Award Winning Alpharetta/Atlanta CPA Reminds Taxpayers That Personal Income Tax Returns are Due April 15, 2010

The initial due date for personal returns is April 15. For returns not filed by that date both the IRS and GA allow for a six month extension. Please be reminded that there are no valid extensions after the October 15 final due date lapses. Please be reminded that an extension to file is not an extension to pay and that you are required by tax law to pay applicable taxes as the monies are earned or you will be subject to additional penalties and interest. When processing personal returns our primary concern is both accuracy and ensuring that ever taxpayer pays only their lowest legal possible tax. Below is a sample letter that we might send to encourage taxpayers to forward all of the necessary documents and information required to properly file the return:

In getting started on your personal return I did not see: 

-What you paid in estimated tax payments by date to both the IRS & GA for 2009. For 2010 I suggest we do tax planning (after you give me a net profit before distributions and salary to the owners) so I might advise you to adjust your withholding accordingly. I recommend all of my clients pay all of their taxes via payroll withholding as the IRS and GA will add tax penalties and interest for late payment. For all Business Owners I recommend you use a payroll service to help out with the burdensome administrative and reporting responsibilities of processing payroll. 

-I did not see the property taxes/ad valorem on your personal vehicles. 

-I need the purchase date of the stock you sold so that I can properly classify the gain between short and long term and capital gain.

Please be reminded that the mileage rate for 2009 is 55 cents per mile. For 2010, the mileage rate is 50 cents per mile. Please turn in an expense report monthly to get reimbursed for these and any other business expenses you might have paid personally. IRS tax rules require you to have a day by day log to support business miles. Please be reminded that extending the filing of a return does not delay the need to pay as you go as both the IRS & GA will bill you for penalties and interest if you do not pay your taxes during the tax year to which they relate.

John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097  Phone 770-814-9304   http://www.hiscpa.com/    http://www.john-dillard.com/ To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304 

His CPA PC…A Christian Atlanta CPA Firm: Never Underestimate the Long-Term Benefits. Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!

Sphere: Related Content

Gwinnett/Duluth/Atlanta CPA Reminds Atlanta Taxpayers That Corporate Returns are Due March 15, 2010 

It is certainly that time of year again. Please be reminded that corporate returns are due March 15. If we want to file by the due date, I will need to receive your data in next few weeks so that I will have an ample amount of time to file. As always, I will file for the automatic six-month extension in the event I do not get the data in time. Please be reminded that an extension to file is not an extension to pay and that both the IRS and the state expect you to pay your taxes as you earn the monies. Please be reminded there are no valid extensions after the September 15 final due date lapses. Below you will find a checklist to prepare your Corporate Income Tax Returns: 

To process your corporate return, please forward your balance sheet and your profit and loss and copies of any W-2’s the corporation might have issued. If you have not yet done so, please be reminded that 1099’s should be issued by the end of January; your payroll service will handle this if you get them the information. Before you send the current year’s financial please be sure to always review the prior year’s balance sheet on the tax return and ensure that your internal books equals the return while being sure to make any appropriate adjustments. That way you will be assured of starting the year off with a clean set of records which will otherwise distort you current year’s operating results.

To complete your corporate return, please forward:

• Your year to date Balance sheet, Profit & loss
• Year end Bank Statements and Bank reconciliations
• Aged Accounts Receivable
• Year-end Inventory
• Aged Accounts Payable
• Year to Date Payroll Records by Employee
• Notes Receivable and Payable Balances at Year end
• Copies of new Notes
• The amount of medical insurance paid for each shareholder
• If your company is new, please forward copies of the incorporation papers.

Before you send your Year-End Financial Please be sure that:

• The general ledger balance agrees to your checkbook and your bank reconciliation.
• The Accounts Receivable balance agrees to your internal aging reports.
• The Accounts Payable balance agrees to your internal aging reports.
• You advise of any fixed assets that have been acquired or disposed of during the year.
• That ALL of the balance sheet and profit and loss accounts are correct.
• That you have only one retained earnings account.
• That as of January 1st of the prior year that you closed the shareholder distributions account to retained earnings.
• That the retained earnings account on your internal books equals or is reconcilable to the retained earnings to the last corporate tax return filed.

