by Leif Jensen | Jan 8, 2012 | General |
The estate tax exemption for 2012 rises to $5,120,000, thanks to inflation, this is definitely a boon to small business owners. The tax rate stays at 35%. The annual gift tax exclusion remains at $13,000 per donee. The special estate tax valuation of real estate is...
by Leif Jensen | Jan 8, 2012 | General |
IR-2012-4, Jan. 6, 2012 WASHINGTON — The Internal Revenue Service today released a new set of tax gap estimates for tax year 2006. The tax gap is defined as the amount of tax liability faced by taxpayers that is not paid on time. The new tax gap estimate represents...
by Leif Jensen | Dec 31, 2011 | General |
I have to post this as an Urban Myth since I cannot find documentation to substantiate. But it is a potential fun fact and has lead to lively discussions with several copier technicians. Can you still copy US currency with a color copier? I know that this has been...
by Leif Jensen | Dec 26, 2011 | General |
With the holiday’s drawing ever closer, the time is coming for the ever popular New Year’s Resolutions! What do you have planned for 2012? Was 2011 everything you wanted, happy with your job, pay and bonus? Or is it finally time to find your passion and start that...
by Leif Jensen | Dec 19, 2011 | General |
I was recently asked to write a quick guest article for Michael Erickson PC’s Newsletter. Below is a copy of the article: It is that time of year again… Think about your Business and Marketing Plans Guest article by Leif Jensen Typically I suggest that a...
by Leif Jensen | Dec 19, 2011 | General |
Did you ever wonder what happens to those Powers of Attorney when your CPA retires, dies, closes their practice, fire you as a client or you fire them? If nothing is done the government keeps acting upon your initial request. If possible the practitioner should...
by Leif Jensen | Dec 18, 2011 | General |
CPA’s since the very beginning keep their clients information confidential. This is also enforced by many state laws. CPA’s take great steps to ensure the safety of client’s information. I have installed a security system in my office and where I stall files off...
by Leif Jensen | Dec 18, 2011 | General |
According to IRC §1411 for tax years beginning January 1, 2013 certain trust and estates will be subject to an additional 3.8% on investment income if their MAGI exceeds the following thresholds. The Medicare contribution tax for trusts and estates applies if the...
by Leif Jensen | Dec 18, 2011 | General |
IRC§152(e) clarified the meaning of custody for dependency purposes. As usual this is not always a good thing; in general typically a custodial parent can sign a written release for the noncustodial parent may claim the child. Now if the child is (court) emancipated...
by Leif Jensen | Dec 14, 2011 | General |
The various deadlines for retirement plans, IRAs and Coverdells are noted below. Generally, employer plans must be established (applications executed) by Dec. 31 to get a 2011 deduction. This includes Keoghs (these still exist?). For SEPs, you have until the due date...
by Leif Jensen | Dec 13, 2011 | General |
The IRS just won a levy case. The company was ignoring an IRS levy on the wages of an employee which is never a good idea. The employer that did so is liable for the worker’s overdue income taxes, a court says, along with a 50% penalty. The mental breakdown of the...
by Leif Jensen | Dec 12, 2011 | General |
A keying error while entering data in a tax software program can excuse a penalty, according to the Tax Court says. A filer got a Form K-1 from his mother-in-law’s estate showing a large amount of interest income. When he used a tax software program, he entered the...
by Leif Jensen | Dec 12, 2011 | General |
The IRS has set the standard mileage rates for using a car, van, pickup or panel truck, starting on January 1, will be 55.5 cents per mile for business miles driven, 23 cents per mile driven for medical or moving purposes, or 14 cents per mile driven in service of...
by Leif Jensen | Dec 11, 2011 | General |
I just wanted to make sure that everyone has and are maintaining their corporate books and records. I was just working with a couple of clients this weekend. They had their corporate record books and needed some assistance with setting up their records. I encourage...
by Leif Jensen | Dec 11, 2011 | General |
Remember to check your flexible spending account balance. You must clean it out by Dec. 31 if your employer still has not adopted the 2½-month grace period now permitted by Uncle. Otherwise, any money remaining in your account is forfeited. And when you are deciding...
by Leif Jensen | Dec 7, 2011 | General |
Just a quick update. When I received my Kindle Fire the only things in the box were the unit and a charger. But, after some research I found that if I ordered a USB cable, I could directly transfer files to the Fire. So I uploaded some MP3’s and some PDF’s and Word...
by Leif Jensen | Dec 4, 2011 | General |
Earlier last week we had a meeting scheduled with a potential new client. Unfortunately this meeting as well as the prior one was cancelled by the client. This time they stated that, they may not be happy with their current CPA, but they believe it is too difficult...
by Leif Jensen | Dec 3, 2011 | General |
This is not quite the beginning of another 2008-like financial crisis ensuing. Student loan volume is a mere sliver of what mortgage lending is. Alas, there are potential critical long-term implications. By 2014, 15% of 2012 grads are estimated to will walk away from...
by Leif Jensen | Nov 30, 2011 | General |
As 2011 continues to draw to a close we need to be thoughtful about our actions. We have to look at 2011 and 2012 with what we know and what we suspect may happen. Not always the best of actions. Medical expenses still need to exceed 7.5% of AGI. Remember if you...
by Leif Jensen | Nov 29, 2011 | General |
It is a common belief that employing and retaining younger workers will take some corporate creativity. Yes, young professionals want telecommuting options and the freedom to tap social media networks when they want, for personal and for business reasons. It is...
