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Thank you for visiting my website. If this is your first time here then I'll explain a little of what my website is about. If any of you have websites, you know how difficult they are to keep current and vital. I have finally found a way to personally go in and post the most current financial and tax planning information available for the Small Business Client and the Real Estate Investors. My "Front page" will have what I am seeing to be the most important to my clients that I am in touch with on a daily basis. In addition, you will see Article Titles to the right that are subjects that are always current and interesting but may have small changes to them due to new tax laws, financial projections and economic changes. I will be posting various issues on my Blog weekly and you will have an opportunity to post your experience with those issues, ask questions and simply comment on the site itself. I will try to address as many questions as possible in my weekly Blog. If you find any of my articles useful, why not consider enrolling in my free program to receive tax updates by email. That way you will recieve instant notice of major changes and opportunities in tax and financial planning. In the future we will be offering fee based Memberships for more detailed and comprehensive articles, interactive personal financial worksheets, Webinars and a more detailed Blog site. |
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Tax Alerts
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Written by Cathy Cavanagh
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Sunday, 25 July 2010 22:28 |
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The IRS and Department of Revenue have really increased the auditing of all small business activity. In addition, the IRS is auditing Schedule C's and Sub-S corporations that have anything at all appearing to be understating income. As if that is not enough, a huge number of small business taxpayers are having to go into short sales, foreclosures or even bankruptcy. AND, this all tends to create more law suits and divorces.
As a result of the above, it has become clear that if the liability and property protection of assets held in Limited Liability Companies can be pierced, there are those that will try to do that. It cannot be emphasized enough that Managing Member and Owners of LLC's need to do the following:
1. Review your Operating Agreement with a professional that is up to date on all these issues. Most Agreements will need to be amended to provide adequate protection in a legal situation.
2. It is now recommended that LLC's do have Annual Meetings and keep minutes. All changes in Members need to be properly documented.
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Small Business Notes
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Written by Cathy Cavanagh
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Saturday, 05 June 2010 18:48 |
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The single most important mis-understood fact affecting small business employers is that ONLY employers that have over 50 full-time employees will pay a penalty starting in 2014 if they are not offering affordable health insurance coverage. Obviously, that means a lot of small businesses will not have this requirement.
However, employers with 25 or fewer full-time employees who offer health insurance from 2010 to 2013 with average annual wages less than $50,000 may be eligible for a tax credit of up to 35% of the Employer’s total premium cost. This is a powerful incentive for Small Businesses to offer health insurance to Employees.
Check with your Accountant to see how this might benefit you over the next several years. |
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Tax Alerts
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Written by Cathy Cavanagh
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Saturday, 05 June 2010 19:06 |
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It’s difficult to know where to start with major issues in 2010 affecting all taxpayers and businesses. I am going to give you a punch list and will try to publish more details on each issue as the year goes along:
1. There is a bill in Congress right now that will require all Sub-S corporate tax filers with 3 or fewer Shareholders to pay Social Security and Medicare on 100% of the Income Distributions. Currently they are required to pay themselves “reasonable compensation” in the form of payroll, but adding this requirement will double the amount of FICA most Sub-S Shareholders will have to pay. This means that the “Return on Investment” from investing in staff, websites, equipment etc. will be subject to FICA – huge cost and change to the “small guy”.
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Tax Alerts
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Written by Cathy Cavanagh
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Thursday, 31 December 2009 17:56 |
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NEW BUSINESS MILEAGE RATES for 2010 will be .50 cents per mile, medical mileage rate will be 16.5 cents per mile and Charitable Contribution rate will be .14 cents per mile.
IRS LETTERS AND AUDITS have really increased in the past year. We are seeing lots of clients recieved bills for not filing on time when in fact they did. You have to send copies of your extension with proof of certified mailing (which we have at the office). Quite often a phone call and fax will take care of this. I think they are counting on a lot of people simply assuming they owe it and paying it. Also, IRS is auditing Schedule C's (Sole Proprietorship) more than ever. Good records and proof of business intent is extremely important. This, again, makes consideration of filing all businesses as Sub-S Corporation a serious consideration.
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