Accounting services and functions are what keep a business on track. After all, the point of a business is to generate revenue, so that means someone needs to be keeping an eye on the money that is going in and out of the accounts. But that’s really just the most basic accounting services example. Accountants serve as trusted financial advisors who have the perspective and education to give business leadership advice about big decisions.
In a post-pandemic world, some people are gearing up to spend frivolously—at least that’s what a recent McKinsey study reported. Over 50% of US consumers are planning to spend extra money on splurge purchases this year. It seems that after a year of cancelled vacations, holiday get-togethers, and events, Americans who have an expendable income are ready to spend.
Taxes are already a headache, and just when you think you’ve got a handle on it, they go and change the rules. The recently proposed American Families Plan, put forth by President Joe Biden, calls for substantial tax reform including changes that would eliminate the preferential rates for long-term capital gains for high income individuals, and revert them back to the top ordinary tax bracket.
With the steadily declining interest rates of the 21st century, you may be wondering what to do with your money when interest rates are low. This trend is seen starkly when you compare the 6% rate of the US federal funds rate at the beginning of 2000 to the rate as of December 2020: 0.09%. The Federal Reserve estimates that rates will most likely remain near zero until at least 2023. If you are a retiree, this can impact your investments and cause concern. Let’s look at a few options you may have in a low interest rate environment to make the most of your money.
Whether you are familiar with or have never heard of Section 1202, this benefit may be of interest to you as an investor. With recent changes by Congress, Section 1202 helps start-ups and other small businesses gain investors, since it essentially creates the ability for investors to make a fully tax-exempt profit. Many investors are interested in both helping small businesses and helping themselves by keeping in mind Section 1202 as they structure their investments. Let’s examine what Section 1202 is, and how it may be of interest to you.
Have you Googled the commonly asked question, “How do I know if I need to pay quarterly taxes?” In short, if you have untaxed income or you’re not having enough withheld from your paycheck, you need to pay estimated quarterly taxes. But there is a lot more to that statement that taxpayers need to understand in order to pay estimated quarterly taxes correctly. Let’s dive deeper and review who exactly needs to pay quarterly taxes, how to pay them, and the penalty for unpaid taxes.