Back to top

Jones & Company Blog

Tax Cuts and Jobs Act – Differences between the House and Senate Proposals

Posted by Traci A. Malik Posted on Nov 15 2017

The House and Senate recently released their proposals for the Tax Cuts and Jobs Act to overhaul the American tax system with hopes to pass legislation before 2017 year end. In both proposals the standard deduction is doubled, individual tax rates are lowered across the board, and corporate tax rates are cut to 20%.   Outline below are some of the differences between the proposals:

 

House Proposal:

Individual Tax Rates    12%, 25%, 35% 39.6%

 

Itemized Deduction

            State and Local tax capped at $10,000

            Mortgage interest limited to $500,000 mortgage- one principal home only

            Medical expense deductions repealed

 

Child tax credit    $1,600

Corporate tax rate   20% effective 2018

Estate tax:  Increase to $10 Million 2018 with repeal after six years (2024)

 

Senate Proposal:

Individual Tax Rates    10%, 12%, 22.5%, 25%, 32.5%, 35%, 38.5%

 

Itemized Deduction

            Eliminates State and Local tax

Mortgage interest for acquisition debt up to $1 Million, eliminates deduction for                home equity debt

            Medical preserves the existing medical expense deduction

 

Child tax credit    $1,650

Corporate tax rate   20% delayed until 2019

Estate tax:  Doubles the estate tax exemption with no repeal

 

It is apparent that legislators are looking for tax overhaul before year end.  At Jones & Company CPAs P.A., we will be closely following the legislation.  Please contact our office if there are any questions on these proposals at 727.845.4166.

 

Are Older Adults More Susceptible to Financial Fraud?

Posted by Traci A. Malik Posted on Nov 14 2017

According to Forbes, Americans are living longer due to technology, medicine and public health. In 1950, the average American lived to be about 68. Nowadays, the average age is about 78.

In 2010, one fifth of Americans over age 65 reported that they had been the victim of a financial fraud or abuse. Cindy Hounsell of the Women’s Institute for a Secure Retirement states that “[older women] feel badly they have nothing to leave [their relatives], then someone calls up and says, ‘You just won!’ They all say the same thing – that’s why they fall for it”.

Older adults in general believe that people can be trusted according to an MIT study. This changes the brain. In a UCLA study, participants were shown faces that had cues as to their trustworthiness or untrustworthiness. Older participants perceived the untrustworthy faces as significantly more trustworthy and approachable than younger participants did. Decreased activity in the anterior insula portion of the brain in older adults may suggest that their awareness or assessment of risk is not as strong as that of their younger counterparts, which in turn may contribute to a greater vulnerability to fraud and scams. Warning signs to watch out for are aggressiveness or insistence of a telemarketer.

Another study by Michael Finke, John Howe and Sandra Huston found that although financial capacity seemed to decline with age, financial confidence did not; essentially, individuals still had faith in their own financial abilities even while they were eroding. This lack of awareness of their changing financial capacities could also put older adults at higher risk for financial fraud or abuse. 

For more information on financial fraud, call 727-845-4166 to schedule your appointment at our offices in Trinity, Tampa, Land O Lakes or Springhill. 

5 Ways Small Business Owners Can Limit Their Tax Liabilities

Posted by Traci A. Malik Posted on Oct 18 2017

As a small business owner, you’re aware that tax preparation can be a perpetual nightmare, particularly during the early stages. You need to manage all possible tax breaks to reduce tax liabilities for your business, without conflicting with the IRS. You could rack up even bigger savings than you might be aware of. Here are a few ways to do that.
 
1. Donate to charity - Year-end tax planning is crucial when it comes to managing exactly what you are expected to owe and strategically reducing it. One way to do this is to make philanthropy a big part of what you’re doing. Firms that are giving back to their community can take big tax write-offs. A good rule of thumb is 10 percent. Devote 10 percent of your total income to charitable causes, and this will help eliminate a lot of extra taxation. Note, this will only benefit you if you itemize your deductions.

 

2. Accelerate deductions and defer income -  The final quarter of 2017 is a great time of year to start deferring income and accelerating deductions. Despite the uncertainty and speculations about how any possible tax reforms will impact business owners, given the current political climate, it’s more likely that taxes on businesses will fall instead of increase. If you’re a sole proprietor, LLC, partnership or S-Corporation, it makes sense to accelerate your deductions in the current year and defer income into 2018 to maximize the anticipated lower tax rates.


3. Save for healthcare needs – One of the best ways to reduce small business taxes is by putting aside money for healthcare needs. Medical costs continue to increase and while you may be healthy now, saving money for unexpected or future healthcare needs is essential. You can accomplish this through a Health Savings Account (HSA) if you have an eligible high-deductible health plan. (For more, see: IRS 2017 HSA Deduction Limits.)

 

4. Set up a retirement savings plan - As a small business owner, you give up a 401(k) match. You may miss the free money available through the match though there are several retirement account options that maximize retirement savings and reap valuable tax benefits. For example, with the Individual 401(k), the IRS allows you to put away up to $53,000 for retirement. Some of those retirement planning vehicles are: (For more, see: Differences Between Traditional IRA vs. SEP Contribution)

SEP IRA

SIMPLE IRA

Independent 401(k)

It is important to point out, in the case of Independent 401(k)s, you must open them by December 31st to qualify for the current tax year.


5. Use tax-free ways to extract income from your business.

While salary, bonuses, and distributions of your share of business profits are taxable, there are ways in which you can possibly benefit from your business’ success without triggering tax. Consider talking to your accountant about:

  • Tax-free fringe benefits, including medical coverage and retirement plans.
  • Loans by the business to you on a low-interest basis. If the interest is below IRS-set rates, the business may have to report interest from this arrangement, but with interest rates low, this isn’t too costly these days.

                                               

 

If you’d like to talk with us more about your business taxes, contact us at 727-845-4166 or call for an appointment in our Trinity, Land O Lakes or Tampa offices. 

Planning for Small Business Growth Goals

Posted by Traci A. Malik Posted on Oct 18 2017

Running your own business can be gratifying, but also stressful. It can consume every ounce of energy and time you have if you let it.  And with a to-do list that’s longer than War and Peace, many entrepreneurs skip the important step of creating a growth strategy.

If you think you don’t have time to create a small business growth strategy, consider this: A few hours of strategic planning now could save you hundreds of hours of wasted time in the months and years to come. 

 

Strategic planning will get you focused on the right things, and it helps your business to grow and become profitable much more quickly. Then, you can hire people to help you with that to-do list instead of slowly drowning under it by yourself. Here are 5 things to consider when you are planning for small business growth:

 

Goal for growth. Saying you want to grow is not enough. You need a target growth rate. A 15% growth rate might double a company in 5 years. However, a 20 - 30% growth rate might be a better goal to ensure your small business survives any pitfalls in the way.

 

Strategy for growth. There are numerous proven strategies for growth. Look at your target market, and decide what avenues would be best to gain their trust and business. Maybe you want to focus on a mobile strategy, email marketing, blogging, video or social media best practices. Building a strategy takes time, but it is well worth the effort.

 

Timeline for growth. Building a timeline for your growth. The goals you set earlier should have the basic SMART formula (SMART formula stands for Specific, Measurable, Appropriate, Realistic and Timely.) Be sure you hold yourself accountable for achieving those goals in a realistic time frame.

 

Measure your growth. You can't manage what you don't measure. It's the only way you can know for sure what's working or what's not. Employ Google Analytics and monitor the sources from where your traffic is coming.

 

Budget. Here you will need to think about how you finance your cash needs: working capital?  Equity? Debt?  If you need to raise finance, be sure to add this to your timeline of ‘things you need to do’.

If you struggle with this bit, Jones & Company, CPAs P.A. can help.

 

Turning a small business into a bigger one is never an easy task. If you have questions about planning for your small business growth, contact Jones and Company CPAs, P.A. at 727-845-4166.

Jones & Company CPAs, P.A. Opens New Office in Tampa

Posted by Traci A. Malik Posted on Sept 19 2017

Jones & Company CPAs, P.A. recently opened their 3rd office located in the Bloomin Brands building at the corner of West Shore Blvd and W. Spruce St. in Tampa, at the entrance to the International Plaza.
The address is 2202 N. West Shore Blvd. Suite 200 Tampa, FL  33607.

"As our business grows, we will be more accessible to our clients in Tampa and Hillsborough County," says founder Patricia Jones. "We want to be certain that our clients know we are available and ready to help them with all of their professional accounting needs." 

This addition is the third office for the 30 year-old accounting firm, with the main office located in Trinity and a satellite office in Land O' Lakes. The Westshore location is by appointment only. 

Jones & Company CPAs P.A. is one of the leading firms in Hillsborough County and Pasco County, FL. By combining expertise, experience and the team mentality of our staff, they assure that every client receives the close analysis and attention they deserve. 

Jones & Company CPAs P.A. provides a wide range of services to individuals and businesses in a variety of industries. Professional services include accounting services, auditing and review services, certified fraud examiners, certified QuickBooks advisors, new entity formation, tax services, business valuations, collaborative divorce financial specialist, and estate planning.

For quality professional accounting services in the Trinity, New Port Richey, Land O Lakes, Lutz, Odessa or Tampa areas, contact Jones & Company CPAs P.A. at 727-845-4166 or visit online at www.jonescpas.com

The Holidays: Tis the Season For Fraud

Posted by Traci A. Malik Posted on Sept 18 2017

In a survey conducted by the ACFE last year, Certified Fraud Examiners (CFEs) said increased financial pressure was the leading reason fraud increases an estimated 20 percent during the holiday season. Many of these experts believe that employee embezzlement is the most likely type of fraud to increase.

