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Wednesday, July 23, 2014

Where Does Your Business Stand When it Comes to Tax Obligations

We're most of the way done with 2014: Exactly where does your business stand when it comes to tax obligations?



Earlier this month, a customer of mine received an ill-favored surprise when I finalized his federal tax return and disclosed he owed a great deal of dollars to the Internal Revenue Service. His original reflex was to be upset at the runner. However, upon detailed thought, he decided," Very well, I should really have made time to spend some time with your team in 2013 when my fresh goods blasted off the way it did. I recognized I was really bringing in a ton more cash".

He's absolutely right. Every time there is a serious adjustment to your company's income (in either red or black), it's time for a visit to your tax attorney. In truth, anybody that has a small company needs to take advantage of the mid-year off times of the year to take a seat with a tax attorney to talk about their economic statements and prospective tax liabilities.

It's much more convenient to devise and put a plan of action in place right away than to run around at tax season emptying pails of water on all the little flames that have been brewing all year. Here are some tips to talk about with your tax planner to boost your tax situation and with some luck keep working money in your bank account as opposed to in Uncle Sam's purse:.

Begin a retirement plan .

Whenever you're ultimately a couple of bucks ahead and don't use a retirement account, now's the time to set up one. Here's the bonus: it's a write-off!

Consult with a legitimate financial advisor or an agent from your financial institution to figure out what kind of program best matches your needs.

There are a lot of vehicles from Personal 401(k) plans to SEP IRAs to SIMPLE plans that may or may not require you to consist of employees in the plan.

On the occasion that a plan necessitates workforce participation, do not quickly suspend it.

Opening up an individual retirement account for your staff members might be a purposeful technique to offer raises which don't call for the additional expense of business paid payroll taxes. Read through Internal Revenue Service Magazine 560 for more information.

Examine your legal framework.

Make the effort to review if your business is functioning optimally in its existing entity design. Your company could have taken off as a sole proprietorship and have actually outgrown it. It is most especially essential to examine company structure if your firm is now pulling in at least $100,000 yearly. Bear in mind that if your business incorporate, you will now be to get funds from the company by means of pay-roll as opposed to straightforward draws. There is a bunch more records involved under this status, but the tax benefits and safety that a corporation supplies could be more valuable. Always talk about these choices with your attorney and tax professional before choosing.

Offer employee benefits.

Employees are our most valuable business asset and ought to be handled correctly. There are numerous employee perks which are not taxable to either the worker or the business. Look at Internal Revenue Service Publication 15-B, Guide to Fringe Benefits to read more regarding this topic. You are going to save revenue in pay-roll taxes while you cultivate a healthier functioning surrounding for your people.

Buy furnishings and hardware.

The IRS has generally awarded outlays for resources properties by giving the 179 Deduction. This particular reduction permits the immediate expensing of capital assets rather than diminishing them over their useful lives. Be cautioned nonetheless. This year, the limit for purchases reduced from $500,000 to $25,000. Even so, Congress will be reviewing extending that threshold quite possibly sometime in the course of 4th quarter. You may begin placing cash aside for the acquisitions now.

Complete forecasts.

Take a very good look at your fiscal statements. Run a profit and loss and compare it to the previous year profit and loss through June 30. Are there considerable alterations? Are you foreseeing an increase or reduction in sales and/or expenses by the end of the year? It's a simple process to export your records from QuickBooks in to Excel where you can easily tinker the quantities to determine what your yearend revenue is going to be. Hand-off that knowledge with your tax advisor to learn if you need to change your predicted tax bill payments as necessary.

Tuesday, July 15, 2014

'COIN' to be Ticker Symbol for Bitcoin ETF

Earlier this month Silicon Valley tycoons, The Winklevoss brothers declared the ticker symbol for their new bitcoin ETF (exchange traded fund). The bitcoin mutual fund will go public under the mark 'COIN'.

The virtual money caught the twins' eyes more than a year back as the worth of bitcoin soared. They went public with plans to buy the prominent web-based currency early July 2013. Since then, more details have appeared about just what the venture tactic was developing into. Recently, the brothers, disclosed that they were taking the Winklevoss Bitcoin trust (their Bitcoin ETF) to NASDAQ. They consider the value of Bitcoin can increase by a factor of ten with a valid exposure on the exchange. On July 15, 1 Bitcoin cost $621.45, an incredible investment opportunity if what the twins say is right. This number has been gradually growing since the statement of the fund.

'COIN' is nonetheless held up in federal control and there is zero clear or official declared date for the IPO, despite the fact that many professionals are supposing that (based on government approval) the fund may be trading before the end of the year.

It is an amazing period for the virtual industry, but possibly what is most remarkable about bitcoin specifically is the way in which it is growing into the real world.

Read more about this story at the New York Times and at coindesk.

Tuesday, July 8, 2014

Dallas Tax Lawyer Joe Garza Talks Tax Preparedness

It's never too early to start tax preparing.

For many, tax day is hopefully a remote memory. But also for business manager, it's never too early to begin preparing for next year. And while most businesses attempt to take advantage of every allowable deduction, many have no idea that a good chunk of their advertising and marketing expenditures are tax deductible.

As a matter of fact, baseding on a recent study of business owners at Inside99Designs. com, greater than a quarter (27 percent) aren't also conscious that the Internal Revenue Service permits them to deduct (" write off ") certain advertising costs on their tax returns. And from the 73 percent who do learn about the write-offs, only 57 percent indicated that they'll be making use of them in the near future.

And the study says ...

