/Taxes

Nellie Akalp Discusses Common Tax Mistakes on Fox Business Feature

nellie fox

CorpNet’s CEO, Nellie Akalp, recently visited the set of FOX Business in New York to discuss some of the most common tax mistakes made by entrepreneurs and small businesses.

 “Filing business taxes can be a real learning curve for new business owners. Too often, some common mistakes are committed, and at best these lead to money left on the table; and at worst, costly penalties or other legal repercussions,” Nellie said.

In the segment, she discussed the need to pay quarterly estimated taxes; keeping track of your expenses; not being scared away from taking the home office deduction if you’re legally entitled to one; and sending 1099 forms to any contractors, attorneys, or individuals who performed work totaling more than $600 for the year. Nellie also advised that the most important tax move was selecting the right business structure, as the choice between a sole proprietorship, LLC, or corporation can have a major impact on the amount of taxes paid.

She also let new business owners they could get off on the right foot by contacting CorpNet.com for a free business consultation.

Through CorpNet, Nellie and her husband Philip Akalp have empowered thousands of entrepreneurs to start their own business. As an online legal document filing service, CorpNet helps small business owners form an LLC or incorporate a business in order to start and protect their new business ventures the right way.

You can watch the FOX video here.

By | March 6th, 2014|Taxes|0 Comments

Nellie Akalp Talks 8 Common Tax Mistakes on FOX Small Business

Once again, our CEO, Nellie Akalp, has hit the media streets to educate business owners. This time she joined FOX Small Business to discuss common tax mistakes, a relevant topic as Tax Day approaches.

1. Not paying quarterly taxes. Nellie suggests setting some money aside so you don’t have a large sum to pay at tax time.

2. Not keeping track of business expenses. You need these to deduct on your taxes, but you must be able to document them.

3. Not understanding home business writeoffs. Nellie says you can deduct your home office if you work from home.

4. Not keeping track of 1099s. Any contractors you pay more than $600 in a year must receive a 1099, and you must claim it as an expense.

Get more tips from Nellie in the video below.

 


 

By | March 3rd, 2014|Taxes|0 Comments

Tax Changes for 2014: A Checklist

76_3158532Welcome 2014! As the new year rolls around, it’s always a sure bet that there will be changes to the current tax law and 2014 is no different. From health savings accounts to retirement contributions and standard deductions, here’s a checklist of tax changes to help you plan the year ahead.

Filing Season Delayed by 10 Days

Taxpayers should note that the 2014 tax season opens on Jan. 31, 2014.

In most years, the filing season opens on Jan. 21; however, due to the 16-day government shutdown that took place in October 2013, the filing season is delayed by 10 days this year. No returns, paper or electronic, will be processed by the IRS before this date.

The April 15 tax deadline is set by statute and will remain in place, although taxpayers can request an automatic six-month extension to file their tax return. If you think you need an extension, please let us know.

Individuals

For 2014, more than 40 tax provisions are affected by inflation adjustments, including personal exemptions, AMT exemption amounts, and foreign earned income exclusion, as well as most retirement contribution limits.

For 2014, the tax rate structure, which ranges from 10 to 39.6 percent, remains the same as in 2013, but tax-bracket thresholds increase for each filing status. Standard deductions and the personal exemption have also been adjusted upward to reflect inflation. For details see the article, “Tax Brackets, Deductions, and Exemptions for 2014,” below. Continue reading “Tax Changes for 2014: A Checklist” »

By | January 10th, 2014|Taxes|0 Comments

Can Startups and Small Businesses Turn Summer Vacation into a Tax Deduction?

400_3083774As the summer heats up, vacation season kicks into full swing. Employees with office jobs enjoy all those traditional perks like paid vacation days, while time-pressed, cost-conscious startups, small business owners, and contractors are left wondering how to get that much needed time off without jeopardizing their business and clients.

However, small businesses, startups and entrepreneurs have one advantage, and that’s the ability to mix business and pleasure…at least when it comes to expensing parts of your summer travel. Here are some of the basics of what you need to know (but as with any general tax advice, it’s a good idea to discuss your specifics with a tax advisor):

1. The primary purpose needs to be business.

The IRS will let you deduct travel expenses if the primary purpose of the trip is for business. You can include a few days of fun in a business trip, but the majority of days must be for business activities. If not, you won’t be able to make any transportation deductions. So, if you have 3 days of client meetings (or a seminar) and 2 travel days, that counts as 5 business days – meaning you’d most likely be able to tack on 4 days of vacation and still have it count as a business trip.

2. What can you deduct?

In general, you’re able to deduct any transportation costs (plane tickets, taxis, airport parking, etc.) needed to get you to your destination. And as a general rule of thumb for U.S. based companies and startups, you can deduct 100% of lodging, tips, car rentals, and 50% of your food for any of the business days. Refer to IRS Pub 463 for all the details on which expenses can be deducted. Continue reading “Can Startups and Small Businesses Turn Summer Vacation into a Tax Deduction?” »

By | August 19th, 2013|Taxes|0 Comments

Can a Side Business Help Reduce Your Taxes?

775_4602083In the digital era, it’s never been easier to start a business on the side, whether as a freelance social media consultant, mobile game developer or Etsy shop owner.

