Taxable

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The Tax Impact of Business Bartering

Bartering is simply the exchange of services or property, and it’s a taxable event. For example, if a computer consultant trades services with an advertising agency, each must report income equal to the fair market value of the services they received, typically the amount the service provider would normally charge.

The rules are similar when property is part of the exchange. For example, if a construction company accepts unsold inventory as payment, it must report income equal to the inventory’s fair market value.

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You May Owe the “Nanny Tax” Even Without a Nanny

Don’t let the name “nanny tax” fool you. It’s a tax that applies to the wages of a variety of types of household help you hire, such as a nanny, gardener, or housekeeper. Hiring extra help can ease the burden of home-related tasks, especially in the summer when the kids are home or the garden needs attention. Unless the worker is an independent contractor, you may be liable for federal payroll tax and other taxes (including state tax obligations).

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An open laptop with U.S. Federal tax forms neatly piled on top, next to a pen. All positioned on a Russo blue background with the white text "Tax Tips."

What is the Excise Tax? Taxable Goods and Services

An excise tax is a tax that is generally imposed on the sale of specific goods or services or on particular uses. Examples of things a federal excise tax is usually imposed on include the sale of fuel, airline tickets, heavy trucks and highway tractors, indoor tanning, tires, and tobacco, as well as other goods and services.

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Take Cash From Your Corporation And Avoid Dividend Treatment

If you want to withdraw cash from your closely held corporation at a low tax cost, distributing cash as a dividend is the easiest way. However, a dividend distribution isn’t tax efficient since it’s taxable to you to the extent of your corporation’s “earnings and profits,” but it’s not deductible by the corporation.

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Russo CPA Is Disability Income Taxable? 2023

Is Disability Income Taxable?

If you may be eligible for disability income should you become disabled, it’s important to know whether that income will be taxable. As is often the case with tax questions, the answer is “it depends.”

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Tips to Find Out if Your Gift is Taxable

Tips to Help You Figure Out if Your Gift is Taxable

Gift tax returns generally do not need to be filed unless you give someone, other than your spouse (if he or she is a U.S. citizen) money or property worth more than the gift tax annual exclusion for that year. Here are four more tips regarding the tax treatment of gifts:

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Robert Russo CPA Is My College Student's Scholarship Taxable?

Is Your College Student’s Scholarship Taxable?

May 1 is the traditional deadline for undergraduate students to commit to their college of choice, which means tuition payments are not far behind. If you are wondering if your child’s scholarships are taxable, here is what you should know.

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Russo CPA, What Are Estimated Tax Payments? A suited business man smiles as he looks through binoculars

What are Estimated Tax Payments?

Estimated tax is the method used to pay tax on income not subject to withholding, such as income from self-employment, interest, dividends, alimony, and rent and gains from the sale of assets, prizes, and awards. You also may have to pay an estimated tax if the income tax being withheld from your salary, pension, or other income is insufficient. Here’s what you should know about estimated tax payments:

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Tax Tips for Students with a Summer Job

With teen employment expected to be plentiful this summer, with better pay and more opportunities, chances are good that your high school or college student will have a job this summer. Here’s what they should know about summer jobs and taxes:

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