 

Those surveyed believe the single biggest contributing factor to be increased financial pressure on perpetrators (61 percent), followed by an increased opportunity to commit fraud (24 percent) and increased rationalization for fraud (10 percent). These three factors are represented in criminologist Donald R. Cressey’s “Fraud Triangle” and their presence is considered to be necessary in order for fraud to occur.  

 

Fewer than 7 percent of respondents said their organization increases their level of resources committed to fraud prevention or detection during the holidays. Most said that the level remains the same (56.7 percent), while more than 9 percent said that the level actually decreases. 

 

The ACFE recommends organizations take the following measures to help lessen vulnerability:

 

1. Be proactive.

Fewer than 7 percent of survey respondents said their organization, or their clients’ organizations, increase their level of resources committed to fraud prevention or detection during the holidays. Be vigilant and put increased emphasis on monitoring internal controls. Maintain a clear segregation of duties, such that one employee is not in charge of multiple levels of cash-handling or inventory control. Emphasize the employee code-of-conduct during the holidays, and/or make clear that the company will not tolerate any unethical behavior.

 

2. Follow established hiring procedures for seasonal employees.

While many retailers respond to an urgent need in hiring seasonal employees, the same formal employment guidelines should be followed as during other times of the year. These should include conducting thorough background investigations: check educational, employment and credit history (as permitted by law), as well as references.

 

3. Train employees in fraud prevention.

Full-time, part-time and seasonal employees should be trained in fraud prevention. Are employees aware of procedures for reporting suspicious activity by customers or co-workers? Do workers know the warning signs of fraud? Ensure that staff know at least some basic fraud prevention techniques.

 

For more information on fraud in the workplace, download our free ebook here or call us at 727-845-4166. Or, if you are in the Trinity, New Port Richey, Land O Lakes or surrounding areas, make an appointment to come visit us. 

Hurricane Irma: Can You Deduct Disaster Losses?

Posted by Traci A. Malik Posted on Sept 18 2017

In many areas of the country, almost everyone has incurred a loss at one time or another from a casualty disturbance of some sort. Tornadoes, earthquakes, fires, hurricanes and other natural disasters cost both taxpayers and insurance companies billions of dollars each year. As we know, Florida’s vulnerability to hurricanes is a major concern, and losses need to be accounted for properly. Here are circumstances under which casualty losses are tax-deductible.

The Sudden-Event Test

To be tax-deductible, a casualty loss must meet the criteria for the sudden-event test, which mandates the following:

  • The loss must occur as a result of a sudden and unpredictable or unusual event.
  • The event must be one that happens in a single instance, so to speak, such as a car accident, and cannot have happened over an extended period of time.
  • There must be an element of chance or some sort of natural force involved.

Under this definition, losses due to the following events would qualify for deduction:

  • Natural disasters, such as earthquakes, hurricanes, typhoons, tornadoes, floods, fires and avalanches.
  • Losses from civil disturbances, such as riots

However, there are several types of losses that would not qualify for deduction:

  • Those incurred due to long-term processes, such as erosion, drought, decomposition of wood or termite damage.
  • Any loss that arises from what the Internal Revenue Agency (IRS) considers to be a "foreseeable" event.
  • Losses that arise from negative public perception.

Who Can Deduct a Loss – and When?

Only the owner of the property that is lost can deduct the loss, within certain limitations, in the year that the loss was incurred. If you are leasing property that is lost or destroyed by a sudden and unforeseeable event that qualifies for deduction, then you may be able to deduct the payments that you make to the lessor that make up for the loss.

If, on the other hand, the taxpayer expects to be reimbursed in full for the loss in a later year, then the loss (or at least the amount of the loss for which the taxpayer reasonably expects remuneration) should not be deducted in the year the loss is incurred. If the reimbursement is never paid, then the loss must still be claimed in the year that it was incurred by filing an amended return for that year. For example, if a taxpayer's house is destroyed by fire in 2016, and the taxpayer expects to receive the insurance proceeds in 2017, then the taxpayer should not declare a loss on the 2016 return. However, if the insurance company denies the claim in 2017, then the taxpayer must file an amended return for 2016 in order to declare the loss.

Disaster Losses

Taxpayers who incur losses as a result of a disaster in a presidentially declared disaster area have the option of declaring their loss on their prior year's tax return, thus allowing them to amend the return and receive an immediate refund as a measure of relief. The Federal Emergency Management Agency keeps an updated list of all eligible disaster areas and the years for which they qualify. Those who do this will need to provide a statement outlining their choice to take the deduction the previous year and provide basic information on the time, place and nature of the disaster. The deadline for this election falls either on the standard filing deadline for the current tax year or the deadline with extensions for the previous tax year. Those who elect to report the loss in a previous year and then change their minds have 90 days to reverse the election and send back any refund that was paid. Victims in these areas do not have to meet the 10% AGI threshold rule if they sustained a net disaster loss (meaning that the loss exceeded any amount of insurance or other remuneration). They also do not have to itemize deductions; in this case, they would report the loss on Form 4684 of the standard deduction worksheet. Those who do itemize will report it in the normal fashion on Schedule A.

The Bottom Line

The IRS allows limited casualty and theft loss deductions as a measure of relief for those who are victimized by theft or natural disaster. There are many rules and regulations pertaining to casualty and theft losses that lie beyond the scope of this article. For more information on this subject, visit the IRS website or see IRS Publication 547.

The following link provides information to those affected by Hurrican Irma.

https://www.irs.gov/newsroom/irs-expands-tax-relief-to-victims-of-hurricane-irma-in-florida-extension-filers-have-until-jan-31-to-file

Self-Employed: Is a Solo 401K Plan an Option?

Posted by Traci A. Malik Posted on Aug 22 2017
Self-employed business owners have several choices when it comes to retirement plans.  They can set up a Simple IRA, SEP IRA or the one-participant Solo 401K plan.  Most owners opt for either the Simple IRA or the SEP IRA, but they should consider setting up a Solo 401K plan for more retirement and tax savings if they have no employees.  In a Solo 401K plan, the business owner is both employee and employer.  Contributions can be made to the plan in both capacities.    

Solo 401K plans are either elective or non-elective.  The "elective" plan means you do not have to contribute each year, you decide when to contribute.  The "non-elective" means you are required to contribute according the plan.  Traditional 401K plans have vesting, which means that the company makes contributions to the employees account, but the employee is not 100% vested or entitled to the funds until they have been with the company for a specific period of time according to the plan documents.  In a Solo 401K the self employed owner becomes 100% vested immediately.

For 2017 the maximum employee contribution to a Solo 401K plan is $18,000 and if over the age of 50 there is a catch-up contribution of $6,000 for a total of $24,000.   In addition to that, the employer can make a non-elective profit sharing contribution of up to 25% of your pay which is based on your W-2 or 20% based on sole proprietorship or single member LLC.  The combined maximum contribution for 2017 is $60,000 including catch-up contribution. 

Below is an example of Sole Proprietor, age 45, set up an single member LLC- no W2, reports business income on Schedule C 1040:
Business net income $150,000
Solo 401K contribution (owner/employee)  maximum    $ 18,000
Company non-elective profit sharing (20%)                  $ 30,000             
Total contribution                                                       $ 48,000
 
 
Example - Sole Shareholder, age 45, operating as an S Corporation, no other employees, payroll W-2 $100,000 and net income for the year $50,000:
Solo 401K contribution (owner/employee)  maximum   $18,000
Company non-elective profit sharing (25%)                 $25,000             
Total contribution                                                      $42,000

If the company has other employees, the Solo 401K plan is not an option and the business owner would need to consider other plans such as Simple IRA, SEP IRA or a traditional 401K plan. 
 
Jones & Company CPAs P.A. provides services in tax and retirement matters and have offices in the Trinity and New Port Richey area as well as Lutz and Land O Lakes.  Please feel free to contact us at 727.845.4166. 
 
 
 

What is a 1099 and Who Gets It?

Posted by Traci A. Malik Posted on Aug 03 2017

A 1099-Misc is an IRS tax reporting information form. There are various reasons to issue a 1099-Misc, but the most common use is for contract labor. It is used to report payments made in the course of a trade or business to a person who is not an employee or to an incorporated business. If you pay them $600 or more in a calendar year, a 1099 is required to be filed. You need to either purchase the forms prior to the end of the year for self-preparation, order them from the IRS for free, or have our firm prepare them for you. Below is a listing of some of the uses of the 1099-Misc form. For additional information please refer to IRS.gov and the instructions to the form.

 

  • Rents – Box 1: Report payments of rent to unincorporated recipients except to real estate agents.
  • Royalties – Box 2: Payment of royalties in the amount over $10 per year.
  • Other Income – Box 3: Prizes and awards that are not for services performed and any other income not reported in another box on form 1099.
  • Federal Income Tax Withheld – Box 4: Enter any backup withholding or regular withholding.
  • Fishing Boat Proceeds – Box 5: Proceeds from the sale of a catch or the fair market value of a distribution in kind to each crew member of fishing boats with normally fewer than 10 crew members.
  • Medical and Health Care Payments – Box 6: Payments made in the course of your trade or business to each physician or other supplier or provider of medical or health care services.
  • Nonemployee Compensation – Box 7: Include fees, commissions, prizes and awards for services performed as a nonemployee including professional fees.
  • Gross Proceeds Paid to an Attorney – Box 14: Enter gross proceeds from a settlement of $600 or more paid to an attorney in connection with legal services regardless of whether the services are performed for the payer.

 

What is nonemployee compensation?

