Income Tax Debt Relief

by

William McConnaughy

Income tax debt relief can take many forms when you’re ready to negotiate with the IRS. When you don’t have the money to pay your income taxes, it can seem hopeless as the IRS notices pile up on the desk. But the truth is here are several ways to come to agreement with the IRS when seeking help with tax that are due.

Breathing DeeplyWhen you are seeking income tax debt relief, the first thing you should do is take a deep breath. While you’re breathing deeply, you should also be considering the hiring of a tax negotiator. Though you can seek relief on your own, using an expert negotiator is really the only way to know for sure you have negotiated the best settlement possible.The fact is the IRS is going to get as much money from you as possible even knowing they have full authority to relieve your debt. The IRS operates just like a collection agency, and the goal is to maximize revenue. After all, the IRS as an agency is judged by how much money it collects.Unfortunately, it’s also an agency that goes after what it sees as easy money. The people who can afford expensive tax attorneys make the IRS spend a lot of agency money in terms of agent salaries. A complicated tax case can take years to settle and in the meantime the agency isn’t collecting any money.Now compare the complicated collection cases to most middle-income cases. An agent can audit and negotiate dozens of tax debts with little resistance, because most people are afraid of the power of the IRS. That’s why a tax negotiator can be so helpful in even relatively small tax debt cases, because they give the middle class taxpayer representation.Exhale SlowlyWhen you need income tax debt relief, there are several options which can be pursued.Submit an installment agreementSeek uncollectible statusMake an Offer in CompromiseBut before any of these actions are taken the amount of the debt itself should be negotiated. The lower you can get the tax amount owed, the quicker you’ll be able to pay off the IRS.A tax negotiator can act as an intermediary between you and the IRS. Income tax debt relief is possible, but the amount of relief depends upon dealing with the IRS on as even basis as possible. Let’s face it – it’s hard to negotiate when you’re sick with worry and fear of the IRS.Income tax debt relief means three things will occur. First, the debt is renegotiated. Second, an agreement between you and the IRS is put into place. Third, the agreement puts a stop to the awful collection process as long as you meet the terms of the agreement.When you finally get income tax debt relief, you can breathe deeply and then exhale with happiness.

William McConnaughy, CPA is a tax negotiation professional. He has experience working with people seeking tax relief and credit repair. For more information visit his

tax relief

website.

Article Source:

Income Tax Debt Relief}

ELSS Secret of Tax Saving with Mutual Fund Investments.

by

Ryan Crown

As the name suggests ELSS (equity linked savings scheme), invests primarily in equity shares of companies. As per financial regulations, the scheme Fund manager has to invest 80% of the total amount in the equity shares and the remaining 20% per cent can be invested in other instruments like bonds, debentures, government securities and others. When you invest in ELSS your money is locked for a period of three years (minimum). Once you invest in tax saver funds you cannot withdraw the amount for three years, this acts as a blessing in disguise as tax saving funds generally yield high returns during a 3year period. The common man is basically afraid of investing his money in equity shares as he is afraid of loosing money. But a look at the recent past shows that investors who have invested in tax saver funds have never lost out on their money, rather tax saver funds have been the front runners in terms of returns to investors. A small illustration will clarify comprehensions.

If you make an investment of Rs 1,00,000/ ( 1 lac), then under section 80c this complete amount is deducted from your gross income for that particular year. If your annual income puts you in the highest tax paying zone, i.e -34%, then the investment of Rs 1,00,000/ will ensure that you get an annual tax deduction of Rs, 34,000/. So logically speaking you invest Rs 66,000/ considering the deduction. Assuming that the Mutual Fund declares an annual dividend of 10% then your total return on Rs 66,000 is [(10,000/66000)* 100] = 15.15%. This particular dividend earned is also tax-free, hence more profit. Another profitable venture out of this investment is that after a period of 3 years the capital gain that you obtain out of the investment is also tax-free. This is what makes ELSS the most attractive investment for those who have the appetite for moderate risk. However, prior to making an investment selecting a good fund house based on its reputation and track record is important. Elss are considered to be the best tax saving mutual funds in India. ELSS is a good option to save tax and generate long term capital gains. These gains are obtained from the equity market only if you are investing in a long time horizon. Adding money in a disciplined manner creates a good corpus. The basic confusion that the average investor could have is that they consider Equity Mutual Funds and ELSS to be the same, which in true sense isnt correct. Normal equity funds could be purchased today and disposed off tomorrow. Incase of ELSS there is a compulsory 3 year lock in period. As per the rules related to long-term capital gains, profit from equity MFs after one year becomes tax-free. As per latest sources the top 5 ELSS schemes are 1) Principal Personal Tax-saver, 2) DSP ML Tax Saver Fund, 3) Taurus Libra Taxshield, 4) Lotus India Tax Plan, 5) Franklin India Tax Shield ( FIT). Going by the current volatile market trends and with the current fiscal year approaching an end, investing in a good ELSS fund is a clever option to save taxes.

Investment and Financial Planner for a leading Mutual Fund House in India. To read more about tax saving with ELSS click

here

.

Article Source:

ELSS Secret of Tax Saving with Mutual Fund Investments.

By Wayne M. Davies

Looking for an easy way to increase your business deductions? Look no further than your driveway.

First, the general rule: your vehicle is deductible to the extent you use it for business.

So, if you drive your car 100% for business, all car-related expenses are deductible.

But if you use it less than 100% for business, do not despair. Less-than-100% use is very typical among small business owners and the self-employed — you’ll still come out way ahead by keeping good vehicle expense records.

