Don’t have a small business? Create one and reap the rewards!

Image by imagerymajestic from freedigitalphotos.net

Image by imagerymajestic from freedigitalphotos.net

Even if you have a JOB (Just Over Broke) open a business!  You will earn extra income AND get to keep more of what you make with some tax deductions.  **Disclaimer!  Please ALWAYS consult your tax professional regarding tax matters.  We are not tax professionals!**  One of those is the home office deduction but be honest, you should be able to defend your deduction in an audit.  Meals and entertainment when you conduct business with a person you are entertaining during the meal or event.  Be sure you keep good records of what the activity was, when, with whom and how it relates.  Another possible deduction is internet and phone directly related to your business.  Vehicle deductions for local business trips can be deducted either by the standard mileage rate or your actual expenses.  Education for yourself can be deducted as well.  The list goes on and on.  Another VERY helpful benefit of a small business is being able to contribute to a Self-Employed Retirement Plan and the tax benefits you can recognize.  These are a twofer!  They are particularly valuable for reducing your tax bill now and racking up tax-deferred retirement savings for later.

Can you share more benefits of having a small business?  Please comment.

Test the water before you jump in.

Image courtesy of by tratong from freedigitalphotos.net

Image courtesy of by tratong from freedigitalphotos.net

Paper trading allows you to swim in the sea of the stock market without risking any of your money.  It allows you to try out trading strategies for FREE!  These accounts will use the current stock market conditions to reveal your results.  This is a fantastic tool to help you develop a written trading plan and get prepared to fund your stock market trading.

A word of caution, paper trading can seem very easy since there isn’t any real money on the line.  If you don’t take it seriously and simulate trades that you intend on executing, it will be a waste of time.  Wade slowly and tread carefully.

Have you used paper trading and has it helped improve your trading?  Please comment.

 

Brand spanking new houses!

New home by Stuart Miles from freedigitalphotos.net

New home by Stuart Miles from freedigitalphotos.net

There is something to be said for brand spanking new!  Speculative or spec home building can be very profitable under the right market conditions and in the right locations.  It is a blast to design and build something beautiful with all the bells and whistles, then sell at full retail (hopefully).  People love new houses. 

Here you will be looking for a good piece of land in a nice neighborhood. Depending on your comfort level, hire either a general contractor for the entire job or sub contract with various companies yourself to complete the construction.   Be sure the house you build is not at the top of the market (biggest house on the block), you should build a moderate home for the neighborhood.  You will need comparable homes or “comps” to make sure the value of your home appraises at the value you intended.  Always do your homework in your market to make sure the current conditions will yield good results.  Look for a high demand, low inventory market to give you the best chance of success.

Are there any neighborhoods that you feel would be a good market for a spec house?  Please comment.

 

The Strangest Secret

I thought that if you are in the stormy North East today you might have some time to listen to this classic.  It will stand the test of time.  Take a few minutes and please comment below your thoughts.

Would you like a job in healthcare or IT? 2015 could be the start of a great career!

Image courtesy of by Praisaeng from freedigitalphotos.net

Image courtesy of by Praisaeng from freedigitalphotos.net

According to US News article, “The Best Jobs of 2015” the top jobs of 2015 will be in healthcare or IT.  To give yourself the best chance, focus on health care.  Seven out of the ten top jobs are in healthcare.  As the baby boomers age, it only makes sense that jobs in healthcare expand.  It has great prospects with huge growth potential.

If you aren’t a touchy, feely, people person, the IT field might be for you.  Again the growth potential is huge. The job flexibility can be great and salaries just keep going up.  Keep in mind computers aren’t going anywhere and we will always need them.

Maybe a job in IT for the healthcare industry would be ideal by combining the two industries! 

Please comment your thoughts on the HOT jobs for 2015.

 

Taxes; The Good, The Bad and The Ugly

Just in case you missed it…A fantastic webinar, Taxes; The Good, The Bad and The Ugly with Kim Landry, CPA from Landry and Associates.  Kim gave us some great tax strategies and planning techniques to be able to keep more of what you make.

What is a tax strategy that has saved you from paying more taxes than necessary?  Please share.

