A Week in Perspective
“For myself, I am an optimist – it does not seem to be much use being anything else.”
- Sir Winston Churchill
As I work on building my business I realize I can easily say the same thing.
As the year draws near it’s close so does our tax year 2010. Many have asked, about my organizer. It is now up. You can go to my company web site Tax Center page. There on the right hand side you’ll find Online Tax Organizer, used mostly by clients and/or those who will be clients. This year I also have a Free Tax Organizer. You’ll need a .pdf reader to open this 14 page organizer. While on the Tax Center page, be sure to check out all the other great things I have there. As January draws closer I will be adding many other helpful aides including my famous Fair Market Value guide.
Not much here as the week was very short for me:
Top 50 Blogs for Tax Tips and Advice – The old saying is that death and taxes are the only certainties. However, tax law is always changing. In fact, in some cases it takes a tax professional to help you understand the process. People go to school for years to learn the ins and outs of tax law — and then they have to If you are looking for some direction with your taxes, you can find some advice on the web. You need to be careful of where you get the information, but you can get a good start on learning some of the basics when you read these 50 blogs on taxes: Thanks to everyone, The Missouri Taxguy made this list.
New rules for rental property owners – Searching for some clarity on the new rules for rental property owners? Then follow these tips from personal finance expert for women Christine Parker, CFP® to help you better understand the expanded reporting requirements.
Under Audit? What Every Taxpayer Should Know About IRS Tax Audits – “I recently read an article on CNNMoney.com written by Beth Braverman titled “5 things to know about getting audited.” I am always looking for helpful resources for my readers, so I wanted to share this IRS tax relief advice with you. Here is a quick summary of the 5 tips discussed in the article.”
Should You Save Money or Pay Off Debt? – After a few years of being down, many of us are finding ways to get our finances back in order. While some extra money in your pocket is great, understanding what to do with it is a different story. Our friends, family members and of course random personal finance bloggers are telling you that you need to save more money, but is it smarter to save money or pay off debt with it?
DON’T ELIMINATE THESE DEDUCTIONS – Many of the tax reform proposals that are surfacing recommend eliminating the itemized deduction for local real estate and state and local income or sales taxes. Some also call for doing away with the deduction for mortgage interest; one wants to replace the deduction with a 15% credit.
Warren Buffet Says Tax the Rich More – Warren Buffet tells Christiane Amanpour that the wealthy should pay a “lot more” in taxes in this clip from an upcoming interview on “This Week with Christiane Amanpour.” Buffet does, however, advocate cutting taxes for those in the lower brackets.
Relocating? You May Need to File Two State Tax Returns – People who relocate from one state to another likely will need to file two state tax returns. Tonya Moreno, CPA, explains how to file two partial year state returns and split your income and deductions between the states where you lived during the year.
ANOTHER BROADWAY TRIVIA CONTEST!
When Things Don’t Go As Planned – We all encounter unexpected setbacks from time to time, which can include things like medical bills, car repairs, layoffs, etc. Of course, having a good emergency fund helps with many unexpected setbacks, but sometimes it’s easier to roll with the punches than others.
Will Your Site Survive the Google Shrink Ray? – I found this a very interesting article and one that I will reference. Remember the three-second rule for websites? The one that said that your visitor will decide within the first three seconds whether or not they’ll stay on your site? Forget that: it’s now the 0.3 second rule. Does your site have what it takes to make the cut? Let’s find out. (And if not, let’s get it fixed). I go to websites, especially a blog I intend to see an article. I hate it very much when my 21 inch wide screen is filled only with the title of the post and a bunch of ads or links to other sites that sell crap. I usually close that page. Sadly I am sure I am missing some great information because some blogger with great insight would rather make money then inform their readers on their subject.
Year-end business tax moves to celebrate Small Business Saturday
Bloggers, this is a must read for you.
Why Link? 7 Reasons to Share Link Love – My readers notice this and like it. In fact, at BlogWorld one attendee said she learned of a terrific blog through my weekend sharing, but asked me why I try to make such a point of it? “Why link?” she asked? “Isn’t it spamming to link outside all the time? Why can’t you just share it on Twitter or something?”
Glad she asked…
Shape Up Your Finances – This is from a recent article published by TurboTax. It gave readers advice to, among other things, reach your fitness resolutions for the year. I think these tips apply to your business’s financial fitness as well. Here is what they said: {. . . .} Here is what I say:
The 25 Most Influential Finance Bloggers You Should Know – f you’ve wandered around the personal finance blogging world for any length of time, you’ll soon discover there are some pretty big names, and influential bloggers out there! Many of them have written books, appeared in the media, and have spoken at various events and workshops! If you haven’t been around the personal finance blogging world, then you may not have had a chance to read and experience these great bloggers.
LinkedIn’s New ‘Company Pages’ Showcase Products, Recommendations – LinkedIn has released a new version of its company profiles called “Company Pages,” which provides a place for businesses to “showcase their products, services and associated recommendations,” according to LinkedIn. Heretofore, LinkedIn company profiles served only a research purpose that helped users find companies to work for and engage in business. With the introduction of a new tab called “Products & Services” the once sedate profile takes on an entirely new social commerce role.
I like the new site design Trish –
Unreported Tip Income – Employers – Generally, when I think about unreported tip income, I think of the employee who doesn’t report to their employer the full amount of their tips so that they don’t have to pay tax on them. But the truth is that many employers only allow their help to report a set amount or none at all. That way they don’t have to pay the FICA on the tips. But employees are required to report tip income on their tax return that were not reported to their employer. This is done through Form 4137.
