Tax avoidance refers to the legal practice of arranging your personal or business financial affairs to minimize tax liability within the bounds of the law. Unlike tax evasion, which is a deliberate and illegal failure to pay one’s taxes, tax avoidance is perfectly...
Doing your taxes can be complicated. Mistakes are fairly common. Most people who do their taxes spend a bit of time worrying and feeling stressed about making these errors. They’re worried about the potential ramifications, and they may even believe that making tax...
As we start the new year, a lot of individuals and business owners are thinking about their taxes. It's time to get all the paperwork together and figure out exactly how much money the government is owed. The United States uses an interesting system to do this,...
Making a deal with the IRS is possible, but without an offer in compromise, or OIC, you must pay your full tax liability. Though the Internal Revenue Service does accept smaller payments, the agency won't contest the amount for you. Tax law in California requires you...
Many people in California confuse tax avoidance and tax evasion, but tax avoidance is legal while tax evasion is illegal. Knowing the difference between tax avoidance and tax evasion might help you to lower your tax bill while avoiding criminal liability. Tax...
Rental income serves as a way entrepreneurs familiar with property investments may find potentially lucrative. As long as the rental income exceeds expenses, then the venture could be worthwhile. New California landlords might overlook an unavoidable cost: taxes....
The state of California holds the right to suspend any business that doesn't properly pay its tax bill. During this suspension, the business loses its rights, privileges and powers to do business within the state. In the event that your business is suspended due to...
There are all kinds of things the government does to incentivize investment and job growth. Section 179 of the IRS tax code allows people to deduct money used for business equipment, for example. Section 1031 makes it possible for California investors to limit their...
In California, taxes are a necessary evil. People will generally understand that taxes are vital for various reasons, but they still want to mitigate their exposure and how much they are obligated to pay. This is perfectly legal under tax law. Still, it is common for...
For Californians who are starting a business, one of the most important decisions is what entity type to use. There are myriad factors to consider when making that determination, not the least of which is tax law. Of course, there are obvious points to think about...