This is to confirm that you are aware are handling all of your payroll and independent contractor/1099 needs, of the need to have a business license, to pay the annual registration fee, to have your annual Board of Directors and Shareholders Meeting, and to file the county property tax report (please be sure to claim the Freeport Exemption on your inventory if you qualify as this can substantially reduce the amount owed).  Please note that if you have not yet set up a retirement plan or have a formal financial plan, that  I suggest that we sit down together soon to get the right plans in place to help ensure your long-term financial success! This is to confirm that I suggest that you formally tax plan at least twice annually. 

http://www.hiscpa.com/article6.html Alpharetta/Roswell CPA Teaches the Tax Effects of Entity Choice
http://www.hiscpa.com/marketing-efforts.html Norcross/Sandy Springs CPA on Tracking Marketing Statistics for Your Georgia Business 

And this is only some of the information available on our web site. You also have at our blog a host of other varied and timely tax and business management issues you can use. 

John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097  Phone 770-814-9304   http://www.hiscpa.com/    http://www.john-dillard.com/ To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304

His CPA PC…A Christian Atlanta CPA Firm: Never Underestimate the Long-Term Benefits

 Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it! 

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

Sphere: Related Content

Atlanta CPA Presents Should Your Newly Incorporated  Business Use a DBA (Doing Business As)? 

-Determining if You Should Trademark the Name of Your Business 

Recently I received an inquiry off of our website for a new business owner seeking to know how best name and market their firm:

I am the owner of a new business.  I have a few questions regarding the changing the name of my business or rather setting up a “Doing Business As.”  It is my understanding that filing a DBA is a better option than attempting to change the name of the corporation.  It is also my understanding that setting up a DBA is a $30 fee and is to be set up when the corporation’s annual registration is filed.  Is the annual registration included in your yearly tax service fees or is this an additional fee?  If this is included, can you add a DBA?  Would you include any additional charges to add a DBA, other than the required $30, since you are already filing the annual registration?  Please let me know. Thanks. 

With the world getting smaller as the Internet helps both broaden your business marketplace and visibility, protecting your business name is becoming more and more important. Below is my response to the above inquiry: 

I would always suggest changing the corporate name rather than the DBA. To do so might I suggest you contact Mr. Rick Campbell, Attorney at 770 564 2600. Changing the corporate name will be one less name for you to be sure to protect. To have better protection it would be prudent to also speak to Mr. Campbell about getting a trademark for your corporate name. Please be reminded to consider if your company needs an international, national or state trademark.

John Dillard is an Christian Speaker/Author and Certified Public Accountant in Duluth, GA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and a Voice of One: Nehemiah’s Prayer visit http://www.john-dillard.com/ or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!  

Contact HIS CPA PC (A Christian CPA Firm) today.

Sphere: Related Content

Duluth CPA Firm Advises on 2009 Year End Tax Planning

It is that time of year again when we need to take a look at your financials to do some tax planning for the year. I have recapped below a list of the items we will need in order to properly evaluate and plan for your year-end taxes as well as address any yearend tax planning ideas.

As the end of calendar year 2009 approaches, it’s time to think about what can be done to minimize the amount of taxes paid to the IRS by your business. Although tax planning should be a year-round process, there are several year-end strategies you can take, particularly if you are an S Corporation.

Here are some things to think about as the end of the year approaches:

• Try to keep your inventory as low as possible on December 31st. Since you are taxed based on the value of your goods in stock, it makes sense to minimize your inventory.
• Accrual-based taxpayers may want to consider delaying end of December billing until early January. Since income is recognized when it is billed, you can delay the tax effects from 2009 until 2010.
• For the same reason, it makes sense to book all tax-deductible expenses and accounts payable before the end of 2009, rather than waiting until next year. This includes your personal expense report for December. Cash-based taxpayers must pay these expenses, while accrual-based taxpayers need only to receive and enter the bills.
• There is still time to set up a qualified retirement plan. A defined-benefit plan can be a good way to reduce taxes while preparing for your retirement.
• Please be sure to turn in an expense report and obtain reimbursement by years-end for any business expenses you might have incurred personally such as business mileage on your personal vehicle.

