Irish Expats – Avoiding Taxes on Your Pension

For Irish people who chose to retire abroad, they now have the option to avoid the Irish pension levy, avoid Irish income tax, capital gains tax and make tax savings upon death with regards to your existing pensions. You can now avoid the new Irish tax on pensions via a transfer to a QROPS (Qualifying Overseas Pension Scheme). This is also known as the European Union Retirement Benefits Scheme (EURBS).

The new Irish pension levy (which started at an initial rate of 0.6% per year on pension fund assets) was announced last May in 2011 and is backdated to 1 January 2011. The Irish pension levy is targeted to raise €450m for the Irish Revenue Commissioners, every year, for at least the 4-year period 2011-2014. The Irish tax on pension payments applies to individual pension policies (“retirement annuity contracts”), company pension schemes, personal retirement bonds, (non-vested) PRSAs and buy-out bonds.

The new pensions levy is basically a tax on savings and

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Tax Reforms

Implementing “flat tax” on Income Rate
One tax reform issue that requires addressing is the amount of revenue that needs to be raised by the federal tax system. When there is a disproportion between revenue and spending, debts and federal deficits will increase and reach unsustainable limits. Policy makers need to assess tax policies and come up with ways of alleviating fiscal pressures. Implement a flat tax on income at a rate of 18% for all Americans. Having a flat tax for all Americans will ensure that all citizens are taxed equally and there is no bias. However, a rate of 18% is too high for the citizens taking into account the citizens have different incomes. Implementing this policy will not be beneficial to the government, as it would benefit high-income earners only.

The working class in America pays too much in taxes compared to cooperation’s and millionaires. Most big and profitable corporations pay little on taxes as compared to the middle c

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Important Tax Considerations For The Self-Employed Handyman

One of the difficulties that can arise from being a self-employed handyman is figuring out how to handle taxes. Understanding tax law is obviously something most people would rather not get into, due to the shear complexity of the tax code. As a handyman working for yourself there are a few things you should know about your tax situation, and if you have employees there are several other things that you might want to keep in mind.

First of all, if you are self-employed, there’s nobody else withholding taxes from your paycheck ever week. Because of this, the IRS requires that you do so yourself, in the form of “estimated taxes”. Estimated taxes are generally paid on a quarterly basis, but done so on a somewhat odd schedule. Estimated taxes are paid using an IRS Form 1040-ES, and these tax payments are due April 15, July 15, September 15, and January 15 of the following year. Failure to make these payments can result in stiff penalties, which can exceed 45% of

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Exemptions From Capital Gains Tax in Spain

Capital Gains Tax in Spain is payable on the profit from the sale of certain assets in Spain, including antiques, art and jewellery, stocks and shares, property and businesses.

Exemptions from Capital Gains Tax on Property

Residents over 65 are exempt from this tax on the profit made from the sale of their principal home, irrespective of how long they have owned it.

Importantly the Spanish Tax Office defines “a principal home” as the place where you have lived permanently for at least 3 years; thus residents below 65 are exempt from CGT on the profit made from the sale of their principal home, provided that all the profit is invested in the purchase of another principal home in Spain within two years of the sale.

Any profit that is not reinvested is subject to CGT at the income tax rate.

Gains revealed as a result of the death of a taxpayer, gifts to government entities and donations of certain assets in lieu of tax pay

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Is Treasury Secretary Mnuchin’s Move to Reduce Capital Gains Taxes Naive or Genius?

When I heard the news yesterday, I nearly fell off my chair, not because it’s a bad idea, but the timing in my humble opinion could not be worse. The Treasury Secretary is studying the ramifications of reducing capital gains taxes on investments like stocks, bonds and real estate, by taking into account inflation before levying taxes on investors selling those assets. Capital gains currently are figured by subtracting original asset purchase prices from current sale prices without adjusting for inflation. Obviously, such a move would be seen as favoring the rich who have more assets to sell and would thereby benefit most from such a proposal. In addition, at least in the short run, naysayers contend that the move would further increase our already obscene and growing Government debt, which nobody thinks is a good idea. However, proponents of the proposal would argue that reducing capital gains would in the medium to longer term increase economic activity and ultimately lead to

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Benefits of Tax Software

Tax software is designed to enable you to cheaply and easily prepare and file your tax returns. You are able to use a highly rated and proven program to file your business and personal taxes yourself without having to contract the services of an accountant or other tax expert. Go for an online tax software yearly update or edition which will enable you to receive automatic updates, as well as enjoy unfettered online access to your taxes. Below are some of the benefits of using tax software.

