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Wednesday, July 23, 2014

Staying Ahead of Your Business Taxes

We're nearly half way into 2014: Exactly where does your business enterprise fill in with regards to taxes?



Earlier this month, a customer of mine got an awful revelation when I completed his federal tax return and disclosed he owed a load of cash to the Internal Revenue Service. His original feeling was to get upset at the runner. But, upon thoughtful consideration, he declared," Very well, I ought to have come to hire you before now when my brand new item blasted off the way it did. I understood I was without a doubt recieving a bunch more cash".

He's absolutely right. Each time there is a considerable modification to your operation's revenue (in either red or black), it's time for a visit to your tax planner. In reality, any person which runs a business ought to capitalize on the mid-year off period to sit down with a tax advisor to review their financial records and potential tax liabilities. It's far simpler to formulate and put a plan of action in position now than to run around at tax season upending pails of water on all the small fires that have been growing all year.

Here are some suggestions to go over with your tax pro to bolster your tax situation, reducing your liability and with some luck keep operating cash in your account rather than in Uncle Sam's wallet.

Launch a retirement strategy.

When you're ultimately a few dollars ahead and don't possess a retirement fund, right now's time to start one. Here's the reward: it's deductible!

Consult with an authentic financial advisor or a representative from your credit union to identify whatkind of program best fits your demands.

There are a large range of vehicles from Individual 401(k) plans to SEP IRAs to SIMPLE plans that may or may not call for you to include personnels in the plan.

On the occasion that a program necessitates employee participation, do not immediately suspend it.

Opening a retirement plan for your workers might be a meaningful means to offer raises that don't necessitate the extra cost of business paid payroll tax bills. Read through Internal Revenue Service Magazine 560 to find out more.

Examine your legal framework.

Make the effort to review whether your business is running efficiently in its already existing company framework. You could have started as a sole proprietorship and have already outgrown it. It is most especially important to assess entity structure if your company is now making over $100,000 per year.

Always remember that if your company incorporate, you will definitely now be mandated to get funds out of the business by means of pay-roll as opposed to simple draws.

There is a lot more documentation included under this status, but the tax advantages and safeguards that a corporation supplies may prove to be more advantageous.

Consistently go over these options with your legal professional and tax expert prior to making a decision.



Offer employee benefits.

Staff members are our most significant company asset and should be dealt with properly. There are numerous employee perks which are not taxable to either the staff or the business. Look into Internal Revenue Service Brochure 15-B, Guide to Fringe Benefits to read more concerning this particular topic. You will certainly save resources in payroll taxes whilst you cultivate a more pleased working surrounding for your people.

Purchase office furniture and hardware.

The Internal Revenue Service has often rewarded outlays for capital assets by offering the 179 Write-off. This exclusive deduction permits the prompt expensing of capital assets instead of diminishing them over their useful lives. Be advised though. This year, the limit for purchases diminished from $500,000 to $25,000. Even so, Congress will be reviewing increasing that ceiling probably at some point during 4th quarter. You may begin putting resources aside for the buyings now.

Perform extrapolations.

Take a good look at your fiscal statements. Run a profit and loss and compare it to the previous year revenue and decline through June 30. Are there major modifications? Are you preparing for an increase or decline in sales and/or spendings through the end of the year? It is's a walk in the park to export your information from QuickBooks to Excel where you can tweak the amounts to identify exactly what your yearend total revenue is going to be. Give this info with your tax planner to figure out if you should readjust your supposed tax obligation payments suitably.

Tuesday, July 15, 2014

'COIN' to be Trading Title for Winklevoss Start-up

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

The electronic money caught the brothers' eyes more than a year previously when the worth of the coins skyrocketed. They revealed strategies to invest in the popular online currency early July 2013. Since then, extra data has been released regarding exactly what it was turning into. In May, the twins, publicized they were taking the Winklevoss Bitcoin trust (their Bitcoin ETF) to NASDAQ. They consider the value of Bitcoin can increase tremendously with a legitimate presence in the market. On July 15, 1 Bitcoin was worth $621.45, an incredible investment opportunity if what the Winklevosses say is true. This figure has been steadily growing since the announcement of the fund.

'COIN' is nonetheless delayed in government regulation and there is no crystal clear or official announced date for the IPO, even though many experts are guessing that (based on government approval) the fund may be trading before the end of the year.

It is an exciting period for the virtual industry, but maybe what is most fascinating about bitcoin particularly is the way in which it is broadening into the real world.

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

Tuesday, July 8, 2014

Tax Planning and Preparation: Joe Garza's Inside Look

It's never too early to begin tax preparation.

For several, 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 the majority of businesses attempt to benefit from every allowable reduction, lots of have no idea that an excellent chunk of their marketing expenditures are tax deductible.

As a matter of fact, according to a recent questionnaire of business owners at Inside99Designs. com, greater than a quarter (27 percent) aren't also conscious that the IRS allows them to take off (" write off ") particular marketing costs on their income tax return. And from the 73 percent who do know about the write-offs, just 57 percent showed that they'll be taking advantage of them in the close to future.

And the study states ...

The study, conducted amongst 211 U.S.-based local business owners, showed that 64 percent of business owners say they are crossing out roughly the exact same amount this year as on their previous return, while only 22 percent are deducting much more.

