Form 1040

The individual tax return on an annual basis is known as the Form 1040.   The Internal Revenue Service monitors the filing of Form 1040 by all individuals.   There are a multitude of variables involved with the Form 1040 and the these articles identify and explain the nuances.

Estimated Tax Payments – Why and How

Estimated Taxes

In the normal taxpayer relationship with the Internal Revenue Service, the taxpayer is an employee and via withholding, taxes are paid the U.S. Government by the employer.  Basically the employer pays the tax after each payroll run on behalf of all the employees and the corresponding mandated matching taxes (Social Security and Medicare).  But in the small business world, this is not the normal relationship.

Form 1041 – Income Tax Return for Estates

Form 1041

When an individual passes away, his/her will or trust identifies a representative to administer his/her estate.  This representative is referred to as the executor (male) or executrix (female) and is generally approved or assigned by the local circuit court.  The Internal Revenue Service tasks this representative to file a final personal return and information returns until the estate is completely transferred to the heirs.

What is a Living Trust?

Living Trust

A tool in estate planning used to minimize probate costs upon the death of the grantor is the living trust.   A Living Trust is created while the grantor is alive and typically is revocable in nature. It is designed to manage assets for the best interest of a beneficiary, usually the grantor.

The Sole Proprietorship – The Basics

Sole Proprietorship

Of the four business entity types, the sole proprietorship is by far the most flexible and easiest to manage.  There are very few drawbacks.  In the world of business, the key is to maximize profit with the least amount of risk.

Follow by Email
Facebook
Twitter
LinkedIn