The line between having a hobby and running a business can be confusing, but knowing the difference is important and can save you money. Hobbies and businesses are treated differently when it’s time to file a tax return. And the IRS watches this line carefully, with frequent audits. – Forbes – Taxes
If you bought TurboTax online filing products between 2016 and 2018, check your email—you might be entitled to a settlement payment. – Forbes – Taxes
Marie Sapirie examines the numerous pieces of tax legislation under consideration in Congress, arguing that although most of them probably won’t pass this year, they are worth paying attention to because similar proposals are likely to come up again. – Forbes – Taxes
Today’s Social Security column addresses questions about how continued work might be able to increase retirement benefit rates, how survivor’s benefits are calculated and how a non US citizen might be eligible for US Social Security benefits. – Forbes – Taxes
PacWest and other regional banks with large commercial real estate holdings (CRE) are under increasing pressure, as working from home reduces values of CRE. – Forbes – Taxes
Taxpayers Roy A. Nutt and Bonnie W. Nutt electronically filed a petition in Tax Court to contest a Notice of Deficiency from the IRS. But a time zone snafu resulted in a dismissal. – Forbes – Taxes
The White House has announced plans to ask crypto miners to pay a premium for energy consumption. – Forbes – Taxes
House Republicans have, at least temporarily, redefined what they mean by a tax increase. – Forbes – Taxes
Small businesses are vital to the U.S. economy. In fact, almost half of all private-sector workers in the U.S. are employed by small businesses. Unfortunately, almost half of all new businesses also fail within the first 5 years.
That’s why it’s so important to keep up with your business finances. Here are 5 financial skills you’ll need to keep your business profitable — and how Quicken Home & Business can help.
At the heart of every successful business is the ability to budget. Knowing how much money you’re making and spending each month is absolutely essential for your business’s health.
Monthly budgeting helps you know if you’re making a profit — and if so, how much. It also helps you track client spending habits from month to month and year to year.
Finally, good budgeting is essential in making sound business decisions. Many companies have to tough it out through lean months during certain parts of the year, for example. Tracking your finances shows you what you can and can’t afford to spend — and when you might need a business loan to survive a cash crunch.
That’s why many small-business owners invest in budgeting software to get a clear, up-to-date view of their finances. Quicken Home and Business imports your revenue and transactions automatically to give you a complete picture of your financial health.
Successful small-business owners set SMART goals: Specific, Measurable, Achievable, Results-based, and Time-limited.
Specific — Be specific about what you want to accomplish.
Measurable — Make sure you have a way to measure your progress.
Achievable — Keep your goals realistic and celebrate each success.
Results-based — Tie your goals to business objectives, like reaching a certain revenue in a given quarter.
Time-limited — Set a time limit for your goals to help you stay focused.
Quicken Home & Business can help you make, track, and achieve SMART business goals.
Knowing where you are today helps you set specific, achievable goals for tomorrow. By keeping your finances up to date, the software also lets you measure results anytime, anywhere, and display them across any timeframe.
If you’re a startup or solopreneur, it’s all too easy to run your business from your personal bank accounts. This causes confusion when you’re trying to measure business revenue and expenses, which can also cause trouble at tax time.
To keep your finances clear and simple, run your small business from a separate bank account, and keep other financial accounts like PayPal or Venmo separate too. (Having a separate bank account and business email makes this easy.)
Quicken Home & Business tracks your business and personal budgets separately, for the convenience of working from one app while your business and personal finances remain separate.
While record-keeping might not be the most exciting part of owning a small business, it’s definitely essential. Keep a record of every transaction so you’ll know how much you’re really making — plus, you’ll have all the documentation you need come tax time.
That doesn’t mean you need to keep a gigantic stack of receipts on hand at all times. Instead, use the Quicken app’s Snap and Store feature to keep photos of your business receipts.
Quicken Home & Business makes it easy to track home expenses separately, so you can also use the budgeting software to keep track of home-office deductions.
Every business has its ups and downs. That’s a natural part of small-business management. The key to surviving the “downs” is knowing your survival metrics.
For example:
What’s the minimum revenue you have to bring in each month to meet your monthly expenses?
How much of an emergency fund does your business have? If your revenue falls beneath that minimum for a few months, how long can you weather the shortfall?
What expenses could you cut today if you saw trouble ahead?
How much revenue could you bring in quickly if you had to, such as by offering early-payment discounts, or putting your products on sale?
Quicken Home & Business makes it easy to see these kinds of numbers and more, so you’ll always know what you need to do to keep your business going.
– Small Business & Rentals – Quicken + Simplifi Blog
Joseph J. Thorndike considers whether the IRS’s funding boost could be on the chopping block during President Biden’s debt ceiling discussion with House Republicans. – Forbes – Taxes
Republicans will either need to abandon their attempt to extract meaningful policy concessions in exchange for a debt limit increase or offer President Biden a short-term increase that creates room for a realistic negotiation process. – Forbes – Taxes
Operation SpecTor, a coordinated international effort, represents the most funds seized and the highest number of arrests in any coordinated international action led by the Justice Department against drug traffickers on the dark web. – Forbes – Taxes