firstname.lastname@example.org ( Eric Toder, Jim Nunns, Joseph Rosenberg) wrote
This paper analyzes three options to increase individual income tax rates to reduce the projected debt-to-GDP to 60% by 2020, 2025 or 2035. Option 1 increases all individual income tax rates, Option 2 increases only the top three rates, and Option 3 only the top two rates. Options are analyzed using a Current Law baseline (2001-2003 tax cuts expire) and Current Policy baseline (2001-2003 tax cuts are extended). Under Current Policy, Options 2
If this this happen and taxes are increased people will find it harder to save. Overpaying your tax will really lower your income if the brackets are increased.
Having your paycheck analyzed so you’re not paying out extra money in through taxes could be a life save. A paycheck analysis will bring back into your hand money you can use to offset the increasing in tax money going out
A free paycheck analysis is being off for a limited time at From Taxes.com when you subscribe to receive the free newsletter
Despite the so many benefits in buying and selling websites, there would always be major problems. These take place is the buyer or the seller of the website don’t have any idea what are the things that should be done and how can solve minor problems along the way. In order to veer away from major problems that can be encountered in buying or selling a website, here are some things that the buyer or seller should take into consideration:
1. Accomplish major monetary issues.
In this case, the major objective of the seller is makes a positive image so the deal would proceed smoothly. For the seller to do this he or she should put into order the website’s monetary statements and financial documents sufficiently. This is to ensure that there will be no problems once the buyer would want to know the financial status of the website. For the buyer, it is also a must for him to check if the proprietor have already arranged a complete set of financial papersat least a record containing information in the previous two yearsto know what is the financial viability of the website.
2. Be transparent on financial declarations.
The seller before selling his or her website should take in up him or to herself the responsibility of having the financial declarations reviewed ideally by an accounting firm. If this is not possible, at least the financial declarations have been compiled by the website possessor in an orderly manner. For the buyer, he or she must also check if the financial declarations have been audited and the statements can meet his or her expectations. This is also advantageous for the buyer because if the financial declarations are precise and accurate, he or she would save time because there will be no need for recalculation.
3. Be careful on sudden closings.
Buyers and sellers alike should be very careful on sudden closings because it can alter the financial reports themselves. For initial transactions, these pieces of information don’t have to be audited but should be audited before the final arrangement takes place. The seller should be very careful in sudden closings because he or she couldn’t sell the site if there are financial warts. The seller should also keep in mind that the buyer will be able to find financial problems due to sudden closing eventually so there’s no point of not fixing it now.
4. Avoid negotiations that are devoid of having worked out.
There’s a difficulty in having diverse deals and arrangements in no time. This is because the buyer will not have enough time to find our if there were devoid negotiations in past. For both parties to avoid this kind of problem in buying and selling websites, they must find time to recover dissimilar tax implications so the deal won’t be put off.
5. Always be open to suggestions.
This will work both ways for the buyer and seller because being open to suggestions will not only make their negotiations easier but will also enable them to move on and start anew. If the buyer is not open to suggestions, stiffness on his or her part may cause a problem because the seller would think that he is being pushed on the wall or he might think that the buyer doesn’t trust him or her enough and all the accomplishments his or her website has achieved over the years. When this happens, the buying and selling of websites will be cancelled and can lead both parties to square one.
(Do I Have To Pay Taxes?)
Perhaps the most common misconceptions about taxes and
your online business is that the two are not related
to each other. Most people think that online
businesses are not really taxed that’s why more and
more people are becoming attracted to start their very
own online business.
If you are one of the many people who is interested in
starting your own online business or if you already
have an online business of your own, then for sure you
have heard about the controversies about online
businesses and taxes.
Most people who don’t really have a stable background
about online businesses and taxes would most probably
guess that owners of online businesses are able to be
exempted from paying taxes.
However, in reality, online businesses are still
covered with tax dues.