IRS decision key to January tax hikes – The IRS is waiting, just like the rest of us, for Congress to act on the expiring tax rates. As I mentioned in my post last week, the IRS can’t just take Congress’ word that it will do its job. The agency operates under the tax laws as they now exist.
That means the Bush tax cuts will expire and withholding tables for 2011 will reflect that.
And that means smaller paychecks as next year’s withholding calculations account for higher taxes for us all.
Tips on Managing Your Accounts Receivable – Having Accounts Receivable i.e. amounts owing by customers is both good and bad. It’s good because it means that you have sales and customers. It’s bad because it is cash that you don’t have now, and there is always a possibility that you won’t collect. When you offer credit terms to your customers it is extremely important to have a system in place to manage your accounts receivable. It is difficult to collect amounts due when you don’t actually know how much you are owed or when it is due. Having the information at your fingertips (this really relates to any kind of information) also makes a great impression. Below are some steps to help manage and collect on your accounts receivable:
Letterman – Top Ten Things I’ve Learned From Being An Accountant
How Will the New IRS Audit Program Affect Your Small Business? – Has your business ever been audited by the IRS? Just hearing those words can send a shiver of fear down any entrepreneur’s spine. Unfortunately, small business owners have more reason than usual to be nervous about opening their mail for the next few years thanks to the IRS’s Employment Tax National Research Project (NRP).
10 Surprising Ways a Small Home Saves You Money – It is fairly obvious that buying a small home is going to be a cheaper decision than buying a large home. The total amount of money that you will pay to purchase the home is lower (assuming that the homes are otherwise comparable). Additionally, the smaller size means that you will have lower energy bills so you will save a lot of money on utility bills over time. But there are actually a lot of other small and surprising ways that a small house can save you money. That’s something to think about when deciding what size home you want to buy. Look at these ten potential money-saving features of choosing a small home:
5 Tips for Taking Vacation From the Home Office
Tips to consider when making year-end estate planning decisions – Big changes are coming to the estate tax in 2011 with or without Congressional action. At the end of this year, the estate tax reform passed in 2001 is set to expire. Lawmakers still have not made up their minds what to do about estate tax reform. Given this uncertainty, following are tips from Grant Thornton LLP to keep in mind for planning:
The Buck Stops Here – The phrase “the buck stops here” was made famous by President Harry Truman. It essentially means that you won’t pass the buck to anyone, but will be responsible for making the decisions. I happen to believe that “the buck stops here” is one of the keys to improving your financial life.
Funny Tax Videos for the Thanksgiving Weekend
How a Recession Changes the Rules for Executive Staffing – The days of vice-presidents in every department and huge holiday bonuses have come to an end. For those who benefited from those practices, that is bad news for you. For those who run companies that once had that type of set-up, you now have an opportunity to make positive changes to improve your bottom line. The corporate structures of yesteryear, if used in today’s economy, will lead you straight to the poor house, along with all of the hard-working men and women you employ. The recent recession has changed all the rules, especially when it comes to executive staffing.
Big 1099 Changes in 2011 for Business Owners and Rental Property Owners – Beginning in January 2011, if you pay any one person or company more than $600 in a year to provide you with either goods OR services, you’ll need to track that information and issue that person/company a 1099-MISC in 2012. You can thank the Patient Protection and Accountability Act (PPACA) passed in March of 2010 for this new rule. Under the old rules, you only provided 1099-MISCs to service providers who met the $600+ threshold, and…
3 Steps to Avoid Form 1099 Penalties
Read This Before You Hire a Financial Advisor – While managing your finances is certainly not an easy task, personal finance at its most basic level is simply making sure that you are earning more than you are spending, and that your savings will be able to carry you through life after you’ve stopped working full-time. Even though it sounds simple enough, there are a lot of moving pieces to balance in a financial package, including investments, insurance, credit cards, mortgages and more. And with the global economic downturn humbling many of us, more and more people are turning to outside advisors for personal finance help. But even hiring outside help can be confusing if you don’t fully understand what you’re getting yourself into, and it’s certainly not cheap. So before you pay someone else, your time and effort is probably best spent uncovering the answers to some basic questions and gaining a deeper understanding of your inclinations, your financial habits, and what you can do to control them.
U.S. tax expatriates expanding – Have you ever seriously considered giving up your United States citizenship to avoid paying the IRS? Apparently more Americans are doing just that. The Financial Times of London reports that three times as many Americans renounced their citizenship in 2009 as did in 2008.
10 out of 9 accountants can’t count – There are basically three types of accountants: those who can count and those who cannot. But who needs to count or add anyway? We have the sum command in Excel and calculators that can fit in a shirt’s pocket. We don’t need to foot or cross-foot any longer: QuickBooks never fails to produce a trial balance displaying the equality of debits and credits, except for that one client in Toledo.
A Week in Perspective
EXPLAINING THE “METHODS” OF MY “MADNESS” – A look into the world of my blogging friend. (RDF- Looking forward to meeting up with you in St. Louis on August 15 – 18, 2011)
November’s Important IRS Dates – A new month is upon us, along with a new set of IRS Deadlines. We’re entering the IRS’s fourth and final quarter. Here’s the important IRS dates you need to know:
IRS Makes Few Changes to Retirement Rules – For the second year in a row, the Internal Revenue Service has announced that there will be no change to the maximum allowable contributions to pension plans or to individual retirement accounts in 2011. Here are the limits that will remain the same in 2011:
Expensing of Business Assets – New Treasury Report – Economic stimulus provisions of the past few years have included bonus depreciation and higher expensing amounts under IRC Section 179.