Additional Year End Planning Tips

If you have kept track of your business mileage, the rate for 2009 is 55 cents per mile. Please keep in mind IRS rules state that you must have kept a log of the miles you have driven to take this deduction.

---

Although not directly related to 2009 tax deductions, small business owners should take additional steps to ensure the success of their businesses in 2010. If you expect a big change in your 2010 income, you should consult with an accountant now to minimize the tax impact. If you are a subchapter S corporation, you should plan to have the annual meeting of your Board of Directors as close to the new year as possible.

---

While this generic tax advice can be helpful to any small business, there are probably some specific steps your business can take to reduce taxes at the end of 2009. We have helped many small businesses in Atlanta and North Georgia minimize their tax liabilities and increase their profitability. We would be happy to sit down with you and discuss your situation. Please feel free to call or contact us.  

John Dillard is an Christian Speaker/Author and Certified Public Accountant in Duluth, GA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and a Voice of One: Nehemiah’s Prayer visit http://www.john-dillard.com/ or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!    

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Bookkeeping.

Serving Atlanta, Duluth, Gwinnett, Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, and Douglas.

Sphere: Related Content

Gwinnett CPA Firm on 151,778 Visitors to www.HisCPA.com (A Christian CPA Firm) in 2009 and Counting

Atlanta Accounting & Bookkeeping Services

So far this year 151,778 visitors have been to www.HisCPA.com to gain needed tax advice salient to a wide variety of tax issues. These visitors have not only gained critical tax advice but have also spent a total of 632,408 minutes on www.HisCPA.com  That’s a total of 10,540 hours or 439 days and nights.

By visiting www.HisCPA.com you will find a wide host of subjects (listed below) that will keep you coming back again and again. We desire to serve our fellow man and we look to provide current and up to date business and tax information that will have you coming back for more and more. Bookmarking www.HisCPA.com may be the best decision you reach all year.

•              Income Tax Extension and Estimated Tax Payments
  • Incorporating in Georgia & Entity Selection
  • Independent Contractor vs. Employee Analysis
  • Insurance Issues
  • Internal Control Procedures
  • Internet Safety
  • Investing 101
  • IRS & GA Installment Agreements
  • IRS Installment Plans
  • IRS Tax Audits, Liens, Levies & Garnishments
  • IRS Tax Refunds
  • Keynote & Speaking Engagements
  • Like-Kind Exchange
  • Managing Your Credit
  • Marketing & Promoting Your Business
  • Ministers’ Compensation and Housing Allowance
  • Missions Lite: 2/3 Less Time Consuming Than Regular Missions
  • Missions: WWJD…Fulfilling the Great Commission
  • Mortgage Selection: Picking the Right One
  • Net Operating Loss Carryforwards & Carrybacks
  • Networking in Gwinnett County
  • Non-Profits/501(c)
  • Offer in Compromise
  • Overcoming Life’s 9/11’s:Overcome Challenge’s God’s Way
  • Part-Time CFO/Virtual Controller
  • Payroll Tax Issues & Administration
  • Personal Income Taxes
  • Preparing Financial Statements for the Small Business Owner
  • Preparing for & Surviving an IRS Audit
  • Real Estate Losses…Determining Passive vs. Non-Passive
  • Retirement Planning…Planning For Your Financial Future
  • Risk Management
  • S Corporation Elections
  • Small Business Consulting
  • Taking Christianity to the Workplace: WWJD(What Would Jesus Do)
  • Tax News…For Georgia and Nationally/the IRS
  • Tax Problems & Tax Advocacy
  • Tax Tips to Lower Your Personal Tax Bill
  • Taxation
  • Trust Fund Assessments & the 100% Penalty
  • Uncategorized
  • Venture Capital (VC) & Business Incubators
  • What Clients of John Dillard CPA Have to Say

At present 23.8% of the traffic is sourced from Google traffic and 48,981 have opted for a blog feed of the site. Visit www.HisCPA.com today to learn tax as well as faith based articles to encourage you in your Christian Walk.

