Mommies Magazine

Is Your eBay Activity a Business or a Hobby?

Posted on 12. Jan, 2009 by reviews.

Is Your eBay Activity a Business or a Hobby?

By Kristine McKinley

Many eBay sellers start out as a hobby, or just to clean out their closets. Many times, this hobby can lead to a profitable business.
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Top 5 Missed Tax Deductions

Posted on 05. Jan, 2009 by reviews.

By Kristine McKinley

How many times have you done your taxes, and a week or a month later realized you forgot a deduction? The tax law is very complicated, so it’s easy to miss a deduction or two. In my experience, these are the top 5 missed deductions.

1. Non-Cash Donations

Did you clean out your closets this year? Chances are you donated those items to Goodwill or a similar non-profit organization. The value of donated items (clothing, furniture, etc.) is deductible. You will need to get a written receipt and assign a value to these items, but the tax savings are worth the effort.

2. Points on Refinancing

With interest rates so low the past few years, there have been a record-number of houses refinanced. If you refinanced, you may have paid points to get a lower interest rate. These points are deductible over the life of the new loan. In addition, if you incurred points on an old refinancing, any unamortized points are deductible in the year of the new refinancing.

3. Educator Expenses

If you’re a qualified educator (teacher, aide, instructor or principal), you can deduct up to $250 for materials you bought for the classroom. Qualified expenses include books, supplies, and computer equipment. This law is set to expire in 2006, so take advantage of it now if you qualify.

4. Investment and Tax Expenses

Expenses for tax planning and investment advice are deductible as a miscellaneous deduction, subject to the 2% Adjusted Gross Income (AGI) limitation. Expenses that qualify include tax preparation fees, safe deposit box fees, fees paid to investment advisors, legal and accounting fees related to tax planning, broker and IRA fees paid directly, investment publications, and more. Many people assume that they won’t have enough miscellaneous expenses to exceed the 2% AGI floor, but all of these expenses combined can be substantial, especially if you have unreimbursed employee expenses to add to these expenses.

5. College Savings or 529 Plan Contributions

Depending on which state you live in, contributions to 529 college savings plans may be deductible on your state income tax return. Because this deduction is only available on the state return (no deduction available on your federal return for 529 contributions), many people fail to include this deduction on their state tax return.

Kristine A. McKinley, CFP, CPA, and founder of Beacon Financial Advisors, teaches individuals and families how to invest and plan for retirement, college, and other financial goals. Kristine offers financial and tax planning on an hourly, fee-only basis.

To learn more about taxes, such as making estimated tax payments and home office tax tips, please visit onlinebiztaxtips.com

Article Source: http://EzineArticles.com/?expert=Kristine_McKinley
http://EzineArticles.com/?Top-5-Missed-Tax-Deductions&id=132792

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Roth IRA or 401K – Which is Better?

Posted on 29. Dec, 2008 by reviews.

By Kristine McKinley

Q: I am trying to decide if opening and contributing to a Roth IRA would be a better option than contributing over and above what my company matches in my 401K.
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Five Steps to a Comfortable Retirement – Without Winning the Lottery!

Posted on 22. Dec, 2008 by reviews.

By Kristine McKinley

You’ve probably heard about the Nebraska meatpackers who won the largest lottery jackpot in the United States last week. One winner replied “I’ve been retired for about four days now” when asked what he would do with his winnings. His response did not surprise me; I’m sure my reaction would be similar!
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Retirement Plans for Solo Entrepreneurs

Posted on 15. Dec, 2008 by reviews.

By Kristine McKinley

Saving for retirement is even more important for solo-entrepreneurs because you don’t have a company sponsored pension plan or matching 401K contributions to rely on. There are many retirement plans available to self employed individuals and small businesses. Which one is right for you?
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Juggling Retirement and College Savings

Posted on 08. Dec, 2008 by reviews.

By Kristine McKinley

Most parents want to pay for their children’s college education, or at the very least help pay for college. While it would be great for your children to be able to start like after college without student loans to pay off, the cost to parents may be too high.
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Cash Flow Planning for Solo Entrepreneur

Posted on 01. Dec, 2008 by reviews.

By Kristine McKinley

You’ve heard it a million times – cash flow can make or break a business. Lack of cash flow planning is the reason why many businesses fail. In fact, many PROFITABLE businesses fail because of cash flow issues. Without adequate cash flow, you can’t pay your bills and you can’t make plans for your business. [...]

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