What Non-profits should know about Tax Form 990 – Form 990 or Return of Organization Exempt from Income Tax form is due to be submitted to the IRS by non-profits. Ever since 2008, this Form has been substantially revised to include several reporting requirements by the IRS. There are a few pertinent changes to the form and its requirements that non-profit organizations should know.
My favorite post this week.
A must read.
Being an Entrepreneur / Your Business – The topic of working on your own, or, even if you don’t the importance of the entrepreneur “in you” wherever you do work. Do you consult, do you have your own clients or are you striving to? There are some principals I think are necessary to make it “on your own” or excel where you are working. While I am a younger CPA and take a lot of pride in what I have accomplished so far, I keep working hard knowing that I have hardly touched the tip of the iceberg of what I can accomplish in my life.
Like my bloging mentor said about The Missouri Taxguy, Do I really need to keep reminding you to check out BlogRoll Beans from Joe Arsenault over at CafeTax? Thanks Joe.
Suggested first Republican budget cut: Congressional salaries – Watch out for the pigs as they pass over Kay.
What if you are donating it to an arson awareness organization?
Another must read –
Commercials, Kids, and Materialism – If you’ve been reading The Simple Dollar for long, you’ll know that this ad takes a swing directly at a lot of different ideas I’ve shared over the years about parenting, money, materialism, and other things. I thought I’d run through them again in light of this ad.
Tax moves to make in November – we have to get through the lame-duck session. In the next few weeks, Congress has vowed to deal with the expiring expiring Bush tax cuts, stimulus tax breaks that are only good for a couple more months, the already ended extenders and even the estate tax that’s scheduled to come back to life on Jan 1. 2011.
Tax Carnival #76: Election Day 2010
Pension Plan Limits for 2011 – The IRS has announced the 2011 cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items.
3 Tips for Launching a New Business – Starting a business may not be one of the easiest things to do, but it could be one of the most rewarding, as well as one of the most financially freeing decisions you could make for yourself. Seeing that most, if not all of us, need some hand-holding whenever we’re starting a new venture, here is some advice on three routine yet absolutely crucial areas of a business.
How to Fund a Startup – Deciding to start a business is exciting. You are in charge of making decisions large and small, and you have the opportunity to change your life, and possibly other lives as well. But starting a business also brings challenges. Almost all businesses will require some form of capital to start. If you don’t have cash reserves in a savings account or other liquid investment available to use, you’ll have to find other ways to fund your startup. Here are some common methods for getting the money you need to start your business:
Did Obama Really Cut Small-Business Taxes 16 Times? – The assertion that the Obama administration has cut taxes for small business 16 times might surprise some entrepreneurs —But the White House backed the claim with a fact sheet. Here, for the record, are the taxes the administration says it has cut, in its words:
Bill Gates Loses on Election Night
Could Tax Law Professors Be More “Tax Return Hands-On” Than Tax Practitioners? – Mike Foster, who practices with Venable LLP, said, “I don’t even do my tax returns anymore. I don’t know any tax lawyer who does their own tax returns. The forms are Greek even to us.” Hopefully someone does a survey to determine how many tax lawyers do their own returns.
Please Ask Me Before… – …you make decisions that might affect your taxes. . . .
In short, please see me (or your tax professional) before you do something that will affect your taxes. If you’re not sure if there will be an effect, please call and ask.
5 ways to save on heating costs – We are always on the lookout for ways to save a few extra dollars and heating costs are a good place to start, especially in the fall and winter.
FAIR Tax isn’t just a bad tactic; it’s a bad idea. – The Wall Street Journal and the Cato Institute’s Daniel Mitchell have branded the “FAIR Tax” sales tax proposal a loser issue for political candidates. In a more-in-sorrow-than-anger tone, the Journal notes the difficulties of candidates who embrace this national sales tax:
5 Do-It-Yourself Services You Should Leave to the Professionals – Many people are tightening their belts in these uncertain economic times.One of the first places we often look to save money is finding projects around the home that we can do ourselves rather than calling the professionals. All do-it yourself projects are not created equal, though, and there are times when you are better off calling in the professionals rather than potentially causing more problems by doing it on your own.
What is QE2, and What Does it Mean for You? – The big news on the economic front is that the Federal Reserve has decided to launch a second round of “quantitative easing” – dubbed QE2. If you’re not familiar with the concept of quantitative easing
Don’t pay the seller’s income tax – The Foreign Investment in Real Property Tax Act of 1980 requires buyers to withhold 10 percent federal income tax when buying real estate from those diabolical foreign sellers. The IRS can force a buyer who fails to withhold the 10 percent from the purchase payment to come up with the 10 percent withholding out of his own assets.
Saving Money at Christmas – Christmas spending over the last 2 or 3 years has been relatively low in comparison with other years, but that’s all set to change this Christmas. According to the National Retail Federation (NRF), shoppers are ready to part with their cash this holiday season for the first time since the recession hit. The NRF has forecast total retail sales growth of 2.3% for November and December this year, which means that consumers plan to spend an average of $688.87 on holiday shopping this year, an incredible figure. So if that’s the sort of money the average person on the street is willing to spend this Christmas, how many of you are actually trying to save?