Please use tools only as directed.

Image courtesy of vectorolie from freedigitalphotos.net

Image courtesy of vectorolie from freedigitalphotos.net

Credit cards cause a lot of pleasure that could ultimately cost you a lot of money and pain if used incorrectly.  Our theory is to use credit cards as a tool only to make your life easier, BUT NEVER CARRY A BALANCE, EVER!  If you can’t pay for the item you are purchasing by the time the bill is due, don’t buy it.  This concept is very, very important.  Many other finance specialists will tell you to never use credit cards, but I would like to believe there are some disciplined adults out there who can benefit from their use.  Be sure to use them only if the total monthly payoff rule is ALWAYS, ALWAYS followed!

What type of cash back or rebate program does your credit card provide?  Please comment.

 

Worth their weight in gold!

Image courtesy of digitalart from freedigitalphotos.ne

Image courtesy of digitalart from freedigitalphotos.ne

A CPA can be a very important member of your investing team who can guide you through the labyrinth of taxes.  They are worth their weight in gold to you and your business.  A true CPA professional can ease your stress and save you lots of money you may have given Uncle Sam because you didn’t know any better.  Here are some tips when working with a CPA to make the most of your time and money.

Form a good relationship.  Once you find a good CPA, stick with them.  They become familiar with your business and they will ask important questions to lead you to a lower tax bill.  Of course, telling the truth is very important because it may make your CPA terminate your relationship and will hurt you if you are dishonest.

Lower your annual bill by being organized.  If you hand over a shoe box fill of receipts instead of a categorized report of expenses, your bill will most certainly be much higher.

Use your CPA in making decisions.  Be sure to consult your trusted CPA regarding purchases and don’t make assumptions.  Those assumptions could be very costly.

We are proud tonight to have our trusted accountant and friend Kim Landry, CPA with us tonight for our FREE webinar to go over the topic of taxes.  Don’t miss it!

 

Please comment on what you learned from the webinar.

 

 

Capital gains, hopefully not losses…

Image courtesy of Stuart Miles from freedigitalphotos.net

Image courtesy of Stuart Miles from freedigitalphotos.net

Capital gains (or losses) are recognized when you sell a capital asset.  A capital asset is almost everything you own and use for personal, pleasure or investment purposes.

 Capital gains are categorized either as short term, held less than one year or long term, held for one year or more.  Long term gains have beneficial treatment in the US tax structure since they are taxed currently at 15% where short term gains are taxed at the individual’s tax rate which can be much higher.  One exception to the rule is the treatment of stock options under section 1256 where gains or losses open at the end of the year or terminated during the year are treated as 60% long term and 40% short term regardless of how long the contracts were held.

We all know taxes are very tricky so there are exceptions to most rules and we encourage always seeking the guidance of a professional.  Check out our webinar on Thursday, January 22, 2015 with Kim Landry, CPA to discuss “Taxes; The Good, The Bad and The Ugly” and she will help clarify some of the tax laws for us.

 What tax strategies are you planning on using in 2015?

 

Find a diamond in the rough

Image courtesy of Boykung from freedigitalphotos.net

Image courtesy of Boykung from freedigitalphotos.net

Do you like to turn the old and ugly into the new and improved?  Then rehabbing homes may be for you.  Here, you are looking at houses and get to figure out how to make them better .  You can make a house into someone’s dream home.  It’s a lot of fun!  However with this strategy, you must make sure you have someone you trust go through the home to see what it needs to bring it up to full retail condition.  Then you have to carefully estimate your rehab costs, making sure that you have considered your error factor (at minimum 10% of total rehab costs), holding costs (interest, electric, heat, water, taxes etc. while rehabbing) and your minimum profit (of course) to see if the deal is doable.  It may or may not be.  Don’t be so anxious to make a deal you get emotional and buy it anyway thinking it will all work out.  Carefully run the numbers and do your due diligence.  You are looking for a blue diamond in the rough and it can take a long time to find one.  Be patient, my friends.  Good things come to those who wait.

Do you have a favorite “Diamond in the rough” story?  If so, please share.