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.


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.

Thursday, March 13, 2014

Millennials Can't Afford Not To Start Saving

Perhaps you've recently finished school and have gotten your first full-time job, you could think it’s rather soon to begin agonizing over saving and investing what little money you have. That couldn’t be further from the real truth. No matter how you approach at it, the sooner that begin putting money away, the more of a financial cushion you'll have later (or for a rainy day). And, starting to save your income now will only make make things way easier down the road when you are looking for a place to live or planning to retire. Becoming familiar with good financial habits certainly brings lasting rewards later in life. These initial financial tips should help you find a bit of financial security and make an investment toward your future.

Expect the unexpected.

As you begin thinking of long-term professional goals, be certain that you have made a plan of action set that will address your immediate situation. In particular that includes paying off any private/federal student loans that you may have. With loans that have an interest rate of 5-6% or more, it’s very important that you pay off student loans as quickly as you can—especially considering federal student loans are the hardest type to pay off. There are many laws currently in effect to make it very hard to forgive federal student loans in the instance of bankruptcy. for bankruptcy, but the key to a fiscally secure future is anticipating financial obligations before other obligations make your life get even more financially stressful. The last thing you want is to have your past debt hanging above your head while you’re starting your very own family or shopping for your very first home.

In addition to paying off your debt from loans, it is important that you start putting away a fund for emergency savings. At some point in the future, you could have unexpected expenses. If you have to pay for major surgery or an unexpected vehicle repairs, you'll thank yourself for setting the funds aside earlier, and effectively saving yourself from unexpected.

Identify your future goals.

Whether or not you have your whole life mapped out, you probably you have a bit of notion of what your greatest priorities and interests are. If you plan on seeing the world before you have any serious adult responsibilities, your saving approach is really going to look quite different than those of someone who would like to to retire at an early age. Expressing your goals will help figure out how much they need to put away every week. Some People insist that millenials set aside as much as a whole third of their paychecks, while others say to save at least 10% of their money. Whichever amount you decide is best for your budget, make sure to put aside funds for every one of your important goals (from owning a home, to traveling the world, to paying off debt) every month so that none of your goals are neglected.

The benefit of good saving habits is that you won’t start getting used to a lifestyle that you later find out is very expensive. It’s much easier to start lean and build up to a different life than it is to get rid of what you used to love.

>> Joe Garza of Dallas Remarks on NLRB Fight

Joe Garza of Dallas: "Saving is an Absolute Necessity for Youngsters"

If you just recently graduated and have found your first real job, you may think it is rather early to start worrying about saving and investing your money. Unfortunately, that couldn’t be farther from the actual truth. Regardless of how you approach at it, the earlier you begin saving, the more you can expect to have later (or for a rainy day). Additionally, determining to manage your money now will only make make things far better down the road if you, say, want to p
urchase house or planning to retire. Beginning prudent financial habits can bring lasting rewards farther down the road. These small budgeting practices should help you get your financial security and make an investment toward your future.

Prepare for a rainy day.

As you start to think about long-term goals, make sure that you have a plan of action prepared that will address your current situation. Particularly that should include getting rid of any private or government, but the key to a financially secure future is addressing debt before the rest of your life gets even more financially stressful. The last thing you want is to have your old debt hanging above your head when you'd rather be starting your very own family or considering buying your very first home.

Even more than paying off your debt from student loans, it's also necessary that you start putting aside emergency savings. At some point in the near future, you will probably have unexpected expenses. Events like surgery and major home repairs happen all the time; when they do happen, definitely be happy that you set some money aside to take care of it.

What are your future goals?

Whether or not you have your whole life mapped out, it's likely that you've got somewhat of a notion of what your largest priorities and interests are. If you intend on seeing the world before you have any major adult obligations, your saving program will look quite different than if your financial goal is to retire early. Visualizing your goals can help decide how much he or she needs to save up every month. Some Experts suggest that new savers set aside up to one-third of their monthly income, while others say that putting away at minimum 10% is a good way to start saving. Whichever amount you decide is best for your budget, be sure to put aside something for every one of your important goals (from retiring early, to buying a new car, to paying off debt) every month so none of your goals are unaddressed.

The best thing about starting strong saving right away is that you won’t begin to become used to a type of living that you later find out is too expensive. It’s much easier to start out lean and work toward a more expensive lifestyle than it is to get rid of what you used to love.

