Week in review - The Missouri "taxguy"

A Week in Perspective

Posted by Bruce Mc on Dec 19, 2010 in Information, Opinions, Week in review | 0 comments

Want to let everyone know that with the upcoming holidays and my need to catch up my readiness for this upcoming season, The will be no Week In Perspective on December 26^th, or January 2^nd.

I also want to let you all know that I have a very special post for you scheduled for January 4^th.

Happy birthday to us! – Twenty years ago, five more-or-less young accountants went over the wall of a national CPA firm to start their own firm. They wisely discarded their first working firm name (“Dunderhead CPAs”) and settled on the name “Roth & Company.”

Not sure how I missed this:

Are You Ready For The Big Payroll Tax Deposit Change? – The IRS is changing the rules in a BIG way, when it comes to payroll and corporation tax deposits. Are you going to be ready for this new change? If not, you don’t have long to get ready! The new change goes into effect on January 1, 2011.

IRA Investment Planning for Taxation

3 Ways to Improve Your Credit in the New Year – Improving your credit quickly can be tough since the whole point of a credit history is to establish good financial trends – a pattern of paying off your debts. However raising your score over a longer period of time isn’t too tough if you consistently follow good money habits.

Why Don’t We Tip Everyone? – Earlier this week I asked my readers why they tip at the holidays. I was afraid a lot of you would read that, scoff, and say “Of course I tip my coffee barista! Every day!”. Of the few people that commented it seemed that everyone thought there was an appropriate time to tip (I agree) and sometimes it just doesn’t make sense to tip. But as I considered holiday tipping another thought crossed my mind. Why do only certain professions warrant the expectation of tips?

Everyone is Deserving, Right?

Friday’s Tax Quote – December 17, 2010 – “People don’t complain about taxes because they are selfish or stingy. They complain because they simply don’t believe they’re getting their money’s worth.”

- Zell Miller

Don’t Overlook This Easy Way to Put More Money in Your Pocket – If you have an employer, you might be offered a health care or dependent care flexible spending account benefit. Flexible spending accounts are one of those benefits that can make your eyes glaze over, because at first glance they don’t seem like a benefit. But they’re actually great, because when you take advantage of them you get to:

Are You on the Hook for Repaying Your Homebuyer Tax Credit? – In the wake of the financial crisis and the housing market crash, there were a number of efforts made to prop up the failing market. Among these efforts were tax credits for homebuyers, encouraging them to buy homes. However, not all the tax credits were created equal; in some cases, homeowners may be on the hook for repaying the tax credit.

FINALLY!

Merry Taxmas! House OKs tax bill – In addition to keeping the current six tax rates that range from 10 percent to 35 percent, the bill contains a raft other tax breaks for both individuals and businesses. Many of the provisions relate to 2011, but there are some of the individual tax provisions that expired at the end of 2009 and were extended retroactively for the 2010 tax year:

Alternative minimum tax (AMT) patch
State and local sales tax deduction (itemizing required)
Tuition and fees deduction
Teachers et al write-off for $250 of out-of-pocket expenses
Private mortgage insurance (PMI) deduction
Direct donation of IRA money by older account holders

A New 2011 Economic Stimulus Package With Obama-Bush Tax Cuts and Unemployment Benefit Extensions – [Update - No New Taxes with Tax Extensions Approved] President Obama has signed into law a bill that covers an extension of all the bush-era tax cuts and additional tax benefits. With this legislation he has essentially created a new 2011 Economic Stimulus package, estimated at around $858 billion. Here’s how various key components of the “2011 economic stimulus package” legislation will affect you:

Estate tax extension through 2012: Nudging mama off the train in two years?

With Obama’s signing of the compromise tax deal yesterday, the really wealthy were among those who got an early tax present.

Some of the House Democrats railed against this latest version of the estate tax, but in the end, it passed.

For 2011 and 2012, estates worth $5 million or less won’t be taxed at all. For estate values greater than that, a 35 percent tax rate will apply.

Bush-rate extension passes; what it means – After a day of posturing, the extension of the Bush-era tax cuts ended up passing easily last night, 277-148.

So what does it do? Go to the above page for Joes great list of. . .