“But I Am Working At Home”
And Other Lame Excuses Not To Pay Taxes
The most common excuse of people who have online
businesses who wish to ditch paying taxes is that they
are “working at home”. What most people don’t realize
is that taxes are actually based on the sources and
amount of the income as well as the types of services
and products sold; not on the location of the
So whether you are working at home, in a store or in a
warehouse, you are still obliged to pay for whatever
tax is due to you.
Internet Tax Is Just Like Any Business Tax Basically,
online businesses are taxed just like any other
business. The government does not actually collect
income taxes based on how a business operates but
instead, it focuses on the form of the business.
A business based on the Internet still has to register
for GST and PST (if applicable) just like any other
business. Whether your online business is a sole
proprietorship or incorporated, you will still need to
fill up some important forms so that your online
business can be deemed as legal and so that you can
pay the proper taxes regularly.
There is actually no big difference between the tax
responsibility of an online business and any other
Online Businesses And Federal Taxes
If you have an online business and you are wondering
if you still need to pay federal taxes, the answer is
yes. But before you go around and complain about the
unfairness of the world, you might as well learn more
about the federal taxes that you need to pay.
If you are a sole proprietor of an online business,
any income you earn through your online business will
be taxed as income on your PTR or personal tax return.
In addition to that, you are also obliged to pay your
portion of social security and medicare taxes using
However, if you have incorporated your business, the
way of paying taxes will become slightly different
compared to when you are the sole proprietor of your
Sometimes, the tax you pay as an incorporated online
business will also depend on the kind of organization.
It’s either you will pay tax at a corporate level or
it will be passed down to you as an income.
Dealing with an taxes and your online business can be
quite an ordeal if done alone so it would be much
better if you’d contact experts regarding this matter
such as a lawyer or a certified public accountant.
Basic Things You Need To Know
So you want to start your very own online business.
Aside from having unlimited access to the Internet,
you also need to be armed with adequate knowledge
about taxes and your online business because without
it, you will surely be at loss.
Online retailers, or more commonly known as e-tailers
are not exempted from paying taxes, contrary to the
common misconception of most people. E-tailers are
still included in the rush for meeting the April 15
deadline for tax filings.
However, veteran e-tailers would say that the most
difficult part for online business owners is
navigating and complying with the confusing and
complicated laws and conditions governing day to day
An Everyday Challenge If you are one e-tailer who
would like to take your online business seriously,
then you should be prepared to deal with the fact that
handling and managing sales taxes is actually an
The truth is, a lot of e-tailers are required by the
government or their state to file and remit sales tax
to states on either a monthly or regular interval. The
basis for the filing of sales taxes would more or less
depend on how much revenue you online business
Few Tips For E-tailers
It is very vital that you understand your
responsibility for sales tax. You must also know that
the idea that e-commerce companies are required to
collect and remit sales tax in every state is one big
You only have to pay sales tax if you have nexus in
that certain state. If you are a neophyte in online
business, perhaps you don’t have an idea what the word
nexus means, right?
Well, in online business jargon, nexus means a
“connection”. Put in application, making a sale in
another state does not mean that you automatically
have a sales tax obligation.
You have to put in mind that there are many rules and
laws that you need to consider before you can
determine whether or not you will need to pay for
sales tax in a certain state.
When you create your very own nexus in a certain
state, you are then required to calculate, collect,
report and remit the sales that you make in that
certain state every time you have a transaction there.
This is the reason why you are obliged to pay tax
sales based on the location of your business.
However, you must also keep in mind that there are
also other ways to create your very own nexus in a
state. Aside from physical presence or structure of
your business establishment in a certain state, you
can also establish a nexus by having sales
representatives present in that state, tradeshows,
mobile stores, etc.
Trying to make an online business work amidst the
seemingly confusing and complicated rules that apply
to different states can be quite impossible.
However, one must not lose hope; with the help of
professionals in the legal field and certified public
accountants, you will surely be enlightened as to what
steps you should take for your online business to
stabilize and prosper.
By being armed with the right knowledge about taxes
and your online business will surely help you achieve
success in the realm of online businesses.