According to the IRS:

  • You made the payment to someone who is not your employee.
  • You made the payment for services in the course of your trade or business.
  • You made the payment to an individual, partnership, estate, or in some cases a corporation.
  • You made the payments to the payee of at least $600 during the year.

 

Do you ever issue a 1099-Misc to a corporation?

Yes, the following payments made to corporations generally must be reported on for 1099-Misc.

  • Medical and health care payments in box 6.
  • Fish purchases for cash in box 7.
  • Attorneys' fees in box 7.
  • Gross proceeds paid to an attorney in box 14.
  • Substitute payments in lieu of dividends or tax-exempt interest in box 8.
  • Payments by a federal executive agency for services in box 7.

 

How do I know if I should issue a 1099-Misc?

You need to request the recipient fill out Form W-9 before payment is made to them and return it to you. This form has them indicate the type of tax classification they are whether it is an individual, S corporation, partnership or Limited Liability Company, LLC. A LLC can be taxed several ways so it is important to pay attention to how the recipient filled out the form. If the LLC is anything but a C or S corporation, then they are required to receive a 1099-Misc. Keep the W-9 on file and provide a copy to us.

 

When is the 1099-Misc required to be filed?

If you are reporting payments in box 7, then you must provide the form to the recipient and file with the IRS by January 31st of the following year. Example: for 2017 the deadline is January 31, 2018. For 1099-Misc forms that are reporting amounts in boxes other than box 7, the recipient copy must be provided by January 31st and the IRS copy must be filed by February 28th.

 

What are the penalties for late or non filing?

 

Small Businesses with Gross Receipts $5 Million or Less

Government Entities and Large Businesses with Gross Receipts of More Than $5 Million

Time returns filed/furnished

Returns due 01-01-18 thru 12-31-2018

Returns due 01-01-18 thru 12-31-2018

Not more than 30 days late

$50 per return/

$50 per return/

(by March 30 if the due date is February 28)

$186,000* maximum

$532,000* maximum

31 days late – August 1

$100 per return/

$100 per return/

$532,000* maximum

$1,596,500* maximum

After August 1 or Not At All

$260 per return/

$260 per return/

$1,064,000* maximum

$3,193,000* maximum

Intentional Disregard

$530* per return/

$530* per return/

No limitation

No limitation

 

IRS 4883C Letter

Posted by Traci A. Malik Posted on July 11 2017

This important letter is sent by the IRS to the taxpayers and states that "We received your federal income tax return, but we need more information to verify your identity in order to process your tax return accurately." In the last year or two the IRS has gotten more aggressive trying to combat fraudulent returns from getting processed and losing millions of dollars to thieves.

What you must do:

·       Call the toll-free IRS Identity Verification telephone number at 800-830-5084.

·       Have a copy of the 4883C letter you received, a copy of your prior year tax return (if you filed one) and your most recently filed tax return (if you filed one), as well as any supporting documentation for each years return (such as W-2’s, 1099’s, Schedule C, Schedule F, etc.) when you call.

If you did file the return, it will take approximately 9 weeks to process it once you verify your identity.

 

What happens if you don't contact the IRS:

If you ignore the notice and do not contact the IRS with the required verification, they will suspend your tax return from processing. It will not be posted and will show that you have not filed a tax return on your account.

Corporate Minutes and Why You Need Them

Posted by Traci A. Malik Posted on July 11 2017

Corporate minutes are meeting notes from the board of directors for a corporation or business. It is an official account of what was talked about at formal meetings including decisions made and actions taken. The shareholders or owners of a corporation should have at least an annual official meeting. It is mainly for key decisions or company activities not for everyday decisions. For example, issuance of new stock, officer announcements, key employee hires and salary changes. You should include the full legal name of your company, the name of the person conducting the meeting, the location and date of the meeting, list of the attendees and list of those that are absent. You would need to record motions and votes. Record when the meeting started and when it was adjourned. Then at the next meeting, have the prior minutes reviewed and approved by the board. You should keep your minutes in a permanent file.

So why should you have a meeting and keep minutes? Just in case the IRS or State audit you and request the minutes. If you don't have minutes and have other issues and you are a S corporation, the IRS could revoke your S status and treat your business as a sole proprietor or partnership instead. They will determine that you are not truly acting as a corporation and therefore will be subject to the self-employment taxes on all net income. The most serious consequence is the loss of liability protection for the shareholders' personal assets regarding the debts of the corporation, usually referred to as "piercing the corporate veil." When a corporation's shareholders are sued personally for the corporation's debts under this legal theory, the court will examine a number of factors, one of which is whether the corporation kept a proper set of books and records, including minutes of meetings.

Quickbooks Tips and Tricks

Posted by Traci A. Malik Posted on June 12 2017

The QuickBooks program is a user friendly accounting software for businesses. The set up is very important. quickbooks advisor trinityThe settings can be found in the Edit/Preferences screen. Scroll through the list on the left and choose the options best suited for your business. Be sure that you understand what the chart of accounts is and what accounts you need. The chart of accounts are how each transaction is coded to one of the following: asset, liability, equity, income, cost of goods or expense. For example, if you are purchasing a desk for your office you would record in your bank register the payment and code to the asset account for furniture. This properly records the asset in your software. Below are some tips and tricks to help you with other aspects of QuickBooks desktop.
 

  • To have a list of the open windows you are using: either click "Open Windows" in the bottom of the left menu navigation pane or click on "View" then "Open Windows List". This makes it much easier to go from one screen to another quickly without opening the same window over and over.
  • To close a window you can either click on the "X" in the upper right or you can click the "Esc" key on your keyboard.
  • You can print a bill voucher to send with a payment to a vendor by clicking "Print" from the bill window.
  • Find related transactions by clicking the "Reports" tab in the transaction window you are researching (invoice or bill, etc), then click "Transaction History". It will list related transactions and you can click one to zoom in on and hit the "Go To" button.
  • There is a built-in calculator within every "Amount" field. Simply tap the "+" key on your keyboard to activate. Enter your formula and press "Enter".
  • To save time on transactions that re-occur, you can memorize them and have them enter automatically or set up a reminder before being entered. This is helpful for monthly bills that are the same amounts every month or customer invoices that are the same every month. To do this, create the invoice, bill, journal entry you want to memorize. Choose "Edit" then "Memorize".  Name the transaction for easy identification. Choose whether you want QuickBooks to remind you to post, to not remind you or to do the transaction automatically. Choose how often, when the next date is to post, how many remain if the program will automatically post and if you want it posted in advance.
  • To view your file location, the version you use, license number, and file size press F2.
  • There are keyboard shortcuts to save time. Below are some available for the desktop versions:

            Ctrl + I            Create Invoice
            Ctrl + E           Edit transaction selected in register
            Ctrl +Q           QuickReport on transaction or list item
            Ctrl+ M           Memorize transaction or report
            Ctrl + N          New invoice, bill, check, or list item in context
            Ctrl + T           Open memorized transaction list
            Ctrl + W          Write new check
            Ctrl + F           Find transaction
            Ctrl + J                        Open Customer Center
            Ctrl + H          Opens transaction history within transaction
            Alt + S             Save transaction
            Alt + N            Save transaction and go to next transaction
            Alt + P            Go to previous transaction
            T                      Date shortcut for today
            H                     Date shortcut for last day of the month
           
QuickBooks Online tips and tricks will follow later in the summer. Our office can help with QuickBooks setup and training for you and your employees. Contact our office today to set up a training session in the Trinity, New Port Richey, Odessa or surrounding area. Call 727-845-4166.

Ready to Sell Your Business?

Posted by Traci A. Malik Posted on May 15 2017

Have you been asking yourself "is this the right year to sell my business"? Maybe you are asking a business broker "is this a good time to put my business on the market" or "how is the market these days"? While these are all good questions, it's only a drop in the bucket when it comes to determining the right time to sell your business.

ready to sell business Can you imagine your life without your business? What will you do with your extra time? Have you calculated how much money you will need to retire and continue your current lifestyle after the business sells?  These are just a few of the questions you need to answer before determining the right time to sell your business.

How long does it take to sell a business?

Selling a business typically takes 3-12 months but is a difficult process to time. The length of time to sell your business can depend on the industry in which you operate.  Also, the process itself takes so long that it is often difficult to accurately time.

What's the best time of year to sell a business?

When revenue and profitability are at it's highest and when your business is established is the best time to sell. Selling a business doesn't have anything to do with the time of the year but everything to do with the many other market factors.

When you are thinking about selling, you need to take a moment  and evaluate the situation. Do you have unquestionable reasons to sell? Are the conditions within the company promising in favor of selling at this particular time? Are you emotionally prepared to sell?  If the answers to these questions are yes, then maybe the timing is right. If the answer is no, then focus your attention to building your business and increasing its value, and when the day comes that is right to sell, you will get the most beneficial deal.

Selling a business is time-consuming and for many, an emotional venture. Be sure your business is properly valued and that you are proceeding in the manner that will best benefit your bottom line. Contact Jones and Company CPAs P.A for help during your entire process. We are here to help you every step of the way. Contact us at www.jonescpa.com or call 727-845-4166.

Miscellaneous Job Deductions

Posted by Traci A. Malik Posted on Apr 30 2017

Miscellaneous and job-related deductions allow taxpayers to deduct many expenses relating to job searches, employee expenses, and investment expenses. However, most of these deductions must be itemiscellaneous job deductionsmized and are limited to that amount that exceeds 2% of the adjusted gross income (AGI) of the taxpayer — what is commonly referred to as the 2% AGI floor. Adjusted gross income is gross income minus certain adjustments, such as retirement contributions and deductible alimony.

