Your tax fantasy

Imagine an IRS rule that allows you to immediately deduct the cost of almost any asset you need, regardless of the asset’s useful life. Computers?  Deductible.   Furniture? Deductible. Software?  Deductible.   Section 179 allows you to buy assets and deduct them immediately on your tax return this year. Now, be forewarned that the IRS set limits […]
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Take advantage of your constraints

Typically a body-builder would focus on whichever muscle is weakest, and work, work, work that muscle until it is strong. So, too, for the entrepreneur.  You should know all about your business’s challenges and constraints, isolate them, and focus on them.  This is where you will make the most progress. Suppose that your business is […]
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Don’t leave your money on the IRS’ table

Not everyone has to file a tax return.  But you might want to file anyway.  Here’s why. First of all, you can check here to see if you are required to file.  Even if you are not required to file, you may wish to file your tax return anyway in order to get the tax refund that you are […]
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The balance sheet explained

A Balance Sheet lists a company’s assets, liabilities, and owners” equity at a given point in time.  It follows the accounting equation and will help you understand a company’s solvency and liquidity. Assets = Liabilities + Owners’ Equity. The Balance Sheet is sometimes called the Statement of Financial Position.  The name “balance sheet” comes from the fact that a […]
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Earnings per share

Earnings per share is perhaps the most followed accounting figure by investors.  It is so important that they refer to it as “the bottom line.” Earnings per share (“EPS”) is calculated by dividing a company’s net income by the average number of common shares outstanding during the period.  The resulting number represents how profitable a […]
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