Burned biscuits

December 19, 2012

Breakfast

When I was a kid, my mom liked to make breakfast food for dinner every now and then.  And I remember one night in particular when she had made breakfast after a long, hard day at work.  On that evening so long ago, my mom placed a plate of eggs, sausage, and extremely burned biscuits in front of my dad.  I remember waiting to see if anyone noticed!  Yet all my dad did was reach for his biscuit, smile at my mom and ask me how my day was at school.

I don’t remember what I told him that night, but I do remember hearing my mom apologize to my dad for burning the biscuits.  And I’ll never forget what he said: “Honey, I love burned biscuits.”

Later that night, I went to kiss dad good night and I asked him if he really liked burned biscuits.  He wrapped me in his arms and said: “Your mom put in a long hard day at work today and she’s real tired.  And besides… a burned biscuit never hurt anyone!”

You know, life is full of imperfect things… and imperfect people.  I am not the best at hardly anything, and I forget birthdays and anniversaries just like everyone else.  What I have learned over the years is that learning to accept others faults and choosing to celebrate each other’s differences is one of the most important keys to creating a healthy, growing, and lasting relationship.

 Author Unknown

Here at Travis Jeffries we embrace and celebrate everyone’s differences and would love to have you select us as your CPA and enjoy a healthy, growing and lasting relationship.

photo credit: <a href=”http://www.flickr.com/photos/igboo/4317886620/”>.Larry Page</a> via <a href=”http://photopin.com”>photopin</a> <a

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The Power of a Positive Attitude

September 17, 2012

girl jumping in field“A positive attitude can boost your energy, heighten your inner strength, inspire others, and garner the fortitude to meet difficult challenges.  According to research from the Mayo Clinic, positive thinking can increase your life span, decrease depression, reduce levels of distress, offer better psychological and physical well-being and enable you to cope better during hardships and times of stress.”

A few ways to adopt a positive mental attitude:

  • Surround yourself with positive people who are supportive and energize you
  • Be supportive yourself
  • Consciously resist negative thinking
  • Set realistic, achievable goals
  • Keep it in perspective – life is all about prioritizing the things that matter most to you and focusing your efforts in these areas
  • Turn challenges into opportunities – instead of letting challenges overwhelm you, turn them into opportunities
  • Count your blessings

“The happiest people don’t necessarily have the best of everything; they just make the best of everything they have.”*  True happiness may depend on how you view the world and who you look to for inspiration.  It pays to be positive.

* Author unknown

Quoted from Frank Sonnenberg Online

photo credit: Pink Sherbet Photography via photo pin cc

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Employee Business Expense for S Corporation Shareholder

September 4, 2012

gavelA  shareholder of an S corporation cannot deduct expenses paid on behalf of the corporation without a resolution in the corporate by-laws

COURT CASE: A taxpayer was a 75% shareholder and incurred auto expenses and office-in-home expenses in performing his duties as an employee of the corporation.

The corporation had in place a resolution that required the shareholder to incur expenses as may be required and necessary, and that the corporation would not reimburse the shareholder for these out of pocket expenses. The resolutions also required the taxpayer to supply office space and his own vehicle for services which would not be reimbursed by the business.

The tax courts ruled that the voluntary payment of these expenses were deductible as employee business expenses as a miscellaneous itemized deductions, subject to the 2% AGI limitations. The courts have noted that the voluntary payment of corporate expenses by officers, employees, and shareholders are not deductible and must be treated as capital contributions or loans to the corporation.  Unless, however, the corporate resolutions or other policies are in place, requiring an officer to pay certain expenses, indicates that those expenses are his or her expenses as opposed to those of the business. (Craft, T.C. Memo 2005-197)
For more information, please Contact us to set up a free consultation, or visit our website.

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CHARITABLE CONTRIBUTION SUBSTANTIATION RULES

August 27, 2012

TaxesOne of the most popular tax deductions for individuals is the one allowed for contributions to charitable organizations.  Unfortunately, over time, this deduction has been one of the most abused.  Congress has responded by enacting more rules requiring documentation of donations.

Contributions of $250 or more are allowed as a deduction only when the taxpayer receives written contemporaneous acknowledgment from the charity.  The acknowledgment must include all of the following:

  1. Name and address of the charity.
  2. Date of the contribution.
  3. Amount of cash and/or a description of any property contributed.
  4. Whether the charity provided the donor any goods or services in exchange for the contribution; and, if so, a description, and a good faith estimate of the value of the goods or services provided.