For example, if you drive your car 75% for business, then you get to deduct 75% of your vehicle expenses.

Now to the fun part.

There are two methods for reporting your car expenses:

1. Actual Expense Method

2. Mileage Method

With the Actual Expense Method, you have to keep track of all your vehicle related expenses, such as:

— gasoline

— oil

— maintenance & repairs

— insurance

— license & registration

— wash & wax

— supplies & equipment

— depreciation expense (including Section 179 deduction)

— lease payments

— loan interest

— state and local taxes

So you add up all those deductions and multiply the total by your business use percentage, which is determined by dividing business miles by total miles driven.

The Mileage Method works like this: instead of tracking all the actual expenses listed above, you

only need the number of business miles driven, which is multiplied by the standard mileage rate published each year by the IRS.

For 2003 the mileage rate was 36 cents per mile.

For 2004 the mileage rate was 37.5 cents per mile.

For 2005 there are two mileage rates: 40.5 cents/mile

from January 1 through August 31, and 48.5 cents/mile

from September 1 through December 31.

For 2006 the mileage rate is 44.5 cents per mile.

If you drove your car 10,000 miles in 2005, your deduction is at least $4,000 (depending on how many miles you drove during the last four months) — regardless of what your actual expenses might have been.

NOTE: There are 2 actual expenses that are also deductible under the Mileage Method — interest and taxes.

Now for the obvious question: Which method is better?

Well, here’s how I look at it. If you want to get the highest deduction, you should “run the numbers” under both methods and then use whichever method results in the higher deduction.

You are allowed to pick whichever method you want.

But once you pick a method, be careful to follow the rules on “switching” from one method to the other: You can switch from the Mileage Method to the Actual Method, but generally are not allowed to switch from the Actual Method to the Mileage Method.

Having said that, let’s be practical. If you hate recordkeeping, use the Mileage Method. It’s much simpler and faster. You won’t have to keep all those receipts.

Even the Mileage Method requires some recordkeeping, however. You should keep a log that documents the business use of the vehicle. Here are 3 IRS-approved car logs:

1. Daily Log. Yep, you just record all business miles for all 365 days of the year.

2. 90-Day Log. Here’s a little-known rule — instead of keeping mileage records for the entire year, you can get by with just a representative portion of the year — and a 90-day period is considered an adequate representation of the entire year.

So you would keep a Daily Log for a 3-month period, say January through March. To get your annual mileage total, you multiply the 3-month total by 4.

3. One-week Log. Here’s another short-cut: The IRS also allows you to keep a log for just the first week of each month. Then you multiply that week’s mileage by 4 to get the monthly total.

Regardless of which method you use, there’s a goldmine of deductions sitting right there in the garage.

About the Author: Wayne M. Davies is author of 3 tax-slashing eBooks for small business owners and the self-employed. For a free copy of Wayne’s 25-page report, “How To Instantly Double Your Deductions” visit

YouSaveOnTaxes.com

Source:

isnare.com

Permanent Link:

isnare.com/?aid=36087&ca=Finances

Chennai Residential Township, Township Development in Chennai, Property Developers in Chennai

by

Ashok Israni

Chennai Residential Township

Whether it is commercial property or residential property, recently there has been a huge demand of properties in Chennai. Chennai being one of the metropolitan cities in India, it has experienced lot of improvement in its infrastructure. Because of its drastic developments in recent years, even NRIs are showing interest in Chennai properties. Chennai real estate has seen this development because it is the most favored city for BPOs and call centers. Chennai is also known for its booming film industry. The flourishing industries in Chennai include hand looms, furnishings, fine silks, and traditional and trendy merchandise. Because of Chennai’s traditional values, the real estate is on the rise. The improved lifestyle and easy availability of housing loans in Chennai has encouraged the development of residential townships in Chennai. The townships in Chennai are developed because of high demand of residential properties and scarcity of land in Chennai. The townships can be built in the outskirts of the city as they are integrated with all the facilities like hospital, school, shopping mall, gym etc. So, instead of staying in a crowded city, it is better to stay in a township which is free of pollution and having all the facilities of the city.

Township Development in Chennai

Many professionals who have migrated to Chennai prefer living in the townships as they are not aware of the city and they get all the facilities just near their residential accommodation. The townships are developed in beautiful surroundings and are away from the crowded city, due to this reason many people prefer to stay in townships. Whereas, you get all the facilities in township which you can get in the city. Chennai townships are ideal for people who prefer to have high quality lifestyle and peaceful living. The townships in Chennai consist of low rise apartments, high rise apartments and independent housing. So, you can also choose the type of residential accommodation you need to stay. Some people prefer a small house whereas some people prefer spacious accommodation. The townships are built in such a way that it can provide you with the kind of accommodation you prefer. If you are planning to buy a residential accommodation in Chennai, whether it is for staying purpose or investment purpose, it is definitely going to give you a luxurious lifestyle because of its modern architecture and amenities like 24 hours running water, round the clock security, intercom facility etc.

Property Developers in Chennai

Due to the growing demand of residential projects in Chennai, Pacifica Companies, the property developers in Chennai, have come up with a township project in Chennai located in the OMR road with AURUM. This township in Chennai has all the amenities required by people expecting high standard of living. Whether it is architecture, amenities, construction or the class, AURUM the residential township project in OMR road claims to be the best amongst all the other township projects in India.

Real estate property development company

, Pacifica Company offers

residential properties

,

commercial properties

, hotels projects, IT parks development, township development, mixed use development projects.

Article Source:

eArticlesOnline.com}