The survey, carried out among 211 U.S.-based small company proprietors, showed that 64 percent of business manager say they are crossing out about the exact same amount this year as on their previous return, while only 22 percent are subtracting more.

And when asked exactly what single advertising and marketing network they 'd use cash towards if they were to get a tax refund, the questionnaire said:

33 percent would spend it on their web site.
17 percent on internet marketing.
17 percent on a mobile app.
10 percent on a print advertising campaign.
8 percent on social media advertising and marketing.

Lastly, when asked if they considered the cash they spent in 2013 on marketing activities were a good investment or otherwise, 70 percent said yes, 23 percent said they weren't sure, and 7 percent stated no.

Simply to clarify, I'm by no means a tax expert. Nonetheless, based upon the findings from this survey, I could create a basic conclusion that numerous local business proprietors must be speaking with their tax specialists and evaluating feasible tax deductible advertising and marketing expenditures. Yet as a local business owner, I locate I'm in great company with those who are spending bucks back into their advertising and marketing approaches in an initiative to grow and preserve a healthy and balanced customer base.

Wednesday, July 2, 2014

Joe Garza on Tax Shelters and Tax Planning

While the phrase "tax planning" is often adopted to describe the process, it is not necessarily well understood. Here's what tax planning really indicates. Remember, these methodologies aren’t just tax shelters, they’re legitimate planning and preparation methods to secure wealth.

Tax planning is the craft of laying out your undertakings in ways that table or minimize taxes. By engaging useful tax planning principles, you can have more resources to save and invest or more money to spend. Or both.Your choice.

Put differently, tax planning means delaying and flat out minimizing taxes by utilizing favorable tax-law provisions, enhancing and advancing tax deductions and tax credits, and generally making maximum use of all appropriate breaks obtainable under our beloved Internal Revenue Code.

While the federal income tax regulations are now more complicated than ever, the real benefits of good tax planning are certainly more beneficial than ever before.

Of course, you should not change your fiscal habits only to eliminate taxes. Truly effective tax planning tactics are those that allow you to do what you want while decreasing tax bills along the way.

How are tax planning and financial planning connected?

Financial planning is the art of implementing practices that help you reach your monetary requirements, be they short-term or long-term. That sounds fairly facile. However, if the actual execution was simple, there would be a lot more rich folks.

Tax and financial planning are closely connected, because taxes are such a substantial cost item as you pass through life. If you become really prosperous, taxes will most likely be your single greatest expense over the long haul. So preparing to lower taxes is a significantly significant part of the whole fiscal preparation system.

Conclusion

There are many other ways to make costly tax blunders. Like selling appreciated securities too soon when hanging on for just a bit longer could have led to lower-taxed long-term capital gains rather than higher-taxed short-term gains; claiming withdrawals from retirement accounts prior to age 59 1/2 and getting hit with the dreadful 10 % premature withdrawal tax; or failing to make payments to an ex-spouse in order to qualify as deductible alimony; the list goes on.

The treatment is to prepare for transactions with taxes in mind and refrain from making impulsive changes. Finding highly qualified tax recommendations before pulling the trigger on major transactions is usually money well spent. As we approach the end of the year, a number of publications will look at tax planning practices that many people can take advantage of.

Friday, April 18, 2014

Texas a Perfect Partner for Small Businesses, Forbes Agrees

The Lone Star State's lack of individual income tax has definitely been a major draw for citizens. Among of only 7 states without a personal income tax, it surely surpasses states like Iowa, which has a shocking income tax burden. Additionally, with 52 Fortune 500 companies in the state, and 12.9 million men and women constituting its workforce, Texas is sustaining-- and building-- its reputation for being among the most critical business hubs in the united states.

The Price is Right with Texas Tax Law

Right now there are dozens of factors that benefit Texas' flourishing economic situation. Two of the most significant ones? The state's tax design and the multiple tax incentives that Texas offers to small companies. As a matter of fact, the Lone Star State has among the smallest tax burdens in the U.S.A Here's a closer look at the regulations that make Texas such a business-friendly place.

As a result of the Texas Tax Reform Commission, Texas changed its franchise business tax obligation in 2008 with a structure that more precisely matched the structure of businesses and, according to Forbes online, helps the state continue being a more competitive player in the U.S. economy.

The reworked margins tax took over an archaic franchise tax that was developed at a time when the state's overall economy was directed by products rather than services. Under the latest law, the main franchise tax rate dropped from 4.5 % to between .5 and 1 %. Further, an exemption is granted to small businesses with a revenue below $1 million-- a decision that helps 40,000 small businesses in Texas.

The primary initiative of this kind in the U.S., The Texas Enterprise Fund was designed to attract out-of-state businesses by incentivizing job creation and capital investment. Comprising over $410 million, the fund extends awards ranging anywhere from $194,000 to $50 million to qualified businesses. The Texas Enterprise Fund has acquired such businesses as Bank of America, Fidelity Global Brokerage, Lockheed Martin and Frito-Lay. It has also contributed to a significant technological influx in Austin where corporations like Apple, Facebook, Sematech, and Samsung have just recently set up shop.

A Smart Partnership

"Texas offers a variety of tax incentives to its own businesses" remarks Joe B. Garza - Attorney and Chief Partner at Garza & Harris. "Incentives are offered for everything from manufacturing to contamination control to renewable energy - these incentives make Texas an excellent partner for business owners operating in-state". For example, privilege from state sales and use tax on natural gas and electricity are offered to manufacturers. Also, firms that utilize renewable energy programs, such as solar and wind power, are entitled to for a number of tax exemptions. Concessions such as these can truly add up for business owners striving to support and expand a prosperous business in Texas.