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Wednesday, July 23, 2014

Planning Your Taxes Before the End of the Year

It is more than half way done with 2014: Exactly where does your business stand in regards to tax bills?



Recently, a customer of mine got a curveball when I wrapped up his tax return and disclosed he owed a load of money to the IRS. His very first reflex was to get upset at the messenger. Nevertheless, after careful thought, he said," I guess, I really should have gone to visit your business in 2013 when my business blew up the way it did. I recognized I was certainly getting a whole lot more sales".

He's absolutely correct. When there is a considerable alteration to your business's income (in either red or black), it's time for a visit to your tax attorney. In fact, any individual that runs a business ought to make use of the mid-year off season to set an appointment with with a tax planner to go over their financial documents and potential tax liabilities.

It's definitely less complicated to devise and put a strategy ready now than to run around at tax season upending pails of water on all the little infernos that have been festering all year. Here are a few ideas to explore with your tax pro to improve your tax situation, reducing your liability and with any luck keep operating cash in your current account as opposed to in Uncle Sam's purse:.

Begin a retirement program .

If you're eventually a couple of bucks ahead and don't use a retirement fund, today's the moment to start one. Here's the bonus: it's a write-off!

Talk to a bona fide financial advisor or a banker from your financial institution to identify whatkind of strategy best suits your demands.

There are a large range of vehicles from Individual 401(k) plans to SEP IRAs to SIMPLE plans that may or may not require you to include staff members in the plan.

If a plan of action involves team involvement, do not automatically dismiss it.

Starting a retirement for your workers could be a significant technique to award raises which really don't entail the additional costs of company paid payroll tax obligations. Read Internal Revenue Service Issue 560 to learn more.

Examine your legal structure.

Make the effort to review if your company is working efficiently in its existing entity framework. Your company could have started out as a sole proprietorship and may have grown out of it. It is specifically crucial to assess entity framework if your business enterprise is now making over $100,000 annually.

Keep in mind that if your business incorporate, you will certainly now be obligated to move dollars from the business via payroll as opposed to straightforward draws.

There is a lot more paperwork required under this status, but the tax benefits and safety that a corporation provides may well turn out to be even more helpful. Consistently discuss these choices with your tax lawyer and tax professional before deciding.

Provide employee benefits

. Workers are our most beneficial business resource and ought to be handled appropriately. There are plenty of employee benefits which are not taxable to both the worker or business. Look at IRS Brochure 15-B, Guide to Fringe Perks for more details about this topic. You will certainly save revenue in payroll taxes whilst you build a more pleased working environment for your people.

Buy furnishings and hardware.

The Internal Revenue Service has always rewarded outlays for resources properties by providing the 179 Deduction. This unique reduction permits the prompt expensing of capital assets rather than reducing them over their useful lives. Be advised even so. This year, the starting point for purchases decreased from $500,000 to $25,000. However, Congress will be reviewing expanding that threshold most likely at some point in the course of fourth quarter. You can start setting extra money aside for the buyings now.

Perform projections.

Take a very good look at your business reports. Run a profit and loss and compare it to the earlier year earnings and decline through June 30. Are there significant changes? Are you preparing for an increase or decrease in revenues and/or expenditures by the end of the year? It's a simple thing to export your information from QuickBooks in to Excel where you will be able to tweak the figures to find out just what your yearend income will likely be. Give that data with your tax professional to learn if you should change your estimated tax payments as required.

Tuesday, July 15, 2014

Winklevoss Brothers Announce Ticker Title for New Start-up

Earlier this month, Silicon Valley tycoons, The Winklevoss twins announced the trading symbol for their cutting-edge bitcoin ETF (exchange traded fund). The bitcoin mutual fund will be launched under the mark 'COIN'.

The cryptocurrency caught the twins' eyes more than a year back as the worth of the coins skyrocketed. They divulged with plans to purchase the popular online currency July 1, 2013. Since then, more details has been released regarding what it was turning into. In May, the brothers, divulged that they were taking the Winklevoss Bitcoin trust (their Bitcoin ETF) to the stock exchange. They consider the value of Bitcoin can increase tremendously with a legitimate visibility on the exchange. On July 15, 1 Bitcoin was worth $621.45, a significant investment opportunity if what the Winklevosses say is true. This amount has been progressively growing since the statement of the fund.

'COIN' is still delayed in government regulation and there is no crystal clear or formal publicized date for the fund to go public, even though many experts are guessing that (based on government approval) the fund may be trading before the end of the year.

It is an exciting moment for the digital marketplace, but maybe what is most remarkable about bitcoin particularly is the way in which it is increasing into the real world.

Read more about this story at the New York Times and at coindesk.

Tuesday, July 8, 2014

Joe Garza of Dallas Talks Wealth Retention Through Proper Tax Planning

It's never prematurely to begin tax planning.

For many, tax day is with any luck a remote memory. However, for business owners, it's never ever prematurely to start planning for next year. And while most businesses try to benefit from every permitted write-off, several don't know that an excellent portion of their advertising costs are tax deductible.

As a matter of fact, according to a recent survey of business owners at Inside99Designs. com, greater than a quarter (27 percent) aren't even mindful that the Internal Revenue Service permits them to take off (" write off ") specific advertising and marketing costs on their tax returns. And out of the 73 percent that do know about the write-offs, only 57% indicated that they'll be cashing in on them in the near future.

The questionnaire, performed among 211 U.S.-based small business proprietors, suggested that 64 percent of entreprenuers claim they are composing off roughly the same quantity this year as on their previous return, while just 22 percent are deducting a lot more.