Contact HIS CPA PC (A Christian CPA Firm) today.

John Dillard is an Christian Speaker/Author and Certified Public Accountant in Duluth, GA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and a Voice of One: Nehemiah’s Prayer visit http://www.john-dillard.com/ or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!  

Sphere: Related Content

What Would You Do With $8,000? Utilizing the First-Time Home Buyers Credit

What if the government decided today that, instead of bailing out Wall Street, it was going to give every American $8,000? What would you do with the money?For most Americans, paying off credit card debt would be a great way to use the free money. According to a Nilson Report released in April 2009, the average credit card debt per household in the US was $8,329 at the end of 2008. That money from the government would almost wipe out your debt completely. Imagine being completely debt free. Healthcare is a big topic these days. According to the most current Census Bureau statistics, some 45.7 million Americans do not have health insurance. So, many Americans might choose to use their $8,000 to enroll their family in a healthcare program through their employer. The federal government tracks the average spending on health insurance for people with job-based coverage, and the most recent figures (from 2005!) indicate that the average individual’s premiums were $3,991, while families spent an average of $10,728. Your $8,000 would go a long way in insuring your family. Some Americans might choose to start a small business. Experts estimate that start-up costs for many new business ventures are between $10,000 – $15,000. With $8,000, a large portion of your initial investment would be covered. If you really think about it, there are so many things you could do with $8,000. You could open a 529 college savings plan. You could open an IRA and save for retirement… But what’s the point in dreaming. The government’s not giving away $8,000, right? Wrong! Right now, through November 30th of this year only, the government is giving qualifying first-time home buyers up to $8,000 for purchasing a home (or up to 10% of the purchase price). This is free money that you do not have to pay back. And here’s the best part: if you qualify, you can get your money from the IRS this year, even if you’ve already filed your 2008 taxes. There are, of course, limitations and other qualifying factors, but they are all pretty reasonable and easy to explain, and we’ll be glad to discuss these with you or anyone you know who is looking to buy a home. With today’s combination of lower home prices and lower interest rates, this temporary incentive from the government is really a great option for many Americans who act now to finally fulfill their dreams of owning a home. To learn more, you can contact Wayne Black of New Home Finance LLC 770-844-7200

Sphere: Related Content

Alpharetta/Roswell CPA Teaches When you Should Set up a Georgia Corporation

 

Award Winning Results

 

Incorporating in Georgia is still one of the best things you can do as you plan for your long-term business’s success. Incorporating gives you several advantages that you otherwise could not enjoy.

 

Establishment of Your Business as Being Legitimate: Incorporating tells the business and social community in which you thrive that you are serious about your operations and that you have taken initial requisite steps to get your business started. All of us want to know that the products and services we buy from others will be supported, so it is with those who buy from us. Many governmental agencies will not even buy or lend to those who are not incorporated and an informed consumer is always looking esoterically for indicators showing a seller’s commitment to their product/services.

 

Personal Liability Protection: Our world has become full of people who are looking to make a fast dollar and there are those about who are quick to find any get rich method they can find.  Nowhere has this become more prevalent than in our court system, which was originally intended and set up to right a wrong. However, now our courts are full of frivolous cases where greed rather than fairness are the watchword. Although there is no such thing as perfect protection you can help limit your exposure by acting in good faith, using good judgment and wise discernment, and incorporating to help limit your personal assets from being exposed to corporate liability.

 

Tax Entities are Taxed Differently: LLC’s, LLP’s, and Partnerships are often the entity of choice for real estate ventures as real estate can be moved in an out of them without having to pay any capital gain taxes. C Corporations are ideal for those who will have over one hundred shareholders or by nature of their business and capitalization structure need multiple classes of stock. S Corporations are well suited for business owners where, after a reasonable salary is paid to all of the active owners, shareholder distributions are legally devoid of FICA/Medicaid taxes.

