We’ve discussed the concept of mid year convention and how we can make the best use of it to save better in our taxes. There is another tax deduction concept which will help us get a tax benefit through straight-line depreciation over 3 year period.
Lets take a simple home based business example. We’ve purchased a new laptop/desktop to support our business. This has a default OS installed in it. During deduction this OS is deduced as a part of computer system (i.e) there is no separate cost deduction. Say, we’re purchasing a new software (off-the-shelf software) to support our operations (say we purchase new license of SQL Server 2008 Enterprise Edition). If this is a purchase made between 2003 and December 31, 2010 it is eligible to be deducted over a period of 3 years using straight-line depreciation method. This is a deduction under Section 179.From 2011 onwards this is not applicable.
So, if you had purchased an off-the-shelf software during last year, include it as a part of the deduction during this year. It is no longer applicable from 2011 onwards. Save money to live better.
We have discussed about the tax deductions applicable if we purchase an off-the-shelf software product. If we are purchasing a new business, say we’re purchasing a new grocery shop. In this case we’ll be purchasing all the assets including the billing software which is an off-the-shelf software. In such cases the off-the-shelf software tax deductions (3 year straight-line depreciation) is not applicable.
In this case the software must be depreciated over a period of 15 years using straight-line depreciation. This is called as amortization.
To make it simple , if an off-the shelf software :
1) Is newly purchased – it comes under 3 year straight line depreciation applicable until December 31, 2010. It is included in Section 179
2) Comes as a part of business purchase (or) asset purchase – it comes under 15 year straight-line depreciation called as amortization
We’ve discussed the details on off-the shelf software tax deductions,amortization in our previous posts. We might think of developing software on our own. In such cases, we might have our development team set up, our R&D setup, patents, prototype, formula, technique,invention and such costs associated with the software product we develop.
For small home business like simple websites, we can outsource web design and development to outside vendors.These costs are tax deductible under section 174. It is interesting to notice that the software we develop can be used for our own purposes, can be sold out, can be licensed to others.
Lets start with a small story. On 1999 South Indian Cine Industry did attempt a daring venture. They produced a movie in 24 hours which became a part of Guinness world record. I happened to see this movie recently. I couldn’t believe that the movie is directed in a single day. I took a great moral from this story. I’m interested in sharing it with you all.
Blogging to make money online started somewhere around 2005. In my previous posts I always keep insisting on lightning blogging.It is blogging as much as post as you could in a very short span. This doesn’t happen at the expense of post quality. So, we need to work smart with full concentration. The job needs to be done fast. Say if you post 2 posts per day, have of vision of blogging 4 posts per day with the same quality. It is great if you can accomplish this task in the same amount of time.
I learnt this moral yesterday. You’d have come across the new website http://www.bellbang.com released yesterday. I started the development at 12:30P.M and finished the job by 4:30P.M. It is 4 hours of uninterrupted , dedicated, focussed hardwork. I didn’t even had a drop of water inbetween.
I had the target of releasing the first version June 15 (10 days approximately). I was astonished to see that I can make it in 4 hours. It was the moment wherein I understood the potential behind each and everyone of us. Apart from this an interesting factor helped me. For the past one month I tried developing the habit of positive thinking. I spend 2 minutes per day (Believe me it is just 2 minutes) and see my website up and running. Following this I’d think my website’s first version to be up and running as soon as possible. This had a great impact in my sub-conscious mind . I proved for itself.
So, try to work hard, work at great speed (starts with increasing typing speed), stay focussed, stay away from distractions during work, think positive. Believe – YOU’LL ACHIEVE BIG
Most of us are aware of credit card balance transfer, 0%APR availability. Most of us owe home loans at an interest rate of around 4.5% to 6.5% . Balance transfer option can be used to settle our home loans. This is an unexplored option. Note that if would be interested in home purchase in India current rates are hovering around 10% and this is a fantastic saving. However in case of USA 3.43% is the home loan rate and it is better to go for loan so that we can avail tax benefits
We can make a balance transfer for as low as 3% at the rate of 0%APR. These credit card balance transfers includes cheque, cash advances etc and hence can be made use of to settle home loans. We still save 2% (5-3 = 2%) on interest. Try this option and save good.
Ever since google rolled out panda updates starting february 2011, many websites hit rock bottom traffic based on this algorithm rollout. Google has been continuously improving the quality of its algorithm and with each and every rollout, it is time for you to survive if you have really original, good quality content
This is a popular topic in internet marketing. So what exactly does a original, unique, good quality content mean?
