The Clock is Ticking on Certain Federal Saving Energy Saving Tax Credits for Homeowners; Connecticut Rebates
Homeowners seminar
For Immediate Release:
Shoreline Business League will present a Free Home Buyer’s Seminar on Tuesday, March 2nd from 5:30 to 7:00 p.m. at the Guilford Police Department Community Room.
Members of the group and others will speak on topics important to the home buying industry. Topics will include: What Is The Difference Between a Mortgage Broker
and a Mortgage Lender, Which One Do I Need?, Why Do I Need a Home Inspector, Do I Need One Even For a New Home?, Where Does The Purchase of Insurance Fit Into the Process of Buying The Home?, Why Do I Need So Much Money for Closing Fees?, What Is a “Buyers Market” and is it Good for Me?, What Do I Need to Know About Taxes, Are All My Closing Costs Deductible?
Speakers to include: Ed Pellegrino of Coldwell Banker, David Katz of Scholastic Mortgage, Mark Taragowski of Taragowski Insurance Agency, Dana Andrews of Mayer and Associates, CPA, Amanda Tiernan of Tiernan Law Offices and Warren Tomek of Five Star Inspections
For more information or to reserve a space call Stacy at 203-453-5555 x401
What medical expenses are deductable
Did you forget to do your year end Bookkeeping?
If So, You Are Not Alone!!
(Look for our special offer at the end of this post!!)
I can't tell you how many people come to me at the end of the year, or the start of the New Year, and admit that they"never had a chance" to get their bookkeeping done.
This is not hard to believe. Unless you are an accountant, or a bookkeeper, bookkeeping is not what you do best. And because it is the ways of nature, we all have a tendency to put off what we don't do best (which reminds me - I need to get the oil changed in my car!).
Though we don't encourage our clients to put it off (just the opposite - we really wish you would just let us help you with it all year long) - we also don't judge. If anything, we actually enjoy the change of pace involved in entering a whole year's worth of bookkeeping at once! Yes, this is not something I admit too often, but we do.
Therefore,we are offering an
End-Of-Year Bookkeeping Special!
Typically,bookkeeping fees start at approximately $100 per month, and most fees are closer to the range of $200-500 a month (depending on the size of the business,# of transactions, etc). A whole year of bookkeeping could cost any where between $1,200 and $5,400! Wow. It does add up.
Since we know the reality is that many of you have not kept up with it, and we happen to have some time to fill between now and the end of the year,
we are offering the FIRST 5 people to respond to this offer a
Whole Year of Bookkeeping
(2009 tax year only) for
a starting price of $350!
Of course, this does depend on the size of the business, # of transactions, etc, which is why we say a 'starting' price - however, our goal will be to keep the price as low as possible, based upon the amount of work involved.
What we are telling you is that you can't go wrong! At this price, it would be crazy to try to spend your time getting it all done yourself, when your time is far more valuable spent elsewhere.
So give us a call to get the ball rolling. The sooner we know what you need done, and how long it is going to take us, the sooner we can get you a more concrete, and Exceptional, quote!
Of course, if you still prefer to do it yourself, but need some help with QuickBooks or PeachTree, for just $125, we will give you a personalized lesson instead.
Either way, you need to contact us as soon as possible! These 5 spots will fill fast!
You can e-mail us at info@maggiemayer.com,
Or call (203) 421-0159.
3 Pay Plan available to those that are interested.
Did you forget to do your year end Bookkeeping?
If So, You Are Not Alone!!
(Look for our special offer at the end of this post!!)
I can't tell you how many people come to me at the end of the year, or the start of the New Year, and admit that they"never had a chance" to get their bookkeeping done.
This is not hard to believe. Unless you are an accountant, or a bookkeeper, bookkeeping is not what you do best. And because it is the ways of nature, we all have a tendency to put off what we don't do best (which reminds me - I need to get the oil changed in my car!).
Though we don't encourage our clients to put it off (just the opposite - we really wish you would just let us help you with it all year long) - we also don't judge. If anything, we actually enjoy the change of pace involved in entering a whole year's worth of bookkeeping at once! Yes, this is not something I admit too often, but we do.
