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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.

Forbes: "Only Things Not Bigger in Texas are Taxes"

The Lone Star State's lack of individual income tax has long been a large attraction for citizens. Being one of only seven states without a personal income tax, it absolutely outshines states like Hawaii, which holds a staggering income tax burden. Plus, with 52 Fortune 500 companies in the state, and 12.9 million men and women making up its workforce, Texas is keeping-- and building-- its track record for being among the most important business hubs in the nation.

Business Owners Choose to Partner with Texas and Its Booming Economy

Certainly there are dozens of things that contribute to Texas' booming economy. Two of the most significant ones? The state's tax system and the multiple tax incentives that Texas grants to businesses. Actually, the Lone Star State has some of the smallest tax burdens in the U.S.A Here's a closer look at the regulations that make Texas such a business-friendly place.

As a result of the Texas Tax Reform Commission, Texas changed out its franchise business tax in 2008 with a framework that more precisely mirrored the structure of establishments and helps the state continue to be a competitive player in the U.S. economy.

The amended margins tax replaced an old franchise business tax that was actually created at a time when the state's overall economy was driven by products rather than services. With the new law, the primary franchise business tax rate plummeted from 4.5 % to around .5 and 1 %. Additionally, an exemption is granted to companies with a profit below $1 million-- a resolution that helps 40,000 small companies in Texas.

The biggest initiative of this kind in the U.S., The Texas Enterprise Fund was formed to bring in out-of-state businesses by incentivizing job creation and capital investment. Comprising greater than $410 million, the fund extends awards ranging anywhere from $194,000 to $50 million to suitable businesses. The Texas Enterprise Fund has attracted such operations as Bank of America, Fidelity Global Brokerage, Lockheed Martin and Frito-Lay. It has also caused a large technology influx in Austin where firms like Apple, Facebook, Sematech, and Samsung have just recently set up shop.

A Perfect Business Partnership: Joe Garza Explains Why

"Texas provides a variety of tax incentives to its small companies" says Joe Garza - Tax Lawyer and Lead Partner at Garza & Harris. "Incentives are given for everything from manufacturing to contamination control to renewable energy - these incentives make Texas a solid partner for business owners operating in-state". For example, privilege from state sales and use tax on natural gas and electricity are granted to manufacturers. Furthermore, firms that take advantage of renewable energy programs, such as solar and wind power, are entitled to for a variety of tax exemptions. Permissions such as these can really add up for business owners seeking to sustain and become a prosperous business in Texas.

Thursday, March 13, 2014

Dallas Attorneys: "Millenials Need to Start Saving"

Perhaps you've just recently graduated from school; maybe you've even gotten your very first job, you could think that it's a bit soon to start worrying about saving and investing your money. That couldn’t be further from the truth. No matter how you approach at it, the sooner that start saving, the more you can expect to have later in life. And, beginning to manage your income now will surely make things far easier later in life when you are purchasing a house or planning for retirement. Becoming familiar with great financial habits can bring life-long rewards. These initial financial methods should help you secure a bit of financial footing and make an investment toward your future.

Expect the unexpected.

When you begin pondering long-term career goals, make sure you have a game plan in place that addresses your immediate situation. Particularly that should include paying off any private/government student loans you may be obligated to. With an interest rate of 5-6% or more, it’s extremely important that you take care of those loans as soon as possible—especially since government-issued loans have been said to be the hardest ones to finish paying off. Current law makes it rather hard to have your debt forgiven after bankruptcy. for bankruptcy, but one key to a fiscally secure future is to address financial struggle before life gets even more difficult. The very last thing you want is a bunch of old debt looming over your head as you're planning for a family or considering buying a home.

Even more than paying off your debt from loans, it’s necessary that you start putting away an emergency savings fund. It is a fact that in the near future, you could run into unexpected expenses. If you have to pay for major car repairs or an unexpected vehicle repairs, you will thank yourself for having put the money aside to begin with, and effectively sparing yourself from extra.

Factor in your long-term goals.

Most youngsters don't already have their whole lives figured out, you probably you've got somewhat of a notion of what your greatest priorities and interests are. If you plan to travel the world before you have any serious adult responsibilities, your saving approach will look a lot different than if your ultimate goal is to enjoy an early retirement. Imagining your professional goals can help figure out how much they need to put away every pay period. Experts insist that millennials save up to one-third of their paychecks, while others say that putting away at least 10% is a good way to start saving. Whatever amount you decide on, be sure to put away finances for whatever your professional goals are (from retiring early, to buying a car, to paying off debt) on a monthly basis so that none of your goals gets neglected.

The benefit of good saving habits is that you won’t start becoming used to a type of living that becomes too expensive. It’s definitely easier to start lean and work toward a more expensive lifestyle than it is to cut back on what you used to enjoy.