Also with More coverage of the final bill:

Robert D. Flach, TaxGrrrl, Tax Foundation, Kay Bell, Peter Pappas, The Blog that Inexplicably Hates Our LInks

Tax Bill Passes: What This Means for You – Here’s what’s in and out and what this means for you.

Boston Tea Party Anniversary – The Boston Tea Party was 237 years ago.

Steps To Stimulate A Recovery And Employment The Law Of Opposites

December 19th, 2010 Filed under: MBA Finance Jobs — Finance Author

As I wrote in 2008 on the financial crash, I was in the small minority that would have let the market crash. Now, you may be wondering what I meant then and mean now:

How do we distribute tax benefits for charitable donations? – I’m struck by the remarkable generosity of many of the low-income taxpayers at our Union College Volunteer Income Tax Assistance (VITA) site, who rarely get any tax benefits for their donations.

The AMT Effect for Individuals – For years, tax practitioners have been clamoring for a permanent fix to the AMT system. Ask a tax preparer about the late extension passed in 2007. If Congress does not pass the extension this year, it is estimated that 28 million taxpayers will pay AMT, with 82% of those taxpayers earning below $200,000. You will notice, that in 2009, 4.5 million were subject to the AMT.

2010 and 2011 AMT Tax Brackets – AMT is Alternative Minimum Tax. The Bush tax cut extension law officially known as the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (H.R. 4853) includes an AMT patch for 2010 and 2011. Congress used to patch AMT one year at a time. This time they did two years in one shot. That’s a 100% improvement!

How much are those New Year’s Eve babies worth?

A time to be born … a time to die – Playing the video while you read this post. And yes read the post. This is a great Article Mary.

“There’s no such thing as a free bike.” – Those “gift” bikes could turn out to be very expensive, because the IRS does not treat it as a “gift” but as a “taxable fringe benefit.”

It raises interesting tax questions.

Rentals and 1099s – Beginning in just a few days, landlords will have a new complication to renting their properties. As if dealing with renters who don’t want to pay their rent or trash the house when they leave isn’t bad enough, landlords will have to begin issuing 1099MISC to any service providers they pay $600 or more over the course of the year.

The new 1099 Requirement you MUST comply with in 2011 – Real estate investors take note: January 1, 2011, is the starting date for new 1099 Reporting rules. Effective January 1st, you must track payments you make to all businesses and individuals that you buy services from. Once you have paid $600 or more to any one business or person in connection with any kind of rental property expense, you’ll need to report those payments to the IRS, and issue each person or business a form 1099-MISC…

Form 1099 repeal fails yet again

While waiting for the Senate to get around to its final vote on the deal to extend the current income tax rates, the chair of the Finance Committee took another shot at repealing the new Form 1099 reporting requirement.

This tax task was devised as a way to help pay for health care reform. Specifically, businesses will have to provide 1099 information returns to each payee that the business pays $600 or more during the year.

How the Price to Earnings Ratio is Calculated – The price to earnings ratio (P/E ratio) represents a company’s current share price compared to its earnings per share. Commonly referred to as the earnings multiple, the P/E is commonly used by investors to compare and analyze stocks, as well as determine if a company is under or overvalued. There are many different versions of the price to earnings ratio which are often used to understand past, present, and future valuations.

TAX BLOGOSPHERE BUDDIES – PROF JAMES MAULE – Friday series of mini-interviews with fellow tax bloggers is Professor James Maule of MAULED AGAIN. A fellow “Wandering Traveler in the Internet Wilderness”, Jim has been a professor at Villanova University School of Law in Pennsylvania since 1983, and has been blogging since 2004. I enjoy reading Jim’s, appropriate for his profession, scholarly posts on tax policy. We have both made the extreme error of disagreeing with a certain multi-initialed blogger.

Social Security by the Numbers

Charge cards vs. credit cards: 3 reasons to charge it – The other day, someone asked me, if given the option, which I preferred: charge cards or credit cards. My answer: “There’s a difference?”

There is. And who knew?

(If you knew, kudos, because I always thought “charge card” was what our ancient ancestors – Mom and Dad – called the plastic we carry around in our wallet.)