But let’s say you started a business and it didn’t make any money. That might be bad news for your wallet, but could potentially help you come tax time.

The IRS lets you write off the loss from a business on your personal tax return. For example, if you have a regular “day” job, you can use the loss from a side business to offset your W2 or other income (and thus, lower your overall tax bill for the year).

Does this mean you should go through the effort of creating a business just so you can take $10,000 (or whatever figure) from your personal earnings? Probably not. And does that mean you can get away with creating a shell of a company just to get a deduction? No. But if you have an entrepreneurial inkling, then starting a side business is not just exciting; it could also be advantageous tax-wise. And who knows, maybe your side business will turn into a full-time gig some day. Continue reading “Can a Side Business Help Reduce Your Taxes?” »

By | July 17th, 2013|Starting a Business, Taxes|0 Comments

10 Tax Tips for Work-at-Homers

434_2996886If you just started your home-based business in the last year, you may be apprehensive about your first time filing and paying small business taxes. Never fear: these tips will make tax season easier for you.

1. Know Your Deductions. 

You might be surprised at all the expenses you can write off with your home-based business. Your office, for example, is a legitimate business deduction. A few others include:

  • Office supplies
  • Computers or printers
  • Business trip expenses
  • Advertising or marketing

So don’t be afraid to spend money on your business. It will help reduce your taxable income come April. Continue reading “10 Tax Tips for Work-at-Homers” »

By | May 10th, 2013|Starting a Business, Taxes|0 Comments

Filing Taxes as a Sole Proprietor? What You Need to Know

1019_4572434More Americans are working for themselves than ever before. Call them freelancers, contractors, micro business owners, entrepreneurs…a recent report says that there are now 17 million full-time independents in the U.S.

Even if this is your first year as self-employed, you probably already know that your income taxes are more involved than your colleagues who only have a W-2. However, the complexity also brings opportunity, as freelancers can deduct a lot of their expenses, such as the cost of a computer, office supplies, and work-related travel. Continue reading “Filing Taxes as a Sole Proprietor? What You Need to Know” »

By | April 8th, 2013|Taxes|0 Comments

6 Questions to Ask Yourself Before Filing Your Taxes

257_3094518This is a guest post from Jason Sager of  Corporate Tax Network.

Filing taxes with the IRS is something we all have to do. Before moving forward with this process, however, it’s important to ask yourself some simple questions to ensure you enjoy a stress-free tax-filing experience. Corporate Tax Network recommends that you consider the following questions:

1) What is your tax-filing status?

Your filing status should be easy to determine, unless you’ve had a recent life-changing event. If you are single with no children, you should file your taxes individually. If you are married, you can file either jointly or separately. Another option is the head-of-household status, which can apply to single parents or married couples with one or more dependents. On the other hand, a divorce or the birth of a child could change your status, so make sure you know what it is prior to filing your returns. Continue reading “6 Questions to Ask Yourself Before Filing Your Taxes” »

By | March 29th, 2013|Legal Tips For Small Businesses, Taxes|0 Comments

4 Must-Know Small Business Tax Tips

609_3861414This is a guest post from Patrick Finkelstein of Dawson & Associates.

When it comes to lowering your taxes, there is no simple path. The tax code is highly complex and voluminous. What works for one person might not work for someone else. However breaking down how individual taxpayers can lower their taxes can be simplified by knowing and understanding a few fundamental concepts.

Taxes are reduced in one of two ways through deductions and/or credits. A deduction reduces taxable income thereby lowering the amount that would be subject to tax while a credit reduces your taxes directly dollar for dollar. For this reason tax credits are more effective in lowering taxes. Below, we outline four broad tax tips that all taxpayers should know regardless of whether or not they prepare their own tax return. It is important to note that most deductions and credits are subject to income limitations. This means that while you may qualify for a specific credit or deduction you might not be able to take advantage because your income is too high. The majority of credits and deduction phase out as well, which means that you could qualify for a partial deduction or credit. Each credit and deduction have different limitation levels and phase outs. This is important to know before you make financial decisions with tax motivations.

Tip #1: Know your filing status – Head of Household

Taxpayers receive a standard deduction based on their filing status. Filing statuses include married filing joint, married filing separate and single. The standard deduction reduces income and the amount of the deduction varies by filing status. Married filing joint taxpayers receive $11,900 of deduction while single and married filing separate taxpayers receive 5,950 of deduction. Additionally, filing status dictates tax bracket thresholds as well. Continue reading “4 Must-Know Small Business Tax Tips” »

By | March 15th, 2013|Taxes|0 Comments

CorpNet.com CEO Nellie Akalp Shares Her Tax Tips and Expert Business Insight on KTLA’s ‘Money Smart

Check out the news about Nellie Akalp being on KTLA!

Nellie Akalp, Founder and CEO of online document filing company CorpNet.com, is pleased to announce her recent appearance on Los Angeles’ Leading News Station KTLA-TV. Akalp appeared on the special ‘Money Smart’ segment during the station’s award-winning 10 o’clock evening newscast. The segment received such an overwhelming response that the 2-part series was replayed during the weekend edition. Continue reading “CorpNet.com CEO Nellie Akalp Shares Her Tax Tips and Expert Business Insight on KTLA’s ‘Money Smart” »

By | March 11th, 2013|Events & Announcements, Taxes|0 Comments