Recent Posts by EVELYN IVY

If you have been in business long enough, you have heard the term closing your books. What does this mean? Closing your books means zeroing out the income statement and dividend accounts at the end of the year so you start fresh in the next year. Why are profit and loss accounts closed? Closing the profit and loss account is comparable to your personal annual wages you earn on the

With interest rates reaching an all-time low, the question of whether or not to refinance your home comes into existence. Depending on your circumstances, refinancing could or could not put you ahead financially. In general, mortgage interest is deducted on Schedule A, Form 1040. This is limited to a mortgage of $1million dollars at any time. On the other hand, if the debt is a home equity debt there is a $100,000

In order to price your services as a contractor, you will need to know what your goods cost to produce. There are 3 costs you should take into account when pricing services namely: Labor costs Materials/ Supplies cost Overhead cost Labor costs As a contractor, you know it is not possible to provide a service without incurring labor costs. The labor costs that is applied to a unit of service is

As a real estate investor, there is the possibility of ending up with passive activity losses. Unused passive activity losses are suspended until they can be offset against passive activity income. However, of you actively participate in passive rental real estate activity, there is a special exception that allows you to deduct up to $25,000 to offset nonpassive income. Mortgage interest deduction If you take a home equity loan from your

A shareholders agreement is an agreement between the shareholder and the corporation. When operating a business, the business owner and the business are two separate entities and should be treated as such. You should not treat your business like an extension of you. As a Certified Public Accountant I am concerned about the shareholders agreement addressing certain accounting issues. Some issues you should have in your agreement are: Capital contributions