Pre-paid credit cards: Why you should give them a second look – Today, it’s often difficult for anyone to get a credit card – whether it’s a zero percent balance transfer card or a best cash back credit card. And if you’re just starting out -or starting over – getting an approval based on your credit score can be even more of a hassle. This is what makes pre-paid cards so attractive if you want to use them for online shopping, travel or even just everyday expenses.

Reminder;

You can go to my company web site Tax Center page where you’ll find this year I have a Free Tax Organizer. You’ll need a .pdf reader to open this 14 page organizer. You can also find my Online Tax Organizer, used mostly by clients and/or those who will be clients.

Enter your email to subscribe to the L & R Tax Preparation monthly newsletter.

A Week in Perspective

Posted by Bruce Mc on Nov 14, 2010 in Information, Week in review | 0 comments

The Turbo Tax defense doesn’t work in Tax Court. No Gold at the End of the Rainbow – The Court also noted that they gave plenty of opportunities for the Aus to negotiate a settlement with the IRS, and/or to consult attorneys regarding their case. They didn’t until the Court was about to render its decision. Had they asked a tax professional or an attorney familiar with tax law about their case, they likely would have been advised to settle and they would be paying less than they’ll have to.

Disability Insurance Policy To Protect Your Most Important Asset – Your Income – Ask yourself this question. What is your most important and valuable asset? Think about it for a minute. Is it your house? Your savings or your 401(k) retirement plan? Your sports car or rare memorabilia? While all of these things are both important and valuable, none of them truly represent your MOST valuable asset

Don’t Get Taken! What Passive Income Really Means

Love And Money – Love and money don’t always go hand in hand. It can be the cause of countless arguments especially since most of us have different money styles. However, with a few guidelines to promote better money communication, money can become a source of joy within a relationship rather than a stress inducer.

I like this – My “Reverse” Black Friday

ANOTHER ONLINE DEBATE – It seems the announcement of THE SCHEDULE C LETTER has re-opened the online debate of “Should a Sole Proprietor Incorporate, or A One-Person LLC Elect To Be Taxed As A Corporation, For No Other Reason Than to Reduce the Chance of an IRS Audit?” –

The Answer is individually situational. Please see a lawyer then see you tax professional before making your choice.

Not Going To Happen – All over the tax blogs today has been coverage of the President’s Debt Reform Panel’s Tax Reform Panel options for cleaning up the American Tax Code. It looks well thought out and I intend to give it much more study over the next couple of days. But it doesn’t matter what the options suggest, it won’t happen.

Veterans Day 2010: Tax considerations for members of the military

Home Improvements That Qualify for Tax Deductions – Did you know that some home improvements may qualify for federal tax deductions or tax credits? Knowing which renovations and improvements are eligible for tax deductions can help you decide whether or not to make the improvements, and can help you correctly claim deductions or credits for these renovations when you file your taxes.

The One Thing to Drop from Your Budget Like a Hot Potato

Financial Loopholes to Take Advantage of Now – In 2001 Congress passed a massive tax reform bill called the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), which provided tax cuts to all Americans, in all income levels, via a multitude of changes to the tax code. These tax benefits have come to be known as the Bush tax cuts.

Tax Relief FAQ: How Does the IRS Compute Penalties For Delinquent Tax Returns? – An important step in avoiding IRS tax trouble is to understand how the IRS approaches delinquent tax return penalties.

1099s – The Good, the Bad and the Ugly - Having a small business issue 1099s for these purchases starting in 2012 would be pointless:

$852 of office supplies purchased from Staples
$2,592 of airline tickets purchased directly from the airlines
$1,300 of services from their CPA firm

Issuing a 1099 for $700 of services rendered by a web designer makes sense though and existing law already covers that.

Steve Jobs Is NOT Giving You Tax Advice (But If He Did…) – . . . , as marketing goes, it’s pretty darn clever. And despite whether you love Apple or not, you have to give them credit for consistently being above the curve on the marketing side. As a tax geek, I’m a little bit in love. Using the Tax Code as a marketing tactic is genius (so, hey Apple, call me).

