The New Year is fast approaching and it is so important to take some time to look back at what financial decisions we made over the past 12 months and to reflect on what went right and what mistakes we do not want to repeat. Here are my tips to end 2018 and to start the New Year off right:
#1) If you have employees, you will have until January 31, 2019 to get them their W-2's and 1099's. If we are taking care of your books and/or payroll, please get us updated information as soon as possible. It is pertinent that we do not miss the January deadline. For contract labor or "subs" you are not required to issue them a 1099 unless you paid them more than $600 in total for the year.
#2) Get your bookkeeping for 2018 up to date and completed. If you own a business and you have inventory, now is the time to get an accurate count. Make sure all your expenses and income are accounted for so that you do not miss out on crucial tax benefits of operating a business.
#3) Have any business losses? Losses happen and is all part of the entrepreneurial game. Without some risk, would there be much appreciation for the reward? If your business didn't see much profit in 2018, it may provide you a tax break to help with cash flow. If your business had more expenses than income, tax refunds from previous years for that loss may be available. Check with my office if this is your situation.
#4) Pull together all those receipts. Now is the time, if you haven't already, to enter all those expenses and offset any income you may have to pay less taxes. Get with me and we will go through your expenses and losses and calculate your tax liability. Never assume that an expense is not business related unless you ask your accountant. Some people do and then loose out on legit tax benefits.
#5) Setup your tax-planningsession now. It is time to take a look back at what went right, what didn't work and what changes can be made now before we are hit with the New Year. It is much simpler to be Proactive rather than Reactive, especially when it comes to taxes. Take the time to make a plan and stay up on your books! It's your business, pay attention to its financial health.
And my final and most important step - Don't hesitate to pick up the phone and call me. It is easier to find a solution to a problem ahead of time than it is to unravel a mess that was not being attended to after time. After all, that is why I am here. Let me do what I am best at and you - Go build your business!!!
Sunday March 9, 2014
Dear Clients and Friends, Obama Care tax effectively puts 3.8 percent on top of the tax you are paying, which results in tax rates of as high as 43.4 percent for 2013 unless you know how to avoid it. Affordable Care Act The Obama Care tax is in reference to the Affordable Care Act pushed by President Obama and may also appear as Medicare tax or Net Investment Income Tax (NIIT) as well. This particular tax is classified as an investment tax. Therefore, if you create an earning on your investments, then you can be sure that 3.8... Read More
Monday March 3, 2014
Dear Clients and Friends, Here are some easy tips you can follow to ease your pockets from heavy tax. Retirement plans can give you a big boost. Maximizing your retirement plans, such as your 401(k) and Individual Retirement Accounts or IRA can reduce your taxable income. Your contributions to a 401 (k) may reach up to $17,500 or $23,000 for ages 50 and above, while in a regular IRA its $5,500 or $6,500 for ages 50 and above. 401 (k) plans are on a pretax basis, which directly reduce your taxable income while... Read More
Sunday February 23, 2014
Dear Clients and Friends, Accounting has never been a most loved task, yet it is one of the most vital in running a successful business. While it is likely that not everyone enjoy documenting and reporting on their financials, it is wonderful news to hear that accounting has become simplified and modernized. Technology has helped this profession a lot: most accounting solutions are now cloud-based. It is easier for both the accountant and the business owners, and those interested to know about the real-time status... Read More
Monday February 17, 2014
There was news that the Internal Revenue Service (IRS) sent letters to thousands of small businesses recently asking if they have underpaid taxes the previous year. This is the one rule for small businesses to follow-thou shall not mess with the IRS. Though, this does not mean you should cheat yourself or sacrifice earnings for the sake of tax. There are legal means than can save you dollars and lessen your tax. Here are the 5 saving tips for all small business owners. # 1 Savings Tip Claim home-office space. Having a home-office... Read More
Monday February 10, 2014
Dear Clients and Friends, Normally, you would not be responsible for fortuitous events such as flood, fire, earthquake or other calamities which you have no control over or what they call "acts of God." However, this is not the case when it comes to your taxes and tax records. When you lose them due to fire or flood, IRS does not sympathize and let you off the hook that easy. You will still be required to do some filing and this could be more time consuming and financially draining that you could have imagined. [caption... Read More
Monday February 3, 2014
Dear Clients and Friends, Selling your rental property? If the answer is "yes," I have good news for you. You can now deduct all those passive losses you couldn't deduct in previous years. Normally, your rental properties suffer losses but the law assumes that you do not really suffer real economic loss in the process. With the "passive loss" deduction test, most rental property owners are not able to take advantage of the tax loss deduction but instead they have a suspended losses account waiting to be released until... Read More
Monday February 3, 2014
Dear Clients and Friends, Benjamin Franklin said "in this world nothing can be said to be certain, except death and taxes." That being said, it would truly prove useful if we become aware of some strategies that can soften that tax blow. Tax Avoidance Tax avoidance is not synonymous to tax evasion. Tax avoidance is the practice of critically structuring your transactions to ensure that you have an efficient tax plan in place for your business. Even the courts agree that businessmen have the right to choose whatever course... Read More
Monday January 13, 2014
Mark your calendar for these important dates! Dear Valued Clients and Friends, The following is a list of important tax deadlines for 2014. Please mark your calendar. Generally, you must file for a Form 1099 with the IRS for any of the following cases: Payment of $600 or more in 2013 in the course of trade or business: Independent contractors Partnerships Corporation for legal or medical services in 2013. Rentals unless they're a corporation or real estate agent Interest in the course of your trade or... Read More
Thursday January 2, 2014
Dear Clients and Friends, I attended several tax update seminars in the last few months and gained knowledge that will definitely benefit you! Of course, you can call me for more information about these tax updates. New Tax Items: A new tax bracket (39.6%)was added for individuals with a net income of $400,000 The new 39.6% tax bracket will rise to 20% (formerly 15%) for long-term capital gains and dividends Two new Medicare taxes that will be effective for 2013: Individuals with income over $200,000 will have a... Read More
Tuesday December 10, 2013
Year end is a crucial time in a tax strategy. Once the year has ended some tax opportunities are lost forever. Here's the checklist of important points to consider: #1 MAKE SURE YOUR RECORDS ARE CURRENT Every single transaction should be posted as of the last month of the taxable year. Current expenses are for items that benefited your business for less than one year. #2 DETERMINE YOUR VEHICLES' MILEAGE Keep track of how many business activity miles you drive. Your mileage log document is important to support your mileage... Read More