Jason Blumer CPA, He’s a Funny Guy
Carnival of Wealth #10 – Halloween Edition
Website 101: How to Build a Site and Get It Online – Building and putting a website online doesn’t have to be difficult or complicated, though. If you are willing to do a little mental gymnastics and learn a few tricks, you can build a simple website on your own and publish it to your server yourself. Here are a few simple tips for do-it-yourselfers.
How Much Will You Spend in Retirement? – When people share their retirement plans with me, they often assume that they’ll be able to reduce their spending once they retire. At first glance, this seems reasonable. After all (they tell themselves) they won’t have to support the kids anymore and the house will be paid for. And the media encourages people to think this way too. They make the argument that once folks retire, they usually spend 80% of what they spend while they are working. This kind of thinking is wrong and dangerous… Unless you are very mindful and really understand how much money you will need to retire.
Five Ways to Save Money on Food – The number one way to save money is by learning how to cook. You might have a hectic schedule and be exhausted at the end of the day but push yourself to prepare a nice meal. You’ll get to enjoy it, expand your knowledge about cooking, and eat better than ordering it from some fast food place. You won’t be good at it in the beginning but over time your skills will improve and you’ll enjoy it even more.
A Week in Perspective
Recently, I read a tweet asking why we don’t comment on blogs any more. My thought. No need to. Everyone is in too big of a hurry. In response to this, here is what I ask of you: Most bloggers including myself have some sort of way for you to share the post. The post is full of great information. You liked it to the end, and you may have found it informational and or useful. So why not share it. Use the buttons, share it on your Facebook page or your twitter or Digg this or whatever you happen to be on. We are all out here providing information not for fame but to help you the American taxpayer find out what could save you money. Send it on to your friends and followers.
IRS Taxing Your Pumpkin Stands? Good Grief!
An Investor Nightmare Waiting to Happen – In order to claw our way out of a scary recession, we’ve dropped interest rates to artificially low levels to stimulate the economy. What happens to our financial institutions and our pocketbooks when interest rates go back up?
How the battle over credit card swipe fees hits consumers – The feud over the so-called swipe fees merchants pay banks when customers use plastic is reaching a crescendo and will likely hit registers in coming months. Both sides — merchants and card issuers — insist they’re fighting for the best interests of the consumer. At stake are billions of dollars in swipe fees, otherwise known as interchange fees.
IRS paid more than $111 million in erroneous stimulus-related tax benefits
If you missed it yesterday. Please go back and read this week’s rendition of WHAT’S THE BUZZ? TELL ME WHAT’S A HAPPENNIN’
I just finished up some work for the auto company (shame it didn’t last long) and find it in the news more than I seemed to think it was before. Michigan Gets Ford Tough on Tax Credits – The Michigan Economic Growth Authority (MEGA) is seeking tax cuts for the auto giant, as well as its counterparts, GM and Chrysler. Michigan Governor Jennifer Granholm announced the tax cuts, noting the intent of the cuts was to create and retain jobs in the state.
My favorite post this week – Recognize and Eliminate Distractions – One of the things that’s critical when it comes to achieving goals is just plain sticking to the goal until it is complete. It can be super-easy to become sidetracked without even realizing it.
A great book review – Generation Earn: The Young Professional’s Guide to Spending, Investing, and Giving Back – Personal finance is a broad topic and can be difficult to understand when you don’t know where to start. That’s where the book, Generation Earn, by Kimberly Palmer comes into play. Generation Earn is geared toward young professionals, (it is subtitled The Young Professional’s Guide to Spending, Investing, and Giving Back), but I also think it is a great book for anyone starting off on their own, including high school and college students, recent college grads, someone separating from the military or making another similar career change, or anyone else dealing with a major life change that affects their financial situation.
You Can Request an IRS Appeal- Here’s How: - Don’t like the IRS’s rulings? Don’t think you owe? Believe it or not, if you have a conflict with a notice sent to you by the IRS, you have the right to appeal.
IRS Patrol: IRS Announces Pension Plan Limitations for 2011
Off the rails – The federal government has decided to spend $218 million that it doesn’t have on railroad track repairs between Chicago and Iowa City. The State of Iowa will throw in $20 million it doesn’t have, all to enable Amtrak to start losing money forever at $42 per ticket to run trains that will take five hours to make the trip, on the occasional day that Amtrak is on time.
NZ Approves Tax Break for The Hobbit
Is the Mortgage Interest Deduction on the Table? – The Wall Street Journal reported Monday that President Obama’s deficit commission is mulling the idea of reforming the mortgage interest deduction as a way to help solve the nation’s budget problem. You can expect the typical reaction from those in the housing industry (Realtors® and homebuilders) who will claim this is the end of the world as we know it, as well as the anti-tax caucus who won’t accept any tax increase ever.
Still waiting for my confirmation, my friend posted I GOT IT! Cash Basis Balance Sheet balance for A/R or A/P – What can you do if you do have an Accounts Receivable balance on your Cash Basis Balance Sheet?
Five Steps to Starting a Business – Starting a business can be a rewarding experience, but it can also be very time consuming and difficult. Many resources are available to assist you, but information overload can cause you from moving forward.
5 IRA Moves to Make Before the New Year – it’s time to start thinking about holiday shopping—and some year-end money moves. When it comes to your IRA, there are five moves you ought to consider before the ball drops in Times Square.
4 Ways to Blast Away Your Debt – Debt can be as blinding as a blizzard in Buffalo during February. If you are in debt, chances are you have never taken the time to add up the exact amount you owe. Figuring out your net worth is simple and must be done if you ever expect to get out of debt.
