6. July 2010 by admin.

SUMMARY 

The Hiring Incentives to Restore Employment Act. Businesses can receive two tax incentives for each new worker. To qualify the employee must have been unemployed during the 60 days before beginning their new job or worked fewer than 40 hours during that 60 day period. It applies to anyone hired between February 3rd and December 31st of 2010 but the calculations of the credit do not start until March 19th.

The first benefit is a 6.2 percent payroll tax incentive, exempting businesses from their share of the employee’s social security taxes. The second is a tax credit of up to $1-thousand dollars for every worker retained for at least a year.A spokesman for the IRS says the HIRE Act is too new to know how well it’s working or how many companies are filing for the exemptions.

YOU MUST HAVE THE TAX EXEMPTION FORM W-11. 

We must have a signed copy to process this information.Click here to download the tax exemption form W-11. 

DETAIL http://hireact.org/ 

Posted in Payroll Tax, Sub S Corporations, LLC's, Income Tax, General | No Comments »

24. June 2010 by admin.

EFFECTIVE IMMEDIATELY!  The Division of Corporations no longer has authority to waive the $400 late fee for annual reports filed after May 1st. The provision for waiver in s. 607.193(2)(b),F.S. was repealed during the 2010 Legislative Session. All business entities except non-profit corporations must pay the late fee if the annual report is filed after May 1st

Posted in International Taxation, Sub S Corporations, LLC's, General | 1 Comment »

1. June 2010 by admin.

Recourse vs. Nonrecourse

When a debt is canceled by any means (deed in lieu of, foreclosure, short sale, cancellation of debt), the tax impact depends on the type of debt.

Debt for which the borrower is personally liable is “recourse debt,” all other debt is “nonrecourse debt.”

RECOURSE debt holds the borrower personally liable for any unsatisfied amount owed when the property is surrended (by any means).

If a lender forecloses on property subject to recourse debt, and cancels the portion in excess of the fair market value (FMV), the canceled part is “ordinary income from cancellation of indebtedness”.  That figure must be included in gross income unless it qualifies for an exception of exclusion (personal residence, Mortgage Debt Relief Act, bankruptcy or insolvency).

Additionally taxpayer may realize a gain or loss on the disposition of the property by the difference between the tax basis and the FMV at the time of foreclosure.

NONRECOURSE debt is satisfied by the surrender of the property regardless of FMV.  Borrower is not personally liable for the debt.

If nonrecourse debt is abandoned, foreclosed, short sale or repossessed, it is treated as a sale.  The usual method to determine gain or loss is used.  The balance of the nonrecourse debt at the time of the disposition is treated as the amount realized (in other words you actually sold it for the total debt of the property, not just what a short sale closing document may indicate).

Posted in International Taxation, Sub S Corporations, LLC's, Income Tax, General | 1 Comment »

5. February 2010 by admin.

That depends on the AMOUNT of income AND the TYPE of income.  Filing is not required if all of your income is from W2 Wages, Interest, Dividends and Other Miscellaneous Inocme (excluding Social Security) AND if the total income is less than the Standard Deduction plus personal exemptions.

2009 example:A Single person’s standard deduction is $5,700.  Add a personal exemption of $3,650.  Total $9,350.  That means on the first $9,350 of income there is no Income Tax liability and NO filing requirement.  If the taxpayer is 65 or older, or blind add another $1,400 to the standard deduction for a total of $10,750.

But it’s not really that simple.  Let’s assume this single person’s only source of income was $1,000 of self employment income.  The Income Tax is zero BUT the return must be filed due to Self Employment Tax liability on Self Employment Income of $400 or greater!

Suppose the person’s self employment income is $200 and that’s all.  Sounds like no filing requirement.  The self employment income bottom line may be only $200, but let’s say the business of the self employed person generated $1,000,000 in sales with enough expenses to generate only a $200 profit. 

YES, there is a filing requirement!  Think about it.. a million dollars passing through a self employed person’s hand should be accounted for.  

Posted in Income Tax, General | No Comments »

26. January 2010 by admin.

Until you know you are going to stick with it (no offense, many clients try stuff and change their mind), I would not consider the extra paperwork involved with having the NEW LLC taxed as a corporation.  You can find more information on our website for Sub S Corporations www.USATaxHelp.com and also the why you really want at least an LLC as a business entity.

 If you know for sure you are continuing, then the “S” corp election for the LLC is usually an excellent decision.  Seriously, read the two handouts on our main website for “S” Corps and LLC’s at www.USATaxHelp.com

Posted in Sub S Corporations, LLC's, Income Tax, General | No Comments »

22. January 2010 by admin.

Per IR-2010-010 the Pension Protection Act of 2006 REQUIRES a non-profit organiztions that does not file the necessary information form for three consecutive years to AUTOMATICALLY lose their Federal tax-empt status.  This has been in effect since January 1, 2007.

 ENUF SAID!  Contact us for more info at USATaxHelp.com

Posted in Income Tax, General | 1 Comment »

6. January 2010 by admin.

CONSUMER ALERT! Please be aware that COMPLIANCE SERVICES (not to be confused with the Florida corporation, Compliance Services, Inc.) is mailing notices to new business entities wanting “Annual Minutes” and a fee of $125. be paid for filing.

These notices are NOT from the Dept. of State, Division of Corporations. “Annual Minutes” are NOT required to be filed with any agency (in an audit the IRS may ask for them to prove you are acting as a corporation.. if it looks like a duck and quacks like a duck kind of thing….. if you need to know more about the QUACKing thing, contact us at www.USATaxHelp.com 

Annual Minutes are to be kept by the business entity itself. Please do not confuse these notices with the messages sent by the Division of Corporations reminding each business entity to file its 2010 Annual Report.

Posted in Newsletter Topics, Sub S Corporations, LLC's, General | 1 Comment »

6. January 2010 by admin.

NEW LAW! Effective July 1, 2009, the intention to register a fictitious name must be advertised at least once in a newspaper in the COUNTY in which the principal place of business will be located. Your local newspaper should be contacted for advertising information.

Posted in Newsletter Topics, Sub S Corporations, LLC's, General | No Comments »

3. December 2009 by admin.

2010 Standard Mileage rates for the use of a car (includes Pickups, Vans and Panel Trucks):

• 50 cents per mile for business miles driven
• 16.5 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations 

Runzheimer International conducts an annual study of fixed and variable expenses to operate a vehicle.  These rates are lower than 2009 (55.0 business, 24.0 medical or move  & 14 charitable).Please note the Business Mileage Deduction may not be used if a vehicle has been depreciated using MACRS or depreciated using  §179.

Posted in Income Tax, General | No Comments »

27. November 2009 by admin.

Client Disclosure Authorization

Posted in International Taxation, Payroll Tax, Sub S Corporations, LLC's, Income Tax, General | 1 Comment »