  • Maximize Your Tax Deductions – Updated tax software programs enable you to avoid missing out on all the latest deductions, thus reducing what you owe and earning you a larger refund. This way, you get to keep up with all changes in state and federal taxation laws, and avoid owing taxes that arise from these changes.
  • File Returns from Your Computer – Tax software enables you to e-file your tax returns which is much faster and more convenient than hav
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3 Ways That a Business Owner Can Minimize Their Taxes

There are hundreds of ways for a small business owner to minimize their tax bill. Although the first two tips below may seem obvious, most small business owners pay too much tax because they aren’t tracking those two items properly. As for the third tip, a small business owner rarely saves money by doing their own taxes. Read on to find out why.

Tip #1 – Carry a Mileage Log

Tax professionals are always amazed at how many business owners don’t record every single business trip in a mileage log. At roughly $.50 per mile that bad habit can cost you hundreds of dollars in missed tax savings each year. And, for those who think they can just guess, failing an audit for business mileage is pretty expensive after they add interest and penalties.

Purchase a printed log or a small office appointment book, and keep it in your car. Put it where you can reach it from the driver’s seat. Making the task quick and easy is the key to reco

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Managing Small Business Taxes for Startups With High Profits

When your profits are high as a small business, you might feel some pride and a boost in confidence. You are doing what you want to do and you are doing it well. The only issue here is that things might get a bit more complicated. Taxes for a small business with high profits might seem unmanageable, especially if you do not know how to deal with this type of situation. Taxes for small business situations like this should go to the professionals. A small business consultant, a bookkeeper, can handle this far more effectively than you might be able to. This means better results and fewer risks moving forward.

Bookkeeping for small business taxes and profits is the smart choice when you are making a lot of money. When your profits are high for a business of your size, you should have a bookkeeper helping you. The higher the profits are, the more complicated this can get. It is sometimes more complicated than you can manage. If you try to take it on yourself, you might make mista

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Market Volatility and Taxes – How to Minimize Both to Double Your Returns

As a recovering CFO, I find helping people with their financial planning especially fascinating. I recently conducted a Retirement Income Class here locally, where I had the chance to sit down with one of the students to answer some questions she had a little more thoroughly. It was quickly discovered that our conversation had a lot more merit to becoming a formal meeting so we scheduled a time for us to visit at her home where she would feel more at ease and would have access to any documentation she would need. Our friend, let’s call her Mildred, is a 70 year old lady, who like most working class her age has all of her assets in IRAs. She has her social security and a small pension that she lives on and like most people who grew up with Depression Era parents, lives quite comfortably within the confines of her ‘fixed income’. Mildred came to our class because one of our emphasis is minimizing taxes throughout retirement and since she now has Required Minimum Dist

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Taxes on Your Gambling Winnings – You Owe Uncle Sam a Piece No Matter How Much You Won

When you’re gambling at a casino, you may win a few bucks here and there and leave with more dollars than you brought with you. It may be as little as $20, or as much as $1,000. When cashing out you were never presented you with a form to declare your winnings to the IRS. If you think you’re home free, think again. As a U.S. citizen, you owe Uncle Sam a piece of the action regardless of the amount. Many players think that just because they were not given a tax form there’re home free. Not so.

So, what does get reported to the IRS? Larger amounts that are won at gambling establishments such as casinos, lottery retailers, horse race tracks and off-track betting parlors. They will issue a form W-2G, one copy to you and one to the IRS. Here are some details:

Machine Games

$1,200 or more won at a slot machine, video poker, video keno, video blackjack, etc. This only applies to a single jackpot payout amount. Accumulated credits are

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