Feb
7
LLC Partnership Taxes: 1065 and K-1
February 7, 2008 | 1 Comment
A Limited Liability Corporation (LLC) can be treated as an S-Corporation or as a Partnership by the Federal Government Internal Revenue Service (IRS) (you fill out form 8832 to classify it as Partnership). When I established my LLC I made it a Partnership: a very flexible arrangement that allows me to divide the earnings [...]
Dec
24
The Arbitrary $200k, and Its Problems
December 24, 2007 | 3 Comments
Many presidential candidates (or potential candidates) talk about raising taxes for those above a certain number, or lowering them for those below a certain number (or both). They essentially draw a line and separate people in two groups: rich and not-rich. There are many reasons why I believe this does a dis-service to this country. [...]
Apr
9
First Work Year – Once In a Lifetime Opportunity
April 9, 2007 | 1 Comment
Many people start their careers a few months after graduation (be it from school or college). Most people complete their degrees in summer, and that makes them very prone to earning half a year worth of salary on the very first year they work. It is not that bad, as they happen to [...]
Apr
9
Got an Audit from the IRS
April 9, 2007 | 4 Comments
And I must say, it is not as painful as it sounds. They did sent a letter requesting more than $28,000 in taxes, interests, and penalties, calculated in a very liberal way. It almost killed my wife out of a heart attack. I took it calmer, even when I didn’t have the [...]
Mar
26
Alternative Minimum Tax Issue
March 26, 2007 | 1 Comment
The middle class families are now complaining about the Alternative Minimum Tax. They are complaining that soon, even families earning $75,000/year will be hit by it. I do complaint about the unfair tax, and I consider myself middle class. However, I have to say this is a case where the middle class [...]
Mar
26
Progressive Taxation is Gaining Ground
March 26, 2007 | 1 Comment
For as much as President Bush is touting his tax cuts I think they are only doing a small improvement on flattening the tax responsibilities of the nation. The Democratic party should be very proud of their success in making the upper class increase the percentage of the federal for which they are responsible [...]
Feb
18
Employer Identification Number
February 18, 2007 | 1 Comment
A requisite for any serious business is to get a Federal Employer Identification Number (EIN). It is the business-world equivalent of the Social Security or Taxpayer Identification Number. You will need to use it to register tax payments of all kinds, including Social Security, Medicare, and Income taxes. Most importantly, you will [...]
Jan
26
Effective Federal Tax Rate: Effects of Social Security Tax
January 26, 2007 | 3 Comments
Our politicians like to discuss levels of taxation in terms of the Tax Brackets. These brackets usually apply to income tax levels after the allowed deductions have been taken into account. What it doesn’t include is other methods of taxation that the Federal Government may impose on its subjects, like the Social Security and Medicare [...]
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