How to Work a Job Fair – Before You Go to a Job Fair, It’s best to be prepared for a job or career fair. Before you go, prepare yourself to impress, and have an idea of what companies you want to talk to. As get ready to go, consider taking these actions:

So I Won a Free Trip to the Bahamas. Now, How do I Report It on my Tax Return? - “I will not be sent a Form 1099-MISC. So how should I account for this on my tax return?”

What are the odds of an Obama compromise on Bush rates? – Tax planners got all excited yesterday when top White House aide David Axelrod hinted to the Huffington Post website that the President might be ready to extend the 2010 tax rates for top earners. Absent new legislation, the top marginal rate will rise from 35% to 39.6% in 2011 — and higher when phase-outs are counted. But if the Axelrod statements are a trial balloon, the President isn’t ready to climb aboard just yet. CNN reports on comments he made in Seoul:

Lottery winnings, charitable donations and the tax collector – By now I’m sure you’ve heard about the Nova Scotia couple who hit the lottery and then gave away most of their $10.9 million (Canadian) winnings to charities.

Allen and Violet Large are generous, but they’re no fools. They kept nearly a million for themselves. The septuagenarians say they’ll use the money for emergencies and to buy more lottery tickets.

Good for them! And doubly good for them that Canadian tax law allows them to give away so much of their windfall.

Wash Sale Rule for Investment Losses – All investors experience losses, no matter how experienced or knowledgeable they are. The Internal Revenue Service (IRS) allows investors to deduct capital losses from investing gains in order to reduce your capital gains taxes. Under the IRS rules, short-term capital losses can be used to reduce short-term capital gains, which is extremely beneficial because short-term capital gains tax is equal to your ordinary income tax rate.

Roth Conversion Planning Ideas

5 Ways to Make Sure that a Partnership is a Good Idea for Your Business – Ask most business people their most horrendous business story, and it will almost always involve a partner.

Lucky Number 13: 13 Financial Changes for My 23rd Birthday – now that I’m one day away from being 23, I’ve realized it’s time to start being more financially responsible.

A Week in Perspective

Posted by Bruce Mc on Nov 7, 2010 in Information, Week in review | 0 comments

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

Posted by Bruce Mc on Oct 31, 2010 in Information, Week in review | 1 comment

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.

The Looming Dividend Tax Trap

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.

Employee vs. Independent Contractor – How to Correctly Classify Workers and Avoid IRS Employment Tax Audits

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

Notice no tax education required.

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.

A Week in Perspective

Posted by Bruce Mc on Oct 17, 2010 in Information, Week in review | 0 comments

With the end of the filing season now behind us I have taken some time off. I have post ready for next week ,but I am out. all the same. The week now past held its own with great post. As Always I can’t get them all to you but please be sure to read what’s here. I have gathered great post from great bloggers with information we all need to know. See you all next week.

My favorite post this week:

How Your Financial Life Will Change After Marriage – 7 Important Money Matters to Consider – While the most common subject of marital conflict is money, premarital counseling rarely discusses the practicalities of managing household finances. Money matters are even more challenging when people move from individual to joint finances, often with very different financial viewpoints/habits and financial baggage (like student loans and credit card debt). But this article is here to help, with seven important money matters to consider before you tie the knot:

Understanding Your W2 Employer-Employee Reporting Form For 2010 Taxes Filed in 2011 – W2 Changes in 2011 – The W2 form for 2011 is pretty much the same as 2010 expect that employers now have to report the cost of tax-free medical coverage under an employer-sponsored group health plan (this is optional for employers in 2011, but you may still see it). The reporting of this cost, mandated under the Obama’s health care plan, is intended to provide employees with greater transparency into their overall health care costs.

Your taxes, now in plain language – It’s now law. Federal government documents must be in “plain writing.” And yes, that includes the Internal Revenue Service.

The IRS and the latest licensing outrage -

Who would you rather prepare your taxes? A professional tax return preparer with over a dozen years’ experience in preparing tax returns for taxpayers without incident. Or me, an attorney who has never so much as taken a law school class or continuing legal education course in tax law, and gave up on doing his own taxes last year once he started needing to itemize his deductions. You probably think you’d prefer the first option, but the IRS says you’re wrong.

