Career education

Have you heard of seminar tax deductions? Well if you are thinking of continuing your education or traveling to a conference for a business related purpose you need to know about this little IRS loophole.

Seminars and conferences are tax deductible, if you document them properly. You can also deduct your travel expenses like your air fare, hotels, and some of your entertainment expenses if the greater portion of your trip is dedicated to business or furthering your career.

If you are traveling in the United States to a business related seminar or convention then 100% of your trip is tax deductible as long as at least 50% of your trip is dedicated to business or furthering your career.

If you need to travel overseas then you can deduct up to 75% of your expenses, if your trip is 7 days or less. There must be a reasonable need to travel overseas though for this course. For example, a course that specialized in international taxation targeted to accountants that was hosted in London would probably be eligible for a tax deduction.

Now if the exact same seminar is being held in your home town as is being held in the city that you intend to fly to, then you may not get the exemption. There should be a reasonable need to travel.

For example, a person wanting to take the Series 3 Commodities Broker exam could take a 7 day prep course at the World Capital Institute in Orlando or Miami, Florida and write the class off because the class is only offered in Orlando or Miami. His travel expenses , hotel and food would be written off as part of the expense of furthering his education.

Remember to document the course or event that you are going to. Keep your receipts. And make sure to plan your trip so that at least 50% of it is spent in your seminar. If you could get a letter from the institute or course instructor verifying that you attended, even better.

Remember to follow these rules and to consult with your tax adviser before planning your trip to make sure that you are able to utilize all the tax benefits at your disposal. Tax rules can change as well so make sure that you and your adviser discuss the exact procedure that you are going to use to document your taking your course.

By: Caterina Christakos

It is estimated that each year nearly 75 million people seek assistance with the preparation of their tax returns. This need arises primarily from the fact that most people are handling multiple priorities on a daily basis and simply don’t have the time to keep abreast of the ever-changing tax laws. They would much prefer the comfort of delegating this work to those whose job it is to stay on top of new tax rules and regulations and in this way ensure that their returns will be in full compliance.

This situation means that those well trained and knowledgeable in this field will find their services in great demand. This is an especially attractive option for those who have been laid off from former employment due to the downturn in the economy. Training can be completed in as little as ten (10) weeks, in many cases by tax preparation firms which then may hire the most promising of the class directly upon graduation.

The nature of the work requires that successful tax preparers be comfortable conducing comprehensive client interviews in order to obtain complete financial information of either a business or personal nature. They must also hold to the highest ethical standards to ensure that all information disclosed is kept strictly confidential. The position of tax preparer requires keen attention to detail, strong familiarity with tax rules and regulations, the ability to interpret sometimes complex financial information, as well as excellent interpersonal and proactive listening skills. However, knowledge of advanced accounting practices is not required as the job entails use of only basic arithmetic skills.

The income potential can also be very attractive as those with strong experience in the field can charge of fee of $100. or more per hour during tax season. If it is your intention to open a solo practice, you may want to combine tax preparation with payroll or bookkeeping services to ensure a steady year-round cash flow. In this regard, it would be a good idea to contact your secretary of state to obtain information on any business licensing requirements.

Most tax preparation courses are of a ten (10) week duration so that this career can be launched in a relatively short period of time. Opportunities for career growth can stem from enrolling in continuing education in advanced and small business tax preparation. Another option is to pursue an associates or bachelor’s degree in accounting to expand the scope of services you will be able to provide. Many of these programs are offered online which provides much flexibility in completing the course requirement as students can access the “lesson” and complete any assignments on a 24/7 basis.

Becoming a tax professional is a relatively inexpensive and time favorable way to embark on a promising new career with good growth potential. As noted, it is an especially attractive option for those laid off due to the current recession as this is a field which will continue to fill a need for a large portion of the population.

By: Deysi Alcala

If you have read any of my past articles, you know that I am essentially a theme investor. The industrialization of emerging markets is one of my current themes. I track two portfolios BRIC and Big Build Out (BBO) based on this theme.

BRIC is simply an equal weighted basket of Exchange Traded Funds (ETFs) representing Brazil, Russia, India and China. BBO is a basket of world-wide producers of raw materials like iron ore, copper and nickel necessary for industrialization. The basket contains proven industry mining leaders such as: diversified producers – BHP Billiton (BHP), Rio Tinto (RTP), Teck Cominco (TCK); aluminum producer Alcan (AL); copper producers – Freeport-McMoran (FCX), Southern Copper (PCU), Phelps Dodge (PD), Lundin Mining (LMC) ; iron ore and nickel producer – Companhia Vale Do Rio Doce (RIO). The portfolio also includes suppliers to these companies such as heavy equipment manufacturers Caterpillar (CAT), Terex Corp (TEX) and Bucyrus International (BUCY).

I have been considering adding a couple of transportation stocks into the mix. Supplies have to get there some kind of way. Initially I was thinking of shipping or air freight companies. However, after reading headlines such as “China will invest 1.5 trillion (US$190 billion) to increase the nation’s rail network to over 90,000 kilometres by 2010″ from the China Daily 11/23/06. Or quotes such as the following from the China Railway Development Report:

Because of system limitation, China’s railway industry still lags behind in investing-financing areas. This results in railway construction unable to meet the demand of economy development. There is high demand in our railway transportation industry, and sometimes the demand exceeds supply. It is estimated that the supply capacity will increase a lot in future and relieve transportation pressure effectively.

