Wednesday, November 18, 2009

Year End Tax Spending Ideas....

Spend in the following areas to help lower your tax bill. Not every strategy here is appropriate for everyone. For help in identifying and utilizing the tax breaks that fit your circumstances, contact AB CPA Tax Services today.

Invest in Your Home
#1: Green Home Improvements…Earn a 30% tax credit for certain energy efficient improvements up to $1,500. Unlimited 30% credit for Solar Improvements.
#2: 1st Time Homebuyer Credit…If you haven’t owned a home during the past 3 years you may be eligible to receive a credit of up to $8,000. Must buy new home by Dec. 1, 2009.


Invest in Your Business
#3: Buy Equipment…Benefit from new expensing rules for 2009. No depreciation required on up to $250,000 of equipment and furniture for your business.
#4: Review Business Investments…Be sure you can use your Partnership and S Corp losses. Do you have enough basis? Contribute capital if needed.
#5: Reward your People…Provide employees with a tax-free benefit (i.e., up to $230 per month for mass transit and van pooling). Consider bonuses to employees / vendors before Dec. 31, 2009.

Invest in Your Community
#6: Give and Volunteer…Sell loser stock and giveaway the resulting cash OR simply giveaway appreciated shares. Donate food, books, computer equipment, inventory (cost basis), or clothing. Volunteer and deduct mileage.

Invest in Yourself
#7: Hit the Books / Street…Spend on Education. Deduct up to $2,500 per student. Deduct certain job search expenses (in current line of work).
#8: Buy a Car…Deduct sales tax paid on new cars, light trucks, motor homes and motorcycles.
#9: Save for Retirement…Many options for employed and self employed.

Invest in a Plan
#10: Have a Plan…Strategize your tax bill to make bottom-line sense. Today’s plan will benefit you for years in the future. Consider the following ideas to help save tax dollars by altering your spending & earning patterns. Contact AB CPA today to ensure your plan is up to date!
· Bunch deductible expenditures.
· Consider deferring income.
· Consider a credit card to prepay expenses to generate deductions for this year.
· Do not over pay your taxes. Refunds might be slower due to budgetary considerations.

This blog was prepared to provide you with information about minimizing your taxes. Do not apply this general information to your specific situation without additional details. Be aware that the tax laws contain varying effective dates and numerous limitations and exceptions that cannot be summarized easily. For details and guidance in applying the tax rules to your individual circumstances, please contact AB CPA...

www.whodoesyourtaxes.com

posted by AB CPA at 12:10 PM 0 Comments

Sunday, July 12, 2009

IRS issues top tips for small businesses

The IRS just published a great summary of new business tax tips - every new business owner should read this to familiarize themselves with the key business tax concepts.

You can find this and other helpful new business tax info by visiting: http://www.irs.gov/newsroom/article/0,,id=172970,00.html


IRS Summertime Tax Tip 2009-02

Anyone starting a new business this summer should be aware of their federal tax responsibilities. Here are the top seven things the IRS wants you to know if you plan on opening a new business this year.
  1. First, you must decide what type of business entity you are going to establish. The type your business takes will determine which tax form you have to file. The most common types of business are the sole proprietorship, partnership, corporation and S corporation.
  2. The type of business you operate determines what taxes you must pay and how you pay them. The four general types of business taxes are income tax, self-employment tax, employment tax and excise tax.
  3. An Employer Identification Number is used to identify a business entity. Generally, businesses need an EIN. Visit IRS.gov for more information about whether you will need an EIN. You can also apply for an EIN online at IRS.gov.
  4. Good records will help you ensure successful operation of your new business. You may choose any recordkeeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes.
  5. Every business taxpayer must figure taxable income on an annual accounting period called a tax year. The calendar year and the fiscal year are the most common tax years used.
  6. Each taxpayer must also use a consistent accounting method, which is a set of rules for determining when to report income and expenses. The most commonly used accounting methods are the cash method and an accrual method. Under the cash method, you generally report income in the tax year you receive it and deduct expenses in the tax year you pay them. Under an accrual method, you generally report income in the tax year you earn it and deduct expenses in the tax year you incur them.
  7. Visit the Business section of IRS.gov for resources to assist entrepreneurs with starting and operating a new business.

posted by AB CPA at 3:47 PM 0 Comments

Previous Posts Archives

Why AB CPA?

Who does your taxes? Can you answer this question with confidence? AB CPA Tax Services is a trustworthy source for real-world tax advice and tax return preparation. Quality service at a reasonable rate. Contact AB CPA for a free, no-commitment consultation.

Who is AB CPA?