Jeff Haywood, CPA

Archive for June, 2011

Four Tax Tips about Tip Income

Mr. CPA, I receive tips on my job.  Do I have to pay taxes on this income and am I required to keep track of how much I receive?  That is a good question to ask.  Let’s see how the IRS answers that question on their website:

You will want to keep track of your tip income and you are required to report it as income on your tax return.  But whether or not you are required to pay tax on it depends on your circumstances.  If you want an experienced CPA to help you with your tax return then contact me using my contact information below.

Jeff Haywood, CPA
972-439-1955
jeff.jhtaxes@gmail.com

I prepare the following types of tax returns:

Personal
Business
Estates
Trusts
Federal and State Returns

I especially enjoy discussions about you, your business, your dreams and goals.

Click Here to Follow Jeff Haywood, CPA on Twitter

For recent US income tax content see the following links:

A Most Valuable Resource for Entrepreneurs
How to Profit From Your CPA
Begin With The End In Mind
If the band you are in starts playing different tunes
Where Is It? Tax Refund
Deadline for 2010 Personal Tax Returns Moved
Now is the time to file those late tax returns for previous years
IRS: 8 Things to Know if You Receive an IRS Notice
IRS: Nine Fact on Filing an Amended Return
IRS: Eight Facts on Penalties
IRS Top Ten: Making Federal Tax Payments
Forming a New Business – Please Consult With Your CPA First
Questions After I Have Filed My Return

For a full list of prior posts see the CPA Tax Blog.

Standard Disclaimer:

As always keep in mind that the content provided on this site is general in nature and may or may not apply to your particular case. It is best to check with a tax professional about your circumstances and what is best for you personally. Also, IRS regulations and tax laws are constantly changing and the information on this site is not constantly updated. Again please check with me about your particular circumstances and what will be best in your situation at the given time and law.

Comments:

If you have a comment to share about this post or for me, please email me at jeff.jhtaxes@gmail.com.

This article was written by Jeff Haywood, CPA.
Jeff is a licensed CPA in both Texas and Illinois.
He has prepared income tax returns for the public for over 10 years.
He also has an MBA in Finance from Loyola University in Chicago and he has 24 years experience in Corporate Finance and Business Analysis.

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Stratospheric Success:

From two previous posts on profiting from your CPA and a most valuable resource for entrepreneurs you may have recognized some of the basic laws behind how I conduct my business as a CPA. To become familiar with these laws for success you need to read the Go-Giver by Bob Burg and John David Mann. Below are the 5 laws for Stratospheric Success mentioned in the book:

1. The Law of Value
Your true worth is determined by
how much more you give in value than you take in payment.

2. The Law of Compensation
Your income is determined by
how many people you serve and how well you serve them.

3. The Law of Influence
Your influence is determined by
how abundantly you place other people’s interests first.

4. The Law of Authenticity
The most valuable gift you have to offer is yourself.

5. The Law of Receptivity
The key to effective giving is to stay open to receiving.

The Law of Value: I want to give to my clients services and feedback/information that is of more value than what they pay me. The Law of Receptivity: I am open to profit from what I learn from my clients. Profit from what? Information and their experiences and sometimes referrals to others who provide quality services. I addressed the Law of Authenticity in a recent post entitled “Begin With the End in Mind.” You too will find that applying these laws in your business and your life will help you succeed in a stratospheric manner.

My best clients are open to these laws and they are or they will succeed as a result. My clients that have not yet learned these laws will hear me consistently refer to them and will be encouraged to read the book. I have been giving copies of this book to my clients as gifts for over a year now.

You should profit from your CPA. In fact I can help you profit now. Not only read The Go-Giver but follow the authors on their blog and on Twitter.

With me it is about more than preparing  tax returns for you.  I can be a valuable resource to help you succeed.  Call me today and let’s talk about you, what you are doing, and what you want to do. Use my contact information below.

Jeff Haywood, CPA
972-439-1955
jeff.jhtaxes@gmail.com

I prepare the following types of tax returns:

Personal
Business
Estates
Trusts
Federal and State Returns

I especially enjoy discussions about you, your business, your dreams and goals.

Click Here to Follow Jeff Haywood, CPA on Twitter

For recent US income tax content see the following links:

A Most Valuable Resource for Entrepreneurs
How to Profit From Your CPA
Begin With The End In Mind
If the band you are in starts playing different tunes
Where Is It? Tax Refund
Deadline for 2010 Personal Tax Returns Moved
Now is the time to file those late tax returns for previous years
IRS: 8 Things to Know if You Receive an IRS Notice
IRS: Nine Fact on Filing an Amended Return
IRS: Eight Facts on Penalties
IRS Top Ten: Making Federal Tax Payments
Forming a New Business – Please Consult With Your CPA First
Questions After I Have Filed My Return

For a full list of prior posts see the CPA Tax Blog.