This is a number one must read for the small business crowd – New Sec. 179 Rules Have Pleasant Surprise - Many small businesses placing assets in service in 2010 will get a big additional break if they are above the normal $250k.
Understanding Financial Statements Fundamentals
Reading the Story of a Financial Statement
Tracking Stats For Your Business
A LOAD OF CRAP! – My fellow tax bloggers and I are constantly reporting on emails allegedly from the IRS that are in reality “phishing” scams, and reminding you that the IRS will NEVER initiate contact with a taxpayer via email. But those are not the only emails you need to worry about. I am often forwarded tax-related emails that clients have themselves been forwarded, often from friends or family, with the question, “Is this true?”.
Tax Day Gets 2011 Change – Procrastinators rejoice! Next year you will be able to wait three days longer to queue up at your local post office and send in your taxes.
13 Things Your Auditor Will Need For An Initial Audit – We often are engaged to do initial audits of companies preparing to go public. Many have limited operating histories and have never been through an audit. Your auditors are going to need a lot of information to complete the audit and I can tell you we appreciate it when our clients have everything together. What should you have ready? Here is the list we give to our new clients:
How the HIRE Act Incentives Work
2011 IRA contribution limits: 3 ways to maximize your retirement tax advantages – . . . find it useful to think of saving money like distance running. If you obsess over the total distance, then each step seems hopelessly insignificant in covering the necessary ground. If instead you just start making those steps, and concentrate on finding a comfortable and consistent pace, you’ll find that before you know it, the distance will take care of itself.
Music Video – Los Bank Auditors- I’m on an Audit – Fantastic
BusinessWeek Publishes Misleading Article on Federal Withholding Changes in 2011 – All taxpayers should be concerned about the impending expiration of tax cuts (from both the Bush and Obama years) but no one should have a heart attack reading BusinessWeek’s latest estimates of how much higher the taxes will be. They’re way too high.
Even tax lawyers need tax filing help
Best, worst state tax climates for business – Most folks are obsessing over how the expiring Bush tax cuts might affect individual taxpayers, but when it comes to businesses, a lot of other factors come into play. So the Tax Foundation analyzes each year the tax climates of the 50 states to determine which states, from a tax standpoint, are the most business-friendly and which tend to cause companies to flee their borders.
7 Costs to Eliminate Before You Retire – You will be able to get by in retirement with a smaller nest egg if you eliminate as many expenses as possible before you leave the workforce, such as mortgage and credit card debt. While you’re still working, you can also take care of many other expenses that are likely to crop up in retirement, including home repairs, and even taxes in some cases. Here are some expenses you should try to tackle before you retire.
Small Business Payroll Tax Management – When it comes to payroll tax filing, perfection is essential. For small business owners who lack the luxury of having an accounting staff at their disposal, staying on top of filing deadlines and keeping abreast of changing regulatory requirements can be a time-consuming ordeal.
In addition to freeing you up to focus on revenue-producing tasks, full-service payroll companies offer a range of additional benefits:
Renting Vs. Buying A Home: Which Is The Best Choice?
Tax plan now for year end – With just a little over 2 months left until the end of 2010, it is looking more like we will not get an extension of the Bush era tax cuts. The impact of not extending the current tax cuts will be a tax increase for just about everyone, but especially hard hit will be families with over $250,000 of income.
Sadly several of the links do not take you anywhere. Also I noticed that several of the listed blogs actually haven’t contributed to their sites for a very long time.64 Tax Blogs for Geeks and Wonks – Although taxguy not listed you need this list – There’s something for everybody in this list — one of the best we’ve seen — of blogs for tax geeks and wonks. This list includes four kinds of tax blogs: Tax Policy Blogs by American Professors, “Think Tank” Tax Policy Blogs, State and Local Tax Policy Blogs, Helping American Taxpayers Make Sense Of Policy.
Colbert: Tax Shelter Skelter – Comedy Central’s Stephen Colbert explains why we need to keep George W. Bush’s tax cuts alive.
A few weeks ago I received several letters (can you call them letters if they come to you via e-mail?) asking if I had room in my practice for newly accredited CPA’s. I responded equally to them all asking for résumé like information stating classes or experience above and beyond the call of what is taught to get by.
To get to the CPA exam in Missouri one must have 150 Semester Hours and a Minimum Degree (Baccalaureate) is required. Unfortunately to get there, tax education is very minimal in my opinion. Then, the CPA exam covers/test not so-much in the way of tax.
Other MO requirements:
- minimum of 33 semester hours in accounting (at least 1 course in Auditing and at least 18 semester hours of the accounting courses must be upper division accounting)
- 27 semester hours in general business
Of those that sent out the request, only one responded and he was/is very honest. The short version, he knew he didn’t have adequate experience and only during the CPA testing did he realize what he wanted to do. He contacted me looking to join me in an effort to learn. If I can swing it, he’ll be working for me in the upcoming season.
One of the others (just past the CPA exam), tweeted that she had $40.00 and a few days later it was gone and she had no clue where she had spent any of it. I am glad she didn’t respond to my inquiry, as after that, she’d been looking elsewhere.
My point with all of this? Tax season is fast approaching. Make sure you find a tax pro to help you with your preparation. Know and visit with the person handling and preparing your information.
Paying Off Debt the Smart Way
Being in debt isn’t necessarily a terrible thing. Between mortgages, car loans, credit cards, and student loans – most people are in debt. Being debt-free is a great goal, but you should focus on the management of debt, not just getting rid of it. It’s likely to be there for most of your life – and, handled wisely, it won’t be an albatross around your neck.
