Ag FinTax

  So you’ve decided to start your own business. Well done! Going solo can be incredibly rewarding and while there are many boxes to check before you can start billing and scaling your enterprise, with foresight and thoughtful planning, your new business can be a success.  However, on the road to growing your business, you first need to ensure you’re starting on the right foot. So in this guide, we’ll look at 5 tax tips for starting a new business that will put you in the right direction. Treat Your Business Like A Business When you’re first considering starting your own operation, it often begins as a side hustle. But once you’ve decided to make your business official, you need to treat it as such — not just as a hobby.  Why? Because hobbies, unlike businesses, are not tax-deductible. To show the Internal Revenue Service that you expect to earn a profit (something they expect you to make for at least three of the past five years), it’s worth writing a business plan a...

The COVD-19 pandemic was devastating for businesses across the world, but few would disagree that the restaurant industry was one of the industries hurt the most. With social distancing requirements forcing restaurants to end in-person dining, many eateries simply couldn’t continue to even pay their rent as lockdowns stretched on and on. The Payment Protection Program provided a lifeline to some restaurants, serving, as of July, some “49,000 loans of $150,000 or more made to restaurant companies” according to Restaurant Business Online . But for many, it wasn’t enough. “As of Dec. 1, 2020, more than 110,000 eating and drinking places were closed for business temporarily, or for good,” reported the National Restaurant Association in January of this year.  That said, some restaurants continued to hold on and now, thanks to the American Rescue Plan, which President Biden signed in March, restaurants should receive some relief. What kind of help can restaurants expect, and how can th...

During 2020, the federal government sent eligible taxpayers two Economic Impact Payments , more commonly known as “stimulus checks.” The money was meant to help people struggling during the economic downturn caused by the COVID-19 pandemic.  The maximum amount available for the first payment was $1,200 for single filers or $2,400 for those who are married filing jointly. In addition, there was a $500 payment for each qualifying child in a household. The maximum second payment was $600 for individuals or $1,200 for those filing jointly, plus an additional $600 for each qualifying child.  However, not everyone received the full amounts of these payments, and that means you may be eligible for the Recovery Rebate Tax Credit . Here’s what you need to know: Why Didn’t I Get Economic Impact Payments? Many people didn’t receive their full Economic Impact Payments because the IRS used tax returns from 2018 and 2019 to determine eligibility for the payments. So, some people with higher...

Stock options are one of the most enticing reasons to join an early-stage startup or other growing business. You’re almost certainly familiar with the tales of Silicon Valley employees who “got in early” at startups that went on to incredible valuations and, eventually, extremely lucrative IPOs.  Many people jump at the chance to take a job when they hear their compensation will include stock options. However, if you’re about to receive incentive stock options from an employer, you should know that capitalizing on them isn’t as simple as it might seem.  If fact, if you go in blind, your stock options could actually wind up burdening you with an excessive tax bill. We put together a handy tax strategy guide for anyone with employer-issued incentive stock options.  Here’s what you should know: What are Incentive Stock Options? An Incentive Stock Option (ISO) gives you, the employee, the right to buy shares of company stock. In addition, ISOs are potentially entitled to pre...

As most Americans know, we’re deep into tax season right now thanks to a federal extension that allows taxpayers to file by May 17 this year, rather than the typical April 15 date. But while legal citizens know they have to get their financial documents in order, immigrants might be a bit confused about what their tax obligations entail.  What some may not know is that immigrants are also expected to pay taxes on any earned income, cash, or checks. Regardless of your immigration status, if you have earned money in the United States, the law states that it must be reported to the Internal Revenue Service (IRS). While that might sound like an overwhelming or even scary responsibility, it’s in the best interest of every immigrant working in the United States to do so.  In this guide, we’ll look at why you should file your taxes regardless of your immigration status. Why file taxes if you’re not a citizen? According to the IRS , the reasons immigrants must pay U.S. taxes if they’v...

The tax deadline is swiftly approaching and with it, a need to get all of your financial affairs in order. But this year is different from the last. This year, American taxpayers are considering how their stimulus checks might affect their tax bills.  With three total stimulus bills to consider, you might be wondering how these monetary government checks will play a role in filing your taxes. And in this guide, we’ll discuss just that while answering the question does the stimulus check affect individual taxes? Well, does the stimulus check affect individual taxes? The short answer: No. Great news, stimulus checks, which include the following, are not taxable: $1,200 in April 2020 as a part of the CARES Act $600 in Jan 2020 as part of the Coronavirus Response and Relief Supplemental Appropriations Act $1400 in March 2021 as part of the American Rescue Plan Act This money is not considered income and therefore will not be taxed. Will I still need to have information on the stimulus ...