Taxpayer indentification numbers for aliens

There are several types of taxpayer identifying numbers: social security numbers, Internal Revenue Service (IRS) individual taxpayer identification numbers, IRS adoption taxpayer identification numbers, and employer identification numbers.

Social security numbers (SSNs) are used to identify most individuals.  Sole proprietors use employer identification numbers (EINs). Aliens who aren't eligible for SSNs must use IRS individual taxpayer identification numbers (ITINs).

Source IRS.

Note:  Aliens and ilegal Aliens are not one in the same. Ilegal aliens are not authorized to work in the USA.  Ilegal Aliens work status are outside of this blog, and you must consult an Imigration Attorney.  



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Setting a price for your product.

The case for calculating a Selling price for your products. 
Let say you want to open a Specialty store like the one you saw in the town you grow-up as a child. The store still selling the same specialty products and they have been in business for over 25 years in the same town. You liked the store so much that you think you can do the same in your neighborhood and you are sure you can make some money selling the same products.  Well, after all, they are the same products and people have been buying these products for decades.  You open your new store and repeat everything you saw, but after the three years you find out that you sold as many products as the other store but you are loosing money and you can't keep the store open.  What happens?  Why my store sell as much as the other one and I can't keep my open any longer?

Many reasons, but maybe is that your cost structure does not allow you to sell at the same price the other store is selling their products.  And, I am not even considereing discounts, tax strategies, salaries, cost of leaving, and other considerations- 'cause they are multiple factors. 

It all boils down to good recodkeeping, tax planning, cost structures, volume of sales, break-even point analysis, taxes, product mix, etc.  The failure to do these calculations and adapt to changes in the environment could depend your sucess as an enterpreneur.  

So, what you should do if you want to stay in business?  You either have to hire an accountant (CPA) to cruntch all the numbers for you and keep him/her on the payroll to monitor your progress and help you adapt to the changes on the environment, or inmerse yourself in the mechanics of the process and forget about managing your day to day operations.  Setting a price for your product based on your cost structure is paramount to your sucess.

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First Time Homebuyer Credit

If you purchased a home in 2010, you may be eligible to claim the First-Time Homebuyer Credit, whether you are a first-time homebuyer or a long-time resident purchasing a new home.

Criteria: Must be at least 18 years old on the date of purchase (married couple-only one spouse), and you must not be a dependent on someone else tax return.

Some of the provisions and requirements:

1. You must have bought – or entered into a binding contract to buy – a principal residence located in the United States on or before April 30, 2010- you must have closed on the home on or before September 30, 2010.

2. You and your spouse – if you are married – must not have jointly or separately owned another principal residence during the 3 years prior to the date of purchase.

3. Under the long-time resident homebuyer provision: You and your spouse – if you are married – must have lived in the same principal residence for any consecutive 5 year period during the 8 year period that ended on the date the new home is purchased.

4. The maximum credit for a first-time homebuyer is $8,000, half that amount for married individuals filing separately. The maximum credit for a long-time resident homebuyer is $6,500, half for married individuals filing separately.

5. You must file a paper return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit.

6. Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit.

For more information about these rules including details about documentation and other eligibility requirements for the First-Time Homebuyer Tax Credit, consult your accountant or the IRS.

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