Duluth/Lawrenceville/Gwinnett/Atlanta CPA on Understanding/Utilizing the Earned Income Credit to Lower Your Personal Income Tax 

Keep Your Tax Bill As Low as Legally Possible: Only You Can Prevent Undue Tax Burdens 

The earned income credit (EIC) is a tax credit for those who work and have earned income/Adjusted Gross Income (AGI)  less than $48,279. Tax Credits usually means less tax owed/more money in your pocket. It mitigates the amount of tax you owe. The EIC may also generate a refund. 

The general rules of claiming Earned Income Credit Include: 

You cannot be Married Filing Separate. 

You need to have a valid Social Security Number and have Earned Income from either wages or self-employment income. 

You must be a U.S. citizen or resident alien. 

You must be able to claim as a dependent a qualifying child who is under the age of 19 or a full time student who is under the age of 24 and who lives with you for over half of the year.  

To read more about the Earned Income Credit (EIC)  and to be certain you qualify before claiming see IRS Publication 596. 

John 15:13 Greater love has no one than this, that he lay down his life for his friends. 

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! 

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.

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Atlanta CPA Helps Georgia Business Owners Plan for Retirement 

John, Quick questions for you: Is maximum contribution for a SEP IRA 25% of Pay? Thanks!

 The maximum SEP IRA for 2009 as I understand it is up to 25% of your W-2 maximum of $245,000 or a 2009 SEP IRA of $49,000. However there are many options to explore. I suggest that we get together with a financial planner to discuss your present financial affairs, your long term goals, the right retirement plan for your business and the right investments reflecting both your risk tolerance and investment needs. 

Retirement Plan Options for Your Georgia Based Business

Great news! Your business is going to survive and even flourish. Your dreams have been realized. You are part of an elite group of people who have taken the step of becoming a business owner and have been successful. Your hard work and efforts have paid off. You have diligently worked for years readying yourself, your finances, your marketing ideas, and your family and now it is time to start thinking about those beautiful years of your life when you might opt to retire.

So whether you are thinking of retiring to the beaches and history of Charleston, South Carolina or the location of your dreams, it is time to think of the long-term future. What your retirement will look like, where you will go, how you will live, and the peace and comfort you achieve in life will be determined not only by the success of your business, but how you plan ahead. Being a God of order, He planned carefully, choosing and laying the heavens and earth in order. He did not leave anything to chance and neither should you. Though we are all called to store up our treasures in heaven and not here, we are also called, just as was Joseph was in the Old Testament, to use wise and judicious judgment planning for our lives ahead.

In setting up a retirement account there are a myriad of possibilities giving the business great flexibility, but also limiting the business owner’s ability to fund only their own retirement fund and not those of their employees.

Generally speaking there are two types of savings plans, one of which is qualified monies, which simply means that the IRS recognizes these as a tax-deductible retirement plan. The other plan type is a non-qualified, which represents monies that you can save which is not tax deductible upon investment. These would typically be monies that you would fund personally out of your personal dollars for which Uncle Sam will not let you deduct your initial investment.

All of the fund types described below are qualified plans. As your business grows, you might find that different plan types will match your business needs over time. Though you will not want to change plans from year to year—in fact in some plans you are statutorily prohibited from changing—you might want to consider revisiting your initial decision and changing to a new plan down the road. The recaps of the plans listed are general and are not intended to be a full and complete disclosure of the nuances and IRS regulations regarding specific plans. Specific percentages, dollar limits, age considerations, and vesting are considerations of all of the plans, but they are not listed here due to their likelihood of change and the indexing for inflation which regularly occurs.

As one would expect, the plans do have specific forms and procedures to follow, and many of them have formal documents to execute to set up the plan, and annual tax returns for the plan to file to maintain compliance. You will want to be sure to work closely with your CPA and financial adviser to ensure that you have a full and complete understanding of the plan that you ultimately select for your business.

SEP IRA

A SEP IRA is a company paid plan that is well suited for those businesses that want to pay all contributions to an employee’s plan. A company, based upon the business owner’s discretion, elects what to fund as a percentage of each employee’s pay that qualifies. Most employees, whether part or full time, are qualified to participate, and the percentage of contribution is statutorily limited. Employees are immediately vested and accordingly own the monies contributed by the company to the plan.

SIMPLE IRA

A SIMPLE IRA acts like 401K plans, which most of us are familiar with. Employees contribute money to the plan from their payroll/wages, and the company is also required to do a relatively modest matching percentage of each employee’s compensation.

