Hope for your financial life and beyond

How to Pass the CPA Exam On the First Try

August 20, 2014 by 27 Comments

Earlier this year, I wrote a post about how to tackle a huge looming project. Back in the summer of 2012 I was dealing with the biggest professional project of my life – studying for the CPA Exam. I’m happy to say that I now have my CPA license because I learned how to pass the CPA exam on the first try. Today I’m going to show you what I did.

Learning How to Pass the CPA Exam

how to pass the cpa examI read a ton about the CPA Exam itself before I started and while I was in the middle of it (and not at all after I was done). You have got to learn everything you can about it in order to pass. It’s important to learn from both the official source, but also from blogs and forums where people who are also taking the exam are chatting.

You’ll find out great little tips but also you’ll get the motivation to carry on when you get tired. Some places I looked at included:

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Filed Under: Career, Goals, Planning Tagged With: , , ,

How to Save Money and Cut Taxes by Hiring Your Kids

February 13, 2014 by 15 Comments

The following post is by Kim Fourman. Please note that this article is intended to discuss general tax topics. Consult your own tax advisor regarding your specific circumstances.

hiring your kids

Boy at a weaving station – circa 1908

One of the most overlooked ways for small business owners to save on taxes is by hiring your kids in the business.  Here’s how it works:

Consider What Work Can be Done

The first thing to consider when hiring your kids is the work that your child can do. Their work must be age appropriate and must be legitimate work for your business.

For example, having your child do household chores would not count as working for your business, but picking up trash and cleaning up the yard at your rental property would. The IRS has accepted employment by a child as young as seven. You do not run afoul of any federal child labor laws when you employ your own children, but make sure to check with your state department of labor.

You Must Do the Paperwork

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Filed Under: Kids and Money, Taxes Tagged With: , , ,

Getting An Electric Car For Free Through Tax Credits

October 30, 2013 by 11 Comments

Welcome to a Q & A tax session at Luke1428. Today we are discussing how to fund the purchase of an electric car with tax credits. Some states offer tax credits as incentives for many transactions, including purchasing or leasing an electric car.

To answer your tax credit questions I’ve pulled in none other than Mrs. Luke 1428, who just happens to be a CPA. So here we go.

Electric Car

The Nissan Leaf – source of a nice little state tax credit

Q: What are tax credits and how can I use them?

A: Great question. First, I’d like to make sure that we’re clear on the difference between a tax credit and a tax deduction. As an example, let’s assume you have $50,000 of taxable income, and your tax rate is 10%. Let’s compare the difference between a $1,000 tax credit and a $1,000 tax deduction.

A tax deduction lowers your taxable income. Without any deductions, your tax would be 10% of $50,000, which is $5,000. So, a $1,000 tax deduction lowers your taxable income to $49,000. Then we apply the 10% tax rate and come up with a tax of $4,900.

Tax Deduction Savings: $100.

Now, instead of the tax deduction, let’s try a tax credit.

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Filed Under: Saving, Taxes Tagged With: , ,

How to Shop for Your Nerd This Valentine’s Day

February 5, 2013 by 27 Comments

Valentine EquationThe following is a guest post from Mrs. Luke1428…her very first post! Welcome her on board as she gives us some thoughts about nerds, free spirits and Valentine’s Day.

Hello out there, Luke1428 readers, this is Mrs. Luke1428.  Brian asked me to write a guest post for Valentine’s Day – I suspect he doesn’t know what to get me and is doing this for me to feed him ideas.  Stinker.

Are you familiar with the nerd and free spirit concept?  Basically, most couples have one nerd and one free spirit in the relationship. The free spirit loves to enjoy life to its fullest. The free spirit makes life worth living no matter the cost. The nerd is the one that makes sure there is enough money to make life worth living. The nerd is the budgeter. The nerd loves Excel. I freely admit — I am the nerd.  For the love of Pete, I enjoy reconciling bank statements and preparing tax returns. I. Am. A. Nerd.

So, you’re the free spirit and it is Valentine’s Day.  How do you show your nerd that you love them?  Well, here’s what NOT to do  –

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Filed Under: Relationships Tagged With: ,