Another Tax Loophole

Just image, you are a small manufacturing company, business has been good, but yesterday you received a call from a customer who wants 50,000 widgets in 45 days. The customer is a large account and if you turn the business down, he may never call you again.

Problem: You need to hire more staff to meet the manufacturing needs of this customer. AND the customer said nothing about an advance payment. In fact he mentioned that he would be paying net 30 once shipment was received.

You need working capital and you needed it yesterday

You sit down and you start to think. Well let's see, it will take much needed time to apply to the bank for a loan, your wife threatens to leave with the kids if you refinanced the house one more time for business reasons and your credit cards are maxed out.

As you look around your messy yet effective office you wonder where you can get the working capital you need?

Sitting in front of you is your secretary mailing out invoices. You slowly walk over to her desk and you ask "What's the total amount of invoices that we have outstanding at this very moment?

Your secretary looks on her computer, moves the rat around a few times, clicks a couple of times, and then hits something that makes the printer start singing. She looks up at you with those "I want a raise" eyes" and says, "it's coming out on the printer"

You walk slowly over to the printer and pick up the sheet of paper. Just when you think you are ready to read and understand the page another page prints. She says very softly, "the second page will give you the total" You pick up the second page and allow your eyes to scroll down to the bottom of the page and much to your surprise the total amount is well over $300,000.

You don't want to call a Factoring company because, they will discount your Invoices and you won't get all your monies OR do you?

Your secretary reminds you that all the fees for Factoring the Invoices is tax deductible and in the end the Factoring will cost you nothing. (Your secretary is taking tax classes at night, something about becoming more valuable to the company and earning more money) She also reminds you that you can Factor the Invoices and be paid up to 92% of the total invoice amount within 48 hours. Plus, the Broker does not charge you.

It is at this point that you try to remember why you married your wife instead of your secretary?

You quickly change from that thought back to who should I call? There are so many Sharks in the water and about $200,000 of the invoices are Government Contracts.

You know you need a Factoring company whose rates are fair and who can deal with the endless paperwork that the Federal Government requires to Factor one of their Contracts.

Needless to say, he called me; the names have been changed to protect the guilty.

This article was written by C. Ingraham, Broker for Government and Corporate Invoice Lines of Credit at http://www.taxeswilltravel.com

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

ConsumerReports.org

5 Moves to Reduce Your 2018 Taxes
ConsumerReports.org
Because of the near doubling of the standard deduction, the new tax law has significantly reduced the number of households that need to itemize their taxes. But if you plan your charitable contributions, you might be able to get enough deductions that ...

and more »

CNBC

800000 people are about to flee New York and California because of taxes, say economists
CNBC
Conservative economists Arthur Laffer and Stephen Moore are predicting a new mass exodus of wealth from New York and California because of the new tax law. But academics who have studied taxes and migration call the forecast "pure nonsense." In an op ...


Tax Foundation

How High Are Recreational Marijuana Taxes in Your State?
Tax Foundation
As public opinion increasingly favors the legalization of recreational marijuana, a growing number of states must determine how to tax legal sales of cannabis. To date, nine states (Alaska, California, Colorado, Maine, Massachusetts, Nevada, Oregon ...


USA TODAY

How much does the average American pay in taxes? It depends
USA TODAY
The average American pays $10489 in "personal taxes." This includes federal and state income taxes, as well as other taxes such as personal property taxes, vehicle taxes, and certain other small taxes. Sales taxes, Social Security and Medicare are not ...

and more »

cleveland.com

Mary Taylor's 2017 taxes, filed separately, show $97K in income ...
cleveland.com
Republican gubernatorial hopeful and lieutenant governor Mary Taylor's 2017 tax return shows she made $97197 in gross income and paid nearly $24000 in taxes.
Ohio governor candidates unveil tax returns l Ohio PoliticsDayton Daily News
No charitable giving. Family fortunes. What we learned from Ohio governor candidates' tax returnsCincinnati.com
Mary Taylor pledged to release 3 years of tax returns -- she released 1The Columbus Dispatch

all 20 news articles »

Chicago Tribune

Morning Spin: After pop tax backlash, Preckwinkle predicts no new county taxes next year
Chicago Tribune
But the backlash fueled by a multimillion-dollar anti-pop tax campaign that was funded by the beverage industry led to its repeal, as well as the layoffs of hundreds of employees to make the county books balance in 2018. Nearly half of those job cuts ...


