2013 Tax Tips for Small Businesses

2013 Tax Tips for Small Businesses2013 Tax Tips for Small Businesses2013 Tax Tips for Small Businesses Weltman, author of J.K. Lassers Small Business Taxes 2014(Wiley, 2013)The 2013 tax return countdown is on. Tax strategies, old and new, can help cut your tax bill. Here are five tax tips to help you.1. Claim your full write-offsTax limits, thresholds, and ceilings change from year to year, so dont assume that deduction limits or tax rules from prior years apply now. Failing to learn whats new could result in your shortchanging yourself. For example, if you deduct your geschftsleben driving using the IRS standard mileage rate, be sure to note that the rate for all of 2013 is 56.5 per mile (a penny per mile higher than in 2012).If youre self-employed, dont forget to deduct one-half of your self-employment tax. Its a personal (nonbusiness) deduction, but you dont have to itemize to claim it.2. Make decisions about writing off equipment purchasesFor 2013, there are three possible ways t o deduct the cost of equipment (such as computers) and machineryRegular depreciation, which spreads deductions for the cost over 5, 7, or other periods fixed by law.zugabe depreciation, which allows 50% to be deducted immediately.First-year (Section 179) deduction, which limits the first-year write off to $500,000 it can be combined with regular and bonus depreciation for an even greater deduction in 2013.The deduction rules vary with each option. For example, bonus depreciation applies only to new property (not to pre-owned items) it applies automatically, but can be waived. First-year expensing is only beneficial if you are profitable if desired, it must be elected. Work with a tax advisor to look not only at your tax picture for 2013, but also look ahead to determine which write-off is best for your situation.3. Take post year-end actionEven though the tax year has closed, it is not too late to make certain payments that can still reduce your 2013 taxesContributions to qualified retirement plans. As long as the plan was set up by December 31, 2013, you can contribute up to the extended due date of your return. If you have not already set up a retirement plan, you have until the extended due date of the return to set up a SEP. Contributions to a SEP, like a profit-sharing plan, can be made up to the extended due date of your return.Contributions to health savings accounts (HSAs). If you were covered by a high-deductible health plan (HDHP) in 2013, you can contribution to a health savings account for 2013 up to April 15, 2014 (there is no extra time even if you obtain a filing extension). As long as you had HDHP coverage for all of December, you can make a full years HSA contribution.4. Get a filing extension if you need itWhile the IRS will begin accepting business returns for filing on January 13, 2014, and individual returns on January 31, 2014, the filing deadline for 2013 returns remains March 17, 2014 (March 15 is on a Saturday this year), for corporati ons, and April 15, 2014, for individuals, partnerships, and limited liability companies (in most cases).If you do not have all the information you need to complete your return or for any other reason, you can request a filing extension. For example, if you are an owner in a limited liability company that has not provided you with a Schedule K-1 by the time you have to file your personal return, simply request a filing extension.Individuals requesting a filing extension should use Form 4868 partnerships, limited liability companies, and corporations should use Form 7004.The extended due date for filing a 2013 return depends on your returnCorporations (both C and S) September 15, 2014. (This also becomes the deadline for S corporations to give Schedule K-1s to their shareholders.)Partnerships and limited liability companies September 15, 2014. (This also becomes the deadline for these entities to give Schedule K-1s to their owners.)Individuals October 15, 2014.5. Pay estimated taxes f or 2014If you report your share of business income on your personal return (e.g., youre a sole proprietor or an owner in a limited liability company), you probably have to pay estimated taxes to cover your anticipated tax bill for 2014. The first estimated tax payment for the year is due on April 15, 2014. This date applies even if you obtain a filing extension for your 2013 income tax return.You can pay electronically using EFTPS, which is a free Federal service for this purpose.Caution Dont wait until you file your return for the year to pay the tax you expect to owe. This will cost you in tax penalties. Even worse, come April 2015, you may not have the lump sum needed at that time to pay your 2014 tax better to pay in installments as required.The Last WordAction on your part can minimize your tax bill for 2013 and avoid interest and penalties this year and next. The sooner you start, the easier it is to complete actions on time.Any questions? Talk with a tax advisor.Reprinted wit h permission of John Wiley Sons, Inc. Barbara Weltman, J.K. Lassers Small Business Taxes 2014 Legal Disclaimer None of the information provided herein constitutes legal advice on behalf of Monster.

