Taxes

Income you earn can be taxed as either ordinary income or capital gains. Ordinary income is income you earn from your business or job. Most people declare ordinary income on their taxes. The tax treatment of ordinary income is less favorable than capital gains. On the other hand when you sell a capital asset, that asset is subject to capital gains tax. You receive capital gains from the sale of

The cost of health insurance could be prohibitive for a self-employed individual. As a result, many self-employed people can afford only health insurance with high deductibles. This is usually done alongside a health savings account (HSA). Health savings account work like retirement savings in that you use these accounts to save money for future health costs. Just like retirement plans, health savings account can be established with banks. Health insurance

Owning your business is one of the best way to save on taxes. When you are a W-2 earner, you pay taxes on every dollar earned. As a business owner, you only pay taxes on your net profits. Your net profit is the difference between what you bring in and what you spend in building your business. This means you owe taxes on what is left and not all you

Hiring your children is a great way to shift income and reduce your overall tax burden. Your children must do real work for the pay they get. Your children are paid at their tax rate which is most likely lower than your tax rate. Children who earn wages are not subject to the kiddie tax rule. Another upside of hiring your children is you do not have to pay social

    If you are self-employed you are allowed to deduct 100% of the cost of health insurance premiums. This includes medical expenses for dental and long term care. It does not matter which business structure you choose – sole proprietorship, s corporation, partnership or c corporation, you are entitled to take this deduction. The deduction is also available to you whether you pay your health care expenses as an individual or