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2015 End of Year Business Tax Strategies

As in years past, many businesses are finding difficulties in tax planning due to the expiration of extenders that gave temporary tax breaks. Additionally, the nuances of the Affordable Care Act (ACA) require careful insights to reduce taxability.  However, there are a number of new regulations that businesses should consider when formulating their year-end tax strategy. Below are a few. Bonus Depreciation Last year Congress enabled a 50% bonus depreciation which was to last through 2015.  That depreciation rule has been extended through ... Read more

Education Planning

Among the greatest anxieties that parents have is how to pay for their children’s higher education. Many work long hours and take on extra jobs to ensure that their children get an education that can lead to more options in life. However, few take the time to plan ahead and get the most power out of their children’s education fund. Why not get the most out of your hard work by planning the best route to your child’s future education? With the costs ... Read more

How to Choose a Financial Planner

Many people are aware of tax preparation services, but some of our clients are not aware of our investment planning services. Our office has been offering financial advising since 1998. We also are licensed to sell life insurance and long term care insurance. Choosing a financial planner as your team member is an important decision. Here are some factors to take into consideration when making that decision. 1) Do you have a trusting relationship with that person. 2) Does the financial planner clearly explain ... Read more

Hero home improvement program

In addition to your bombardment of solar installation calls you have probably been seeing a lot of marketing from the Hero program which allows you to make certain improvements to your house and add the cost of the improvements to your property tax payments to be paid off in a defined number of years. I'm here to clear up some facts. The Hero program is offered by a private company known as Renovate America Inc. under the federal energy program known as ... Read more

6 Reasons why not to pay off your home loan

As you near retirement or plan your long term goals many people include paying off their home loan on their to do list. Well there are some valid reasons not to pay off your home loan. 1) Mortgage interest may be deductible so the effective rate may be less than is actually stated 2) The equity in your house doesn't grow. The value of your house may appreciate however the equity in your house does not appreciate. 3) A Mortgage is generally cheap money. ... Read more

How to reform our corporate tax system

I came across an interesting article the other day concerning the rising costs of doing business in the US and the lack of middle class jobs. The article talks about the lowering of corporate tax rates to combat these two issues at the same time. I think a major problem we have is that the large corporation don't bring the profits back to the US so they can avoid our large corporate tax rate. Just look into articles about Apple and ... Read more

Business types and entities

There are several issues to consider when starting a new business. Some of these issues are type of business entity to choose. Forms of business entities include sole proprietor, partnership, c corporation, s corporation or an LLC. There are pros and cons for each type of business entity. Some of the issues are income tax related and some are legal liability considerations. Visit our website for more information or call us at (760) 471-2040. Read more

Business Deductions

Being a small business owner isn't the easiest thing to do. Being your own bookkeeper while running your own business can be next to impossible. There are several types of commonly overlooked business deductions. Most business owners use their own car for business. When claiming the auto expense deduction you can either use the business portion of your actual expenses or track your business mileage and take the federal mileage allowance. The 2013 mileage allowance deduction is $.565 a mile. The 2014 ... Read more

Tax Credits

Tax credits are a great way to reduce your tax liability. There are two main types of tax credits - refundable and nonrefundable.  A refundable credit will reduce your tax liability dollar for dollar and then once your tax liability is $0 any remaining credit will then be refunded back to the taxpayer. A non-refundable credit will reduce your tax liability down to $0 and then the remaining credit will be carried over to a future year. Although refundable tax credits ... Read more

Ways to lower your tax liability

There are several ways to legally lower your tax liability. A couple of ideas to lower your taxes would be to shift your taxable investment earnings to tax free or tax deferred investment vehicles. This can be accomplished by buying state municipal bonds from the state that you live in or through a mutual fund, purchase US government bonds, or invest into a tax deferred annuity. You can also utilize a tax deferred IRA or similar qualified retirement plan to shift ... Read more

Tax deductions are like free money

One of the easiest way to save tax dollars is to maximize your deductions. The more deductions you accumulate the lower your tax liability will be. Some of the common deductions include property taxes, tax portion of your car registration fees, mortgage interest deduction and private mortgage insurance. The not so obvious deductions would include charitable donations, donations of "stuff" to a non-profit organization and volunteer mileage and out of pocket expenses when you volunteer your time to a non-profit organization When ... Read more

IRS Audits on the rise

Per the IRS records the number of audits on individual tax returns is on the rise. The good news (if you can consider it that) is that a majority of the increase in audits is seen in correspondence audits. Correspondence audits are done through the mail. This is a good thing is the issue in question is easily explainable. The correspondence audit isn't a good audit if you are missing documentation, the documentation would file volumes of books or you need ... Read more

Affordable Care Act Tax Provisions

The IRS has a website to help clear the air regarding the new health insurance regulations. Some of the provisions start January 1st 2013 and additional provisions start next January 1st. Click here for more information. Read more

2014 Here we come ready or not

As we wrap up 2013, I begin planning for 2014 and the implications of the new tax laws. A couple of new taxes will be an investment income surtax and an increase in FICA payroll taxes. In addition the medical expense deduction was raised to 10% in 2013 and will remain that way in the future unless you are over 65 years old. In regard to the affordable care act, employers with more than 50 full-time equivalent employees will be facing a penalty is ... Read more

10 common tax deductions you shouldn’t miss

Here are 10 common overlooked tax deductions for the tax return self preparer. 1. Alimony payments 2. Self-Employment Tax Deduction 3. Self-Employment Health Insurance Deduction 4. Self-Employment retirement plan funding and deduction 5. IRA deduction 6 Education Expenses Deduction 7. Tuition and Fees Deduction for College Expenses 8. Student Loan Interest Deduction 9. Health Savings Account (HSA) funding deduction 10. Moving Expenses Tax Deduction Click here for more information Give us a call today to wee what we can do for you. Read more

Is this the end of the tax free “short sale”

Currently there is a tax break for people who short sell their principal residence. Historically if you short sold your house, meaning you owe the bank more than your house is worth then the unpaid difference would be considered taxable income. In 2007 Congress changed the rule to allow the cancellation of debt income (COD) to be non taxable. This was a great benefit to many homeowners that were upside down on their mortgage and needed some relief so they could ... Read more

Identity theft

Identity theft is a large problem for the IRS and taxpayers. Over the years the IRS has made great strides reducing the ID theft problems, but where the crooks have a will they have found a way. Phishing is a scam where an email is sent to you that looks like it came from the IRS. The email will ask you to verify your information such as name, social security number, passwords and credit card information. Per the IRS "If you ... Read more

Affordable Care Act Summary

Affordable Care Act Summary - Whether you agree with mandatory health care requirement or not; it's here and I think it's here to stay in some form. Here are summary bullet points of the plan. You do not need to claim your child as a dependent to add them to your family health insurance policy The Medicaid plan is being expanded to offer free insurance coverage to low income families Some preventative care is now "free". This list including blood pressure visits, diabetes and ... Read more

New IRS Health FSA rules

The IRS recently announced the Health FSA's can have up to a $500 carryover of unused accounts the the next plan year. This creates and exception to the long-established use it or lose it rule. Your employer will be required to updated their plan to take advantage of the new rules, but at least you will have the opportunity to carryover your unsed portion to the 2014 tax year. Check the IRS Website & for additional information about the new rule changes. Read more

The reason behind the complex tax code

Have you ever wondered how and why the IRS tax code is so complex. With the upcoming presidential elections I found a great article in US News that is worth reading. I also think makes you realize which tax code changes may be coming in 2013. Don't forget to go out an vote. Why politicians don't want to simplify the tax code Read more
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