This has me thinking railways. Apparently, road and railway contractor China Railways Construction Corp has announced plans for an initial public offering (IPO) in early 2008. Others will surely follow. Instead of investing directly in a Chinese company, I am more interested in world-wide companies listed on the US Stock Exchanges that are positioned to assist or joint venture with companies like China Railways.

Now the search begins to find such companies.

By: Michael Dawson

Looking for legitimate tax deductions for your income tax returns this year? Here are three common expenses you can deduct on Schedule C, all starting with the letter “E”.

Employees.

There are several legal deductions related to your employees. Obviously, the compensation you pay them is reported on Schedule C, Line 26. Even though the description for this item is “Wages”, don’t stop there. Salaries, commissions and bonuses are also deductible and should be put on Line 26 also.

What about your own compensation as the sole proprietor? Don’t make the mistake of reporting that on Line 26. Then where does it go? It doesn’t go anywhere on Schedule C. The money you withdraw from the business out of profit, also known as “draw”, is not a business expense.

What about employee benefits? Things like health insurance, medical expenses that are paid via a Medical Reimbursement Plan, retirement plan contributions (such as the employer’s payments on behalf of the employee into a SIMPLE IRA Plan or a SEP) are all deductible. These expenses can be added together and reported on Line 14, “Employee benefit programs.”

Only health insurance premiums for your employees are deductible on Schedule C. Health insurance premiums for yourself are deductible, but don’t put that on Schedule C; those get reported on Form 1040, Line 29. If you have a SIMPLE IRA Plan, the contributions you make for your employees go on Schedule C, but the contributions you make into your own account go on Form 1040, Line 28. The same is true for SEP contributions, which are reported on Form 1040, Line 28.

Education.

If you attend a conference, workshop or seminar to improve existing business-related skills, or take a college or graduate school course for that purpose, the expense is deductible. The key here is that the material must be related to your existing business. For example, if you are a computer software consultant, any type of class dealing with computers would qualify. But if you take a class in engineering because you are considering a career change, that class would not be deductible. Also, don’t forget that many business classes apply to virtually all types of businesses, such as courses in bookkeeping or marketing. Report education expenses on Line 27, Other Expenses.

Entertainment.

This is an area that the IRS loves to scrutinize, for obvious reasons. When entertaining existing or potential customers, if you attend a sporting event or a concert, for example, 50% of that expense is deductible (just like meals). Just be sure you engage in a substantial business discussion before, during or after the event, and write-off is legitimate.

By: Wayne Davies

A recent study by the National Center for Education Statistics shows that 50% of recent college graduate have student loans, with an average student loan debt of $10,000. The average cost of college increases at twice the rate of inflation. With the rising costs of college it is difficult for aspiring colleges students to get enough scholarships and grants to pay for college and basic necessities. More and more college students are forced to use credit cards to pay for basic essentials such as books and school supplies. According to the United Marketing Service (UCMS) the average number of credit cards per student is 2.8.

Here are 8 ways to help with paying off student loan debt:

1. Develop a plan. Develop a plan to pay off your student loan debt before you graduate.

2. Save your money. Each summer throughout your college education, get a job or internship. Save half the money in a high interest savings account such as http://www.emigrantdirect.com (5.05%) or http://www.ing.com (4.5%). After a few months, consult a financial advisor to earn the highest possible return on your money. After college, you can use the money saved during all 4 years to pay down your college debt.

3. Use caution with consolidation. Consolidating student loans combines your loans into one payment but may or may not provide you with a lower interest rate. Do extensive research before consolidating your student loans. In addition, you may not be eligible for various student loan forgiveness programs if you consolidate your student loans.

4. Exchange work to reduce debt. Perform volunteer work or work for the following in exchange for reducing student loan debt: teaching in certain locations with low-income students or areas with shortage of teachers, providing legal and medical services in low-income areas or working for Americorps or the Peace Corps.

5. Get a work-study job. To help pay for the costs of college get a work-study job on campus to help defray the cost of college. Go to your campus employee office to ask about their work-study program. Work study Jobs pay at least the minimum wage for that state.

6. Apply for lots of scholarships. In recent years, money has been reduced from the budget for college scholarships so it is harder to get a scholarship to go to college. You can increase your changes of getting a scholarship by completing as many scholarship applications as you can. If you complete at least 50 you should receive at least 5 scholarships. Also, go to your campus financial aid office and ask about financial aid programs that the schools provides to students. Become friendly with the financial aid office employees who will alert you to financial aid programs when they become available. You can also search the internet for scholarships. Some scholarship websites are http://www.fastweb.com, http://www.scholarships.com, http://www.finaid.org, [http://www.college-scholarships.com] or http://www.scholarshiphelp.org.

7. Apply for grants. Apply for as many grants and scholarships as possible. You can also apply for federal grants such as the Federal Pell Grant (Pell Grant), the Federal Supplemental Educational Opportunity Grant (FSEOG) Program, Leveraging Educational Assistance Partnership (LEAP), and National Science Scholars Program. Some grant websites are http://www.scholarships-ar-us.org/grants/, http://www.scholarships-ar-us.org/grants/women.htm, http://www.careersandcolleges.com.

8. Protect your credit. Try to avoid making late payments on your student loans, if you do this will be reported on your credit report and can remain for up to seven years. If you are having financial hardship call the student loan company and inform them of your situation, ask for a hardship or loan deferment to ensure your credit is not damaged until you are able to start making payments again.

By: Harrine Freeman