You don’t need to shell out your hard-earned money for exorbitant interest rates, or always feel like you’re on the verge of bankruptcy. You can pay off debt the smart way, while at the same time saving money to pay it off faster.
Know Where You Are
First, assess the depth of your debt. Write it down, using pencil and paper, a spreadsheet like Microsoft Excel, or a bookkeeping program like Quicken. Include every financial situation where a company has given you something in advance of payment, including your mortgage, car payment(s), credit cards, tax liens, student loans, and payments on electronics or other household items through a store.
Record the day the debt began and when it will end (if possible), the interest rate you’re paying, and what your payments typically are. Add it all up, painful as that might be. Try not to be discouraged! Remember, you’re going to break this down into manageable chunks while finding extra money to help pay it down.
Identify High-Cost Debt
Yes, some debts are more expensive than others. Unless you’re getting payday loans (which you shouldn’t be), the worst offenders are probably your credit cards. Here’s how to deal with them.
- Don’t use them. Don’t cut them up, but put them in a drawer and only access them in an emergency.
- Identify the card with the highest interest and pay off as much as you can every month. Pay minimums on the others. When that one’s paid off, work on the card with the next highest rate.
- Don’t close existing cards or open any new ones. It won’t help your credit rating.
- Pay on time, absolutely every time. One late payment these days can lower your FICO score.
- Go over your credit-card statements with a fine-tooth comb. Are you still being charged for that travel club you’ve never used? Look for line items you don’t need.
- Call your credit card companies and ask them nicely if they would lower your interest rates. It does work sometimes!
Save, Save, Save
Do whatever you can to retire debt. Consider taking a second job and using that income only for higher payments on your financial obligations. Substitute free family activities for high-cost ones. Sell high-value items that you can live without.
Do Away with Unnecessary Items to Reduce Debt Load
Do you really need the 800-channel cable option or that dish on your roof? You’ll be surprised at what you don’t miss. How about magazine subscriptions? They’re not terribly expensive, but every penny counts. It’s nice to have a library of books, but consider visiting the public library or half-price bookstores until your debt is under control.
Never, Ever Miss a Payment
Not only are you retiring debt, but you’re also building a stellar credit rating. If you ever move or buy another car, you’ll want to get the lowest rate possible. A blemish-free payment record will help with that. Besides, credit card companies can be quick to raise interest rates because of one late payment. A completely missed one is even more serious.
Do Not Increase Debt Load
If you don’t have the cash for it, you probably don’t need it. You’ll feel better about what you do have if you know it’s owned free and clear.
Shop Wisely, and Use the Savings to Pay Down Your Debt
If your family is large enough to warrant it, invest $30 or $40 and join a store like Sam’s or Costco. And use it. Shop there first, then at the grocery store. Change brands if you have to and swallow your pride. Use coupons religiously. Calculate the money you’re saving and slap it on your debt.
Each of these steps, taken alone, probably doesn’t seem like much. But if you adopt as many as you can, you’ll watch your debt decrease every month.
Related articles
- Are you sure you want to do a debt consolidation (cascadesatstluciewestblog.wordpress.com)
- Credit cards and your business – what you need to know (simplybusiness.co.uk)
- What’s More Important: Saving or Paying Down Debts? (dailyfinance.com)
Where I have been. . .
Well let’s not let the title miss lead to much. I haven’t really been gone, but I have been very out of touch for a while so let’s find out what I have been doing. . .
Over the course of this past year, I have expanded my firm. Not so much in a construction manner but an expanse of my services. For a full listing, you can go to my website and explore the Services page.
The biggest part or upgrade would be the addition of on-line services. We now have available to our clients an online payroll service, on line accounting service, online employee services, and direct deposit capabilities.
It seems we have focused our online amenities towards the business folks. Well, that’s just where we started. We aren’t done yet. Still to come (timeline is looking at 2011), are going to have online access for all of our clients’ needs. From basic financial planning, to tax questionnaires (that will go out from here to clients, and back again) along with access to past returns for up to ten years. But that is latter.
We currently have over 50 on line calculators to assist you. You’ll find these calculators on our calculator’s web page. Under the following headings – Taxes & Payroll, Business Planning, Personal Finance, College Saving, Retirement, Estate Planning, Home Mortgage, Car Loan, and Loans.
Our changes in part are contributed to our upgrade to a better provider company. We have purchased many of our products from Thomson Reuters, the leading software provider worldwide for accounting professionals. This has opened the door to many services we can now offer our growing client base. We will continue to use our software from our pervious providers as well.
The above notwithstanding, through the #1 software provider for the general public we have been able to offer our clients a choice between the two. By doing this, we are able to accommodate all your needs.
Last, but not least. We have a new web site. One of the top things we have done to better serve our clients. Through this site you will have a great many options to help you find the information you need. Not just the calculators that I mentioned above, but you also can find answers to common QuickBooks issues, buy intuit software, incorporate, get tax information at our Tax Center page where you can find more calculators, find forms (Federal and any State), find due dates and much more. You’ll also be able to sign up for our monthly newsletter, have access to financial guides, find links to buy books we recommend, almost everything you might need including my appointment calendar where you can request an appointment and see when we are available.
We are very happy with the new site and we hope you will be too. It will offer our clients and others information to access to information that isn’t always that easy to find. I have added links to our web site at the top right of this blog so they will always be there. Go to our home page to start looking for what you need. L & R Tax Preparation.
