Taxes

American pay different types of taxes such as income tax, state tax, state tax real estate tax, social security tax, medicare tax, etc. The major objective of the tax law is to raise revenue. But mostly, taxes are raised to secure the welfare of citizen. This article focuses on the social security and medicare tax and the benefit of paying this tax as a self-employment person. What is Social Security

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

People often get confused about the S corporation election status. Most people think S corporation is another form of legal entity. S Corporation is a tax election and not a legal entity. As an S Corporation your legal entity could be that of a LLC or a C Corporation. LLCs or corporations choose to make the S election for 2 main reasons namely: Avoid the double taxation treatment on distributions. A

A fringe benefit is a form of pay for providing a service. For example using your company car for personal errands is a form of fringe benefit. Any fringe benefit is taxable unless it is specifically excluded by the law. Taxable fringe benefits must be included in wages and reported on the W-2. This article discusses some fringe benefits excluded by the law. Health benefits The cost of providing group

A mutual fund is a company that pools money from individual investors to build an investment portfolio of stocks, bonds, money market funds, etc. Many people at one point of their lives have invested in mutual funds. As the owner of a mutual fund you are taxed when you sell your mutual fund share and when the mutual fund sends your share of profits or interest from the funds. Your