Therefore,we are offering an
End-Of-Year Bookkeeping Special!
Typically,bookkeeping fees start at approximately $100 per month, and most fees are closer to the range of $200-500 a month (depending on the size of the business,# of transactions, etc). A whole year of bookkeeping could cost any where between $1,200 and $5,400! Wow. It does add up.
Since we know the reality is that many of you have not kept up with it, and we happen to have some time to fill between now and the end of the year,
we are offering the FIRST 5 people to respond to this offer a
Whole Year of Bookkeeping
(2009 tax year only) for
a starting price of $350!
Of course, this does depend on the size of the business, # of transactions, etc, which is why we say a 'starting' price - however, our goal will be to keep the price as low as possible, based upon the amount of work involved.
What we are telling you is that you can't go wrong! At this price, it would be crazy to try to spend your time getting it all done yourself, when your time is far more valuable spent elsewhere.
So give us a call to get the ball rolling. The sooner we know what you need done, and how long it is going to take us, the sooner we can get you a more concrete, and Exceptional, quote!
Of course, if you still prefer to do it yourself, but need some help with QuickBooks or PeachTree, for just $125, we will give you a personalized lesson instead.
Either way, you need to contact us as soon as possible! These 5 spots will fill fast!
You can e-mail us at info@maggiemayer.com,
Or call (203) 421-0159.
3 Pay Plan available to those that are interested.
Arrghhh!!!!! I hate it when people give tax advice who should not be giving tax advice.
Case in point: I belonged to an organization that put together a silent auction. They had some very nice items, and I considered bidding on several of them. At the end of the table walk I came to a sign that said that “Your payment is tax deductable”. I almost had a fit. For those that don’t know, only the portion you pay ABOVE fair market value is actually deductable. The rest is what you paid for the object.
For example; at an auction I attended years ago, I was the winning bidder for a golf outing for 4 people. The cost to me was $30 dollars. The fair market value (greens fees at that course) was only $60 dollars. I received more value then I paid so no deduction. In this case, I failed to utilize the value of the event, but it was given (paid for) so I still get no deduction.
This is a huge misconception people have about charities. Let me make this clear, Your Girl Scout cookies are NOT tax deductions. You give them 4 bucks, they give you cookies. A purchase, not a tax deduction. If you were to give the girl a $5 bill, and tell her to keep the change for the troop, that $1 becomes a deduction. (Only if you get here to sign a receipt).
The worst offenders of this “its tax deductable” crime are those organizations who accept donated cars. You donate a car for the Medical foundation for people with a left sided lisp and they tell you it is fully deductable. They are wrong, it might not be deductible at all. First, you have to have a financial position that will allow you to take advantage of charity deductions. Second, you only get to deduct the value of the benefit of the car to the organization. So if your car is blue book $2000 but the charity sells it to a wholesaler for $500 then your deduction is only the $500. Some recent law changes now make charities disclose the value of the donation to the donor, but it can take some time to find out what your donation was worth.
This was kind of convoluted, but you all know how rants go.
By the way, look for the new Happy tax credit, it would allow deductions for Pets, yes PETS. Call your representatives and get them voting YES!!
Till next time
Dana
10 Tips for Hiring a Tax Representative
Tax representation is becoming like the condiments aisle at your local grocery store.
There are too many choices and no way to tell what’s best.
Well, that’s what this post is for.
Here are 10 do’s and don’ts to follow before hiring someone to represent you before the IRS:
1. Do ask for a free consultation - You should not be required to pay anything to a Tax Lawyer, Enrolled Agent or CPA just to find out whether you need to hire that Tax Lawyer, Enrolled Agent or CPA. The purpose of the initial consultation is to help each party decide whether or not he or she wants to accept the engagement.
The initial consultation benefits the lawyer as much as it does the potential client.
No lawyer or tax professional worth his salt would charge you to determine if he wants to take your case.
2. Don’t hire anyone who tries to scare you into “acting now” - We have heard of many cases where the “would be” tax representative told a potential client that he or she could go to jail if they didn’t hire them immediately.
This is immoral.
A good tax representative will make you feel less, not more, anxiety about your stressful IRS problems.
