Taxable income is generally equal to a taxpayer’s adjusted gross income during the tax year less any allowable exemptions and deductions.

Up to 85% of Social Security benefits can be taxed. Whether your benefits will be taxed depends upon your total income from both taxable and tax-exempt sources. Once your total income reaches $25,000 ($32,000 for married couples), a portion of … Read More

Junk Bonds are debt securities issued by companies with higher than normal credit risk. Considered “non-investment grade” bonds, these SECURITIES ordinarily yield a higher rate of interest to compensate for the additional risk.

LIFO is an accounting method of valuing inventory under which the costs of the last goods acquired are the first costs charged to expense.

Municipal bond interest is federal tax-free. This includes bonds issued by a state or municipality. The tax-free benefit increases the higher your income, but caution must be taken to ensure the underlying municipality is not in dire financial condition.

Fast Fact: Depreciation measures how much value an asset loses over time. A classic example is the depreciation of a company vehicle. Each year, the vehicle decreases in value. The process of lowering an asset value is depreciation.

Having a business plan is necessary for survival in today’s competitive business environment. A written business plan is as essential for a small business as it is for large corporations. A good business plan will help you focus on current … Read More