Accounting News and Notes

Right before popular vote which all expected would result in her being named Prime Minister of Pakistan, Buttho was assassinated. Right before Pakistan was to perhaps regain some of the stability it had recently lost, her life and much of the hope of the Pakistan people was unceremoniously removed from their future. I cannot help but think about when Senator Robert Kennedy was killed leaving a promising future and a country hanging in the lurch.

Let us pray for the people of Pakistan and that they overcome this tragedy and that they find truth amidst the turmoil. I hope that all those involved are soon found out and brought to justice so that so measure of peace might be restored. I fear that they will be great unrest in the country for the next several weeks and that we should be sure to lift them up in prayer at this time of great need.

I hope your holidays were enjoyable and safe.  But let us not forget the reason for the season. It’s more than gifts, home cooked meals and lights, its about Jesus.  Although we get wrapped up in the hustle and bustle please try to take time to appreciate all that God has done.  I wish you all have a prosperous New Year!

AMT (Alternative Minimum Tax) has been the bane of many as the tax law has not been permanently updated to index for inflation and other tax law changes. Accordingly more and more of middle income America has been penalized by this calculation which was originally intended to ensure that the rich did not receive undue tax benefit from their tax deductions. Thus, Congress both in 2006 for the 2007 tax year and now in 2007 for the 2008 tax year has been faced with passing legislation to ensure that our middle class is not unduly penalized for a tax law which was not intended to address them and their taxes. Congress just passed a one year relief act which will now go to President Bush for approval before it becomes law. Though I applaud Congress on their action, its lateness and its status as a temporary fix do not address the longer term problem of making a permanent change to tax law for correcting the AMT rules. The proposed law, if it is signed, will save approximately 25 million taxpayers an average of $2000 each. If you want to be an active partner for pro-active positive change contact your Congress representatives and President Bush’s office today as your inaction might cost you thousands.

In 1953, the SBA (Small Business Administration) was formed to help aid with the needs and development of small business. To that end, in 1957 the SBDC (Small Business Development Center) was legally formed to give teeth and action to the original needs and intent of the SBA’s original incorporation. Specifically formulated to provide resources to U.S. small business, the SBDC has formal training programs, advisers, and experts who are readily available to assist those in need. At their web site http://www.sba.gov/index.html you can gain information on starting your business, writing a business plan, financing, entity choices, permits & licenses, leases, employee management, taxes, insurance, forecasting, and much much more. At their web site you will also be able to locate an office nearest you, find out how you can apply for financial, technical, and disaster assistance in addition to OSHA and IRS forms. The mentoring services of your local SBDC representative are paid for by your tax dollars and their mentoring fees and guidance are available for your utilization with many of their services being provided for free of charge. The SBDC is a resource that I highly recommend to all who are starting their business or are looking for guidance on small business issues.

Starting ones business in a recession. Buying a second home during a housing downturn and investing in the stock market for the five years after 9/11 though the market had consistently bad news. Good decisions are always good decisions regardless of what is happening around you. A good investment will remain a good investment (of course, that is relative to other investments) regardless of whether the market is up or down. Going out on your own and starting your new business is never out of style. Sure it is easier when the market is up and the economy is strong but regardless of ones environment the “cream will always rise to the top”. Trued and tried marketing techniques may be more difficult to successfully implement than in a down market but a wise and ardent business owner’s savvy will always serve one well. One thing I have learned is that we all cannot do it alone. To learn more about selling in a down economy I suggest visiting http://www.gwinnettnetwork.com/ArticleSellingInADownEconomy.htm there you will become aware/reminded of what to do and how to never give up. Though we should always be aware when our efforts are futile, many times our very success lies just beyond our reach waiting for our very best efforts to reach the awaiting prize.

As well as learning how to sell in a down economy is to learn the art of sales itself. Selling is a lot like a game of golf, it is one that you can never master and what works in one place or situation is bound and even likely not to work in another. One of the best recaps of the many varied tips of learning how to grow your business can be found at

http://www.gwinnettnetwork.com/Archived%20Articles.htm Honing up on your sales skill will help you survive and even thrive in any economy. 

Gwinnett continues to grow at astounding rates. Combing a diversification of industry and peoples Gwinnett’s political, economic, and overall quality of life issues continues to make it a favorite place to live. Home to three of Fortune 1000 Top Companies, Gwinnett’s infrastructure continues to make it a national favorite. Now home to some estimated 739,000 residents with a population greater than that of four of our states. According to the U.S. Census, Gwinnett County has almost doubled each of the last three decades and has a median household income of $66,036 vs. that of the U.S. of $48,775. There are many factors which positively contribute to Gwinnett’s growth which include many overall business, economic, and demographic issues.