Vox

Arizona teachers want more than a raise. They want public schools funded again.
Vox
The root of these education cuts started decades ago, when state legislators gave tax cuts to the wealthy and corporations during times of economic prosperity. The hope was that it would spur economic growth — but that growth never came. When the ...

and more »

Daytona Beach News-Journal

Residents sue Halifax Health to recoup taxes from Deltona project
Daytona Beach News-Journal
A class action lawsuit filed Thursday accuses Halifax Health of misappropriating public funds and unjust enrichment when the public hospital moved to build its suite of medical facilities in Deltona. The five residents named in the suit, who live in ...


Myrtle Beach Sun News

Tax bill almost doubles after Chinese company buys Grande Dunes property
Myrtle Beach Sun News
Taxes on a site of a future hotel in Grande Dunes cost a Chinese company just over $300,000 in 2017. In 2016, a company called GDMB Ocean paid just over $160,000 in taxes, according to online documents. The Chinese company, Founders Group International ...


AZCentral.com

Coal won't face Arizona sales taxes after Gov. Ducey signs bill
AZCentral.com
An economic analysis of the bill from the Joint Legislative Budget Committee estimated the coal mine currently pays about $20 million annually in state and local taxes. More than $16 million goes to the state, $2 million to education under Proposition ...

and more »
Google News

Small Business Tax Deduction - Write-Off Bad Debts

Practically every small business has receivables that it cannot obtain... Read More

Save Money on Taxes - Let Uncle Sam Pay for Your Fun!

"Deducting Meals and Entertainment"O.K. You've been working really hard on... Read More

I Havent Filed a Tax Return with IRS in Years, What Do I Do?

In elementary school, kids come up with creative excuses why... Read More

What Is Tax Law?

The federal tax code is complex. This complexity generally arises... Read More

Knock-Knock-Knock

Knock-Knock-KnockWho's there?The IRS!The next quarterly payment of estimated income tax... Read More

Tax Tips to Save Money on Taxes - Get the Corporate Kick and Save Loads of Money

Why a Corporation Helps Save You TaxesThe Tax Rates (Notice... Read More

Tax Tips - Which Tax Form Is Right For Me?

IRS Tax forms can be confusing.Am I a 1099 or... Read More

IRS Statute of Limitations: Do Taxes Ever Expire?

Many Americans believe that an IRS debt is a debt... Read More

Send Your Kids To Summer Camp and Write It Off

If you paid someone to care for a child so... Read More

10 Tax Tips to Reduce Costs and Increase Income

No one likes paying tax. Everyone understands that tax is... Read More

Are You An Innocent Victim of These Popular Myths?

Misconceptions, misinterpretations and just plain "untruths" are floating about income... Read More

Back To School ? Educators Deduct School Expenses

As teachers and students head back to school following a... Read More

How to Donate Your Car to Charity and Get Tax Deduction

Donating your used car to charity is a win-win situation;... Read More

How to Maximize Your Home Business Tax Deductions for 2005

Someone once said, 'the best way to calculate your taxes... Read More

Save Money on Taxes - Is the Only Way to Get Your Tax Savings is to Sleep With an IRS Agent?

Tilting the Tax Laws in Your Favor.In order to accelerate... Read More

How To Set Up A Tax-Saving Bookkeeping System

One of the most important, but least understood or appreciated... Read More

Section 179 ? Tax Relief From Depreciation Rules

"Depreciation." For business owners, this word is the one most... Read More

Surprising Truths About Tax Preparers

Choosing the right tax preparer for your business is a... Read More

The Tax Man Cometh... To Search

You're at your office, or home, and the doorbell rings... Read More

The Implications of Income Tax Charge on Estate Planning

OverviewIn the Pre-Budget Report of December 2003 the Chancellor Gordon... Read More

Corporations Failing To Claim AMT Exemption Overpay Taxes By $11,000

Does your incorporated business pay alternative minimum tax ["AMT]? If... Read More

Tax Trap #3 -- IRS Penalties, Interest and Love Letters

As a small business owner or self-employed person, one of... Read More

Access to E-records by Taxing Authorities: A Case for Pakistan (Part I)

Background issues of access to recordsTo assess the records at... Read More

How To Get An Extension To File Your Business Tax Returns

Yes, the tax season is upon with the first filing... Read More

IRS Reports Tax Gap of $300 Billion

The Internal Revenue Service is reporting that the difference between... Read More