16. January 2010 by admin.

Some confusion out there about Roth changes.  The following are effective in 2010….

The tax that has to be paid when you  CONVERT a REGULAR IRA to a ROTH IRA can be paid either

• all in 2010
• all in 2011
• OR 1/2 in 2011 and 1/2 in 2012

Additionally, the limits on Roth contributions do not exist for 2010.

It would seem like a good deal to wait and pay 1/2 in 2011 and the other half in 2012 BUT that may not be the best answer.  We anticipate the highest marginal tax rate will go up (anybody want to bet it don’t?) in the next two years.  That means the same amount of income might be taxed as at higher rate.

 It could be taxed at a higher rate because you are going to have a better year and your tax situation calls for a higher rate than the one you are in now… regardless of the increase in tax rates.

Also, if you have Net Operating Losses in either 2010 or 2011, these may be used to offset the tax on the conversion and it worth more in 2010 than in 2011 or 2012.

That’s alot of concenses tax info on Conversions to Roth.  If you have any questions, please post a comment on this blog, or contact us at USATaxHelp.com.

Happy New Year!

Posted in Retirement Accounts, Income Tax | 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 »

7. December 2009 by admin.

If you participate in an Employer sponsored Simple IRA, you can put an max of $11,500 in 2009 PLUS $2,500 for being over age 50.  That total is $14,000 maximum as an employee deferral.  Additionally, the employer has some matching options.  By far we have found the most popular Employer matching option to be… the employer matches up to the lower of 3% of your wages or whatever you put in as an employee.

Whatever is withheld from the paycheck must be withheld in no later than the end of December for 2009 and paid in by the employer no later than January 31^st, 2010.

i.e.  Your wages for 2009 are $36,000 x 3% = $1,080.  If you only contribute $800, Employer can only put in $800.  If you contribute $3,000, Employer can only put in $1,080.

There is no commitment to put to the maximum, nor is there a commitment that you continue to participate in a subsequent year.

Note:  Participation in an employer sponsored plan subjects you to limits on Regular IRA contributions.  Contact us for more info at www.USATaxHelp.com

Posted in Retirement Accounts, Payroll Tax, Sub S Corporations, LLC's, Income Tax | 1 Comment »

7. December 2009 by admin.

$5,000 into a REGULAR IRA is the max for a single individual UNDER age 50 who does not participate in an employer sponsored retirement plan and still receive a tax deduction.  Add $1,000 if over age 50.

Can contribute till April 15^th, 2010 for 2009.  Note:  There is NO tax deduction for contributing to a ROTH IRA.  The benefit of the ROTH is the earnings are not taxed during the growth phase of the investment (same as any retirement account) BUT the gains when taken out in retirement are NOT taxed.

The amount you or your spouse can contribute may be reduced depending on your Adjusted Gross Income.  Contact us if you need more details at www.USATaxHelp.com

Posted in Retirement Accounts, Sub S Corporations, LLC's, Income Tax | 1 Comment »

7. December 2009 by admin.

$5,000 into a REGULAR IRA is the max for a single individual UNDER age 50 who does not participate in an employer sponsored retirement plan and still receive a tax deduction.  Add $1,000 if over age 50.

Can contribute till April 15^th, 2010 for 2009.  Can file your tax return WITH the Regular IRA as if it has already been made, then use the refund to make the actual REGULAR IRA contribution as long as you do it before April 15, 2010.

The deductible amount if you or your spouse participate in an employer plan may be reduced depending on your Adjusted Gross Income.  Contact us if you need more details at www.USATaxHelp.com

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

4. December 2009 by admin.

Residential Energy Property Credit for Air Conditioning and Heating, Insulation, Exterior Windows….it’s n/a for 2008, yes for 09 and 2010 IF it meets certain criteria….not just any replacement ac qualifies……must be energy efficient and be manufacturers certified….(new requirement and frankly it’s about time—there was too much unknown to the accoutants who had to research and research and never really get a clear answer as to whether this particular A/C unit met the criteria).30% of cost, max. $1500.

Posted in Income Tax | 1 Comment »

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 »

27. November 2009 by admin.

Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism

Posted in General | No Comments »