These plans are a relatively new entrant into tax law, and were established so small businesses could offer substantive benefits to their staff without the burdens of a SPD/Originating Plan Document to set up a plan, and the “top heavy” testing which a 401K requires. All monies taken out of an employee’s paycheck and forwarded to a retirement account of any type are immediately vested and owned by the employee. However, they are subject to the tax law and guidelines of any established plans and their contracted documents.

401-K Plans

The 401-K retirement plan was added to tax law decades ago to assist companies in bridging the distance between the added complexity of profit sharing plans and what was available at the time. 401K’s are typically best suited if you have over thirty employees and all desire more of a contribution than a SIMPLE IRA will allow. Unlike a SIMPLE IRA a 401K will require a comprehensive plan document, a plan administrator and trustee, testing to ensure the highly paid employees are not unduly being benefited, and annual tax returns. Solely because of these administrative burdens many firms do not start a 401K until the staff size and profitability of a business warrants otherwise.

Profit Sharing

Profit Sharing plans are generally available to all employers regardless of size, and allow companies to share with their employees the fruits of their labors in a formal qualified plan. A Profit Sharing plan is paid for exclusively by the employer, and comes with a large administrative burden needed to manage the initial set up, compliance, and annual filings.

Because the plan is employer paid, a company has the ability to have an employee earn/vest in the contributions over time, giving the employee an additional incentive to stay at their present place of employment. This helps cut down on a business’s turnover rate. As with all plan variables, vesting has to occur within the confines and guidelines of IRS rules and regulations. Generally, most employers do not consider a profit sharing plan unless they are very profitable or their total employment approaches or exceeds a thousand employees.

Defined Benefit, Age-Weighted, 401K Profit Sharing/Safe Harbor, and other plans

Though there are several other qualified plans available under the tax code, they are not listed here due to their lack of popularity, limited application, and complexity. The above recap lists those that are most commonly used but it is not exclusive. There are many other options available which might be more suited to your individual needs and use. Walking through these options and the careful evaluation of these are a critical part of the process in which your CPA and financial adviser can assist.

All of the guidelines and generalities listed above are just that. Though there are hard and fast rules in the set up and administration of a qualified plan, the application and suitability are up to an individual business owner to decide. In setting up all retirement accounts you should work hand in hand with both your CPA and your financial adviser to ensure that your short term and long term needs are assessed. This will also have the added advantage of gaining the insight of each professional’s wisdom, which will help you more aptly, select a plan most suited to the needs of your business and employees.

Whether you are close to retirement or still many years away. Our comprehensive planning helps many to make the wisest choice in selecting a retirement plan that is best suited to your business. By working with financial advisers with an understanding of tax law and your needs we are able to help guide you through this complex process. To help ensure your long-term successes, call us 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!  

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

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. 

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Gwinnett CPA Advises on Investments and Christian Money Management

I recently received an inquiry from a client regarding their capital losses and their investment decisions and it is listed below:

John, I need to know how much I have in carryover losses to apply to this year’s capital gains.  I’m trying to decide if I need to sell off some of the gains I have this year to offset some of the loss from previous years. Thank you. 

There is a carryover from last year to future years of $9,000. My general advice is not to sell an investment unless you are planning on getting out of it anyway.  When generating short term gains of investments held one year or less, you tax at ordinary income rates, though you can use long-term or short-term losses to offset taxes on capital gains. (The most tax-efficient use of capital losses is to offset short-term capital gains.) You can also use up to $3,000 in net capital losses to reduce the amount of ordinary income that is subject to tax. If you would like to discuss further please do not hesitate to call. All too frequently I see situations where taxpayers seek to make management or investment decisions based upon tax considerations thereby letting the “tail of the dog wag the dog.” Though tax environments and impacts should never be discounted, they should never be the primary consideration. The below articles will do much to help you gain financial insight and wisdom. Working alongside a Christian Money Manager, Financial Planner is your best first step to ensure that you constantly make short term decisions in light of and in consideration of the longer term impact. As a Christian CPA I frequently see taxpayers fail to keep Matthew 6:34 (which exhorts us to not worry about tomorrow for tomorrow will worry about itself) at the forefront of their mind when making decisions for their Metro Atlanta Based Business and Beyond. 