And when asked what single advertising and marketing stations they 'd apply cash toward if they were to obtain a tax refund, the study claimed:

33 percent would certainly spend it on their site.
17 percent on web marketing.
17 percent on a mobile application.
10 percent on a print ad campaign.
8 percent on social media advertising.

Finally, when asked if they took into consideration the cash they invested in 2013 on advertising and marketing activities were a good use of money or if they felt otherwise, 70% confirmed, 23% were unsure, and 7% claimed no.

Simply to make clear, I'm by no implies a tax professional. Nonetheless, based on the searchings for from this study, I could develop a basic verdict that several small business owners ought to be speaking with their tax experts and reviewing possible tax deductible marketing expenditures. Yet as a small business proprietor, I find I'm in great company with those that are spending bucks back into their advertising and marketing methods in an effort to expand and keep a healthy and balanced consumer base.

Wednesday, July 2, 2014

Joe Garza of Dallas Talks Tax Shelters and Tax Plans

While the term "tax planning" is frequently utilized to describe the process, it's not necessarily thoroughly understood. Below is 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 art of organizing your undertakings in ways that defer or avoid taxes. By putting to use beneficial tax planning systems, you can have more money to save and invest or more money to spend. Or both.Your choice.

Put differently, tax planning means deferring and flat out avoiding taxes by taking advantage of favorable tax-law stipulations, boosting and expediting tax deductions and tax credits, and generally making maximum use of all applicable breaks obtainable under our beloved Internal Revenue Code.

While the federal income tax regulations are now more complicated than ever, the advantages of good tax planning are arguably more important than ever before.

Of course, you should not change your fiscal practices only to avoid taxes. Genuinely effective tax planning solutions are those that enable you to do what you want while lowering tax bills along the way.

How are tax and financial planning related?

Financial planning is the art of enforcing approaches that help you reach your financial requirements, be they short-term or long-term. That sounds pretty very easy. Still, if the actual accomplishment was simple, there would be a lot more rich folks.

Tax and financial planning are closely related, considering that taxes are such a major expenditure item as you go through life. If you become really wealthy, taxes will most likely be your single most significant expense over the long haul. So preparing to reduce taxes is a critically important piece of the overall budgetary preparation process.

A Final Word

There are myriad other ways to commit costly tax mistakes. Such as selling appreciated securities too soon when holding on for just a bit longer could have led to lower-taxed long-term capital gains instead of higher-tax short-term gains; taking retirement account withdrawals prior to age 59 1/2 and getting stuck with the 10 % premature withdrawal tax; or failing to arrange for payments to an ex-spouse so that it can qualify as deductible alimony; the list continues.

The cure is to prepare for transactions with taxes in mind as well as avoid making careless changes. Looking for highly qualified tax guidance before pulling the trigger on major transactions is in most cases money well spent. As we get closer to the end of the year, a number of columns will involve tax planning tips that many people can benefit from.

Friday, April 18, 2014

Texas Taxes: A Small Business' Best Partner

The Lone Star State' lack of self income tax has long been a major draw for citizens. Among of only 7 states without a personal income tax, it surely surpasses states like California, which possesses a surprising income tax burden. Additionally, with 52 Fortune 500 companies in the state, and 12.9 million men and women comprising its workforce, Texas is maintaining-- and strengthening-- its reputation for being among the most significant business hubs in the country.

Businesses form Partnerships with Texas

Certainly there are lots of factors that contribute to Texas' thriving economic state. Two of the most significant ones? The state's tax structure and the numerous tax benefits that Texas presents to small business. As a matter of fact, the Lone Star State has some of the most affordable tax burdens in the USA Here's a closer look at the policies that make Texas such a business-friendly place.

Because of the Texas Tax Reform Commission, Texas changed out its franchise business tax in 2008 with a design that more accurately reflected the structure of establishments and helps the state continue being a more competitive player in the U.S. economy.

The reworked margins tax took over an outdated franchise business tax that was really formed at a period when the state's economy was directed by products rather than services. Within the latest law, the primary franchise tax rate dropped from 4.5 % to between .5 and 1 %. Additionally, an exemption is presented to small businesses with a profit below $1 million-- a resolution that helps 40,000 small companies in Texas.

The largest initiative of this kind in the U.S., The Texas Enterprise Fund was developed to catch the attention of out-of-state companies by incentivizing job creation and capital investment. Comprising more than $410 million, the fund extends awards ranging anywhere from $194,000 to $50 million to suitable businesses. The Texas Enterprise Fund has drawn in such businesses as Bank of America, Fidelity Global Brokerage, Lockheed Martin and Frito-Lay. It has also promoted a large technology influx in Austin where companies like Apple, Facebook, Sematech, and Samsung have just recently set up shop.

Texas Taxes, A Big Draw for Companies

"Texas grants a diversity of tax incentives to its own small companies" states Joe Garza - Tax Planning Attorney and Head Partner at Garza & Harris. "Incentives are granted for everything from manufacturing to contamination control to renewable energy - these incentives make Texas a rock-solid partner for business owners operating in-state". For example, exemption from state sales and use tax on natural gas and electricity are granted to manufacturers. Also, enterprises that implement renewable energy sources, such as solar and wind power, are eligible for a range of tax exemptions. Permissions such as these can seriously add up for business owners striving to support and expand a prosperous business in Texas.