>> Bullshit Tax Shelters: Bitcoin

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Tuesday, January 21, 2014

Federal Government Opts for Online Approach to Tax Filing

Invest-Smart.org

By Dallas Lawyer Joe B. Garza

Just like other laws, laws about the IRS get more complex, and oscillate in order to (ostensibly) benefit (and disappoint) different groups of taxpayers. This year, you can expect to see a few changes to federal income tax, including adjustments for inflation, new regulations for same-sex families, and even some penalties for {not paying for health insurance either through the government or through a private insurer. One defining mark of the 2014 legislationtax season may be its delay by several weeks, something that can be attributed to the infamous government shutdown back in 2013. But, this season will also initiate the birth of a totally different style of tax change — not only the amount we pay, but in how we file.

2014's 'Improved' Federal Tax Policy

A few weeks ago, the IRS announced the release of a “newly revised comprehensive tax guide,” or, as others call it, Publication 17: a resource that aims to help people file their taxes more easily this year. Publication 17 touts greater interactivity and in-depth review of what it calls “tax-saving opportunities.” In addition to the guide's new features is material on the American Opportunity Tax Credit, affecting current college kids and their parents, and also Child Tax Credit (CTC) and Earned Income Tax Credit .

Administered by the IRS for nearly 70 years, the new version of the tax guide will still contain content on how to report income, capital gainst, IRA’s and other fundamental educational material. Still, at nearly 300 pages, it seems unlikely that many taxpayers will make the time to review Publication 17. Given the increasing complexity of Federal income tax, it's no surprise that the IRS would disclose updates to the forms on an almost daily basis.

Less Personal Interactivity

Publication 17 proves a big transition away from face-to-face help resources, and many more online tools created to assist people in getting through tax season in 2014.

Tighter IRS budgets — resulting from sequestration 2013 — mean that there are far fewer resources for face-to-face tax filing help. Rather than having human interaction, those filing taxes will be referred to a variety of online resources, including nearly 13k partnering volunteer sites, and resources on the IRS's offical website - like the IRS 'Free File' program. Even basic help requests will now be answered on the Internet or via one of the IRS' many hotlines. With such online assimilation becoming so ubiquitous, it makes sense that the government would start offering more of its material online.

More Resources Are Available on the Internet

Though many people will certainly be frustrated by less help in the form of interaction with a representative, many others will be happy to learn they can handle more tax-related problems on the web than ever. Now, taxpayers are able to look at and complete their tax forms on the web. Additionally, the IRS will also continue to post Employee Identification Numbers through IRS.gov. Finally, to avoid fielding taxpayer inquiries about the status of income tax refunds over the telephone, the IRS now handles all related questions online as well.

Thursday, January 2, 2014

Joe Garza Attorney Discusses Halliburton Supreme Court Case

Oil titan Halliburton Co just requested that the US Supreme Court revisit an important Supreme Court Case, Erica P. John Fund v. Halliburton. To be certain, The Fund is among Halliburton's shareholders. The Fund’s years-old courtroom battles with the oil company comes from the allegation that Halliburton falsely represented key info involving its shareholder activities, like overstating revenue and mitigating liabilities. Crucially, the Fund has attempted to have its action against the defense (Halliburton) as a class action lawsuit (CAL) - a form of lawsuit that is made on behalf of a certain group who have been offended by the same injury. A class action suit would allow the Fund to litigate on behalf of all Halliburton shareholders, therefore increasing the money on the table in the lawsuit.

The New York Times just published a topical analysis of the case that the Court will have to decide in the Halliburton case, should it agree to hear the case. The New York Times publication illustrates how many lawsuits like the one involving Halliburton and The Fund revolve around the concept of “reliance”, which says the litigation - or in this particular case, the shareholders behaved in reliance on the company's dishonest conduct. Supreme Court precedent has viewed reliance expansively. In order to suggest reliance, a shareholder involved in the CAL need not read a prospectus and the fraudulent statements it contains. Instead, courts consider any allegedly criminal statements made by a corporation that is also accepted by the public that affects the financial value of the corporation as being thrown into the total price of the its securities. The court justifies this view based on the basis that markets will price securities with all information that is currently available, something that is widely accepted in the study of finance. Nevertheless, even though most investors/shareholders do not thoroughly review financial records and prospectuses made publicly available by the companies in which they invest; plaintiffs involved with the CAL can still demonstrate “reliance” so long as they have purchased securities of the business. As more and more shareholders are capable of showing their reliance, these suits become easier to assemble.

In its court request to re-open the case, Halliburton has hinted that it will likely argue that the current interpretation of reliance is far too expansive. They will claim that the Court should interpret reliance as requiring shareholders to do more than merely purchase securities; for instance, requiring them to review a financial statement or fraudulent prospectus. This kind of an argument will probably receive enthusiastic backing from the business community.

As the Times article mentions, last year four members of the Court in an unrelated case stated that they were willing to overrule the conventional, nebulous meaning of “reliance.” If the Court hears the Halliburton case, the most important question will be about whether Halliburton can find a decisive fifth vote from the Court.

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