10 More Essential Skills You Didn’t Learn in College -

IRS Prefers Snot-Nosed Harvard Law Grads Over Experienced Tax Return Pros – . . . are most attorneys really that much better qualified to prepare your taxes? Absolutely not. . . .most attorneys don’t have any special training or testing on tax law, let alone tax return preparation.

Tax Return Preparer Regulation: What About Attorneys and CPAs? – In all fairness, Congress has created a tax law that rivals quantum physics in terms of difficulty, which surely makes attaining competence just that much more elusive, but that does not diminish the need for tax competence by all preparers. Demonstrating that competence ought to be accomplished by actual testing and not by erroneous presumption.

33 Questions To Ask Customers – Are you providing a good customer experience? Here are some questions to ask your customers to find out:

How regressive is YOUR state’s tax system?

“Do you have a business…or a hobby?” – just because you spend a lot of time working on your creations doesn’t mean you have a business. While you may protest: “Hey, I’m working hard How is it not a business?!” it is worth taking a closer look at the true definition of a “business.”

A List of Useful Twitter Stats and Analytics Tools – Just for You! – Twitter happens to be a powerful tool to promote your brand, products or services on the internet. And these days, everyone seems to be busy tweeting! To measure whether you are making the most of this social media marketing tool, you should have a couple of useful analytics tools at hand.

Benefits of Independent Contractor Status (vs Employee) – . . . the fact remains that there are a lot of benefits to hiring independent contractors instead of employees.

IRS Independent Contractor Test – The IRS used to use something called the “20 Factor” test. But, under pressure from Congress and from representatives of labor and business, there have been some attempts to simplify the test. There are now 11 main tests that are organized into 3 main groups:

Small Business News: The Business of the Future! – The future is here as far as small business goes. A rapidly changing economic and technological landscape has almost completely changed the idea of what it means to be in business including the trappings of a storefront location or office, a large bank loan and hiring and buying merchandise. (As we’ll see even the small business Website isn’t what it was a few years ago.) But the core values of running a small business, or any business, have remained the same: create value, operate efficiently, be profitable. Here are the ways small business has changed. It’s the wave of the future:

Jobless After 50? You May Be Out Of Luck – The economy officially crept out of recession in June of 2009, but for many Americans, the economic markers that really count are the ones that come out each month from the Department of Labor: unemployment statistics.

Finally a Tax Law Change That Will Make Our Lives Easier. Well, unless you are a stock broker or mutual fund company that is. 1099-B Reporting Expanded

In other news:

There will likely be no increase in Social Security benefits (sometimes referred to as a “COLA” or “cost of living adjustment”) for 2011. That makes two years in a row since there wasn’t an increase in 2010 (though there was an above average increase – nearly 6% – in 2009)

Kay always has the best pictures.

IRS announces that W-2 reporting of 2011 workplace health benefits is optional

A Week in Perspective

Posted by Bruce Mc on Oct 10, 2010 in Week in review | 0 comments

I have been searching for some new PF blogs to read and incorporate in to my weekly recaps. This post is evidence of that I think as it has lots of PF blog links. Fear not lots of tax stuff in here too. If you need more tax info then Tax Carnival #75: TaxtoberFest 2010 is out and full of great articles.

10 tax tips for 10/10/10 - I’m not a numerology freak. And I don’t have any particular financial superstitions. But I just couldn’t let the 10th day of the 10th month of 2010 go by unmentioned.

My favorite post this week is:

‘Sex therapy’ is not a medical deduction – A New York state tax appeals board has denied a retired Brooklyn lawyer’s attempts to claim hundreds of thousands of dollars he spent on prostitutes, massages, pornography and other sex-related activities as deductions for “medical expenses.”

No Kay we should have to keep saying this, but it wont stop people from trying even though they know.

BlogRoll Beans

EFTPS Scam On the Rise – Scammers and phishers are becoming much more clever these days. That’s why it’s important to be smart – and informed. The most recent scam making the rounds appears to be a phishing scam. An email is circulating with the subject line: Your Federal Tax Payment ID: 010363124 has been rejected.

