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Owing a home can be very beneficial: You can deduct your mortgage interest and real estate taxes while you own your home, get tax free treatment when you rent your home and exclude gains from the sale of your home. Home mortgage interest deduction In general, interest paid on your home are tax deductible. This includes the initial loan to buy your home, a second mortgage, a line of credit,

    S Corporations provide the benefits of having a corporation while being taxed as a partnership. S Corporations are treated as corporations under state law and provide the same legal protection as C corporations. The income and deductions of an S corporation flows through to the individual tax return. Income is taxed at the shareholder level and not the corporate level. When to elect S corporation status When shareholders

Tax planning means finding ways to minimize the taxes you have to pay each year. Tax planning is not the same as tax evasion. Tax evasion means cheating and lying to minimize your taxes. Tax evasion is illegal and costs more in the long run. You can do a quick search for tax evasion cases in the United States and you will see how serious this crime is. In the

Freelancers have the luxury of controlling how much they work and the freedom to structure their life in a way they see fit. However, with that opportunity also comes responsibilities. You have to remember you are also running a business. 10 common tax mistakes freelancers make Not consulting a professional: As a business owner, you have more responsibilities than a W-2 earner, before you make any significant changes in your business,

Before starting a business, it is not uncommon to incur some expenses before the business actually opens its doors. Costs that you incur before opening your business doors is called startup costs. According to the Internal Revenue Service, startup costs falls under 2 categories namely: The costs paid while creating an active trade or business. Example: advertisement before opening the business, education and training costs before opening, etc. The costs paid