He does this by telling you the truth: There is light at the end of the tunnel and if you are truly committed to getting back on track with your taxes and accounting you can do so and the IRS will be appreciative of it.
Remember, it is extremely rare for the IRS to pursue criminal charges against everyday taxpayers who for one reason or another find themselves behind in their taxes.
3. Don’t hire anyone who uses sales gimmicks to try to get you to hire him - Remember, you aren’t buying a used car or cheap furniture and you shouldn’t be treated as if you were.
You want to hire a serious professional to handle this critically important matter for you, not “Dan’s Discount House of Tax Representation.”
4. Do hire a Lawyer - Many CPAs and IRS Enrolled Agents (as an Enrolled Agent working with a CPA I will be shooting myself in the foot here) are experienced and competent in the area of IRS disputes, but only statements you make to a lawyer are protected from disclosure under the attorney-client privilege. If you “Know” you did something wrong a lawyer will be your best bet. But not all tax lawyers are the same, be sure the one you hire has experience in you situation.
Non-lawyers can be forced to disclose in a hearing or trial everything you tell them.
5. Don’t hire someone who’s advertisements or promotional materials offer “pennies on the dollar” IRS settlements - This is a scam.
These unscrupulous con men are telling you they can do something that they know you wish they could do. In other words, these individuals are trying to manipulate you by telling you what you want to hear, not what you need to hear. It is preposterous that any honest tax professional would or could tell you what she could do for you without first analyzing your case.
In truth, they MAY be able to settle your case through an offer in compromise, but you will have to pay them retainers, and are not guaranteed success. If you fail, they do not give you a refund.
6. Don’t hire anyone who sends you an unsolicited letter in the mail after you’ve been served with an IRS lien - These people scour the newspapers and public records looking for anyone who has had a tax lien filed against them. Then they send mass mailings to them offering - you guessed it - “pennies on the dollar” settlements.
A good and reputable IRS representative doesn’t need to do cold calls to get clients.
7. Do contact the local bar association or BBB to find out if the representative has been sanctioned for misconduct- This is another reason to hire a lawyer/CPA/Enrolled Agent. Non-lawyers and non-CPAs and unenrolled tax professionals are not regulated and, therefore, it is impossible for you to find out their disciplinary history.
Given a choice, isn’t it just common sense to hire a tax professional who actually belongs to a profession that closely monitors his or her ethical behavior and competence?
8. Do ask detailed questions about the representative’s background and experience - You have a right to know everything about a potential tax advisor before you give them any money (see number 1, above).
Ask the representative the following questions:
a. Have you ever tried a case in United States Tax Court? - If the answer is no, it tells you that if your tax dispute doesn’t get resolved at the administrative level you will have to hire another representative to take the matter to Court.
b. Can the IRS or the Courts make you disclose what I say to you? - Only a tax lawyer can say “no” to this question. (See number 4, above)
c. Have you ever been reprimanded or sanctioned by any state bar association or department of professional regulation? - You can check this out yourself, but it’s a good idea to ask the potential representative to gauge his reaction. If he gets defensive, you’ve got your answer.
9. Do ask to meet with the person who will be working on your case - The person you have the initial consultation with may be an attorney, but the person he or she delegates the work to might not be. There is nothing wrong with a lawyer who has non-lawyers assist him or her in handling case files, but you have the right to meet the person who will be doing either all or part of the work in your case.
10. Don’t hire the first person you speak with unless you are certain it is the right person for you - Tax matters are simply too important for you to hire the first person you speak with merely because it’s more work to speak with several candidates.
It’s always a good idea to get a second opinion.
Ten Tips for Deducting Charitable Contributions
OK, it is that time a year when all good taxpayers are planning for their Tax Returns (please, don’t laugh so hard, I don’t need you in the hospital). One of the things you should be doing is getting ready to make those last minute donations of money and goods to try to reduce your income. Well, there are some important things to know if you are going to survive the tax mans critical eye….
