McKonomics

Ten Myths About Starting a Business

1."I'm broke, so it's a good time to start a business." New ventures drain bank accounts fast, so plan on having at least two year's worth of income in addition to start-up costs, which vary depending on the business. Then, you can devote all your time and energy without having to hold down a job at the same time.

 

2. "I need a little more practice before I launch my business." Many people start new businesses based on their experience, but it's easy to keep putting it off because you need "more practice." At some point, you have to take the leap from "practicing" to "owning a business."

Five Questions Business Owners Should Answer Now

The recession has "bottomed out," former Federal Reserve Chairman Alan Greenspan recently stated. But he warned that the recovery will be "slow" and "trudging."

 

Although the comments of Greenspan and other economists are cautious, they are good news for struggling business owners who are waiting for a return to prosperity. With the economy showing some signs of recovery, now is the time to position your company to reap the benefits of improved conditions.

 

Here are five questions business owners and executives can answer to help assess their readiness to take advantage of upcoming opportunities and challenges.

Income Tax : One-Year Repeal Could Mean Tax Savings For You

For years, higher-income taxpayers have worried about their itemized deductions and personal exemption write-offs being phased out. This means that they didn't get the full benefit of the most popular itemized deductions such as mortgage interest, state and local taxes, charitable contributions, and miscellaneous deductions.

 

Thankfully, these "phase-out" rules have been getting phased out since 2006, as part of the "Bush tax cuts."

 

The good news: For 2010, the phase-out rules are gone. The bad news: It's only a one-year reprieve. The rules are scheduled to reappear in 2011 with sharper teeth as the Bush tax cuts expire.

No Estate Tax is a Good Thing...Right?

Generally speaking, the fact that we currently have no federal estate tax is a good thing. However, the unprecedented temporary repeal may cause problems for some estates.

Most advisors assumed the Senate would extend the 2009 estate tax exemption and rate structure through 2010. Little did we know, the healthcare reform battle would be at the forefront of our legislator's minds and the looming estate tax repeal would go unchanged. Here we are, roughly a month into 2010 and no word on if and how Congress will fix this mess. Will new legislation be passed during 2010? Will it be retroactive? How do we deal with basis step-up? We will save those debates for another time. For now, we want to focus on a simple, yet BIG issue that the current repeal may cause for many estates.