New Phishing

EFTPS phishing

What Does “Financial Independence” Really Mean? – “Financial independence” is a phrase often bandied about by people without any sort of consistent meaning.

REGULATION DOES NOT PREVENT FRAUD – Regulating “unenrolled” tax preparers, while a good idea which I support, will not prevent tax fraud. Regulating CPAs does not prevent tax fraud. Here is an example of the tax advice given by a CPA from a recent blog post by a tax attorney. . .

AND THE BEAT GOES ON

Withdraw from your IRA with no Penalty? – With all the RothMania spreading, especially since the income limits for converting from a traditional to Roth have been removed, I’m afraid that the needed discussion regarding the Traditional IRA has been neglected

KEEP IT SIMPLE – Still work on extensions RDF has a minute to get us this post. Lets Freeze it shall we?

Good, Better, Best – According to Twitter, which I realize is in no way verified, John D. Rockefeller said: “Don’t be afraid to give up the good to go for the great.”

Trends and the Tax System – The Home Mortgage Interest Deduction – Today, USA Today reported on a trend of more people renting their homes than buying them, apparently due to both the economy and benefits of renting rather than owning. See Should you rent or buy your own home? by Christine Dugas. The article refers to a survey indicating that even some that can afford to buy a home are renting instead and fewer think it is part of the American dream to own a home.

New tax breaks for the 2010 tax planning home stretch – The 2010 tax year is three-fourths over for most of us. By now, we should have a decent idea of what sort of year we’re having, so it’s time to get serious about our year-end tax planning.

New Employer Plan Internal Roth Conversion Rule Falls Short – I wrote about a new Roth Conversion provision in the small business tax bill that everyone has been waiting for, the ability to convert pre-tax dollars in an employer sponsor plan to the designated Roth portion of the employer sponsored plan. These plans are 401k’s, 403b’s and government 457b’s. The blog entry is more in depth here. That was the good news, however lots of people are still not eligible to directly rollover their 401k, 403b or 457b money to a Roth IRA or designated Roth account while tax rates are low and time is on their side.

Should I Really be Doing my own Taxes? – This isn’t a bad thing… if your taxes aren’t going to be complicated. What do I mean by ‘not complicated,’ you ask? Ask yourself these questions if you are considering doing your taxes yourself this coming year:

The World of Twitter Can Get Mean – I consider Twitter like an huge ongoing conversation or maybe with 5,600 conversations going on it is more like a giant cocktail party. I will say for the skeptics that from a marketing standpoint it does work, because I have found new business from Twitter.

Do I Qualify for the IRS Offer in Compromise Program to Settle Back Taxes Owed?

Tips to Becoming Independently Wealthy – . . . we pay our obligations and we are left with a goose egg. There is a fundamental problem with this, and the truth is that 98% of us are so concerned with being good little bill payers and having a good credit score that we miss the boat on our most important piece, our income-producing asset column.

Got W-9? How New Health Care Bill Form 1099-MISC Requirement Will Drown You in Paperwork – Just what you need – one more administrative task put on the backs of small business owners. Starting in 2011, any vendor or independent contractor payment that aggregates to more than $600 in a year gets a Form 1099-MISC. In the past, we’ve only had to give Form 1099s for services and to unincorporated entities. Now everybody gets a Form 1099, corporations included, and for all payments – services AND goods.

Family LLCs as estate beneficiaries: an Iowa inheritance tax trap – The Iowa inheritance tax lives on even after the (temporary) death of the federal estate tax. It has many exemptions and rarely applies.

How to use PayPal for Marketing

Quicken 2011 Review and Giveaway – Interested in receiving Quicken 2011 for free? Read this article in full. This coming Thursday, October 14, Quicken 2011 will be released to the public. This is the latest version of the most popular desktop software for managing your personal finances. I’ve been using Quicken for six years, and I have eight years’ worth of financial data in my files

Tax Fraud: Top 3 Ways You’ll Go Straight to Jail! – Can you go to jail if you don’t pay your taxes? The short answer is “Yes”, not filing your taxes and committing tax fraud are Federal Offenses. You may have dodged the IRS for now, but eventually, you will get caught.