- Contributions must be made to qualified organizations to be deductible. You cannot deduct contributions made to specific individuals, political organizations and candidates. This means that when Marge came around to collect money for little jimmies surgery, it was not deductable. If someone sets up a fund to support some poor kid’s cancer care, it is not deductable. In fact, you can go to the IRS.Gov web site and look up all of the qualified charities, if the charity is not on the list, Don’t try it
- You cannot deduct the value of your time or services. Nor can you deduct the cost of raffles, bingo or other games of chance. Just because you gave your time on a Boy Scout weekend getaway, does not mean you get to deduct $35 an hour for the 72 hour weekend. (You can deduct some other expenses though. Call me)
- If your contributions entitle you to merchandise, goods or services, including admission to a charity ball, banquet, theatrical performance or sporting event, you can deduct only the amount that exceeds the fair market value of the benefit received. That message you got at the charity auction, enjoy it because if you paid $50 bucks for a $75 message, you get no deduction. This is actually a HUGE pet peeve of mine. (and the subject of another RANT from me)
- Donations of stock or other property are usually valued at the fair market value of the property. Special rules apply to donation of vehicles. This is a great way to save tax money for large capital gains items, while still getting a tax write off.
- Clothing and household items donated must generally be in good used condition or better to be deductible. It would be nice if the IRS had provided a definition for good, but we work with it. My recommendations, take pictures of what you donate, save them to a CD, and then keep them with your tax records. You can use several methods for determining how much to donate. I have a great sheet that gives you some numbers, but you have to email me at dana@maggiemayer.com to get it.
- Regardless of the amount, to deduct a contribution of cash, check, or other monetary gift, you must maintain a bank record or a written communication from the organization containing the name of the organization, the date of the contribution and amount of the contribution. This is a pretty good idea anyway, but the IRS has disallowed cancelled checks to churches, so get in their envelope system and get a yearend statement.
- To claim a deduction for contributions of cash or property equaling $250 or more you must obtain a written acknowledgment from the qualified organization showing the amount of the cash and a description of any property contributed, and whether the organization provided any goods or services in exchange for the gift. One document from the organization may satisfy both the written communication requirement for monetary gifts and the written acknowledgement requirement for all contributions of $250 or more. Not to many worries here, all organizations want your money, so they fulfill this requirement for you, but you need to keep it, not toss it!
- If you claim a deduction of more than $500 for all contributed property, you must attach IRS Form 8283, Noncash Charitable Contributions, to your return. This is your tax professional’s duty, but don’t complain if they have to charge you a little more for it!
- Taxpayers donating an item or a group of similar items valued at more than $5,000 must also complete Section B of Form 8283, which requires an appraisal by a qualified appraiser. If you have something worth more than $5,000 to give away, call me I’m poor!
- Contributions made for relief efforts in a Midwest disaster area receive special benefits. For more information, see Publication 4492-B, Information for Affected Taxpayers in the Midwest Disaster Areas. They allow higher limits for what you can deduct for mileage and cash donations.
So, remember…it is useless to give away money for the deduction. You are better off with the money and the tax bill!!!! Give away money for the love from your heart
Dana
Repost of who is..
As a tax preparer I am often asked what is the difference between a tax attorney, an accountant/CPA, a bookkeeper, an Enrolled Agent, and a tax preparer.
A Tax Attorney is not the same as an accountant. The accountant can work with the financial issues and has a general knowledge of tax laws; however a tax attorney is a specialist in all aspects of tax law. Although they often work closely together, they are two complete different services. Typically large and even small businesses will meet with a tax attorney once every quarter or once a year to ensure that they are making the best possible business choices with regards to investments and tax issues. Since the taxation laws change constantly, this is an important step.
A Bookkeeper is responsible for keeping accurate, up-to-date business records for proper cash flow management, balance sheet preparation, and developing expansion and investment plans. A bookkeeper also assists in filing tax returns with updated tax records. Accurate bookkeeping is a legal requirement and should be kept well within the standards that are set by local and federal tax agencies. A bookkeeper accurately records all of the financial transactions. It is the responsibility of bookkeeper to note all monetary transactions that are received and paid out. The records also include outstanding balances that the company owes to other parties and others who owe to the business. Business bookkeeping takes a lot of time and cannot be done in a hurry. At small businesses, bookkeepers also double as company accountants. Perhaps bookkeepers have the biggest responsibilities in the company as business planning, payroll management, and tax return preparations are dependent on accurate bookkeeping. Bookkeepers often do not have the qualifications or certifications of accountants, but the responsibility is not any less. Bookkeepers that have a great deal of experience can market themselves as accountants or managers. For that, they also need to supplement their profession with certificate courses, seminar attendance, and on-job training. All types of businesses require bookkeepers who are experienced in their specific business functions.