1) Original content – Unique content is always original.Lets take an example of this post on google panda recovery. Herein I’m discussing my experience and case studies of my ongoing as well as earlier projects. Methods that I’ve adopted to sky rocket my traffic. It is all about my personal experience in internet marketing space. Me=Original. To put it in simple terms, original content is a post created as a result of free flow of thoughts. This will be 100% unique. Even if we choose to blog on a common topic like catering blogging our daily recipe, once we express it in our own words it becomes 100% original
2) Good quality content – A content can be original. To make it scroll up the google ladder it should be a good quality content. Many internet marketers talk about keywords, LSI keywords etc. Let me simplify this.
In a piece of paper/sticky notes first note down what you are going to blog about. It can be free flow of thoughts. Say in case of cake preparation it can be cake, bakery, pastries etc. Finally comprehend the target keyword and you’ll end up 2.1) Target Keyword- with a single keyword Cake. This is my target keyword. Always target keyword=target audience. This will help you start building brand from day 1, have subscribers, later convert them into customers, grow your business
2.2) Write a post with lot of information on cake preparation. Instead of just writing about ingredients, method of preparation it can be topics like – Cake brief overview, types of cake, ingredients, recipe, best practices etc. All in one makes the post really big. Please note that now google needs lot of information in a single post. Instead of splitting the topics if they can be clubbed and made part of single post you win. In one of my niche websites I first did the mistake of splitting topics as separate posts and couldnt find prominent presence in google. The moment I realised the mistake, I started adding more relevant information to the posts, made it big
2.3) Proof-read before publishing – As with humans, google [search engines as such] hates spelling mistakes. Be calm, proof-read, peer-review if possible before publishing content to search engines
2.4) Include target keyword in post title – This is a basic SEO tip that can be easily adopted. Always have target keyword as part of post-title. Also, choose specific post title. Make it crisp, clear, less than 60 letters to make it search engine friendly
Search engines particularly google makes content the king and you will be an emperor if you post original unique good quality content
Good quality post is what google needs today. Internet marketing is $0 marketing that is made possible ever since google has come into existence. If you are capable of positioning your business website in front page of google you are the king in your business. One of the strategies to be adopted will be to write a good quality post
In this we are going to talk about creating a good quality post in phases. What does that really mean?
Lets keep it simple. I wanted to create a post but couldn’t focus beyond 1 minute. Here is what I can accomplish within 1 minute – Choosing target keyword, post title, one line (or) may be two lines on this topic chosen. With this can I quit?
the best thing would be to save this as a draft.
Say you choose to watch some movies, eat something interesting, prepare lunch, go for a walk and get back home. Now the blogging bug bites again. Re-visit the draft try to add more content
Keep on doing this as long as you make sure that the content is good enough to be published
After publishing if you read new information on the topic you have blogged before, go ahead update the post with latest relevant information
If you have 10 good posts with good quality content you will overtake your competitor who has 100 posts with low quality content
As I’ve been talking about always good quality content rules. So, add as far as you could , make it big, really informative and search engine naturally becomes your friend
In a wordpress blogging platform by default posts are saved as drafts once in 60 seconds. As a performance optimization this can be modified in wp-config.php file. Lets talk about simple wordpress SEO tips in forthcoming post
LIC corporation of India the insurance pioneer has a great online ortal. It is possible to pay premiums online, look at receipts online through LIC India online portal. From October 1st 2011 it is now possible to hav eyour dues settled online through LIC India online portal
H1B the most popular non-immigrant visa that offers employment job opportunity for a minimum of 6 years with further extension possibility is a dream come true of many asians particularly people of India and china have this as lifetime ambition. So, is it possible to have multiple H1B filed for you?
It is a tricky question. There are two possible scenarios :
1) Applying for a fresh H1B visa – This also includes change of status from F1 to H1B, H4 to H1B etc. So in this case what if I file multiple H1B?
What is multiple H1B visa?
1.1) H1B visa is sponsored by an america employer to his employee
1.2) If more than one employer say two companies company A, company B file new H1B visa for a person this case is called as multiple H1B visa. Until 2006 this is legally permissible. From 2007 onwards US government has legally banned this. So, for initial filing for new H1B visa go with a single employer. Multiple H1B filing is not allowed
2) H1B Transfer – This is in contrast to new H1B filing. If you want to switch jobs from company A to say company B, company C you can clear both interviews and ask both employers to apply for H1B transfer. You can choose to join company B or company C later. You need not have to join them. This process usually called as H1B visa transfer in which case filing by more than one employer at same time is permitted.