Amy B. Moulton, CPA

Please click on the following link for a really good article that summarizes what has changed and what hasn’t for 2011

http://www.journalofaccountancy.com/Issues/2012/Jan/20114539.htm

Bottom line is yes, as long as it is only for employees and their spouses.  AND this is 100% deductible, not only 50% like normal meals and entertainment and no business needs to be discussed or documented.  You must still have the receipts and a documented guest list.

If you invite customers, patients or vendors, you can only deduct  the pro-rated portion of the cost relating to the employees, NOT the customers, patients or vendors.  100% for employees is deductible but then 50% of the portion related to customers, vendors and patients.  AND in order to even get the 50% for the customers, patients and vendors, you must have documented proof that some kind of business related activity preceded or succeeded the party or that business was actively conducted during the party. There are many more little details that come in to play if the party includes anyone buyt employees and their spouses.  You should consult with your tax advisor if this is a concern for your business.

IT’S ALMOST A NEW YEAR AND THAT MEANS IT ‘S ALMOST TAX TIME

Here are a few helpful hints to help you get ready to have your taxes done:

1)      Make sure you have ALL of your W-2’s (wage statement from your employer)

2)      Make sure you have the correct spelling of the name and correct SOCIAL SECURITY number of every member of your household, as shown on their social security card (incorrect spelling or incorrect social security numbers slow up the processing of your return)

3)      If you have children who go to daycare, make sure you have the name, address and TAX ID number for the daycare center as well as the total amount you paid for their services during the year.

4)      If you own a home, make sure you have your 1098 Mortgage Interest Statement from your Mortgage company-this shows how much mortgage interest you paid during the year and also any property taxes paid, if you pay them with your mortgage.  If you do not pay your property taxes through your mortgage, make sure you have copies of your property tax bills and the dates that payment was made.

5)      Know what Township and School District you live in so that the proper local return can be filed.  (incorrect local returns cause penalties from the locality that should have been filed)

6)      If you have a small business, make sure you have a detailed list of all your business expenses to offset the income that you will be reporting.  Mileage or vehicle information is an important expense to keep track of for self-employed persons.

7)      Remember, you must have receipts for your charitable contributions.

      List of all medical expenses paid out of pocket (including dental, vision, prescriptions, mileage to/from office visits)

9)      Make sure you have all your 1099’s from all bank accounts that pay interest, dividends or brokerage accounts from buying/selling stocks and bonds etc.

10)  If you incurred any expenses on behalf of your employer in which you were not reimbursed, make sure you provide these to your tax preparer (i.e mileage to run errand to the post office or to the bank, union dues)

11)  If you receive Social Security payments, Pension benefits or distributions from an IRA, make sure you have received the appropriate 1099’s from the payor.

12)  If you bought or sold a home, a copy of your settlement sheet.

All tax documents are required to be mailed to you by January 31^st.  If you do not receive your information within 2 weeks, notify the respective party.

Amy B. Moulton, CPA

March TAX Madness!!!!!!!!!

Major March Tax Madness for C-Corp’s and S-Corp’s whose tax returns are due by 3/15/10.  No madness for those of you who have already filed.  Good Job!!! But for those of you who have not filed yet, while there is still time, don’t get caught up in the last minute Madness.  Remember April 15^th isn’t that far away.  So, if you are a procrastinator, its time to start gathering up all your tax paperwork and contact your local tax professional.  By now you should have received all of your W-2’s, 1098’s and those pesky 1099’s that your investment brokerage firm had until February 17^th to mail out this year. 

If you did not receive the total amount of your Economic Stimulus Rebate last year due to your 2007 tax situation, you may be eligible for the balance as a credit against 2008 taxes.  So make sure your tax preparer knows how much Stimulus Rebate you ACTUALLY received in 2008. 

So, while you adjust to the weather changes this month and enjoy some good college basketball, don’t forget to contact your tax professional for an appointment and avoid the Madness.

How do you know if your small business is ready to hire a bookkeeper? Well, here are some questions to ask yourself:

Do you have a shoebox full of receipts?

Is your tax return on extension (again) because you did not complete your bookkeeping?

Do you feel that you are small potatoes in a big sack because your business is not getting enough attention?

Don’t deal with the stress. Find out how easy it is to get a CPA onto your team. Amy Moulton works with many area businesses just like yours and she can help you. Find out more by e-mailing Amy or calling today: 609-364-6365

Did you promise yourself that you’d finally do something about your books after tax season? Well, now there’s NO EXCUSE!

Amy B. Moulton, CPA is offering a 1-hour FREE CONSULTATION. She will review your current bookkeeping method and offer suggestions on how to make your life easier. No obligation for future services.

The focus is on YOU and your business, Small businesses are Amy’s specialty.

She’ll even come to your home or office to consult with you. This is a limited time offer so e-mail Amy or call today: 609-364-6365