A Deeper Look at the “Percentage Budget”

Why do things like this never hit the KC area? Get Free Help at a Financial Planning Day Near You – During October, CFP Board is part of a group offering Financial Planning Days nationwide. A Financial Planning Day is a free one-day educational seminar held on a Saturday and open to the public. Professional certified planners volunteer their time at these events and cover a variety of financial topics.

More People Need Tax Relief for IRS Back Taxes Than Ever Before – Find Out Why! – We are in a recession. This is no news. But you may be surprised to know that the IRS is taking the current poor economic state as an opportunity to double and triple their efforts to collect taxpayers’ back taxes and outstanding debts.

Why?

Bad economy + lost jobs = no or low income and less tax money for the IRS

Should You Merge Finances With Your Spouse? – Financial management is one of the most serious considerations that married couples have to plan for. Without proper planning, financial stress can put a significant strain on a marriage. Money is such a hot button issue that a 2004 study issued by Redbook magazine found that 70% of married couples talk about money every week. Clearly, this is a sign that couples aren’t taking the necessary steps to determine what financial arrangement works best for them

New Tax Breaks- And What They Mean for You! – The Small Business Jobs Act of 2010 was enacted this past week. Learn what this means for you!

Why You Need to Learn to Invest in 2010 – You can learn to invest in 2010 or you can invest with the crowd. Invest like most folks and you might not be a happy camper. Here’s why now is the time to learn to invest. Consider what follows to be your personal financial stimulus package for getting up to speed and on your way to financial success… with a financial education.

12 Tips to Prevent Identity Theft – Identity theft offenders steal some one else’s identity to meet their own ends; either for economic purposes or for committing some other sort of crime. These criminals make use of your social security number, bank account or credit card number, telephone calling card number and similar identity data. The thieves usually get information by methods such as stealing your wallet, mail or purse. They may also get personal information from you by posing as credit card companies or legitimate companies. They may even steal information from businesses or use bribes to get the information. Some identity theft victims have claimed that the theft was done by people known to them. This is why you need to be very careful.

Branding Your Freelancing Business: Personal Name vs Business Name – When you build your business, at some point the question of branding will come up. What do you want to call your business, and what image do you want to project?

Facebook does 5-for-1 stock split – Facebook’s shares won’t have a clear market value until the company goes public — a move that’s not imminent. Prominent Silicon Valley investor Peter Thiel, an early Facebook backer, said at a tech conference last week that he doesn’t expect the company to IPO until 2012 at the earliest.

Key Business Changes in the Small Business Jobs Act – The recently enacted 2010 Small Business Jobs Act includes a wide-ranging assortment of tax breaks and incentives for businesses. Here’s a brief overview of the tax changes in the Small Business Jobs Act.

Tax Policy Nerds Try to Debunk Each Other’s Debunking Over “The Largest Tax Hike in History” – You may have seen some tax-hating, freedom-loving types waving flags, flying planes with banners and screaming from the rooftops that if the Bush tax cuts expire that it will be “the largest tax hike in history.” The argument has been made and questioned . . . felt the urge to prove the point once again that this will be the largest freedom-hijacking ever:

Welcome to Generation App – How about giving the opposable thumbs a rest and joining the real world? No, I’m not advocating renouncing your phone forever. (God knows, I’d be lost without my iPhone.) But I am suggesting that buying apps is financially illogical. With each purchase, you’re training yourself to do what you should never do: buy on the fly. In short, you’re becoming a full-fledged member of Generation App.

I’m Sick Of Hearing It’s For The Kids – Ever run across someone that gives their children everything? And then you find out the parents are struggling to keep their heads above water financially. Not “we’re just getting by.” No. I mean one month they don’t pay cable, another month they miss the electric bill; the rent gets paid late; always something and always “it’s for the kids!”

Homemade Gift Series #4: Homemade Beer

Corporate tax reform: a dividends paid deduction? – A withheld tax on distributions to tax-exempt entities would keep the income from avoiding tax altogether. A dividends paid deduction would also eliminate the bias for debt over equity in corporate capital structures.