 

Incorporating is the most important tax decision you will ever reach in your business and making it along with a trusted adviser is your best choice. Having served as a CPA in the Atlanta area for decades I have seen many business owners who were either C Corporations or LLC’s, who from a tax savings could have legally saved tax dollars by converting over to an S Corporation for tax purposes. If an LLC, for example does this, it will remain an LLC for all legal issues and with the Secretary of State’s office, but will be solely recognized by the IRS and respective states where the company transacts business, as an S Corporation.

 

To read more about John Dillard CPA and his CPA practice, business consulting and IRS representation visit http://www.hiscpa.com/

 

To read about his books A Voice of One, Overcoming Life’s 9/11’s and Charleston Dawn and his speaking ministry visit http://www.john-dillard.com/

 

Helping Clients with Corporate & Personal Income Taxes, Incorporation Advice, Tax Planning, Virtual CFO, Financing, Business Plans, Back Taxes, Offer in Compromise, Tax Advocacy, Business Acquisitions & Sales, Business Plans, and IRS Representation.

Serving Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, and Beyond

Sphere: Related Content

 

$14,000 Georgia Dream NSP Down Payment Program

 

Homebuyers should begin planning now to take advantage of Georgia Dream NSP Down Payment Program included in the recently enacted Housing and Economic Recovery Act of 2008 (HERA). The program was created to encourage the purchase of foreclosed properties in Georgia from federal funds received by the Georgia Department of Community Affairs.

 

The NSP Purchase Program

 

• Applies to foreclosed homes purchased on or after April 1, 2009 and before June 30, 2010.

• $14,000 is available for eligible borrowers for required repairs and/or down payment assistance

• Funds are disbursed in the form of a second mortgage lien with no interest and no monthly payment

• The lien is released over a period of five years and six months.

• Available in conjunction with FHA and VA loan only.

 

Homebuyer Qualification

 

All homebuyers are eligible for the program who purchasing a home as a primary residence who meet the criteria. Buyers are required to complete eight hours of pre-purchase counseling from an approved HUD-approved housing counseling agency. This incentive is not limited to First Time Home Buyers like the $8,000 Tax Credit. If the borrower is a First Time Home Buyer, they can use both the $8,000 Tax Credit along with the $14,000 Purchase Program if they meet all requirements of both programs.

 

Eligible Counties

The Department of Community Affairs determined the areas of greatest need in Georgia based on requirements of the Section 2301(c)(2) of HERA. All of the counties in the Atlanta Metro areas are eligible. There are several counties not eligible for the program primarily located in south and east Georgia. For a map of all eligible counties, please contact The Bearland Group directly.

 

Income Limits

 

There are income limits for the program based on family size and location of the property. The limits are based on the FY 2008 Income Limits for 120% of HUD Median Income. An example of the income limits for a family of four purchasing a property in Fulton County, would be a total household income of $85,450. All household income is used to determine the eligibility even if the spouse or family member is not included on the mortgage. For income qualification of this requirement, please contact The Bearland Group directly.

 

Purchase Discount Requirements

 

To be eligible for the incentive, the purchase price must be discounted by 15% of the current market value of the home as determined by an appraisal. An appraisal for the purposes of determining this statutory purchase discount is required.

 

Recapture

 

If the property is sold, refinanced or is not occupied as the Borrower’s primary residence during the first five years and six months, a repayment is required based on a schedule ranging from 100% down to 20%. An example, if the property is sold in the 31st month, 60% of the $14,000 would have to be repaid. To read more visit http://www.dca.state.ga.us/housing/Homeownership/programs/gadreamnspdownpayment.asp

 

The Bearland Group is eligible to offer this program along with 203K FHA loans if repairs are required. For additional mortgage information including free pre-qualification, please feel free to call Stephen Gowen at 770-886-7786 ext 3, or by email at sgowen@thebearlandgroup.com. Their office is located at 407 East Maple Street, Suite 108, Cumming, GA 30040. Website: www.thebearlandgroup.com GA  Discover the

The Bearland Group, We are Distinctively Different!

