Accounting News and Notes

There is an upcoming bond issue concerning the Gwinnett County Schools on February 5th.  Many of us will be going to the pools to pick our presidential nominee and we need to get out the vote to continue SPLOST. This past November Gwinnett County Board of Education approved a calling for voters to evaluate a General Obligation Bond referendum on the upcoming Georgia Presidential Preference Primary. If it passes, Gwinnett voters will authorize the School Board to sell $750 million in tax-exempt, General Obligation Bonds. The repayment of the bonds will be paid off using the present personal property millage rates.

The Gwinnett County School system is facing a funding crisis and our school board is offering a direction to its voters to meet that crisis head on.  Voting yes on SPLOST will help keep Gwinnett’s school progress on track. Since July 1, 2007 thirty new schools have been built providing over 2000 new classrooms.

In the last decade, funding for the ever-expanding Gwinnett school age population has been met with both property taxes and monies from SPLOST.  But growth in Gwinnett county’s population has far exceeding the schools growth and the school board is suggesting the bond issue continue so that they can meet the demands of the growing population by constructing new schools and adding on to existing ones. To read more about the program visit www.gwinnett.k12.ga.us

Keeping this program in tact depends on you. Please vote to continue school funding with school bonds.  Our children’s education depends on it!

Although there has been a general lessening of the lack of rain in recent months, the drought continues and even worsens. To date no substantive proactive directions have been taken to both lessen the use of water, to plan for management of our present resources, and to set up procedures and policies in place to ensure that we do not ever find ourselves in this situation again. We need a public outcry from all citizens to contact their elected officials now to help them know we are not satisfied with our present situation and are determined to see that it does not happen again. We need policies today which stress the vitality and livelihood of people rather than mollusks. Though we always need to pay attention to special interest/need groups we should ever determine that the needs of a few will not outweigh the needs of many. Though we all have rights and valid expectations we should never expect those to be give up or surrendered to others without our consent or valid and wise discernment.

To stay abreast of Georgia’s lake levels you can visit the National Weather Service Forecast Service web site where at http://www.srh.noaa.gov/ffc/html/rrm.php There you can monitor and review lake levels which are updated every twenty four hours, full pool levels, rainfall in the areas listed. Though we often discuss oil as our biggest need and worry, if we were to be honest, we would soon find out that it is water. Also at the National Weather Service’s web-site you can find satellite and radar images, current forecast, and even articles on weather safety. For the sake of all and the continued economic viability of our region we need action today.

In the Democratic primary in South Carolina Obama won by an overwhelming majority over Senator Clinton by a 2:1 margin. Clinton hopefuls, who had originally fore-casted a Clinton victory soon fled the scene headed off to the state of Tennessee, where the next primary will be held soon. The Obama campaign seems to be gaining strength as his rhetoric has caused many to reminisce about a time gone by. I have caught myself being recently reminded as a result of his style and overall appeal of one of our greatest Presidents ever, John Kennedy. Evidently I am not the only one noticing as the polls seem to have recently swung in his favor as several in the Kennedy family, including Senator Ted Kennedy have recently indicated their support. If the Obama bandwagon continues this prognosticator picks him to win the Democratic nomination. Stay tuned.

Incorporating in Georgia is still the most important decision for all initial business owners. If you have developed your business model, written your business plan, and are now ready to set about the task of actually beginning your business you will want to take care care of this critical tax step. Although you are not indefinitely locked in to a entity choice as an LLC or a C Corporation can elect to be an S Corporation and an S Corporation can become a C Corporation, you initial election is most apt to be the most critical business choice you can make.

While being an LLC or LLP can be most advantages for a law firm or multiple physicians practice, these selections will generally pay more in taxes than an S Corporation as all of their net earnings are subject to FICA/Medicaid taxes while only ones W-2 from an S Corporation would be. I would suggest all multiple physician practices greatly consider the advantages of an LLC or LLP can bring as professional liability statutes allow them to be responsible for professional liability. However a normal tort issue/civil liability cannot be assessed personally so these same concerns will not be of importance to a retail, commercial, wholesaler, distributor, etc. as they would not be subject to professional liability statutes. Real estate ventures are often well suited to considering whether being an LLC,  LLP, or partnership might be in their best interests as you can move real estate both in and out of these entities without any gains being recorded and taxed.