Standard Disclaimer:

As always keep in mind that the content provided on this site is general in nature and may or may not apply to your particular case. It is best to check with a tax professional about your circumstances and what is best for you personally. Also, IRS regulations and tax laws are constantly changing and the information on this site is not constantly updated. Again please check with me about your particular circumstances and what will be best in your situation at the given time and law.

Comments:

If you have a comment to share about this post or for me, please email me at jeff.jhtaxes@gmail.com.

This article was written by Jeff Haywood, CPA.
Jeff is a licensed CPA in both Texas and Illinois.
He has prepared income tax returns for the public for over 10 years.
He also has an MBA in Finance from Loyola University in Chicago and he has 24 years experience in Corporate Finance and Business Analysis.

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According to news stories many people in the U.S. are letting their homes go back to their lenders.  As a result their credit has been seriously damaged and home values have fallen and may continue to fall.  So you are thinking about buying a home and you do not want to get hurt by purchasing a home before you are ready.  Are you financially and emotionally ready to purchase a home and take on the responsibilities that come with it?  Here are some factors to consider.

Buy a Home?

In the late spring and summer before school starts are the prime months for home buying but are you ready to buy a home?  Is it a good idea to buy a home?  I have owned a few and I can help you to have in mind the points to consider before deciding if you should buy a home.   It is important to consider all aspects because those who want to sell you a home or the related services do not mention everything you need to consider.  They will typically mention how you can gain equity in a home, you will get tax breaks but not as much as they would lead you to believe, and sometimes they claim you will actually spend less buying a home.  What is the truth and what else do you need to consider?

Emotions:

Most often emotion is the primary factor in deciding to purchase a home.  In fact people who sell homes and the related services try to get you emotionally in the decision to purchase a home.  However, for some emotions are also a primary reason for not buying a home.  How do you feel about the “American Dream” of owning your own home?  How do you feel about the responsibility of taking care or your own home and its costs?  As you drive around looking at homes notice how many people neglect their homes and or yards.  You do not want to be like that so you need to consider how you feel about the responsibility.  Obviously many do not want that responsibility because as you can see they neglect their home.

Costs:

How much will it cost you to own your own home?   Even Jesus recommended that you “count the cost.”  Now those in the business selling homes may want you to look at just the monthly cost you will have in the form of interest and principal in your mortgage payment.  While you want to consider those costs there are many more costs to consider.  First of all, you need to consider your monthly cost for your real estate taxes and insurance on your home.  In Texas many home buyers have been shocked in about the second year of owning a new home.  How does that happen?  When they bought the home the realtor and mortgage person figured their monthly payment including taxes and insurance based on the prior years real estate tax on that property.  Unfortunately the prior year it was just a piece of land with no home.  Surprise comes when the taxes go up based not on a $20,000 to $30,000 piece of land but now on that land plus a $200,000 to $300,000 home.  If your budget was tight with the payment they calculated for you now you may have a monthly payment you can not afford.  This is why it is good to have a CPA you can discuss these huge decisions with.

We have not finished with the costs yet but we need to discuss who does not have your best interest at heart.  Those who make money on selling you a house do not usually help you consider everything involved with buying a home.  In fact the real estate and mortgage industries have become widely considered to be dirty in the U.S.  The so called professionals in those industries were major contributors to the housing bubble and subsequent economic collapse in the U.S. and the world.  Those in this industry now are viewed in the same category as used car salesmen or just car salesmen, lawyers, and politicians.  Not every professional is dirty but the profession now has a horrible reputation.  You should be fully informed and prepared to own the home you are buying.  Clearly in the last several years many were not.

So you need to know how much your home will cost you monthly.  That includes principal and interest, taxes and insurance right?  Not so fast.  What about home owners association dues?  Additionally, the most overlooked cost is maintenance.  So what does it cost to maintain a home?  To illustrate this and the point about your best interests notice these points from a realtor, Coldwell Banker:

Many people don’t think about short-term maintenance costs when buying a home, but they should. Whether buying an older home or a newly constructed home, major home systems like furnaces or hot water heaters can break down in the months following a home’s purchase.  And typically, this kind of equipment can be costly to repair.

Often a home’s purchase price can be helpful in projecting maintenance costs. The recommendations for annual maintenance costs range from 1.5 to 4 percent of the home’s original cost. While this is not always true, especially when the purchase price of a home is three-quarters of a million dollars or more, it is a good rule of thumb for the average home buyer.