Sphere: Related Content

Award Winning CPA Serving Roswell, Johns Creek and Roswell Advises on How Using Net Operating Losses can Save Thousands

 

 

How Using the Services of a CPA can Get You Refunds You Never Expected

 

Tax Law  has allowed for decades the Net Operating Losses (NOL) of  both individual and corporate taxpayers to utilize losses to legally shelter the otherwise taxable profits of other tax years. This allows taxpayers to receive a tax benefit, and perhaps a refund, on taxable income, which would otherwise would be due. The loss itself is created in a tax year where you allowed deductions are more than your income for the year, thereby potentially creating a  NOL, what can be used to either carry-forward or carry-back. You are able to gain benefit from your NOL from deducting it from your income in another year or years.

 

Generally NOL losses are generated most often from deductions from a trade or business. Generally speaking a Partnership, LLC, LLP, or S Corporation cannot use an NOL as partners/members/shareholders will receive a K-1 for their respective portion of a loss. There on an owners individual return shareholders will report their proportionate earnings and will determine their eligibility for a NOL on their personal income return/IRS Form 1040.

 

There are some items are not eligible to be included in the NOL determination. The most common items not allowed to be considered are for any deduction for personal exemptions, capital losses in excess of capital gains, and non-business deductions in excess of non-business income. Non-business deductions, for example that would not be allowed to be considered for calculation purposes include alimony paid or deductions to an IRA or a self-employed retirement plan.

 

Generally speaking NOL’s for the 2008 tax year must be carry-back the NOL to the two prior tax years (oldest first) and then forward any remaining NOL for twenty years. If you have revenues of less than $5 million for the last three years, then you can elect, if you qualify, for a 3, 4 or 5-year carry-back period. Farming losses can be carried back for five years.

 

You can chose not to carry-back your NOL by attaching to a NOL tax loss year (for a tax return that was timely filed, including extension) a statement that you chose to forgo the carry-back period under IRS Code Section 172(b)(3). Please be advised that once you make this election that it is irrevocable. You must make the election for all NOL tax years for which you so elect. A timely filed IRS Form 1045 can be used to reflect NOL losses to claim a quick refund or you can use IRS Form 1040X.

 

It is widely encouraged that all tax elections and tax return preparation be done only by an well-experienced CPA. Tax Law surrounding the Use of Net Operating Losses (NOL’s) for Individuals, Estates and Trusts is covered in IRS Publication 536 can be viewed at the IRS web-site at http://www.irs.gov/pub/irs-pdf/p536.pdf

 

To read more about John Dillard CPA and his CPA practice, business consulting and IRS representation visit http://www.hiscpa.com/

 

To read about his books A Voice of One, Overcoming Life’s 9/11’s and Charleston Dawn and his speaking ministry visit http://www.john-dillard.com/

Serving Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, and Beyond

Sphere: Related Content

Atlanta CPA on Understanding Tax Rules for Property Contributions to Charities

 

Though we all appreciate the value of what we buy and what we can  do for others, the IRS is not as concerned. Charitable giving to charity has long been a deduction that the IRS has allowed when taxpayers, who itemize, prepare their personal income tax return. However it is one of the most misunderstood areas of tax law and one which continually needs clarification.

 

For purposes of valuing items given to charity, IRS rules do not allow us to consider the original purchase price but rather the present fair market value. A good rule of thumb and another way to look at it might be to evaluate what we might pay for an item, for example, at a flea market. This would not necessarily even be the list price at a garage sale but what at item would actually sell for. For it is when two independent people agree to a sales price in a normal sales environment, can true value be determined.

 

For example, for a couch, chair and ottoman that you might have shopped and shopped and purchased at a great reduced sales price of $3000 would be worth much less the day they are purchased. Most retail items lose half to two-thirds of their initial purchase price in just a few short weeks/months and then even more if we keep them longer. For example if the same couch, chair and ottoman were later given to a charitable organization (even if in excellent condition) would be valued/worth only a small portion of the original purchase price. In fact, the best way to fairly value property items given to charity would be to ignore the original purchase price altogether and to value items at what they would sell for at a flea market.

 

There have been many in the news over the years for unduly valuing items well in excess of their true worth. Following these guidelines will do much to ensure that you do not become one of them.

 

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta  CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304.

 

“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!”

What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31

Why are these verses here? Learn how HIS CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.html

 

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Bookkeeping.

Sphere: Related Content