For those looking to consider setting up an S Corporation there are four basic requirements which include being an U.S. citizen or registered alien, having one class of stock, having a calendar year-end, and having less than 100 shareholders. S Corporations continue to be a popular choice among many who do not need/have to be another entity type because of the nature of their operations or needs.

Incorporating is not for the faint of hear so be sure to consult with your CPA to get started as well as periodically to ensure that the entity selection you are presently using is best for you and your business, your tax bill, and legal liability limitation issues.

Congress is working feverishly in conjunction with the White House in an effort to provide a needed kick start to the U.S. economy. Certainly in a recession, and perhaps teetering on a depression our economy is in need of a stimulus to help get consumer and retail goods moving again. In an effort to help get monies into consumer hands the tax rebate act would give most taxpayers from $600 to $1200 with an additional $300 per child. Although many parties varied on the final form the act should include, there was great impetus on both the Republican and Democrat side to see what they might jointly accomplish to get our economy moving. As always it is good to see both parties work together, it is disappointing that more joint efforts to improve our country and world cannot be a consistent point in all of their sessions and dealings.

Now is the time to be pulling together all of the information you will need to prepare your personal return which is due April 15th. Care and due diligence should be exercised to ensure that you have all of the information that you will need to process to prepare both an accurate and timely return. It is recommended that you put all of the information that you will need to prepare your returns in a specific file for preparation of taxes and that you utilize a checklist to ensure that will have all of the information you will need to prepare your returns. The best source of what you will need for this year is a check of your prior years return and then to compare it to any changes that happened during the year such as a new child, starting a new business, moving, or any other expenses/income which will have potential tax consequences. It is always best to list all potential items for a tax review so that they might best apprise of what is taxable and deductible. In this way you are most apt to pick up all of the items you will need to file a just and fair return.

As each every taxpayer is unique it is best to re-visit this list several times annually to stay abreast of what all will be needed by year end. Also, it is well to be reminded that the IRS as well as individual states expect that the taxes due them are due as you earn the money and that otherwise (unless you meet certain very limited exceptions) that late payment will result in additional penalties and interest being assessed. So plan early and plan often so you might avoid the last minute rush and perhaps the filing of an incomplete return.

In an unprecedented move the FED just announced a .75% reduction in the prime rate of lending. This was done in an effort to try to kick life into an already sluggish economy and to strive to keep the U.S. economy from sliding deeper into a recession. Recent economic news for the real estate industry and other sources sent the FED into an emergency session looking to help breathe some life into the marketplace. The Prime Rate of lending is the rate that banks charge their best customers as an interest rate. With the rate reduction in tow, interest payments will fall generating excess cash and hopefully enthusiasm in the marketplace for the already sluggish dollar. Stay tuned for more financial news.

…And I’ve looked over, and I’ve seen the promised land. I may not get there with you, but I want you to know tonight that we as a people will get to the promised land. So I’m happy tonight. I’m not worried about anything. I’m not fearing any man.

Martin Luther King Jr., Speech in Memphis, April 3, 1968, the day before King was assassinated
US black civil rights leader & clergyman (1929 - 1968)

We must always remember the truely great people who have gone on before us and who’s words still ring true today.

Frederick, MD (PRWEB) January 15, 2008 — PublishAmerica is proud to present Overcoming Life’s 9/11’s: Job’s Journey by John Dillard of Duluth, GA.

Overcoming Life’s 9/11’s is truly a well-researched and well-written book. There are very few books that portray the life and conduct of Job during his trial as well as this book does. As you read it, if you have trials that you are facing, it will help you to understand perhaps what is happening in your life. One can follow the insight of Elihu, the youngest of those that had words of advice for Job, and in so doing, will find that life’s 9/11’s in your life are trials that can be overcome.

John Dillard hopes to bring the Old Testament to life with the first in The Inspiration Series. In his practice, HisCPA, P.C., he works with clients and has made it his mission to bring Christ into the workplace. Visit HISCPA.com and John-Dillard.com for more information on John’s books and business practices.

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