning as a sole proprietor or choosing one of the more complicated organizational structures such as partnership, corporation...

Depreciation – Depreciable And Amortizable Assets #101 Depreciation is an annual income tax deduction that allows you to recover the cost or other basis of certain property over the time you use the property. It is an allowance for the wear and tear, deterioration, or obsolescence of the property...

Business Type - Corporation #104 One of the main advantages of incorporating is that the owner’s personal assets are protected from creditors of the corporation because the corporation is considered a separate legal entity. Although a corporation usually has more than one owner, it is possible for...

Expenses – Deductible Insurance Expenses #108 Generally, you may deduct the ordinary and necessary cost of insurance as a business expense if it is for your trade, business or profession. However, in some circumstances, you might have to capitalize certain insurance costs under the IRS’ uniform capitalization rules...

Type of Taxes – Accumulated Earnings #115 If you’re planning to start up a business and wondering whether to choose the structure of a limited liability corporation (LLC) or a corporation, you may want to consider the following tax treatment of accumulated earnings, which applies to corporations but not to...

Taxes on Mortgage Debt Forgiveness #110 The economic downturn left hundreds of thousands of homeowners underwater, and current efforts to minimize losses include measures that forgive portions of the outstanding mortgage debt. A law passed in 2007 makes debt forgiven on primary mortgages...

Advisory Services – Types of Financial Planners Less than 20 percent of all American households have a tax adviser or a personal financial planner. Why? It can be daunting to entrust your financial future to a stranger. And it’s tough knowing where to turn for help. Here we use the term “financial adviser” to cover all...