While this is a brief explanation of the substantiation rules for charitable donations, the rules can get more complicated.  We would be happy to discuss the requirements for specific types of donations.  Please feel free to contact us.

photo credit: kenteegardin via photo pin cc

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Capital Gains: What You Should Know

August 20, 2012

Investment growthDid you know that almost everything you own and use for personal or investment purposes is a capital asset? Capital assets include a home, household furnishings and stocks and bonds held in a personal account.

When you sell a capital asset, the difference between the amount you paid for the asset and its sales price is a capital gain or capital loss.

10 facts you should know about how gains and losses can affect your federal income tax return:

1. Almost everything you own and use for personal purposes, pleasure or investment is a capital asset.

2. When you sell a capital asset, the difference between the amount you sell it for and your basis — which is usually what you paid for it — is a capital gain or a capital loss.

3. You must report all capital gains.

4. You may only deduct capital losses on investment property, not on personal-use property.

5. Capital gains and losses are classified as long-term or short-term. If you hold the property more than one year, your capital gain or loss is long-term. If you hold it one year or less, the gain or loss is short-term.

6. If you have long-term gains in excess of your long-term losses, the difference is normally a net capital gain. Subtract any short-term losses from the net capital gain to calculate the net capital gain you must report.

7. The tax rates that apply to net capital gain are generally lower than the tax rates that apply to other income. For 2012, the maximum capital gains rate for most people is 15 percent. For lower-income individuals, the rate may be    0% on some or all of the net capital gain. Rates of 25% or 28% may apply to special types of net capital gain. These rates are set to expire on December 31, 2012. Starting in 2013 the maximum rate is scheduled to increase to 20% (10% for taxpayers in the 15% bracket).

8. If your capital losses exceed your capital gains, you can deduct the excess on your tax return to reduce other income, such as wages, up to an annual limit of $3,000, or $1,500 if you are married filing separately.

9. If your total net capital loss is more than the yearly limit on capital loss deductions, you can carry over the unused part to the next year and treat it as if you incurred it in that next year.

10. In 2011, a new form was introduced (Form 8949, Sales and Other Dispositions of Capital Assets) to calculate capital gains and losses and list all capital gain and loss transactions. Subtotals are then carried over to Schedule D (Form 1040), where gain or loss is calculated.

Feel free to Contact us a if you need more information about reporting capital gains and losses.

 

photo credit: Alan Cleaver via photo pin cc

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Tips for Avoiding Identity Theft

August 13, 2012

In 2011 over 1.5 million fake tax returns were filed with the IRS, resulting in more than $5.2 billion in fraudulent tax refunds being paid out.

Unfortunately, identity theft, already a huge problem in the U.S. and around the world, continues to become more frequent every year.

“What is identity theft?

Identity theft occurs when someone uses your personal information, such as your name, Social Security number (SSN) or other identifying information, without your permission, to commit fraud or other crimes.

IRS Recommendation on How to Minimize the Risk of Becoming a Victim:

  1. Don’t carry your Social Security card or any document(s) with your SSN on it.
  2. Don’t give a business your SSN just because they ask.  Give it only when required.
    Protect your financial information.
  3. Check your credit report every 12 months.
  4. Secure personal information in your home.
  5. Protect your personal computers by using firewall, anti-spam/virus software, update security patches, and change passwords for internet accounts.
  6. Don’t give personal information over the phone, through the mail or on the internet unless you have initiated the contact or you are sure you know who you are dealing with.”

Any other helpful tips for avoiding identity theft? Please add them in the comments section below.

Thanks for reading. Feel free to contact us to schedule a free consultation.

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Idaho Nonprofit Organizations

August 6, 2012

Idaho Nonprofit Center - BoiseThe Idaho Nonprofit Center commissioned a research report on “The Economic Impacts of Idaho’s Nonprofit Organizations”.    In 2011, Idaho’s nonprofit organization revenue totaled $4.60 billion , with  assets reported at $10.16 billion.   There is no denying  the significant impact these organizations have on Idaho’s economy.

Travis Jeffries, P.A. has long recognized the importance of nonprofit organizations. We have a wealth of  combined knowledge and experience  in the non-profit arena; developing a niche in audits and reviews of nonprofit financial statements.  We also provide bookkeeping and consulting services.

Visit our website or  Contact us to see how our services At Travis Jeffries, P.A. goes well beyond the financial statements or reports provided at the end of our engagement.  We are committed to providing close personal attention and offer services and constructive solutions that best serve the needs of our nonprofit clients.

 

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