So according to their website your maintenance can be $3,000 to $8,000 a year for a $200,000 home.  That can add up to $666 a month to your cost.  However, their website goes on to include the following about a home warranty plan, which I think is a great idea:

Since most home buyers are focused on covering their down payment and closing costs – not saving for future repairs – a home warranty can provide a good back-up plan.

Most home warranties cost between $300-$600 and will cover many major home systems and built-in appliances for one full year after close. A home warranty will pay to repair or replace a covered item, allowing the homeowner to fund a small deductible rather than carry the full cost of repairs. It’s an easy way to help ensure that unexpected ‘break downs’ don’t also break a family’s budget.

While I think this is a good idea I am appalled by what they are not saying.  These maintenance costs are related to “major home systems and built-in appliances.” OK, but now when you go look at homes and you look at both new and used homes some realtors will point out that a used home is outdated.  What does that mean?  The style, paint, wallpaper, and sometimes layout of the structure is not the latest style that people are looking for.  So in addition to keeping you home functioning it needs to be updated so when the time comes you can sell it and get your money out of it.  So you could be looking at putting in new carpet or floors, painting, wallpaper, even changing the layout to keep your home up to date.  In addition you at some point will need to replace the roof and or fence or in Texas have your foundation repaired.  These things realtors often neglect to discuss with you and a mortgage person will almost never talk about.  In the last 20 years or so they have just wanted you to get into a house and did not worry about if you could afford all the costs or were prepared to deal with these costs.  You need to be prepared financially and emotionally to handle these cost over the time you will own the home.

Notice this helpful article about updating your home. The author explains ways to update your home so that you can get your money back.

Top 7 Ways to Radically Update Your Home (And Not Lose Money!!!)

While I appreciate the information about updating your home and how to do it and not lose your money, as a CPA I see something that needs to be clear to you the homeowner.  You need to be able to cash-flow or finance these updates until you sell the property and get your money out of it.  So you need to ask yourself can I afford it and do I have room in my budget for the down-payment, monthly principal and interest, insurance and taxes, utilities, lawn care, home owner’s association fees, a home warranty, and set aside money monthly for updating your home?  If you buy a new home you will probably want to set aside a little more for updates each year as the home ages.

Cost of Selling Your Home:

Finally, you need to consider what your cost will be to sell the house.  This often surprises many first time homebuyers because the realtor and mortgage person are not anxious to talk it when you are considering purchasing the house.  Typically, you as the seller will pay not only your closing costs from a legal/title standpoint but also the commission for the realtors.  In Texas the typical commission for the realtors is 6%.  So think about that cost.  If you purchase a house today for $200,000 and if you sell it in several years for $250,000 your commission cost at 6% would be $15,000.  Now how have you done on the purchase of this house.  Instead of a $50,000 profit you subtract the commissions, other closing costs, your maintenance expenses and the cost of upgrades and what do you have left?  That is not even considering what you paid in interest and taxes over the years.  So before making the biggest purchase of your life give it some serious consideration.

Tax Benefits – Not As Much As They Lead You to Believe:

Yes, you can get a break on your taxes by deducting your mortgage interest and real estate taxes for your home.  How much of a break?  Many would answer that question simply as the amount of your mortgage interest plus real estate taxes times your tax rate.  So if you had $15,000 in mortgage interest and real estate taxes and your tax rate is 20% you could save $3,000 in taxes?   Actually your itemized deductions may be even more because you can also deduct other expenses, the most common being charitable contributions.  So in this example if you also have $2,000 in charitable contributions then you would save $3,400 in taxes in theory.  Your itemized deductions would entitle you that pay that much less in tax compared to no deductions.  However, the real comparison is what you save using itemized deductions versus the standard deduction.  For example the standard deduction for a married couple under 65 years of age in 2010 was $11,400.  So if your mortgage interest, real estate taxes and charitable contributions total $17,000 then your tax savings resulting from purchasing your home was only $1,200 rather than $3,400 ($5,600 difference in itemized deductions over standard deduction times a 20% tax rate).  The point is the savings on your taxes is not as much as what most advisers claim.

Clients often ask me about deducting their cost of repairs and upgrades or additions to their homes.  The IRS does not provide a deduction for these costs in the year you incur them.  You do get to deduct these costs when you sell your home to reduce your capital gains.  However, you currently do not pay any capital gains on your homestead unless they exceed $500,000 for a married couple.  So typically there is no tax benefit from those expenses.

Decision:

Once you have a handle on the costs over the years you will own the home and your tax savings and what you think will happen to the value of the home by the time you are ready to sell it then you can compare buying a home with your other options.  You can look at renting an apartment, a house, or condominium or townhouse.  What will be the best decision will depend on you, your circumstances, and the area you live in.  The lessons learned about real estate the past few years have been hard lessons.  Remember what happened and do your homework to make a good decision.