Investing and Retirement Planning

Investing 101 by Gwinnett CPA: Christian  Money Management…Who’s Managing Your Money?
Understanding the nuances of investing, long-term strategies, and how to select a financial adviser are all critical components managing your money. Visit http://www.hiscpa.com/investing-101.html

Selecting the Proper Type of Qualified/Tax Deductible Retirement Plan for Your Business
Whether you are just getting started or have been in business for years, selecting amongst the varied retirement plans requires the skill of a surgeon and the grace of an artist. See http://www.hiscpa.com/retirement-planning.html

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

To learn more about tax entities and the taxation thereof visit http://www.hiscpa.com/article2.html There you will also discover a wide host of resources for American Entrepreneurs.

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.

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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.

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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.

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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.

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Final Deadline for 2009 Personal Income Tax Returns is October 15. 2009

Another year is getting closer to the end and Christmas is rapidly approaching. Although the original due date for Personal income tax returns is April 15th, a properly filed extension allows a corporate taxpayer to file their return by October 15, 2009. The IRS allows taxpayers to file for an automatic six-month extension, Form 4868. Keep in mind that an extension to file is not an extension to pay and that both the IRS and the state/Georgia expect you to pay your taxes as you earn the monies. Please be reminded there are no valid extensions after the October 15th and the final personal return due date lapses. There a checklist you can use to pull the information together to prepare your personal return at http://www.hiscpa.com/newclient.html

John Dillard is an Christian Speaker/Author and Certified Public Accountant. 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 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.

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Duluth CPA Presents Ensuring that no Tax Deductions are Missed 

Leaving no stone unturned should be your goal when preparing your year-end income taxes for both your business and yourself personally, with thoroughness being the best way to ensure that your returns are correctly prepared. Below is a sampling of such a critique to ensure that you have all of the legal tax deductions allowed and to also ensure that you report all of your taxable income: 

Open Items for your Personal Return

-I did not get a year-end earnings statement from your investment advisor for your one account there that was after tax (not a pension account). Please advise

-I did not get the K-1 from your real estate investment.

-I did not get your business expenses against your 1099/independent contractor income.

-I need your mortgage interest, car tag tax, and cash and property contributions to charity.

-So far I have one pension distributions for $12,000. Is this all from your pension accounts?

-Please be reminded that tax law requires all active S Corporation owners who are active in the business to take a fair salary given position and profit. Though you did not have any profits you issued a Form 1099 to yourself, which is statutorily prohibited as you are not independent, as you own the company. In the future, if profit levels remain at approximately the same levels I would show these payments as repayments on the loan balance due her. If profit levels increase then you would want to be a wage earner and receive a W-2 as tax law requires that all active employee owners take a fair and reasonable salary given position and profit. 

-I did not see copies of checks and forms where you made estimated payments.

-I need a copy of where you board approved your ministerial allowance. 

- I have not heard anything back from the IRS about any Form 5500 about your P.C., as your old pension account in the business name was closed in prior years.
Contact HIS CPA PC (A Christian CPA Firm) today.

To learn more about tax entities and the taxation thereof visit http://www.hiscpa.com/article2.html There you will also discover a wide host of resources for Atlanta Entrepreneurs.

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.

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Atlanta CPA Teaches Tax Planning 101: Utilizing Tax Information To Understand Changes in Your Tax Situation 

Understanding nuances of your own personal tax information will do much to help you both communicate with your CPA as well as to plan for your current tax bill and well into retirement. As such a CPA will work with a client to help understand and apply the many tax variances that might consist on a return to both enlighten and to educate a taxpayer. Below is a sample of what we might send to a taxpayer to teach and to help show clients reasons for variance in both their final tax obligation as well as the net amount due or to be refunded upon year-end income tax preparation: 

In Comparing Your Personal Tax Bill From 2008 to 2009 I noted the below, which are the primary contributing factors to your increased tax liability and taxes due: 

-Your K-1 from your P.C. increased $25,000 from 2008 to 2009.

-Your Interest Income increased $18,000 from 2008 to 2009.

-The K-1 from your Partnership Interest increased by $40,000 from 2008 to 2009.

-Your federal withholding fell by $8,000 from 2008 to 2009. 

To help avoid any unnecessary penalties and interest from being assessed by either the IRS or GA I recommend that we tax plan at least twice annually.