The Right and Wrong Times to Leave Your Job

The Right and Wrong Times to Leave Your JobThe Right and Wrong Times to Leave Your JobWe all have bad days at work. It goes without saying. If you have been thinking it is time to leave your job, please stop and think.Stop Googling how to quit your job now. You will end up with many search results giving you a false reason to leave your job while others profit. Think about whether it is the right or wrong time to leave your job.Heres how you can tell the difference.Right time You are on the edge of nervous breakdownWrong time You feel like you just need to changeIt is the right time to leave your job if the stress of it has gotten so bad that it affects your mental health. The job sounded great and motivated you, at first. But then you find one day the job is so stressful it is taking a physical and mental toll on you. Dont put your health at risk. Its elend worth it.It is the wrong time to quit if you feel like you just need a change. You can be bored that day for some reason or may be you just need to take on new tasks at work. Stay paid as you discover the reason for wanting to leave your job. You can get paid while making the change. Interviewing costs money. You will need it.Right time The long-term results are proven to be negativeWrong time The short term job is elend what you expectedThe right time is if you have been with a company long enough and can prove the game does not end well for you. That does take some learning and understanding of the job to see if it is aligned with your career goals. If you know it is not, then that is your reason to leave your job.The wrong time to leave your job is when you find out your job involves things you did not expect. There may be some short term frustrations on the job. No one knows everything about a job before they accept it. You have to give yourself time to discover if what you did not expect is actually better for your career.Right time You have done all you can do for a companyWrong time There is still mor e to be done, but you dont feel readyThe right time to leave your job is when you feel you are at the red carpet treatmentstage of your job. There is nothing more to do, but smile and look pretty. You are no longer being challenged. You have set your company up for success and a new challenge is calling.The wrong time to leave your job is when you are being challenged, but you do not feel ready. How do you know you are not ready? Working through challenges is one of the most self-rewarding experiences in life. Stick the job out and do what you can, but do not quit and be seen as someone who walks away from challenges.Right time You have been saving up money and networkingWrong time You want to wing itbecause you hate your jobThe right time to leave is after you have done preparation for the downtime that comes with looking for work. Your networking and savings will give you the momentum to find new work quickly.The wrong time to quit your job is when you are thinking that all will b e ok if you just wing it. The big difference between the two is, you either have a plan or you dont. People who wing itquit without a plan, then go on job interviews and come across as desperate. Unfortunately, desperate people rarely get hired, or in your case, saved from your bad idea to wing it.Ultimately, at some point in your career, you will have a reason for leaving your job. Making sure your timing is right will leave you with a career of positive business relationships and stress-free career.

How to not drift through life and get what you really want

How to not drift through life and get what you really wantHow to not drift through life and get what you really wantMaybe the life youve always dreamed of sounds fluffy to you, but I promise you it doesnt have to be. Im sharing short, practical and personal lessons with you on what Ive learned from finding my lifes purpose and living it out on a daily basis, along with all the struggles along the way.If you havent already done so,take the LifeScore Assessmentto clarify whats most important in your life, and how to tangibly create the life of your dreams and achieve your biggest goals.All of us have room to grow in this area, but knowing where you stand is a necessary first step before that growth happens.To listen to the audio of the lesson, which includes some bonus commentary from me, click here.Lesson 2 Decide not to driftHave you ever noticed how some people just seem to drift through life, without direction or purpose? Maybe youve noticed that about your own life.I did this for nearly 10 years. It made me miserable. I kept complaining to my wife about what I really wanted to do but welches too afraid to do.It reminds me of a time when I was about six years old, afraid to go outside and play with the other kids. My family and I were living in a small apartment near Aurora, Illinois, and I was so shy that instead of going outside to play with the other kids that summer, I stayed indoors.But whenever the other kids from the apartment complex would run around the courtyard, Id chase them from one end of the duplex unit to the other, running from window to window so that I didnt miss a thing.Of course, I was missing everything. And I wanted to be out there playing with them, but I was scared. Scared to leave the comfort of home. Scared to step out. Scared to be rejected.But one day, my mom (who was probably annoyed at a hyper little boy racing around her house when he should have been outside that summer) sat me down and said,Jeff, if you want a friend, you hav e to be a friend.She taught me that if I wanted people to know and like me then I had to make the first move. Ive never forgotten that lesson.Often in life, were waiting for someone else to make the first move.Were stuck inside, watching others participate in the game but never taking the bold move to join in. Were hoping someone invites us in, hoping we dont have to do the messy work of asking or simply showing up.But thats not how life works. At least not for me. Maybe you are different. Maybe you got invited to all the parties in high school and all the girls (or guys) wanted to go out with you and you never had to deal with awkwardness or rejection or fear.But I did.And as someone whos dealt with that, I can tell you. Its easier to just not put yourself through it. Easier, but not better.Sail your shipTheres that old saying A ship is safe in the harbor, but thats not what a ship is built for. The saatkorn is true of you. I believe that there is work that you need to do in this l ife. Important work. Work that only you can do.But it wont just happen. You cant just drift through life and create the change you want. Its going to take work and intentionality. Youre going to have sometimes swim against the current and brave the onslaught of the waves. You might even get dashed upon the rocks on occasion.So its anything but safe. But this is what you were made for. This is why you arehere.Step out into the light, become your true self, and decide not to drift.Thisarticlefirst appeared onGoins, Writer.