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Rebuilding Your Business Credit After a Disaster Like Hurricane Sandy

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Finance expert Mike Periu on how businesses can minimize damage to their credit score after a disaster like Hurricane Sandy. Even though Hurricane Sandy doesn't dominate the headlines anymore, small businesses in the affected regions are only just beginning the long road to recovery. Among the casualties are small business credit scores as invoices go unpaid and bills pile up creating a short-term cash crunch. To minimize the damage to your score, it's important to first notify all of your … [Read more...]

Big changes in estate tax laws take effect next month

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The best way to leave assets, like your business, to heirs before big changes in estate tax laws take effect next month. Take Advantage of Expiring Tax Rules to Benefit Your Heirs Current estate tax laws exempt the first $5.12 million per person (double per couple) in assets from estate taxes. This limit drops to $1 million in 2013. and the tax rate on all assets above that threshold will be taxed at a rate of 55 percent. If you plan to leave your business to your children or other heirs, … [Read more...]

The Best and Worst States to Make a Fortune

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Finance expert Mike Periu on how the state you live in can have a profound impact on the taxes you pay. These are the Best and Worst States to Make a Fortune We now know that two PowerBall tickets had the winning number combination for the nearly $580 million jackpot last night. The winners will have to make some very important decisions related to financial planning, tax strategies and estate planning. How much of the jackpot they get to keep will depend in large part on which state they … [Read more...]

New Small Business Tax Break Being Proposed

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Finance expert Mike Periu on President Obama's New Small Business Tax Break proposal for a $25 billion dollar tax break for small businesses. The President announced a proposal for a new $25 billion tax break to small businesses. Calling it a stimulus package, the proposal would offer small businesses a tax credit equivalent to 10 percent of the cost of salaries for new hires and increased pay to existing workers. The purpose of the credit is to stimulate new hiring and increase compensation to … [Read more...]

A way to save on your investment income before rising taxes

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Finance expert Mike Periu on a way to save on your investment income before rising taxes take effect next year. 3.8 Percent Tax on Investment Income is a Certainty for 2013 Even though reports of a framework for a fiscal cliff deal are starting to emerge, we know one tax that will go into effect next year regardless of what happens with that negotiation: The Patient Protection and Affordable Care Act (also known as Obamacare) provision will tax "unearned net investment income". This will … [Read more...]

Potential Consequences of Fixing the Tax Code

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How fixing the tax code could result in detrimental effects to the middle class. Fixing the Tax Code: As Congress and the White House continue efforts to find a viable solution to the fiscal cliff,  one proposal is gaining steam - reducing tax deductions and credits. It's estimated that these deductions and credits cost the federal government $1.3 trillion a year in tax revenues. Eliminating them would, in theory, plug the annual budget deficit. Many analysts, however, note that businesses and … [Read more...]

Itemized Deduction Cap Gains Political Momentum

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As negotiations continue between the White House and Congress to address the Fiscal Cliff. The idea of Itemized Deduction Cap is gaining traction As negotiations continue between the White House and Congress to address the Fiscal Cliff, one idea gaining traction is capping the maximum amount of itemized deductions a taxpayer may claim. If this is implemented, it would raise taxes significantly for filers living in expensive states. According to a study by The Wall Street Journal, tax filers who … [Read more...]

Tax Increases for Successful Business Owners a Near Certainty

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Finance expert Mike Periu on tax increases ahead for small business owners. President Obama held his first press conference in 8 months yesterday. Among the topics covered by reporters was income tax increases relating to fiscal cliff negotiations. The President indicated that a key component of his position for this negotiation and a tenant of his second term will be to increase income taxes on households earning more than $250,000 per year. It appears that this tax increase will happen no … [Read more...]

Deadline Approaching for Free Foreclosure Review Program

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Finance expert Mike Periu on a free foreclosure review program which expires at the end of this year. Homeowners who lost their homes to foreclosure in 2009 or 2010 have until December 31st to request a free, independent review to ensure that they were treated fairly and that the process was handled legally. Many small-business owners mortgaged their homes to fund their businesses and ultimately lost one or both. This free review is overseen by the Office of the Comptroller of the Current … [Read more...]

Document Your Business Income to Avoid Costly Tax Errors

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Finance expert Mike Periu on ways to avoid costly tax errors. Millions of small businesses use accounting software packages like QuickBooks. Many, however, don't have the proper training which can lead to overstating or understating your revenues. The first will cause you to overpay income taxes; the latter could lead to an audit and underpayment penalties. If you have multiple bank accounts and transfer money between them, make sure that you use the bank transfer module in your software to … [Read more...]