If a miscellaneous expense is subject to the 2% AGI floor, then all such expenses must exceed 2% of the taxpayer's adjusted gross income, and only that portion is deductible. 

Most of the miscellaneous expenses subject to the 2% AGI floor are those that can be claimed by jobseekers, employees, or investors, or they are personal expenses that would otherwise not be deductible, and includes such things as:

    •    unreimbursed travel, meals, entertainment expenses

    •    unreimbursed local transportation costs

    •    professional, business association, and union dues

    •    cost of uniforms and work clothes, including the cost of their cleaning, laundry, and repair

    •    cost of job searches and job agency fees

    •    employee home-office expenses

    •    small tools

    •    supplies

    •    subscriptions to professional journals

    •    electronic gadgets, such as mobile phones and tablets, and any associated telecommunication expenses

    •    work-related educational costs

    •    tax advice and preparation fees

    •    convenience fees charged for using a credit card to pay taxes

    •    appraisal fees for casualty losses and charitable contributions

    •   investment costs, including IRA custodial fees, investment advice, investment counselor fees, and safe-deposit rentals.

Travel costs that are generally not deductible include trips to investigate rental property and trips to conventions, seminars, or other types of meetings, including trips to attend stockholders meetings. Commuting to and from work is never deductible. The cost of traveling to investigate income-producing property or to confer with an attorney, accountant, trustee, or investment counselor about income is deductible but subject to the 2% AGI floor.

The cost of uniforms and work clothes, including the cost for cleaning, laundering, and repairing the clothes, are deductible if they are not suitable to wear elsewhere. However, if the clothes are suitable for wearing off the job, then they are not deductible, even if they are required for the job. So, for instance, television newscasters cannot deduct the cost of their clothing, since they can wear those clothes anywhere.

Computers purchased for work are deductible if it is for the convenience of the employer, and the employer requires it. The work done on the computer must be inextricably linked to the job. Depreciation claimed for computers used to manage investments are also subject to the 2% floor.

Cell phones are also deductible. Previous to 2010, cell phones were classified as listed property. However, the Small Business Jobs Act of 2010 removed cell phones from this list and the strict requirements for documenting the use of listed property.

Generally, the cost of preparing tax returns and audits is subject to the 2% AGI floor. Most of the fees that are deductible must be directly related to preparing a tax return or for help over a specific tax controversy.

Contact Jones and Company CPAs P.A. if you have questions about your taxes. We are here and ready to help. Call 727-845-4166, visit www.JonesCPAs.com, or email your question to us

Charitable Contributions

Posted by Traci A. Malik Posted on Mar 29 2017

Charitable donations are not only a chance to make a difference: They’re also a great way to reduce your tax burden for the year. 

charitable contributionsHowever, just because you're feeling generous doesn’t guarantee a tax deduction for charitable giving. As with everything in tax law, it's important to follow the rules. With that in mind, here are a few tips for making your charitable donation count.

Itemize - In order to claim a charitable deduction on your tax return, you must itemize your deductions. You report itemized deductions on Schedule A on your federal form 1040 using lines 16-19.

Choose carefully - Only donations to qualified charitable organizations are deductible. If you’re not sure whether an organization is qualified, ask to see their letter from the Internal Revenue Service (IRS).

Get a receipt - No matter what the amount, cash deductions must be substantiated by a bank record such as a canceled check or credit card receipt, or in writing from the organization. The receipt must include the date, the amount and the organization that received the donation.

Donate appreciated assets - Donating property that has appreciated in value, like stock, can result in a double benefit. Not only can you deduct the fair market value of the property (so long as you've owned it for at least one year), you avoid paying capital gains tax. Normally, appreciated property is subject to capital gains tax at disposition but there's an exception for donations to charitable organizations

You can't deduct volunteer hours. The IRS does not allow a charitable deduction for the value of your time if you are volunteering. The good news is that most out of pocket expenses relating to volunteering are deductible so long as they're not reimbursed or considered personal in nature. 

Watch the calendar - Contributions are deductible in the year made. To make it count during the tax year, gifts must be made by December 31. That doesn't always mean cash out of your account. For example, credit card charges - even if they're not paid off before the end of the year - are deductible so long as the charge is captured by year end.

If you have questions about your charitable deductions or about your taxes in general, feel free to call Jones & Company CPAs P.A. for help. We can be reached at 727-845-4166.

Medical Expenses and Schedule A

Posted by Traci A. Malik Posted on Mar 06 2017

To begin deducting your medical expenses, you first must know which expenses are deductible. The IRS lets you deduct medical costs on your tax return as long as they are more than 10% of your adjusted gross income. (Taxpayers who are 65 or older can still use the previous 7.5% threshold to claim itemized medical expenses through the 2016 tax year.) It may seem unattainable at first glance, but with a little digging you might just meet it.

 

Medical and dental bills for you, your spouse and your dependents count toward the allowable deduction limit, so keep a list of the medical expenses of everyone listed on your tax return.

 

Deductible Expenses

Here’s a partial list of deductible expenses:

 

    •    Equipment and supplies

    •    Dental services

    •    Co Pays

    •    Medical treatments and laboratory tests

    •    Nursing services

    •    Hospital services

    •    Insurance premiums

    •    Medically necessary home renovations prescribed by a doctor

 

Often-overlooked medical deductions:

    •    Travel expenses to and from medical treatments

    •    Insurance payments from already-taxed income

    •    Uninsured medical treatments

    •    Costs of alcohol or drug-abuse treatments

    •    Laser vision corrective surgery

    •    Medically necessary costs prescribed by a physician

    •    Some medical conference costs

    •    Long term care premiums

 

Nondeductible Expenses

These medical expenses are not deductible:

    •    Certain expenses for children – If your baby is healthy, you can’t deduct babysitting fees, even if the babysitting allows you or your spouse to receive medical treatment. Maternity clothes are also not deductible. If You or your child take dance or swim lessons to improve overall mental and physical wellbeing, you can’t deduct the cost of lessons and transportation.

    •    Cosmetic surgery and services – Any procedure that is deemed cosmetic is not deductible. This includes breast augmentations, liposuctions and “tummy tucks.” Both in office and at-home teeth whitening products and services are cosmetic and not deductible.

    •    Memberships – Memberships and dues to gyms, health clubs and other health programs are not deductible. If you join a weight loss program not prescribed by a physician, you can’t deduct registration or membership fees.

For more information about what the IRS will and won't allow you to count toward your medical deductions, check out Publication 502. You might find a few things there that apply to you -- maybe just enough to get you over that 10% deduction hurdle.

Identity Theft and Taxes

Posted by Traci A. Malik Posted on Feb 03 2017

Identity theft is the fraudulent acquisition and use of a person's private identifying information, usually for financial gain. Identity theft for purposes of filing fraudulent tax returns has been occurring for many years. According to Forbes, as of March 5, 2016 the IRS had identified 42,148 tax returns with $227 million claimed in fraudulent refunds. The IRS is working on methods to detect fraudulent returns before being processed. This coming tax season IRS has already warned that returns with Earned Income Credit and Additional Child Tax Credit will be held for additional scrutiny until February 15th. This will allow IRS to compare early filed returns with reported W-2s and 1099s. 

 

What can you do? Protect your SSN. Most of the reasons to provide your SSN to anyone would be to open bank accounts, apply for credit cards/loans, file tax returns, fill out W-4s and I-9s for employment, and fill out W-9s as a subcontractor. Others may ask for it, but be sure to find out why they need it. Many doctors offices ask for it in their paperwork, but find out why they need it. I only provide them with the last four digits of my SSN. 

There are many phishing scams trying to obtain your sensitive information. The current ones to watch out for according to the IRS are:

    1    Fake emails purporting to contain an IRS tax bill related to the Affordable Care Act. IRS does not email notices to you.

    2    IRS impersonation calling demanding payment for back owed taxes and wanting payment. IRS would have sent you many notices before any call would be made to you and would not ask for payment over the phone or for you to obtain prepaid cards.

    3    Fake emails citing tax fraud and trying to trick victims into verifying the last four digits of their SSN by clicking on the link provided.

    4    IRS impersonation call saying they have your tax return and just need to verify a few details to process your return. The scam tries to get you to give up personal information such as SSN or personal financial information, such as bank numbers or credit cards.

    5    Fake email phishing scheme to payroll and human resource professionals that purports to be from a company executives and requests personal information on employees.

Of course scams evolve all the time and you should be leery of anyone asking you for sensitive information or money. The best thing to do is take down their name and number and ask us about it. You can also call the IRS directly at 1-800-829-1040.

 

2016 Year End Tax Checklist

Posted by Traci A. Malik Posted on Nov 28 2016

As we are getting close to the end of the year, we have time to consider some year end planning tips.

  • - Be sure the addresses for employees are correct.
  • - Order or purchase W-2s and 1099 forms to submit to IRS and Social Security Administration.
  • - Pay real estate taxes by December 31st if you usually itemize on your taxes.
  • - Purchase any needed equipment by December 31st if you have net income and would like to reduce taxes.
  • - Set aside money for retirement funding if you are able to contribute to a traditional IRA, SEP IRA, Solo 401(k), etc. 
  • - Make donations to charity if you usually itemize.
  • - Max out your Health Savings Account.

If you have questions about your 2016 taxes, call Jones and Company CPAs PA at 727-845-4166 or visit online at www.jonescpas.com.

Limited Liability Company(LLC) vs. Sub S Corporation

Posted by Traci A. Malik Posted on Nov 28 2016

by: Patricia Jones CPA/ABV/CFF CFE

 

There are several choices in entity types when setting up a new business.  Most businesses set up as either a Limited Liability Company or a Sub Chapter (Sub S) Corporation.  If you set up as an LLC, you can elect to be treated as a Sub S Corporation for tax filing purposes.  