Accountants keep track of a company’s money. The company’s managers and people outside the company read their reports. Managers look at the accountants’ reports to see how well their companies are doing. There are four kinds of accountants:
Public accountants work for public accounting companies. They do accounting, auditing, tax, and consulting work. Some have their own businesses. They do many different kinds of accounting for people outside the company.
Management accountants keep track of the money spent and made by the companies for which they work.
Accountants generally work a standard 40-hour week, but some work 50 hours a week or more. Tax accountants often work long hours during the tax season, from January to April. Most accountants have a college degree in accounting. Public accountants have to take a special test as well, resulting in a certification. Public accountants also must have a special license from the State in which they live. Accountants are generally good mathematicians, and have good analytical skills.
An Enrolled Agent (EA) is a federally-authorized tax practitioner who has technical expertise in the field of taxation and who is empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service for audits, collections, and appeals. “Enrolled” means to be licensed to practice by the federal government, and “Agent” means authorized to appear in the place of the taxpayer at the IRS. Only Enrolled Agents, attorneys, and CPAs may represent taxpayers before the IRS. The Enrolled Agent profession dates back to 1884 when, after questionable claims had been presented for Civil War losses, Congress acted to regulate persons who represented citizens in their dealings with the U.S. Treasury Department.
A professional Tax Preparer is an individual who prepares tax returns. A professional tax preparer can be a Tax Attorney, an Accountant/CPA, a Bookkeeper, an Enrolled Agent, or anyone who professionally prepares tax returns for clients. Most return preparers are professional, honest and provide excellent service to their clients.
So there you have it.
From the Desk of the Tax Geek:
Ok, so why is the fall the best time for Tax Planning?
Many (read as Most) of the clients I have (yes, that means you!) wait until they see their Tax Pro before they even consider tax planning. This is not the best time for most. I feel really bad when a client sits before me with a tax problem that I could have helped in advance if only they had seen me first. Let me give you an example:
A few years ago, a couple informed me that they were considering taking money out of their pension (401k) to finance the down payment on a house. I asked them a few easy, but very important questions, and then advised them to first roll the money ($10,000) into a Traditional IRA. They could then withdraw the money at a savings of $1,000.00. This is because money used for a first home, up to $10,000, is penalty free when taken from an IRA, but NOT a 401K. These particular clients were very pleased with me the next time they sat with me, especially because another couple had just learned of the 41,000 penalty they had to pay for doing the same thing, but from their 401k.
There is no guarantee that I am going to save you money because you speak to me in advance. But I am able to declare with 100% accuracy that if you don’t talk to your tax advisor before making large money moves, I won’t save you anything.
I recently returned from a beautiful New Hampshire vacation with Annette and my triplets John, Kevin and Amy. We spent some time at Story Land, Mount Washington and Santa’s Village. All great places to take young children. Unfortunately, when we were gone, Connecticut legislature passed a budget that is going to be a fiscal disaster. Sure, they balanced spending with Tax increases so that there is no deficit, but when are politicians going to learn to cut costs. When I start running out of money, I spend less, not tell my boss that she has to pay me more. But this is just what they did. They are spending money they do not have, then telling their bosses, the tax payers of Connecticut to pay them more. I think we should enact some realistic term limits and restrict lobbying so that we can have legislators be free to make the hard decisions without owing any one (or being owned by anyone) and without worrying about being re-elected.
If you want a copy of a short power point presentation I am preparing to describe the Connecticut Tax Changes, Please email me at ana@maggiemayer.com">Dana@maggiemayer.com and I will be glad to send it on.
That’s all for today. Thanks for reading my rants!
Dana, the Tax Geek
Check out my new blog: Taxgeekblog.com for additional updates.
