Mr. Best Financial

04/06/2022

Making Sure Everyone Gets Paid in Raleigh Business Partnerships

When it comes to business partnerships, there are different ways to pay those invested in the business – and making sure your business money flow is doing this is a top priority.

04/06/2022

Ever wondered where most people trip up when preparing their taxes? What details are all too easy to miss?

We talk to many people who have tried to do their taxes themselves but found that they missed an important form here or vital detail there. When it comes to the sort of tax code we're all dealing with, it's worth it to work with an expert who has studied the ins and outs and knows how to match your situation with the regulations in the most profitable way.

04/05/2022

Anticipating a tax refund but haven't spied its arrival yet?

A possible reason may be that the IRS flagged your account for fraud prevention - a pretty common occurrence.

If you received Letter 5071C or 6331C from the IRS, it requires an immediate response to get the money you have coming to you.

Now, you might be able to take care of this via the Identity Verification Service (with the right documentation of course).

However, if there are any problems with the online service (a not so uncommon situation), that will require a good old-fashioned phone call to the IRS -- in which case, be prepared for a long wait.

Letter 5071C or 6331C tells you that we need to verify your identity to process a federal income tax return filed with your name and taxpayer identification number.

04/04/2022

The clock is ticking on filing your 2021 taxes (or extension filing).

Time to clear some room in your schedule...

04/01/2022

Ready to be your own boss?

If you've been dreaming of starting a business, but don't have a lot of starting capital for it, there's some good news. You CAN start a business on a budget.

Check out these small-budget business startup tips from the U.S. Chamber of Commerce.

Prioritizing low overhead can make starting a business much more affordable than you might expect.

03/31/2022

If you're not in the habit of filing a tax return because you fall below the income threshold for reporting or just don't make a wage at all, here are a few reasons you should still file a return this year.

1. Expansions to the Child Tax Credit (didn't get the advance payments last year - you still can)
2. Increases to the Child and Dependent Care Credit (up to $4,000 for one qualifying person, $8,000 for two)
3. A bigger Earned Income Tax Credit (minimum $1,500 if you qualify)
4. Recovery Rebate Credit (a chance to still claim the 3rd stimulus)
5. Charitable deductions (up to $300 for singles or $600 for married couples filing jointly)

03/30/2022

The SBA announced the additional deferment of principal and interest payments for existing COVID Economic Injury Disaster Loan (EIDL) program borrowers for a total of 30 months deferment from inception on all approved COVID EIDL loans.

That spells relief (and flexibility) for small business owners affected by the pandemic and the recent supply chain and inflation difficulties during a growing economic recovery.

However note well: the interest is still racking up (albeit at a very reasonable rate).

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03/29/2022

What do you think?

Are these tax write-offs savvy or ridiculous?

Your fellow taxpayers have successfully claimed write-offs for many things that most of us wouldn't even imagine. But be careful if you plan on following their lead.

03/28/2022

Crowdfunding has been used for all sorts of things from charitable donations to movie making to the creation and selling of some great (and not so great) inventions.

Before this year, crowdfund recipients only had to report the income on their taxes if goods or services were given in exchange for 200 or more transactions adding up to the gross amount of $20k or more in a calendar year.

But with the passage of the American Rescue Plan, reporting requirements have changed significantly.

Now, any amount more than $600 accrued in a calendar year regardless of the number of transactions requires an accompanying 1099-K form (Payment Card and Third Party Network Transactions) to report as income.

Of course, this excludes charitable gifts (as long as the recipient demonstrates that funds have been transferred to the needy individual for whom the crowdfunding campaign was created).

03/25/2022

Slinging cash toward school supplies for students who can't or for special classroom projects is common fare for a lot of teachers.

And we know it's not much, but the IRS does give a little kickback for that professional investment.

Eligible teachers can deduct up to $250 in unreimbursed expenses.

Deductible expenses include:
• Professional development course fees
• Books
• Supplies
• Computer equipment, including related software and services
• Other equipment and materials used in the classroom
• Personal protective equipment, disinfectants, and other supplies used for the prevention of the spread of coronavirus

03/24/2022

Long days and shorter nights... we all know the tiredness that sets in from a busy work week.

If you think your boss should institute mandatory naps at work, raise your... thumb.

03/23/2022

The shock of the last two years hasn’t really worn off and new challenges are mounting as war affects the globe.

And the greatest concern among small business owners right now? Inflation and how it is affecting their business. Most are raising prices, some are reducing staff, some are taking out loans to keep their head above water.

So, even though we're in the thick of things over here ... I want to assure you that we're here for you as you face the effects of inflation in your business.