 

The major advantage as a LLC is that you protect your personal assets from the creditors of your business.  For a LLC, you normally would not be financially responsible for more than your investment in the company.  For both LLCs and Sub S Corporations, you pay personal income tax, but not corporate tax. 

 

Below are some noted differences between the two entities. 

 

Limited Liability Company(LLC)

  • If it is a single member LLC, owner does not have to file a separate business tax return for LLC.  The business activity can be reported on their personal return. 
  • For an LLC, single members are required to pay self-employment tax on income which means making quarterly estimated tax payments to IRS. 
  • Business operations should always be in a separate bank account.  Owners should keep the LLC separate from their personal assets and not mix funds.  Do not want to lose the protection of an LLC by combining accounts. 

 

Subchapter S Corporation(Sub S)

  • Advantage of Sub S Corp is that the net income is not subject to self-employment tax.
  • The Sub S Corp needs to pay reasonable salary to the officers.  The reasonable salary should be tied to the industry standards. IRS is increasingly auditing businesses for this reason. 
  • Profits and losses must be distributed to the shareholders in proportion to their interest.  For example, if shareholder has a 25% interest, the shareholder will report 25% of the net income or loss of the business on their personal tax return. If distributions are made, the shareholders must receive 25% of the distribution.  
  • Separate tax return must be filed for the Sub S corporation which is additional for accounting and tax preparation. 

If you have questions or need help deciding, feel free to call Jones and Company CPAs P.A. at 727-845-4166 or visit onlinwww.jonescpas.com.

  •  

Train the Entire Staff on QuickBooks

Posted by Traci A. Malik Posted on Nov 07 2016

A good bookkeeper is crucial to business for many reasons, but have you ever considered training all of your staff for those responsibilities? Many businesses are employing QuickBooks to help with bookkeeping functions, but many of the staff do not know how to properly use the program. There are many benefits to having a team that is trained and knowledgeable about the accounting functions and the basics of QuickBooks.

1. Vacation or Leave - If the designated bookkeeper takes a vacation, takes maternity or paternity leave or is away for an extended period of time, you can be sure that you have staff that are trained to pick up and keep the company rolling along smoothly.

2. Helps prevent fraud - Sharing in the bookkeeping function helps to decrease fraud in the workplace. A person is far less likely to commit a fraud if he or she has co-workers who are knowledgeable about the process and able to check in at any time.

3. More cohesive team - When the entire team understands the accounting process, items generated outside the accounting department such as purchase orders, quotes or shipping receipts are more likely to be detailed correctly and more accurate. When co-workers understand what each other needs to do his or her job correctly and efficiently, the company runs more productively and more profitably.

4. Increase employee morale - People appreciate the extra attention from their manager, they like the coaching because they want to do a better job, and they like that all employees are being coached and held accountable to the same performance.

Jones and Company CPAs, P.A. are Certified QuickBooks Advisors and can help you train a single person or your entire staff. For information on our training program, contact us at 727-845-4166 or visit online at www.JonesCPAs.com
.

What is Collaborative Divorce

Posted by Traci A. Malik Posted on Oct 20 2016

Collaborative divorce is a relatively new legal option that meets the needs and desires of many divorcing couples and their counsel and is an increasingly popular approach to handling your divorce or legal separation. When spouses or domestic partners get ready to file for divorce or legal separation, they may negotiate an agreement with professional help.

How does Collaborative Divorce Work?

This process is designed to assist the parties in working out their disputes rather than litigating them. When parties elect to utilize the collaborative divorce process, they can avoid some of the stress and emotional challenges of conventional litigation, with a team designed to minimize conflict and develop respectful and equitable resolutions.

In a collaborative divorce process, you and your spouse or domestic partner negotiate an agreement with professional help. You each hire specially trained collaborative lawyers who advise and assist you in negotiating the settlement agreement.

You meet separately with your own lawyer, and both clients also meet together regularly. Sometimes you and your spouse or domestic partner can bring in other people, like child custody specialists or accountants, to help you settle your case without having to go in front of a judge in a contested case.

Why Couples Choose Collaborative Divorce

Collaborative divorce is becoming more popular for couples who choose to end their marriages without the conflict and emotional anguish that can accompany more traditional divorce proceedings. It can also be a more cost-effective option for couples looking to minimize the financial impact of divorce. In addition, where children are involved, this simpler process can help minimize the emotional impact that more turbulent divorces can have on the children in a family.

What is the Accountant’s Role in Collaborative Divorce?

The collaborative team financial specialist works with the couple provide on-going, practical financial guidance, planning, support, and budgeting advice throughout the divorce process. They make sure that both parties have a thorough understanding of their current financial situation, and assist by gathering and organizing documentation and information relating to the parties' incomes, expenses, assets, and debt. The financial specialist will also educate the clients regarding the short and long-term economic consequences of settlement plans being considered so as to enable them to make fully informed decisions and choose what is most appropriate for their situation.

If you would like more information or a on collaborative divorce, contact Jones and Company CPAs P.A. at 727-845-4166 or visit online at www.JonesCPAs.com.

Tax Effects of Divorce or Separation

Posted by Traci A. Malik Posted on Sept 15 2016

Everyone knows that separations and divorces are hard on everyone involved. There is so much involved in separating assets and agreeing to financial terms. But, many do not consider the tax effects involved as well. Some to consider are:

https://secure.emochila.com/swserve/siteAssets/site12199/images/TaxDivorceConcept_238x160.jpg

 

  • Child Support – payments made are not tax deductible and not income to the recipient.
  • Alimony Payments – payments made under a divorce or separation decree and made in the form of cash/check are tax deductible to the payer and income to the payee. The recipient's taxable income increases and should increase their federal withholding on their other income payments like wages or make estimated tax payments.
  • Retirement Accounts – the division of assets usually involve the division of retirement accounts between the parties. If you receive a distribution from the account as part of the settlement, then that is taxable income. If you are under 59 1/2, then that is also subject to a 10% penalty. Consider other options like a qualified domestic relations order if it applies or a transfer incident to divorce.
  • Health Insurance – if you lose your health insurance coverage due to divorce, you are still required to have coverage for every month. You can enroll in the Health Insurance Marketplace during a Special Enrollment Period if this applies to you. If you are already in the Marketplace, you should notify them of the change in your circumstances and income.
  • Shared Marketplace Policy – if you had a policy through the Marketplace and covered both spouses before the divorce, you have to allocate the policy amounts on your separate returns to figure your premium tax credit and reconcile any advance payments.

If you need help understanding the tax implications of your divorce, call Jones & Company CPAs, P.A. at 727-845-4166. 

Conversion of Residence into Rental Property

Posted by Traci A. Malik Posted on Sept 13 2016

We get a lot of questions about this topic. Some taxpayers decide to move and rather than sell their current home, they convert it into a rental property. There are special rules regarding this situation come tax time.

https://secure.emochila.com/swserve/siteAssets/site12199/images/HouseMoney_238x160.jpg

Basis for Depreciation – you are allowed to take a deduction for the depreciation of the home once it is an placed into service as a rental property. The figure used for a converted property is the lower of either the fair market value of the property when converted or the adjusted basis of the purchase price. The adjusted basis is the amount you paid for the property plus any capital improvements.

Deductions – any expenses you pay for the property while a rental property are deductible. For example: association dues, repairs, mortgage interest, property taxes. 

Loss Limitations – there are limitations in place if you have rental losses. Rental activity is considered a passive activity. As such, the deductions are allowed up to the amount of income collected unless you actively participate in the activity. If you actively participate then up to $25,000 of losses can be claimed unless your modified adjusted gross income is above the phase-out limit of $150,000 (married filing jointly). These un-allowed losses are carried forward.

Sale of Property – a special rule is in place for converted properties. The figure used will depend if the sale is a loss or gain. If the converted property is sold at a gain, the basis used is the adjusted tax basis. If the sale results in a loss, the basis is the lower of the adjusted tax basis at the time of the conversion or the fair market value when converted.

 

For more help on converting your residence into a rental property, contact Jones and Company CPAs P.A. at 727-845-4166.

Why Do I Need A Forensic Accountant During My Divorce?

Posted by Traci A. Malik Posted on Aug 13 2016

One of the most common and complicated issues in divorce is determining a spouse’s true income.

Income determinations and classification issues require expertise and you need an experienced divorce financial professional on your team to work through all the financial angles of your settlement.

https://secure.emochila.com/swserve/siteAssets/site12199/images/forensic_accounting_copy_238x160.jpg

A forensic accountant is trained to examine personal and business financial records with an eye not only for what they show, but for what is being withheld. In other words, forensic accountants can “sense problems”.

 

Many times, a spouse will stall before handing over financial documents for the other divorce team to review, driving up legal bills before they even get a look. This serves to make things disordered, confusing, time-consuming and even more costly.

 

When you finally do get to examine the financial disclosures, you may have the feeling they’ve been manipulated in a way that hides the true financial situation. Even if you can’t tell precisely what is missing, you might suspect your spouse is understating income, or hiding assets to keep them from being divided in your settlement.

 

Underhanded maneuvers like these can be difficult to prove in court –especially if your spouse owns a business with a significant part of its income in cash or assets have been hidden for many years.

 

A forensic accountant is trained to examine personal and business financial records with an eye not only for what they show, but for what is being withheld.