To learn about local taxes and special tax incentives including occupational tax rates and their 23% decline since 1996 and the 100% Freeport Exemption for Unincorporated Gwinnett County in addition to Duluth, Suwanee, Sugar Hill, and Buford, and many more valuable news visit http://www.gwinnettchamber.org/Taxes-Incentives.incentives.0.html

To learn about Gwinnett county demographics by city and by zip code visit http://www.gwinnettchamber.org/Economy-and-Demographics.demographics.0.html Here you can learn by city or zip code the numbers of white and blue collar workers, those who drive alone to work vs. those who car pool, the number of households by income level, the number of automobiles per household, the number of households and the numbers of people broken out by age and gender, the average median age, the projected population in the year 2012, the amount of education obtained for those 25 years and older, martial status, and the present number of households and and their 2012 projected totals. In short, almost everything a new business owner would want to know.

For detailed leasing and sales information by county sorted by city and type including break outs of industrial, land, office, and retail space  you can also visit http://www.gwinnettchamber.org/fileadmin/files/sites/properties.html to learn about what is presently available.

The FED just announced it is reducing the prime late of lending by .25%. The reduction is a part of a series of reductions the FED has ordered to attempt to slow the recession, the stem the tide of the housing/real estate bust. I anticipate that the FED is not quite done with their efforts to positively impact our economy as the stock market continues to be confused whether it is in a bear or bull mode. Good and wise investing, whether in times of uncertainty, growth, or decline, will always be a good bet in planning for your long term future.

The U.S. Senate just voted on a resolution that would save approximately 12 million people an average of $2000 each.  The AMT (Alternative Minimum Tax) rules have been in force for years and were intended to ensure that those in higher tax brackets did not receive undue benefit from certain “tax preference” items.  As a result of the lack of indexing of preference items of the AMT calculations, it is estimated that some 25 million people would be hit by the tax without the pending legislation being passed. The Senate proposal is a one-year fix and does not address how additional funds would be generated.  The House, who consistently strives to pass legislation that is revenue neutral, (i.e. cuts of government revenue dollars must be offset by increases in other areas) is expected to see the Senate version soon.  Our best advice today is to write your Congressmen ASAP.  Your 2007 tax bill depends on it.

Looking ahead I would anticipate that the recent downturn in the housing/real estate market to continue on into 2008. Real estate has always been a lagging economic indicator and continues to be so for many years to come. Being well armed with information during this time is now more important than ever as you strive to make wise and judicial use of your housing dollar. For most all of us buying a home is the single largest financial decision we will ever make and the constant growing price of home ownership has no end in sight. Location still is the driving force in most of our buying decisions while striving to strike a balance between quality of life issues, proximity, and the strength of the local school system. To find the highest median home prices by zip code please visithttp://www.ajc.com/homefinder/content/homefinder/homesales/2007/06/22/prices.html

If however you are initially more concerned with the sales prices on your street or subdivision and as to what you present home might be worth you can locate recent sales information at

http://homesales.ajchomefinder.com/homesales/homesales_quicksearch/  On the AJC web-site you can also search for varying housing information regarding pricing by county, those areas with the most growth, and prices of starter homes by area.

Today’s housing market mandates that you be a wise and judicial steward of your family’s housing dollar and being aware of all the information available will greatly assist you in the buying and selling process. The listing price continues to be a key determinant in how long a house might be listed. Credit challenges as well are helping to contribute to a slow market and knowing your credit scores and financing options will be a key component to limiting both your exposure and cash outlay.

As the Presidential race heats up, real issues are beginning to come to the forefront rather than political rhetoric alone. The candidates continue to jostle for position in a game of one up man-ship which will continue throughout the primaries, each convention, and indeed up until election day. News was made recently when both Oprah Winfey and Chuck Norris endorsed Barack Obama leaving the press reporters on all sides scrambling. While all of our citizenry are entitled to endorse publicly or privately their respective choices, no one should be able to influence the way you chose to cast your vote as it is yours alone. To that end I suggest that all spend quality time reviewing as many facts as possible about the race, the candidates, and their viewpoints. A good place to start this search would be  http://news.yahoo.com/fc/US/2008_Presidential_Election where you can look deeper behind the scenes and where candidates stand on real issues.

At present the race for the Democratic nomination has Hillary Clinton with a commanding lead of 43% over Barack Obama with 23% but still no majority, with John Edwards bringing up the rear with 13%. You and read more about the Democrats overall political platform at

http://www.democrats.org/

On the Republican side, Rudy Giuliani leads the pack with 25% while essentially Mike Huckabee, John McCain, and Fred Thompson in a dead heat with approximately 14% each.

Unlike past elections where the incumbent might be utilized as an asset, President Bush’s approval rating as resulted in the candidates keeping their distance choosing predominantly strike out on their own. If you visit http://www.gop.com/ you will be able to discover the Republicans premises of their platform.

This prognosticator believes the initial state caucuses will cause a uncertain environment in the polls which will rival that of the late 1960’s. Though time will tell, this race potentially offers many surprises yet to come.

And always remember, the vote you cast today will be the taxes you pay tomorrow.