‘Master’ The Augusta Rule and Save Money on Your Taxes
Tax and Financial News
May 1, 2024
Anyone who lives in a highly seasonal tourist destination knows you can make money on short-term rentals during events and festivities in your city or town. Think high-concentration, short-term, tourist-driven events such as horse racing season in Saratoga Springs, N.Y., or The Masters Tournament in Augusta, GA.
As a result, it is common for locals to get out of dodge and rent out their place during these highly lucrative periods. Typically, this is just for a very brief period while they are on vacation somewhere else themselves, for instance.
Given these circumstances, Congress realized it does not make sense to tax rental income for very short-term periods the same way that long-term rentals are taxed. In response, the government passed the Section 280A exclusion, often called the Augusta Rule in reference to the famous Masters golf tournament.
For the remainder of this article, we will look at the Augusta Rule in more detail and provide practical considerations for taxpayers.
Read The Details
Working Capital and the Role it Plays in Your Business’ Success
Accounting News
May 1, 2024
The accounting term working capital is essential knowledge for all business owners. Basically, it is the ability of a business to meet its ongoing obligations. Learning about some of the different aspects of working capital is vital for any successful business owner.
Net operating working capital (NOWC) is the gap between a business’ current assets (accounts receivable, inventories, cash, though excluding marketable securities) and its non-interest-bearing liabilities (which are financial obligations a business must meet, except those not subject to interest payments).
This calculation looks at a business’ cash flow availability and determines available current assets able to be liquidated inside a calendar year.
The formula is as follows:
NOWC = Current Assets – Non-Interest-Bearing Liabilities
Read The Details
6 Ways to Use Your Tax Refund
Tip of the Month
May 1, 2024
Gosh, it feels great to get that tax refund. Dreams of a much-needed vacation or a splurge on something you’ve been craving might be running through your mind. However, as unexciting as this sounds, you might want to spend this chunk of change on things that really matter. Here’s a list of smart uses for your tax refund that you’ll be glad you acted upon.
Build an Emergency Fund
Let’s face it. We depend on our machines to make life easier. However, these metal contraptions can (and will) break down. When this happens and you have money socked away, you won’t have to shell out a big part of your household budget to get them fixed or replaced. You’ll be prepared. Plus, saving money for something like this could also be a way to avoid stress. According to the American Psychological Association, 77 percent of Americans aged 35-44 say that money (or the lack of) is their main source of stress. The best way to save for the unexpected is to have a part of every paycheck auto-drafted into a savings account – tuck those dollars away while you relax.
Read The Details
Read More Here
How to Calculate Operating Return on Assets Read The Details
Factors to Consider when Choosing Customer Relationship Management Tools Read The Details
Funding Foreign Military and Humanitarian Aid, Setting up a Tik Tok Ban, and Re-Authorizing Foreign Surveillance on U.S. Soil Read The Details