 

A forensic accountant can uncover unethical practices, such as:

        creating fake debt

        padding payroll

        underreporting income

        overpaying creditors

        transferring assets to dummy corporations

        purchasing expensive items with secret cash

 

While hiring a forensic accountant may seem excessive and you may feel reluctant to add yet another professional to your divorce team, keep in mind that the efforts of a forensic accountant can pay off immeasurably by assuring the assets, debts and income are fairly reported. Contact Jones and Company CPAs P.A. for more information on our forensic accounting services.

Organizational Structures for New Businesses

Posted by Traci A. Malik Posted on Aug 13 2016

One important consideration when starting your business is determining the best legal organizational structure. Why? Because it will affect operating efficiency, transferability, control, the way you report income, the taxes you pay and your personal liability.

https://secure.emochila.com/swserve/siteAssets/site12199/images/Org@.jpg

Four basic structure types are:

  • Sole proprietorship
  • Partnership 
  • Corporation — S corporation, C corporation 
  • Limited liability company (LLC)

 

SOLE PROPRIETORSHIP

• The simplest legal structure for any business and is not legally separated from the owner.

• The legal business name is typically the same as your legal name, but establishing a business name separate from your own is possible by creating a doing business as (DBA) name or fictitious name.


• Owner can take cash withdrawals from the business at will.

• Owner required to make quarterly extimated tax payments.

• Some states and municipalities may require obtaining a license or permit.

 

PARTNERSHIP

• The difference between a sole proprietorship and partnership is that a sole proprietorship has only one owner and a partnership has two or more owners.

• Owners can take withdrawals and, if specified in the partnership, guaranteed payments.

• Owners pay taxes quarterly.

• Can be started through an oral agreement, though a written agreement is advisable.

 

C CORPORATION

• A separate legal entity from its owners.

• Corporate documents are filed with the state and annual fee is paid.

• Separate corporate bank accounts and records are created,and assets and money generated by the corporation are owned by the corporation.

• Most businesses must register with the IRS and state and local revenue agencies. Although any business that has employees will need to get a tax ID number, it is required for a corporation.

• Unlike sole proprietors and partnerships, corporations pay income tax on their profits. In some cases, corporations are taxed twice —  first, when the company makes a profit, and again when dividends are paid to shareholders on their personal tax returns.

 

S CORPORATION

• To be considered an S corp, you must first charter a business as a corporation in the state where it is headquartered.

• An S corp is different from a C corp in that its profits and losses can pass through to the owner’s personal tax return. Consequently, the business is not taxed itself. Only the shareholders are taxed. Losses are limited to the shareholder’s tax basis.

• Shareholders can be paid wages, receive distributions of profits or a combination of wages and distributions. 

 

 

LIMITED LIABILITY COMPANY (LLC)

• A hybrid type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational  flexibility of a partnership.

• Unlike shareholders in a corporation, in most states LLCs are not taxed as a separate business entity. Instead, all profits and losses are passed through the business to each member of the LLC. LLC members report profits and losses on their personal federal tax returns, just like the owners of a partnership would.

If you have questions about forming a new business or changing your businesses structure, Jones and Company CPAs can help. Contact us at 727-845-4166 or find us online at www.JonesCPAs.com.

Managing Growth in Business

Posted by Traci A. Malik Posted on June 14 2016

For most business owners, the word ‘growth’ is one of the best in their vocabulary. In their minds, growth denotes a successful business. Unfortunately, many entrepreneurs have learned the hard way that growth is a two edge sword. While a growth phase typically means you are doing something right,  reaching capacity can cause the chain to weaken and could kill your business.

https://secure.emochila.com/swserve/siteAssets/site12199/images/Growth_238x160.jpg

A small growing firm reaches its capacity limit at some point in their growth process. They either run out of human power, business resources, or capacity to manage operational issues. Once they reach capacity, every entrepreneur has a tough decision – do they believe that this is a true growth phase… or is this merely a spike in work?

 

If the business owner hires the wrong people, they hurt the business by having staff who are not generating a needed ROI. If the entrepreneur incorrectly rides the storm, thinking its simply a spike in work, the firm suffers by having stressed employees, lower quality, and even a damaged reputation. Growth can be a very difficult process to manage – especially as a small business.

 

Here are some thing to consider when you’re headed into a growth phase. 

 

* Add systems and procedures

As your business grows, you won’t be able to spend as much time personally checking over details as you did initially. Having systems and procedures in place helps you be sure that management and staff are consistently making checks in the same manner you would have. The more your day-to-day business operations rely on systems and procedures, the more growth you will be able to effectively achieve.

 

* Watch non-financial limits

Because the lack of money is such an overwhelming barrier to growth, it is easy to overlook other issues that may limit your ability to grow. You might feel that some people on your staff, your computer system, your facilities, or some other component of your business is being overtaxed by continuous growth. If so, don’t hesitate to slow down the pace of growth for a while until you feel that that component of your operations is running smoothly again. It takes a wise, disciplined manager to hold back on rapid growth to ensure that the company can continue to deliver quality products in a professional manner.

 

* Invest in yourself 

 In the early stages of your business, you'll likely see a very lean profit margin so any money you do make should go directly toward helping you grow. Early growth is is directly affected by a company's ability to invest in itself. In the early years, it's critical to make sure that you're redirecting any revenues back into the company. Invest early and heavily in order to grow quickly.

 

  • Invest in talent

Your employees have direct contact with your customers, so you need to hire people who are motivated and inspired by your company’s value proposition. Be cheap with office furniture, marketing budgets and holiday parties. Hire few employees, but pay them what they are worth. Having a trusted, solid team that will be there for you when hours get long and stress gets high will be well worth the investment during a growth phase. Be aware of certain rules for the numbers of employees as well. For example, non-construction businesses with 4 or more employees need to have workers compensation insurance, while construction related businesses need workers comp for any number of employees. 

 

There are many, many strategies to managing growth. The most valuable advice is for you to actually sit down and analyze your business. Determine your growth, how it is affecting you, and what steps you need to take to cope. If you have questions about managing growth, contact Jones & Company CPSa P.A. for guidance.

Small Business Accounting Tips

Posted by Traci A. Malik Posted on May 14 2016

From day one, small businesses should create a good system of bookkeeping and accounting. It is critical to the financial well-being of any good business. Here are a few tips for small businesses.

1. Keep bookkeeping current and accurate. Good record keeping is vital. Many start-ups, as well as existing business owners tend to neglect this aspect of their business until the end of financial year is upon them.  Allocate time each week and devote to your books. Regular reviews will let you know how your business is going and allow you to control your cash flow.

 

2. Keep accounts receivable payments and borrowed funds separated.

Small business owners often need financial backing or loans for startup capital, marketing campaigns, and other initial expenses. To make sure the loans don’t appear in the receivables, use software that separates income from borrowed funds. Don’t lose sight of what is yours and what needs paying back.

 

3. Be sure you have a good collections policy.

While a large number in the receivables column is a good thing, the money doesn’t really count until it is in your bank account. Be sure your clients make their regular payments. Insist you receive payment for past orders before letting them have more materials or services, or set up pre-payment and/or credit card payment options. The receivables department is crucial in keeping your company afloat.

 

4. Detail daily expenses for a solid budget.

Business owners should keep good records of everyday expenses the company incurs. Rather than calculating expenses every two weeks, focus on every day or every week. This will help better understand where finances are each week and how much money you’ll need to budget for in the upcoming weeks.

 

5. Know your minimum monthly profit.

Sometimes, knowing how much it takes to keep a company up and running can be complicated. Create an accurate system of expenses and regular financial obligations so you know minimum amount of income you need every month. This will not only keep you focused on your financial goals, but your marketing goals as well. 

 

If you have other questions about accounting for small business, feel free to contact Jones and Company CPAs, P.A. at 727-845-4166 or online at www.jonescpas.com.

Hiring Your First Employee

Posted by Traci A. Malik Posted on May 10 2016

If business is booming but you are finding less time to keep up, it might be time to hire some help.

Hire New Employee

Here are eight must-know things that can help you start the hiring process and ensure you are following key federal and state regulations.

 

1. Obtain an Employer Identification Number (EIN)

 

Every business needs one, but before hiring your first employee, you must get an employment identification number (EIN) from the Internal Revenue Service. The EIN is also referred to as an Employer Tax ID. Businesses need an EIN for reporting taxes and other documents to the IRS. In addition, you need an EIN when reporting information about your employees to state agencies. Obtain the number via online with the IRS or using Form SS-4.

 

2. Set up Records for Withholding Taxes

 

Businesses must keep records of employment taxes for at least four years. Keeping good records can also help you monitor the progress of your business, prepare financial statements, identify sources of receipts, keep track of deductible expenses, prepare your tax returns, and support items reported on tax returns.

 

Below are three types of withholding taxes you need for your business:

 

Federal Income Tax Withholding

Every employee must provide an employer with a signed withholding exemption certificate (Form W-4) on or before the date of employment.

 

Federal Wage and Tax Statement

Every year, employers must report to the federal government wages paid and taxes withheld for each employee. This report is filed using Form W-2, wage and tax statement. Employers must complete a W-2 form for each employee who they pay a salary, wage or other compensation.

Employers must send Copy A of  W-2 forms to the Social Security Administration by the last day of January to report wages and taxes of your employees for the previous calendar year. In addition, employers must  send copies of W-2 forms to their employees by Jan. 31 of the year following the reporting period.

 

State Taxes

Depending on the state where your employees are located, you may be required to withhold state income taxes.

 

3. Employee Eligibility Verification

Federal law requires employers to verify an employee's eligibility to work in the United States. Within three days of hire, employers must complete Form I-9, employment eligibility verification, which requires employers to examine documents to confirm the employee's citizenship or eligibility to work in the U.S. Employers can only request documentation specified on the I-9 form.