Check For IRA and Roth IRA Excess Contributions To Avoid a 6% Tax Penalty – Even though the average IRA contribution is $3,798, many Americans are still contributing too much to their traditional IRA or Roth IRA account without realizing it. The combined limit for a traditional and/or Roth IRA accounts is $5,000 ($6000 if you are over 50). For married couples, the combined limit is $10,000 ($11,000 if only one of you is age 50 or older or $12,000 if both of you are age 50 or older). If you find that you have made excess contributions, you must remove them before year end or face a 6% penalty for excess contributions

Last week I wrote about 529 plans. Here is another piece from a PF blogger. 529 College

Savings Plan Parent Overview – The 529 college savings plan can be a great way for parents to save money for college for their kids. If you’ve been delayed in saving for college here are some tips from the Financial Planning Association to help you get started saving with a 529 plan.

I just found Money Blue Book.

2 ways to stay afloat during financial storms – According to the National Association of Colleges and Employers (NACE), only about 25 percent of college graduates who completed job applications in May 2010 actually found work, compared with half who did so three years earlier. And the unemployment rate among college graduates aged under 25 is running at nine percent. The news isn’t much more cheerful for those who do find work. Salaries fell for those with bachelor degrees from the class of 2010 when measured against those of their predecessors in 2009.

How Much To Save and How To Do It – Walter Updegrave, a senior editor of Money Magazine, stated “As much as I’d like to be able to tell you to save 10%, 15%……the percentage of income that’s appropriate for you will depend on your income, age, the amount of money you’ve already saved, your employment prospects and, most important, how much you’re willing to forgo immediate gratification for current and future financial security.” Although a general target and good starting place is 10%, some might be able to put away more whereas others might be hard pressed to save 5%.

Practical Economics: Incentives Shape Our Decisions – Incentives prod us or repel us in our decision making process. We regularly choose an economic course of action based on our belief that the result of that decision will benefit us, alleviate pain or grief, benefit a cause we believe in, or otherwise bring us pleasure.

It’s (Not) Inconceivable! – Ask someone under 25 to listen to Kid Rock’s song All Summer Long, and chances are pretty good that when it gets to the “We didn’t have no internet” line they’ll look at you and say… “No internet?! What did you DO?!”

Gen X & Gen Y – Dialing Financial – Six Reasons Why Gen X & Gen Y Need Some Serious Financial TLC.

Social Security Planning: It Can Be Easy To Understand With These 7 Tips. – Social Security is a hot topic these days… …and if you don’t understand it, it can get pretty confusing!

In order to understand the hot topic centered around this issue of social security being around when you retire, you must understand its beginning.

In 1935 the Social Security Act was signed into existence, with the full retirement age at 65 and life expectancy at only 62.

At What Retirement Age Can I Claim My Social Security Benefits? – Knowing your full retirement age is the first step… This is the 1st tip in a series entitled “The Nuts & Bolts of Social Security in 7 Easy Tips.”

The discipline of fiscal and physical fitness - Life is full of choices. You can decide to work out instead of couch surf, or save for a down payment instead of buying designer sunglasses. When you really start to think about it, the same kind of fiscal discipline that applies to living on a budget also rings true for keeping up with a physical fitness regime:

The week in review

Posted by Bruce Mc on Sep 19, 2010 in Week in review | 0 comments

I wanted to let you know first that on September 13^th Intuit announced the release date for its newest version, QuickBooks 2011, which includes several new features that will help small business owners find data when they need it, perform everyday tasks and access business information remotely.

According to Intuit, the software goes on sale September 27. – to my clients. Update when you will but please note that I won’t get there until Jan 2011.

Some quick tax cut calculations – Taxes are all about the numbers.

Next I want to mention that there are several bloggers giving out a weekly list of Tax and personal finance bloggers.

A Week in Perspective

A Week in Perspective

A Week in Perspective

A Week in Perspective

A Week in Perspective

A Week in Perspective

The week in review

Prepare your taxes on-line With L & R Tax Preparation

L & R Tax Preparation

E=MC2 or use QuickBooks

Famous Tax Quotes

Categories

Keep up with me. . .

Subscribe via Email

Tax Blogroll

Personal Finance Blogroll

Other very useful websites

ANDERTOONS.COM BUSINESS CARTOONS

Adsense