Year End Tax Planning: What Businesses Should Do Now
If you fail to plan, you are preparing to be surprised. Learn how you can get ready now for your year-end liability and survive the year-end tax preparation process. To learn how tax planning tips today visit http://www.hiscpa.com/year-end-tax-planning.html

Should You Maximize Profit or Work to Pay Fewer Taxes?
Tax Planning is an art under-girded by the science of the tax code and proper planning. Learn what you need to know to be a wise steward of your tax monies. To learn more visit http://www.hiscpa.com/profit-maximization.html

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

To learn more about tax entities and the taxation thereof visit http://www.hiscpa.com/article2.html  There you will also discover a wide host of resources for Atlanta Entrepreneurs.

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.

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Duluth CPA Illustrates ritiques to Personal and Corporate Income Tax Returns for Atlanta Business Owners

When your CPA is preparing your corporate and personal income tax returns, it is at this point that a teaching CPA has the best opportunity to teach and educate clients. It is at this time when a client ask many specific questions relative to their corporate and personal income taxes, expenses, and deductions where a CPA can do much to help educate and therefore elevate a clients understanding of how potential tax deductions affect and influence their return. Having served a CPA to Atlanta business owners for decades, it has proven again and again that taking the time to teach a client will pay both short and long term benefits for both the client and the tax preparer. CPA’s who ‘hurry through” to prepare the return lose this valuable opportunity to truly server their client. Below is a sample letter that might be used.

Below are Critiques to Data For your 2009 Personal Income Tax Return: 

-It appeared that you had substantive amounts of mileage that she was not reimbursed  by your employer while you are an employee. Please advised that tax law requires that you have a by-day log to support the business miles claimed. FYI, tax law has long required taxpayers to keep a by day log to support business miles and that the IRS is intensifying their collection efforts and enforcing documentation requirements to substantiate business mileage claimed. To learn more visit http://www.hiscpa.com/autos.html 

-You did not forward your original W-2 in the package so be sure to attach it to the returns when I forward. 

-Please mail to me copies of the signed receipts for the property contributions to charity and a detailed itemization/valuation at flea market/garage sale prices. For details on documentation requirements for property contributions to charity see http://www.hiscpa.com/blog/2009/03/20/atlanta-cpa-on-understanding-tax-rules-for-property-contributions-to-charities-wwwhiscpacom/

-Please advise what you paid in advalorem/car tag taxes.  

-To ensure that you obtain all of your legal business deductions visit http://www.hiscpa.com/maximizing-deductions.html

-For the Office Equipment please let me know if you have any individual items over $1000, as these will be capitalized and depreciated for tax purposes. Please be reminded that to qualify for Section 179 Depreciation that your business has to have profits equal to at least the Section 179 Depreciation claimed. Otherwise a fixed asset should be depreciated over its useful life in accordance with tax law rules and regulations.

 -For your cash donations please give me a recap by organization being sure that you have a year-end receipt for all amounts claimed. 

-For the $3000 Office Rent/Utilities please advise how much is rent and how much is Utilities. As discussed about your prior returns, please advise what percent of your home is solely used for business use. For general advice on the home office deduction visit http://www.hiscpa.com/home-office-deduction.html

-Please be advised that as you are using car mileage that all car expenses (including gas, maintenance, insurance, and payments should be paid personally) and therefore not listed as a business deduction.

 -Please be advised that business gifts are limited to $25 per recipient per year. 

-Please advise that the $1,000 check to the IRS was for, whether an estimated tax payment for the 2009 tax year or for prior tax years.

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

To learn more about addressing IRS Tax Issues and Back Tax Returns visit http://www.hiscpa.com/working-with-the-irs.html 

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.

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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

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Atlanta CPA Advises on 2009 Year End Tax Planning Ideas for You and Your Business: Keep  Your Tax Bill as Low  as Legally Possible

As 2009 winds down,  it’s time to prudent to learn what can be done to minimize the amount of taxes paid to the IRS/GA  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.

Key Year-end Tax Planning Tips:

• 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.
• Discover and record 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.
• Setting  up a qualified retirement plan. A defined-benefit plan can be a good way to reduce taxes while preparing for your retirement. Retirement plan deductions are frequently the most ignored opportunity for business owners to substantially lower their tax bill.
• Turn in an expense report and obtain reimbursement by years-end for any  and all business expenses you might have incurred personally such as business mileage on your personal vehicle.

Additional Year End Planning Ides

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.

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

To learn more about addressing IRS Tax Issues and Back Tax Returns visit http://www.hiscpa.com/working-with-the-irs.html  

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.

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