ARTICLES | Sharing Valuable Insight

Active vs. Passive Income

The IRS taxes “active” and “passive” incomes at different rates and under different rules. Losses from passive income cannot be used to offset gains from active income. This article will discuss different types of active and passive incomes, and the IRS rules governing these incomes.

Read more

Progressive Tax System

A progressive tax system, such as the one used by the federal government of the United States of America, consists of different tax “brackets”. In this system the tax payer starts out paying a certain percentage of every dollar as tax, then as the tax payer earns enough to enter the next bracket they are taxed at a different rate.

Read more

The Value of an Accountant

Whether on the Cash Flows Statement of a large corporation or on your personal budget, stakeholders are always looking to increase profits. By definition, this can be achieved by either increasing revenues or by decreasing expenses. So when does it become advisable to increase expenses?

Read more

Effective Tax Rate

The effective tax rate is the average tax rate that a tax payer was effectively assessed in a given year.

Read more

Marginal Tax Rate

The marginal tax rate is the tax rate that a tax payer would pay on the next dollar they earn.

Read more