Estimated tax is the method used to pay tax on income that isn't subject lo withholding, most notably earnings from self-employment. Many owners of small businesses whether operated as S corporations, partnerships, limited liability companies electing partnership taxation, or sole proprietorships—pay their estimated lax using the same IRS Form 1040-ES that individuals use. Payments of estimated taxes are spread out over four payments, falling due in April. June, and September of the current year, and January of the following year. Generally a taxpayer must file estimated taxes if he or she owes S1.000 or more in taxes when an annual lax … [Read more...]

There is a federal law that affords consumers significant say over the pri­vacy of their financial information while still allowing financial institu­tions to share information for normal business purposes. This Act covers banks, savings and loan institutions, credit unions, insurance companies, securities firms, and even some retail­ers and automobile dealers that extend or make arrangements for consumer credit. There may be more forms of personal information gathered by the  institutions than you realize. They may have credit reports and records of how much you buy and borrow, where you shop, and how well or poorly you pay your bills … [Read more...]

The ageless advice to read, under­stand, and expect to be bound by lan­guage in a contract you sign is as sound now as ever. It is especially important with respect to contracts to buy real property, where the financial stakes are often high. Jerome contracted to buy property, delivering a 55,000 deposit to be credited toward the purchase price. An addendum to the contract agreed to by the parties staled thai in the event the seller breached the agree­ment or defaulted, Jerome was entitled to the return ofhis earnest money and cancellation of the contract, as his "sole and exclusive remedy." When the seller did not close on the deal … [Read more...]