 

Employers do not need to submit the I-9 form with the federal government but are required to keep them on file for three years after the date of hire or one year after the date of the employee's termination, whichever is later.

 

 

4. Register with Your State's New Hire Reporting Program

 

All employers are required to report newly hired and re-hired employees to a state directory within 20 days of their hire or rehire date.

 

5. Obtain Workers' Compensation Insurance

 

Businesses with four or more part-time or full time employees in a non-construction industry in the State of Florida are required to carry workers' compensation insurance coverage through a commercial carrier, on a self-insured basis or through their state’s Workers' Compensation Insurance program. In Florida for  a construction industry employer, the number is reduced to one or more part-time or full time employees. The construction industry owner may request an exemption for himself/herself.

 

6. Post Required Notices

 

Employers are required to display certain posters in the workplace that inform employees of their rights and employer responsibilities under labor laws.

 

7. File Your Taxes

Employers who pay wages subject to income tax withholding, Social Security and Medicare taxes must file IRS Form 941, Employer's Quarterly Federal Tax Return.

 

8. Get Organized and Keep Yourself Informed

 

Simply following these steps won’t make you a good employer. Maintaining a healthy and fair workplace, providing benefits and keeping employees informed about your company's policies are key to your business' success. Be sure to set up good record keeping that are in compliance with standards for employee rights in regards to equal opportunity and fair labor standards. And, following statutes and regulations for minimum wage, overtime, and child labor will help you avoid error and a lawsuit.

 

If you need some help with your first new hire, feel free to contact Jones and Company CPAs P.A. at 727-845-4166.

4 Things to Know When Starting A Business

Posted by Traci A. Malik Posted on Apr 22 2016

 

While the idea of starting a business may be daunting, over 500,000 new businesses are started annually in the United States, according to the Small Business Association. 

Starting a Business

Own your name - Make sure the company name you choose is available and an appropriate internet domain name can be obtained.  Check for fictitious name registrations or trademarked names. Failure to properly obtain a trademark could put your business at risk — not to mention that the time and money you have invested in establishing your business name could go to waste if someone else owns the trademark. 

 

Know the law - Understand the regulations, licenses and taxes you will need to follow, obtain and pay for your new business. Consult with an accountant or a lawyer to help structure your business to be in compliance with the law. Typically, you will need to need to be sure you are charging the correct amount of tax that your business is promoting and have all of the proper licenses needed to run your new business. A good accountant can help you with all of the filings you will need to start your company.

 

Know your needs - When working on your business plan, do not forget about your needs. Consider all of your living costs from rent, mortgages, health insurance, gas or groceries. - all things that don’t pay for themselves. Make sure you account for unforeseen or unexpected expenses by factoring a little flexibility into your budget for those “just-in-case” moments. To do this, you will most likely need to cut out all the unnecessary extras you can live without. 

        

Don’t over (or under) spend. Starting a business can be financially taxing on you and your family. You will need to learn good cash flow management practices as well as the best places to spend your money. It’s important not to waste those precious seed dollars but it’s equally important to spend where necessary. In any business, you often have to spend money to make money.  Be sure to provide for the things your company needs, but have a clear definition of ‘need’. For example, it may be worth it to put $1500 in an online vendor listing, but it may not be necessary to give every new customer a $15 coffee mug. Beware of impulse buying and be disciplined with your funds.

 

While there’s so much to starting a business, be sure to get experienced guidance. It is the best support system of all and can save you a lot of headaches. Ask friends and colleagues who have started a company for a list of what to do or what not to do. and hire competent partners to help with the process, and feel free to contact Jones and Company CPAs at 727-845-4166 if you have questions.

The Importance of Cash Flow Management

Posted by Traci A. Malik Posted on Apr 22 2016

Poor cash flow management is a big stumbling block for entrepreneurs and is the main reason for business failure, according to many business analysts. Therefore, it is vital to businesses to understanding the basic concepts of cash flow will help you plan for the unforeseen eventualities that nearly every business faces.

Cash is ready money in the bank or in the business. It’s commonly referred to as a liquid asset and is not inventory, accounts receivable or property. While these can potentially be converted to cash, they are not readily available sources used to pay suppliers, rent, or employees. 

 

Cash flow refers to the movement of cash into and out of a business. Watching the cash inflows and outflows is one of the most important management tasks for any business. The outflow of cash includes those checks you write each month to pay salaries, suppliers, and creditors. The inflow includes the cash you receive from customers, lenders, and investors.

 

Why is Cash Flow Management so Important?

 

While there are many reasons why having a good understanding of your businesses cash flow is important, these seem to top the list:

 

Having cash puts you in a more stable position with better buying power. While you can borrow money at times, cash affords you greater protection against loan defaults or foreclosures.

 

When you borrow money to buy buildings, equipment and inventory, you essentially use future cash flow to make your purchases. As a result, you need positive future cash flow to pay for your debt commitments.

 

Along with debt management, strong cash flow provides the comfort and capabilities a business needs to invest in growth. Cash flow also gives your business greater flexibility in responding to emerging dilemmas or making critical decisions.

 

Confidence in cash flow makes it easier to make critical purchases in the near term rather than waiting. It also allows you to disperse cash in the form of dividends to shareholders or owners. This strengthens the bond between the company and its owners. Strong cash flow also makes your business more appealing to a lender if you desire to take on new debt at some point. You also have the ability to offer favorable credit terms to attract new buyers if you are less desperate for cash.

 

 

What Are the Components of Cash Flow?

 

A Cash Flow Statement shows the sources and uses of cash and is typically divided into three components:

 

Operating cash flow, often referred to as working capital, is the cash flow generated from internal operations. It comes from sales of the product or service of your business, and because it is generated internally, it is under your control.

 

Investing cash flow is generated internally from non-operating activities. This includes investments in plant and equipment or other fixed assets, nonrecurring gains or losses, or other sources and uses of cash outside of normal operations.

 

Financing cash flow is the cash to and from external sources, such as lenders, investors and shareholders. A new loan, the repayment of a loan, the issuance of stock, and the payment of dividend are some of the activities that would be included in this section of the cash flow statement.

 

How Do I Practice Good Cash Flow Management?

 

Good cash management can be simple. The basics you need are:

 

1. Knowing when, where, and how your cash needs will occur

2. Knowing the best sources for meeting additional cash needs

3. Being prepared to meet these needs when they occur, by keeping good relationships with bankers and other creditors.

 

The starting point for good cash flow management is developing a cash flow projection. As a business owner, you must know how to develop both short-term cash flow projections to help manage daily, weekly and monthly cash needs. Annual and long-term cash flow projections will serve to help develop the necessary capital strategy to meet business needs. It is also beneficial to prepare and use historical cash flow statements in order to understand how money has been spent in the past.

 

If you have questions about cash flow management, contact Jones & Company, CPAs at 727-845-4166. We will be happy to answer any questions.

The Financial Impact of Fraud

Posted by Traci A. Malik Posted on Mar 17 2016

Source: Summary of Findings – From the 2014 Global Fraud Study (ACFE)

According to the 2014 Report to the Nation on Occupational Fraud and Abuse (copyright 2014 by the Association of Certified Fraud Examiners, Inc.), research shows that the typical organization loses 5% of its annual revenue each year due to employee fraud. Prevention and detection are crucial to reducing this loss.

 

The median loss caused by the frauds in our study was $145,000. Additionally, 22% of the cases involved losses of at least $1 million.

 

The median duration — the amount of time from when the fraud commenced until it was detected — for the fraud cases reported to us was 18 months.

 

Many cases involve more than one category of occupational fraud. Approximately 30% of the schemes in our study included two or more of the three primary forms of occupational fraud.

 

Tips are consistently and by far the most common detection method. Over 40% of all cases were detected by a tip — more than twice the rate of any other detection method. Employees accounted for nearly half of all tips that led to the discovery of fraud.

 

Organizations with hotlines were much more likely to catch fraud by a tip, which our data shows is the most effective way to detect fraud. These organizations also experienced frauds that were 41% less costly, and they detected frauds 50% more quickly.

 

The smallest organizations tend to suffer disproportionately large losses due to occupational fraud. Additionally, the specific fraud risks faced by small businesses differ from those faced by larger organizations, with certain categories of fraud being much more prominent at small entities than at their larger counterparts.

 

The higher the perpetrator’s level of authority, the greater fraud losses tend to be. Owners/executives only accounted for 19% of all cases, but they caused a median loss of $500,000. Employees, conversely, committed 42% of occupational frauds but only caused a median loss of $75,000. Managers ranked in the middle, committing 36% of frauds with a median loss of $130,000.

 

Approximately 77% of the frauds in the study were committed by individuals working in one of seven departments: These departments include accounting, operations, sales, executive/upper management, customer service, purchasing and finance.

 

It takes time and effort to recover the money stolen by perpetrators, and many organizations are never able to fully do so. At the time of our survey, 58% of the victim organizations had not recovered any of their losses due to fraud, and only 14% had made a full recovery.

 

To find out more about fraud or to schedule a private consultation, contact us at 727-845-4166.

Who Can I Claim as A Dependent?

Posted by Traci A. Malik Posted on Mar 15 2016

By Traci A. Malik, CPA CFE MAcc

https://secure.emochila.com/swserve/siteAssets/site12199/images/Dependent_238x160.jpg

This question has been around for many years. Starting in 1987, the IRS required Social Security numbers of all dependents over the age of 5 claimed on returns. That year 7 million American children disappeared from the nation's tax returns according to Snopes.com. Nowadays with matching technology and Social Security numbers getting issued upon birth, it's nearly impossible to get away with claiming a fictional dependent. Who can you claim then?