And when asked just what solitary marketing stations they 'd use cash toward if they were to receive a tax refund, the questionnaire said:

33 percent would certainly invest it on their website.
17 percent on internet marketing.
17 percent on a mobile application.
10 percent on a print ad campaign.
8 percent on social media sites marketing.

Lastly, when asked if they considered the cash they invested in 2013 on advertising and marketing tasks were a good investment or not, 70 percent said yes, 23 percent claimed they just weren't sure, and 7 percent claimed no.

Simply to clarify, I'm by no means a tax professional. However, based upon the lookings for from this survey, I could produce a basic verdict that many small business proprietors need to be speaking with their tax professionals and reviewing possible tax deductible advertising expenditures. However as a small company proprietor, I discover I'm in great business with those that are spending dollars back into their advertising and marketing approaches in an effort to expand and preserve a healthy customer base.

Wednesday, July 2, 2014

What is the difference between a tax shelter and a tax plan? Joe Garza explains.

While the term "tax planning" is frequently used to describe the process, it is not necessarily well understood. Below is what tax planning really means. Remember, these methodologies aren’t just tax shelters, they’re legitimate planning and preparation methods to secure wealth.

Tax planning is the craft of setting up your responsibilities in ways that table or avoid taxes. By employing beneficial tax planning concepts, you can have more money to save and invest or more income to spend. Or both.Your choice.

Put differently, tax planning means postponing and flat out eliminating taxes by taking advantage of positive tax-law regulations, enhancing and accelerating tax deductions and tax credits, and generally making best use of all applicable breaks obtainable under our beloved Internal Revenue Code.

While the federal income tax laws are now more complicated than ever, the benefits of good tax planning are arguably more valuable than ever before.

Certainly, you should not change your financial habits exclusively to eliminate taxes. Truly effective tax planning methods arethose that let you to do what you want while minimizing tax bills along the way.

How are tax planning and financial planning connected?

Financial planning is the art of employing strategies that help you achieve your fiscal objectives, be they short-term or long-term. That sounds quite very easy. Nevertheless, if the actual accomplishment was easy, there would be a lot more rich folks.

Tax planning and financial planning are closely related, considering that taxes are such a huge expenditure item as you pass through life. If you become really successful, taxes will most likely be your single biggest expense over the long haul. So preparing to minimize taxes is a extremely essential portion of the comprehensive budgetary preparation system.

A Final Word

There are myriad other ways to make expensive tax oversights. Similar to offering appreciated securities prematurely when holding on for just a bit longer may have led to lower-taxed long-term capital gains instead of high-taxed short-term gains; accessing withdrawals from retirement accounts before age 59 1/2 and getting stuck with the awful 10 % premature withdrawal penalty tax; or failing to make payments to an ex-spouse in order to qualify as deductible alimony; the list continues.

The treatment is to prepare for purchases with taxes in mind and refrain from making impulsive moves. Seeking professional tax guidance before pulling the trigger on major transactions is typically a decent investment. As we near the end of the year, some of posts will involve tax planning solutions that many folks can gain insight from.

Friday, April 18, 2014

Joe Garza: "Small Businesses Want to Partner with Texas"

Texas' lack of professional income tax has certainly been a huge plus for new prospective citizens. As one of only 7 states without any a personal income tax, it surely surpasses states like New York, which possesses a shocking income tax burden. Also, with 52 Fortune 500 companies in the state, and 12.9 million individuals constituting its labor force, Texas is preserving-- and growing-- its own track record for being among the most critical business hubs in the nation.

Certainly there are lots of things that contribute to Texas' booming economic condition. Two of the most significant ones? The state's tax system and the multiple tax incentives that Texas offers to businesses. As a matter of fact, the Lone Star State has some of the most affordable tax burdens in the U.S.A Here's a closer look at the policies that make Texas such a business-friendly place.

Because of the Texas Tax Reform Commission, Texas switched out its franchise tax in 2008 with a design that more accurately matched the structure of small companies and helps the state remain a tough player in the U.S. economy.

The amended margins tax replaced an archaic business tax that was really developed at a period when the state's economy was driven by products rather than services. With the latest law, the main franchise tax rate declined from 4.5 % to between .5 and 1 %. Further, an exemption is given to local business with a profit below $1 million-- a decision that helps 40,000 local business in Texas.

The biggest initiative of this kind in the U.S., The Texas Enterprise Fund was developed to draw in out-of-state companies by incentivizing job creation and capital investment. Comprising greater than $410 million, the fund provides awards ranging anywhere from $194,000 to $50 million to qualified companies. The Texas Enterprise Fund has drawn in such organizations as Bank of America, Fidelity Global Brokerage, Lockheed Martin and Frito-Lay. It has also contributed to a large tech influx in Austin where firms like Apple, Facebook, Sematech, and Samsung have recently set up shop.

"Texas offers a diversity of tax incentives to its businesses" says Joe Garza - Tax Planning Lawyer and Lead Partner at Garza & Harris. "Incentives are offered for everything from manufacturing to air pollution control to renewable energy - these incentives make Texas a rock-solid partner for business owners operating in-state". For instance, exemption from state sales and use tax on natural gas and electricity are provided to manufacturers. Likewise, companies that utilize renewable energy programs, such as solar and wind power, are qualified for a number of tax exemptions. Permissions like these can seriously add up for business owners striving to sustain and expand a prosperous company in Texas.