Every once in a while you hear an inspirational story about someone who overcomes horrendous life circumstances, and achieves extraordinary success in spite of it all. Life gives them a lemon, so to speak, and they make lemonade out of it.
All business owners feel at one time or another that we are doing repeated movements or activities. Would these movements be better served if they were performed by others with more skill than us? This would also free our time to be more productive in a different function of our business where we do have the skill?
And so it is with everything else. Even in major consultancy projects, the consultant will leave volumes of the completed project papers, complete with executive summary, appendices, schedules, the whole works. If you’ve been a client of such consulting, have you got the feeling that (after going through the papers) “so what’s the consultant asking us to do?”.
There may or may not be tax consequences as some lenders will issue you a IRS form 1099 reporting the amount they forgave as income to you. The recently passed Mortgage Forgiveness Debt Relief Act of 2007 may protect you from having to report forgiven mortgage debt as income but it is always best to consult a Torrance CPA or attorney.
If you have a small business, a tax professional can save you bundles of money. They understand the law as it applies to you and can make sure you have taken all the deductions available. They can also help you plan for the future, enabling your business to grow successfully.
Wait until next year! Your first year with TurboTax is the most strenuous year of all. You have to enter information such as your employer, your mortgage company, banking information and the like. Next year, you get a reprieve. TurboTax goes into last years’ tax return and imports all that information into your new return.
There are some caveats to TurboTax. As with any software, financial or other, there’s bound to be a quirk or two. I find TurboTax’s depreciation calculus to be a bit off. Last year I also had trouble swapping out an old vehicle for a new. Luckily TurboTax allows me to navigate to the “forms” mode where I am able to override TurboTax’s entry. Any problem I’ve faced with TurboTax concerned more “involved” issues that don’t usually come into play on the average tax return.