As I work my way back through everything I will try and get back to my regular Sunday post where I recap the best post from other tax bloggers along with my favorite PF bloggers.
No word yet from Alltop. I’ll keep everyone up to date as things progress.
Reads from Last Week. . . .
Hey, another Sunday and a lot of Post to read. I am throwing in a lot of articles about Finance and such because it is that time of year, and I love Christmas. Yea, December and the holiday cheer. Anyway without further chattedly conversing, “. . .and here we go.”
Compensating audited taxpayers: an idea whose time has come? Now I have always wondered if anyone has thought of this but never really realized so many have. I like the idea and have noticed that many in my field also think highly of this idea, “that the government pay taxpayers whose returns are selected for audit, especially taxpayers subjected to random exhaustive audits the IRS may conduct purely for research purposes.” Yet, there is one who thanks to Mary I know wonder about, as he is opposed the idea, to the point of accusing two highly recognized Economist of smoking, well something of unknown origins. I have enjoyed reading Mary’s post on several topics and suggest this one is a great one for all to read then consider talking to your congress people about it.
I also enjoyed this Public finance puzzle also from Mary over at Bed buffaloes in your tax code.
Kay Bell writes “The investment tax is back! A few months ago, the possibility of a tax on investment transactions was floated. It didn’t go too far then. Treasury Secretary Timothy Geithner even noted that he “hadn’t seen a version of the tax that’d make much sense.” Now, however, with ballooning deficits, war costs to pay and health care financing about to dominate the waning days of this Congressional session, the transaction tax idea has resurfaced.
From The IRS Hitman IRS Tax Debt: Income Dropped? Two ways to Get out From Under Tax Debt and Tax Debt Myths: Real Ways to Stop an IRS Tax Levy, and Myths to Avoid.
War tax? Why stop there? A great one from Joe over at the Tax Update Blog.
If you use Paypal or another service to process credit card payments Stacie posted on the proposed regulations, something you need to know, please read her post Have You Heard About Form 1099K? Also from Stacie on her tax tips blog make sure to catch Some More Info on The Homebuyer Credit.
I haven’t, in the past, mentioned much from the Taxgirl, always just thought everyone read her stuff every day. I have since learned better of that. She always writes such wonderful pieces and easy for all to get. I still need to make better mention of this great tax blogger. Getting to the point if you are about to undergo an audit or even about to here are 7 Audit Lessons (or How I Learned to Stop Worrying and Love the IRS) Okay “Love the IRS might be a bit out there but still a worthy and informative post.
Monica hits the nail on the head in her post Just to make a point. Come on guys lets do something a bit more productive. Please?
My blogging friend and I’d dare to say mentor into the same world, Robert Writes in his Saturday buzz “Back at the ROTH AND COMPANY TAX UPDATE BLOG, Joe Kristan’s post “New Business? How Do You Go About It?” led me to “Get It Right the First Time” by Chris Branstad at IOWABIZ.COM.
It is great to have one’s professional advice supported by peers. Both Chris and Joe echo my advice on incorporating.” I couldn’t agree more. One other “Must Read” from TWTP is TAX PLANNING AND THE AMERICAN OPPORTUNITY CREDIT.
If you are not a regular reader of TickMarks please make yourself familiar with the writings there. Every year host and is Coming Soon! The Fifth Year of “Twelve Blogs of Christmas” Last week there was Twelve Blog Update: New Blogs Added. Where it was mentioned of the new site address here. Thanks Dan.
Ever wonder, 3 Reasons Why Inflation Will Not Be Stopped? Another post I found very interesting as I dive deeper into the PF world of things, Your Electric Bill – Your Price to Compare Can Mean Savings! Also posted over at A Personal Finance Guide, a great blog put together by Susan K..
You Need a Budget Pro Giveaway over at Cash Money Life. I recommend YNAB regularly so get entered to win asap. Great giveaway Patrick. I also liked his post Shopping Responsibly on Black Friday.
I wrote a post about Black Friday last year called The Idea behind the term “Black Friday”
If Black Friday wasn’t your thing I’d like to point you to Black Friday and Cyber Monday 2009 – If You Must Go Shopping, Plan Ahead. Great post Kevin.
Homemade gifts – yea or nay? A good look at this. I plan to do a few gifts that are “homemade”, anyone else out there planning this? Especially this year?
In the same light of things here are 28 Thoughtful Homemade Gift Ideas.
Here are 5 Ways to Save this Holiday Season.
Also from Living Almost Large be sure to check out Budget billing worth it? If you are considering such a thing make sure not to miss this. In case anyone is interested, I have all my utilities set up this way, at least the ones that offer it.
Two great articles from my friend over at Saving to Inve$t 401k Cash-Out For Loans vs. Hardship Withdrawals – Penalties and Taxes and Taxes and Gains I Can Exclude When Selling My Home. I love it when Andy writes about tax stuff, He does a great job and keeps me from having to add anything to what he writes. I hope Andy sticks around for a long time.
In closing I’d like to mention a fond welcome to Kim (aka Kimmer). She made her debut here in the Personal Finance arena of blogging. I am glad she has joined me here at The Missouri taxguy. Her first post Personal Finance 101: Budgeting – it doesn’t have to hurt was looked at long enough to register 786 times as of the time of my finishing this Post. Good job Kim, keep the information coming.
If you are wondering, the picture is my home/office.
