Chumenti Accounting

Fast Fact: Equity denotes the value left over after liabilities have been removed. Recall the equation Assets = Liabilities + Equity. If you take your Assets and subtract your Liabilities, you are left with Equity, which is the portion of the company that is owned by the investors and owners.

If you are planning to buy a house or anticipate any other transaction that will require proof of income, you may wish to file early. This is especially important if you are self-employed. You can then make your filed tax return available to your bank or other financial institution.

Looking to buy a business? Most buyers don't ask enough questions or require enough financial history to make an informed decision. Any business worth buying should have kept adequate records. The inability or the unwillingness to provide the proper financial information is an indication that the business may be overpriced.

Many tax credits are “refundable credits.” This means you can receive a refund even if you owe no income tax. Common examples available to students and parents are the earned income tax credit and the premium tax credit.

An operating agreement is an agreement, usually a written document, that sets out the rules by which a LLC is to be operated. It is the LLC equivalent of corporate bylaws or a partnership agreement.

Enjoy Memorial Day Weekend!
“Never regret anything that made you smile.”

One of the main benefits of turning your hobby into a business is deducting all your qualified business expenses, even if it results in a loss.

When you sell investments that have decreased in value, you can use the losses to offset capital gains on your investments that have grown. This can help reduce how much tax you owe.

Purposive tax planning involves strategically structuring your financial affairs in ways that lower your tax burden. An example is placing your assets in a trust to minimize estate taxes for your beneficiaries.

Enjoy The Weekend! "All dreams are within reach. All you have to do is keep moving towards them."

What are the 5 D's of tax planning? We refer to these circumstances as the 5 D's: Death, Disability, Divorce, Disagreement and Distress. According to the Exit Planning Institute, nearly 50% of all business exits are involuntary and forced by dramatic external factors, and 79% have no written plan.