Dependent is a qualifying child

Five tests must be met for a child to be your qualifying child. The five tests are:

  • Relationship (child, siblings, grandchildren, descendants of them),
  • Age (under 19 at end of year or under 24 if full time student, or permanently and totally disabled),
  • Residency (lived with you more than half of the year unless student),
  • Support (provided more than half of the support for the year), and
  • Joint return (child can't file a joint return).

           

or a qualifying relative.

           

Four tests must be met for a person to be your qualifying relative. The four tests are:

  • Not a qualifying child test  (see above),
  • Member of household or relationship test (live with you all year or be related to you in one of the ways listed below),
  • Gross income test (person's gross income must be less than $4,000), and
  • Support test (must provide more than half person's total support during calendar year).

           

What is the member of household or relationship test?

To meet this test, a person must either:

Live with you all year as a member of your household, or

Be related to you in one of the ways listed under Relatives who don't have to live with you.

Your child, stepchild, foster child, or a descendant of any of them (for                                              example, your grandchild). (A legally adopted child is considered your child.)

Your brother, sister, half brother, half sister, stepbrother, or stepsister.

Your father, mother, grandparent, or other direct ancestor, but not foster                                         parent.

Your stepfather or stepmother.

A son or daughter of your brother or sister.

A son or daughter of your half brother or half sister.

A brother or sister of your father or mother.

Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-                                     law, or sister-in-law.

 

If you have other questions or for more information, contact our office or IRS Publication 501.

Differences Between Traditional IRA & SEP Contribution

Posted by Admin Posted on Feb 05 2016

   

by Patricia Jones CPA/ABV CFF CFE
 

It is important to save for retirement and there are several different types of retirement plans.  Today we are going to compare a traditional IRA (Individual Retirement Account) and SEP (Simplified Employee Pension) for a self-employed individual.    

      Traditional IRA                                                           
  • Maximum contribution $5,500; $6,500(50 years old & over) for 2015 & 2016
  • Contribution must be made on or before April 15, 2016 for the 2015 tax year.
      SEP (Simplified Employee Pension)
  • Maximum contribution 20% of net earnings
  • Contribution must be made on or before filing due date of tax return with extension.  For the 2015 tax year, an individual has until October 15, 2016 to make the SEP contribution.
 
In our example the self-employed individual is under the age of 50 and has no employees.  The net income for 2015 year is $50,000.  With the traditional IRA, the maximum contribution that can be made is $5,500 compared to $9,293 maximum contribution allowed for the SEP. 
 
       
  IRA   SEP IRA
Schedule C  Income              50,000                 50,000 
SE Deduction              (3,533)                (3,533)
Maximum Contribution               (5,500)                (9,293)
Adjusted Gross Income              40,967                 37,174 
Standard Deduction              (6,300)                (6,300)
Personal Exemption              (4,000)                (4,000)
Taxable income              30,667                 26,874 
       
Federal Income Tax                4,139                   3,570 
Self Employment Tax                7,065                   7,065 
       
Total tax              11,204                 10,635 
 
 
Please feel free to use the calculator tools available on our site by clicking hereIf  you have questions or would like to discuss IRAs or SEPs with one of our professionals, please contact us at 727-845-4166 or visit our website at www.jonescpas.com.

Posted by Admin Posted on Feb 05 2016

Year End Tax Planning Tips

Posted by Admin Posted on Feb 05 2016

Each year we must report to Uncle Sam whether we likei t or not. It is not enjoyable for anyone, but must be done. We put together a list of some end of the year ideas that might be able to save you some hard earned money on your taxes.

 

  1. If you itemize your deductions, pay your real estate taxes before December 31st. You have to pay them anyway, so might as well use the deduction this year.
  2. If you have already sold stock for a gain in value, consider selling some stocks you have losses in to offset the gains if you are in a higher tax bracket. But don't make the mistake of selling and then repurchasing right away as the IRS doesn't allow that loss.
  3. If you itemize your deductions, now is a great time to clean out your closets and give those old clothes to a charity. Get a receipt and itemize what you have to look up values. Or give money to your favorite charity by the end of the year. Just be sure to use a check and get a receipt. You can also give appreciated stock or mutual funds to a charity and the gain won't be taxable at all to you.
  4. If you are not at the maximum contribution amount allowed for your retirement plan, consider increasing it now. This will lessen your taxable income and put the money into your pocket and not Uncle Sam's.
  5. Consider contributing to a traditional IRA by April 15th of 2016. There are restrictions on income and if you already participate in a retirement plan.
  6. Add more to your Health Savings Account. This is a deduction from income for you.
  7. If you are a sole proprietor, partnership or S corporation, consider purchasing needed equipment by the end of the year.
  8. If you itemize or have a business, consider if you qualify for a home office deduction. The IRS has a new simplified $5 per square foot formula that allows up to a $1,500 deduction. Alleviates calculating all your home expenses and keeping track of depreciation on your home.
  9. If you are self employed, consider a Simplified Employee Pension plan, SEP. You are able to contribute up to 20% of your net income. If you have a S corporation, you can contribute up to 25% for all employees including yourself.
  10. Keep track of business miles with a log and take advantage of this simplified deduction of 57.5 cents per mile.
  11. If you itemize, you can deduct job hunting expenses for a job in the same field. This is subject to the 2% of adjusted gross income threshold.

 
There are some deductions that were not renewed and have yet to be signed into law to be in effect for the 2015 tax year. These include the sales tax deduction, mortgage insurance premium deduction, above the line deduction for qualified tuition, exclusion of income for discharge of qualified principal residence indebtedness, $250 deduction for school teachers.

 

For more information or to speak confidentially with us, contact us at www.jonescpas.com or call 727-845-4166.

Is Your Business the Next Victim of Theft?

Posted by Admin Posted on Feb 05 2016

We hear about fraud and think this could never happen to us. In the 2014 Report to the Nations on Occupational Fraud and Abuse published by the Association of Certified Fraud Examiners, Asset Misappropriation accounts for about 85.4% of fraud causing a median loss of $130,000. On average the amount of time from when fraud commenced until it is detected in the study was 18 months. 

 

Fraudulent asset misappropriation occurs many different ways by theft of cash, fraudulent disbursements, skimming, cash larceny, payroll schemes, check tampering and expense reimbursements schemes.          

 

Most small business owners are busy with scheduling, customers, employees, ordering, sales and marketing that they don't have time for  bookkeeping.  They will hire a bookkeeper, trusted friend, family member or  company to help with the task. 

 

Just a few tips that may help a business owner protect against fraud:

 

Background check. A pre-employment background check will usually provide criminal record information. 

Review bank statements.  In today's digital world, most bank statements are sent electronically.  If a bank statement is mailed, the owner should always open statement first.  Look for unusual items such as transfers to other bank accounts, large transactions and debit transactions to unknown vendors.

Bank reconciliations monthly.  Request bookkeeper provide a copy of reconciliation.  Look for unusual items such as old outstanding deposits in transits and outstanding checks. 

Online banking.  The owner should go online to review the bank account.  Most banks will provide online copies of cancelled checks. Review cancelled checks for the payee and endorsement. 

Online banking access.  Limit access capabilities for online banking.  Owners should have full access, while other users should be set up with controls and limited access.  Controls can limit access to specific bank accounts if the company has more than one account, dollar limits for daily amounts or transactions, ability to transfer between accounts, and online bill paying.

Check registers.  Many small business owners use accounting programs, such as Quickbooks. Compare the payee/vendor on checks written to the actual cancelled check with online banking.  As an example, fraudster may issue check  payable to "CASH" for $x,xxx and then cash the check. However, in the accounting program, the fraudster would change the check payee from "CASH"  to "ABC Supply Company" so it is not noticed by owner or manager.

 

If your company becomes of victim of fraud it is advisable to notify the appropriate authorities.  All too often when fraud is discovered no criminal charges are made. Owners terminate the fraudster's employment and will agree not to press charges in return for restitution.  Unfortunately, if there is no public criminal record the fraudster's next employer may be the next victim. 

 

Organizing for Personal Taxes

Posted by Admin Posted on Jan 25 2016

By Traci A. Malik, CPA CFE MAcc

 

Gathering your documents for your personal taxes can be daunting for some. When clients come into meet with us or drop off their tax documents, we tend to get asked about how to save money on tax preparation and what are the documents that we need. Hopefully, this will help serve as a guide for you.

What we need:

  • Tax documents received; 1099s, 1098s, W-2s, K-1s, etc.
  • Charity receipts for amounts getting claimed.
  • A total for medical expenses categorized by doctors, prescriptions, insurance premiums.
  • The new health insurance tax document; 1095-A, 1095-B or 1095-C.
  • Rental income and expenses summarized and categorized.
  • Self employment income and expenses summarized and categorized.
  • If deducting mileage, we need the total miles driven and the business miles driven.
  • If you are a retired public safety officer, we need to know if you receive qualified health insurance from the pension.
  • If you sold stock during the year and the cost information isn't provided on the tax document, we need the information from you as to what you paid for it and when it was purchased.
  • If you have a lot of receipts for deductions, we only need a summary to the total.
  • Dependent care information.
  • Alimony amount paid or received.

 

What we don't need or may cost you more:

  • A bag or box full of receipts that we need to total.
  • Statements during the year that do not affect taxes.
  • Your homestead exemption notification.
  • Documents or correspondence that is provided a little bit at a time.

 

If you would like a tax organizer to help with the planning of the documents needed, please feel free to contact us for one. We look forward to helping you with your taxes!