If you take tax deductions for any activity that is not your full-time job, you need to meet certain criteria to ensure the IRS does not consider your activity a hobby rather than a for-profit business. The IRS has nine factors they consider when determining if your activity is a hobby or a viable business. For more information on these factors, read this week’s C.P.A. Insight.
Before you make a purchase, you should check your budget, not your checkbook balance.
A management company is an investment company that manages a portfolio of securities for its shareholders. Mutual funds fall into this category. Management companies are divided into two categories: open-end or closed-end.
If you have children from a previous marriage, you will want to clearly outline what they are to inherit in your Will as your current spouse could cut them off after your death.
A college education will be one of the most expensive purchases a family will make, so it is best to start saving early to an account specifically designated for education funds.
If you want a new vehicle, you will have to decide if you want to lease the auto or take out a loan to finance the purchase.
As a taxpayer, you are obligated to keep records to substantiate your deductions and tax basis.
The auto might be new to you, but should you buy new from the dealer to get the factory warranty or do you opt for a used car letting someone else take the hit on depreciation?
There is good reason to save all of your receipts, as you may never know what might end up being a deducible expense come tax time.
Invariably, when markets are volatile, and it seems as if no single investment strategy is keeping up with the market indexes, we get questions from clients asking whether an index fund would be a preferable investment.