Experts: Bitcoin was a 'Bullshit Tax Shelter'

Tuesday, January 21, 2014

IRS Embraces New Web-Ready Tax-Filing Process

Capital Press

By Dallas Lawyer Joe Garza

All the time, tax laws change, get more complicated, and oscillate in order to assist (and disappoint) different taxpayers. In 2014, you will likely to see many new additions to federal income tax, including inflation adjustments to dozens of tax items, new regulations for same-sex partners, and even drawbacks for {not buying health insurance through either the government or with a private insurer. One defining part of the '14 legislationtax season will be its several-week postponement, something that can be attributed to the infamous government shutdown last year. Still, 2014 will also initiate the beginning of a totally new kind of tax change — not only in terms of how we ultimately pay, but also how we file.

The 'Improved' Federal IRS Tax Guide

A few weeks ago, the IRS issued a “newly revised comprehensive tax guide,” or, as some call it, Publication 17: a resource that will help Americans file their taxes better during the new year. Publication 17 touts its interactive features and in-depth review of “tax-saving opportunities.” Among the additions made to the IRS guide is educational material on the American Opportunity Tax Credit, affecting enrolled college kids and their guardians, as well as Earned Income Tax Credit and Child Tax Credit.

Distributed by the Internal Revenue Service since the 1940’s, the new tax guide still features material on reporting earnings, capital gains and losses, IRA’s and basic educational material. But, at a whopping 292 pages, it seems unlikely that the average tax-payer will have time to read through Publication 17. Also, considering the increasing complexity of Federal income tax, it is no surprise that the IRS would reveal updates to the instructions almost daily.

Fewer In-Person Help Resources

Publication 17 proves a major shift from in-person interaction, with a larger amount of digital tools created to help people get through tax season.

Tighter IRS budgets — as a result of sequestration 2013 — mean that there are far fewer resources for in-person tax submission assistance. Rather than having a human representative, taxpayers will be referred to a multitude of online referential materials, including nearly 13,000 official partnering (volunteer) sites, and resources on - like the IRS 'Free File' program. Even basic help requests will now be answered with online resources or via various hotlines. With such a big emphasis on online assimilation, it's reasonable that a branch of the government would start offering more of its info on the web.

A Larger Emphasis on Web Content

While the lack of walk-in assistance will undoubtedly be frustrating for many taxpayers, many others will be glad to know they can take care of more tax-related problems online than ever. Tax payers can now view and complete their tax forms on the web. Additionally, the IRS will also continue to give Employee Identification Numbers through Finally, to avoid fielding inquiries about the status of income tax refunds over the telephone, the IRS now handles all related questions on .

Thursday, January 2, 2014

Joe B Garza Remarks on Halliburton Supreme Court Case

Oil company Halliburton Co has requested that the Supreme Court review a seminal case, Erica P. John Fund v. Halliburton - To clarify, Erica P. John Fund is among the oil company's shareholders. EPJ's years-old litigation with the oil company is based on the accusation that the company misrepresented important info concerning Halliburton's shareholder operations, for instance, exaggerating income and reducing perceived liabilities. Because of this, the Fund is attempting to have its legal action against Halliburton in the form of a class action - a lawsuit that is enacted on behalf of a group suffering from similar injuries. A class action lawsuit would allow Erica P. John Fund to litigate on behalf of all shareholders of Halliburton stock, therefore increasing the capital on the table in the litigation.

NY Times just released an astute analysis of the question the Supreme Court will be faced with in the case, if it agrees to hear the case. The New York Times article explains how many lawsuits like the Halliburton case rely on the idea of “reliance”, meaning that the shareholders acted in reliance of the allegedly criminal operations of the company. Historically, the Court has a broad interpretations of "reliance". To prove reliance, an involved shareholder doesn't need to read a prospectus and the fraudulent statements it contains. Rather, courts consider any allegedly criminal statement(s) made by a corporation that is also publicly acknowledged that affects its financial value and is incorporated into the total price of the its securities. The court justifies this view on the basis that markets always price securities through the use of all information that is currently available, an idea that is largely encouraged in the field of finance. Nevertheless, although most shareholders do not critically analyze financial statements and prospectuses released by the companies in which they invest; they can still demonstrate “reliance” provided that they have purchased securities with the business. As more and more shareholders are able to prove their reliance, these types of suits become easier.

In defense's official request to review the case, Halliburton hinted that it will proceed to contest that the court is defining reliance too loosely. Halliburton co. will insist that the Court should define reliance as requiring shareholders to do more than just purchase securities; for instance, requiring plaintiffs in the CAL to review a financial statement/fraud. prospectus. This kind of an argument could definitely get strong backing from the greater business community.

As the Times piece indicates, '12 in an unrelated case, four members of the Court stated that they would be willing to overrule the conventional, nebulous interpretation of “reliance.” If the Halliburton case ultimately makes it to the court, the main question will be about whether they can find a decisive fifth vote on the Court.

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