Personal Finance 101: Budgeting – it doesn’t have to hurt
With the economy as it is and all that’s happening in our country and around the world, most people are looking for ways to save money, cut out waste, spend less, tighten their purse strings -whatever you want to call it. We all are trying to survive on less, to make more money or figure out ways to make what we have go further. I thought this post especially timely as the holiday season is upon us and many of us are wondering how Santa is going to make it all work this year.
There are a couple of basic things involved with managing your personal finances successfully; know how much money is coming in and how much money is going out; then make sure more is coming in then going out. It sounds easy enough but actually requires some careful planning.
A budget plan is a chart that shows you the flow of money in your everyday life. A budget can help you determine where you are overspending as well as help you adjust bad spending habits. Usually by making slight adjustments to your budget, you can create the ability to save more or free up money to make larger payments on your debts or at this time of year, buy presents for your family and friends. YAY for presents & smiles & fun & good food & egg nog!! Oops, I got a little carried away, back to the budgeting plan.
The first thing needed to create a successful budget plan is to know exactly the amount of net cash you have coming in each month. So start by gathering your paystubs, deposit slips, if you have reoccurring monthly bank deposits (alimony or child support pmts, SSA, pensions, etc). It’s a good idea to have either a monthly budget book or even an online planner. Even something as simple as an excel spreadsheet works, but you need something where you can record your expenditures and income. Start by keeping track of all your monthly living expenses and other monthly bills. There’s really no need to spend money on fancy budgeting software – you can go online and Google “budget plans” and you’ll find some great household budgets you can download, copy or print for free that are pretty good and will get you started. You can “tweak” it to fit your own expenses – there’s usually a couple miscellaneous categories already listed anyway. You can even do this on a piece of paper.
I always suggest that you start with the “known” or fixed expenses each month, like car payment(s), rent/house payment, car insurance, medical insurance, etc. and enter those. Then go to your bills that you need to get a 12-month average for, like your utilities. By looking back on your heating bills, phone & electric bills from the last year, you can get an average monthly amount and in many cases the utility companies will let you go on a monthly budget plan if that’s easier for you. If you don’t know or didn’t keep records of those bills for the last 12 months, most utility companies can get you those figures easy enough if you ask, in most cases at no cost to you, or a very minimal fee. Groceries are a little harder to determine as well as eating out so the best way for you to truly set an accurate budget is to track every single expense for at least one full month, usually two months in a row if you’re doing this for the first time or it’s been more than a couple of years since you’ve done a budget. I know it can be a pain in the behind but it helps you to get the most accurate picture of your finances and a place to begin and usually people find out they’re spending a lot more on things they don’t really need or didn’t know they were spending that much money on and it helps tremendously in giving you back control.
The other thing in creating an accurate budget plan is to remember to include all the little things most of us don’t think about, like buying a specialty coffee or latte on the way to work or a few lottery tickets a week or month, garbage pick-up, paper products, a drink or two out with friends, kids or adults lunch money each week. Lunch money can add up real quick as I found out in my house when my 3 daughters were all in 3 different schools and I was shelling out lunch money every morning. When I added it up, I had to add another category to my budget plan since it was over $150 per mth just for them! And yes sometimes I did pack their lunches but that still cost me on average $2-3 per day (about the same as hot lunch) so I still had to plan for and budget that in – and it wasn’t something I thought of at all at first.
You also really need to control your emotions and try not to “impulse buy”. I know…I know sometimes you just have to have that chocolate bar (ladies you know what I’m talkin’ about) or a Friday night beer or two after work, and by no means am I suggesting you cut out all those types of indulgences – after all, you work hard for your money and if you can’t buy a few frivilous fun things to relax or reward yourself once in awhile, then what’s it all for? I agree…but the point here is in order to make sure you have enough money at the end of a given month to be able to do those things while still paying all your bills and saving some money, then you have to first have an idea of what you’re spending and where. Most of the time people find they can save a substantial amount ($100′s per mth sometimes) by cutting out things that they really won’t even miss; like the morning latte. Or….still get a coffee on the way to work if that’s what you really like, but make it a regular for $1.50 instead of a specialty drink at $4. Or if you usually go out to lunch at work and you really enjoy it, try going out only 3 times per wk then pack some of the time. Or eat out where you know you’re likely to have leftovers. That way if it’s an $8 lunch but you can eat the rest the next day, then it now became a $4 lunch or give yourself a weekly “lunch out” budget. It might sound a bit silly but I know for me, as a single mother of 3, at times when things were so very lean, I had to do that to survive or be able to get birthday presents, and I still do the “weekly lunch out” thing – it just makes good sense to me. And none of this is complicated or has negatively impacted my daily life…I’m still feeling “fulfilled” each day whether I pack a sandwich and some fruit from home or got out with friends from work that day.
Remember to keep all receipts for 2 months and then you can go back and create an accurate budget plan. Then you can pick and choose for yourself where you want to cut things, change things in order to meet your financials goals. Whether it’s saving money for the future (which that’s a topic for another day) or coming up with money for Christmas or birthdays, a vacation fund or maybe it’s just being able to pay all your bills ontime and not feel so stressed. Whatever it is that you want to accomplish, ask yourself ”Do I really need to buy this? Can I cover it in my budget? Is it going to help me with my long term goals? Can I live without it today? We all hope to have discretionary income each month to have fun with but sometimes we have to learn to cut back temporarily (hobbies, entertainment, specialty clothes) to have more in the long run. I hope this helps – maybe even inspires you to get started today and hopefully add a few more presents under your tree this year.
Kimmer
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