For some analyzing the possibility of purchasing a home is overwhelming.  I would be glad to walk you through the financial part of the decision.  Call me today and let’s talk  it. Use my contact information below.

Jeff Haywood, CPA
972-439-1955
jeff.jhtaxes@gmail.com

I prepare the following types of tax returns:

Personal
Business
Estates
Trusts
Federal and State Returns

I especially enjoy discussions about you, your business, your dreams and goals.

Click Here to Follow Jeff Haywood, CPA on Twitter

For recent US income tax content see the following links:

A Most Valuable Resource for Entrepreneurs
How to Profit From Your CPA
Begin With The End In Mind
If the band you are in starts playing different tunes
Where Is It? Tax Refund
Deadline for 2010 Personal Tax Returns Moved
Now is the time to file those late tax returns for previous years
IRS: 8 Things to Know if You Receive an IRS Notice
IRS: Nine Fact on Filing an Amended Return
IRS: Eight Facts on Penalties
IRS Top Ten: Making Federal Tax Payments
Forming a New Business – Please Consult With Your CPA First
Questions After I Have Filed My Return

For a full list of prior posts see the CPA Tax Blog.

Standard Disclaimer:

As always keep in mind that the content provided on this site is general in nature and may or may not apply to your particular case. It is best to check with a tax professional about your circumstances and what is best for you personally. Also, IRS regulations and tax laws are constantly changing and the information on this site is not constantly updated. Again please check with me about your particular circumstances and what will be best in your situation at the given time and law.

Comments:

I do not manage a comments section on this blog.  If you have a comment for me, please email me at jeff.jhtaxes@gmail.com.

This article was written by Jeff Haywood, CPA.
Jeff is a licensed CPA in both Texas and Illinois.
He has prepared income tax returns for the public for over 10 years.
He also has an MBA in Finance from Loyola University in Chicago and he has 24 years experience in Corporate Finance and Business Analysis.

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Foreign Earned Income Exclusion

Mr. CPA, How does the exclusion of foreign earned income work?  Per the IRS “qualifying U.S. citizens and resident aliens who live and work abroad may be able to exclude from their income all or part of their foreign salary or wages, or amounts received as compensation for their personal services. In addition, they may also qualify to exclude or deduct certain foreign housing costs.“

Below is a post from the IRS website with more information on this subject:

This can get very complicated. I can help you with any and all of this. Feel free to contact me using my contact information below.

Click Here to Follow Jeff Haywood, CPA on Twitter

Jeff Haywood, CPA
972-439-1955
jeff.jhtaxes@gmail.com

I prepare the following types of tax returns:

Personal
Business
Estates
Trusts
Federal and State Returns

I especially enjoy discussions about you, your business, your dreams and goals.

For recent US income tax content see the following links:

June 15th Filing Deadline for Residents Living Abroad
A Most Valuable Resource for Entrepreneurs
How to Profit From Your CPA
Begin With The End In Mind
If the band you are in starts playing different tunes
Where Is It? Tax Refund
Deadline for 2010 Personal Tax Returns Moved
Now is the time to file those late tax returns for previous years
IRS: 8 Things to Know if You Receive an IRS Notice
IRS: Nine Fact on Filing an Amended Return
IRS: Eight Facts on Penalties
IRS Top Ten: Making Federal Tax Payments
Forming a New Business – Please Consult With Your CPA First
Questions After I Have Filed My Return

For a full list of prior posts see the CPA Tax Blog.

Standard Disclaimer:

As always keep in mind that the content provided on this site is general in nature and may or may not apply to your particular case. It is best to check with a tax professional about your circumstances and what is best for you personally. Also, IRS regulations and tax laws are constantly changing and the information on this site is not constantly updated. Again please check with me about your particular circumstances and what will be best in your situation at the given time and law.

Comments:

I do not manage a comments section on this blog. If you have a comment for me, please email me at jeff.jhtaxes@gmail.com.

This article was written by Jeff Haywood, CPA.
Jeff is a licensed CPA in both Texas and Illinois.
He has prepared income tax returns for the public for over 10 years.
He also has an MBA in Finance from Loyola University in Chicago and he has 24 years experience in Corporate Finance and Business Analysis.

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US Residents Living Abroad

For US residents living abroad the IRS gives you until June 15th, an automatic two month extension, to file your personal tax returns.  If you are not ready yet to file by June 15th you can also file an extension to file giving you until October 15th(17th for tax year 2010), just like residents living in the US that filed an extension in April.

Additionally, per the IRS “qualifying U.S. citizens and resident aliens who live and work abroad may be able to exclude from their income all or part of their foreign salary or wages, or amounts received as compensation for their personal services. In addition, they may also qualify to exclude or deduct certain foreign housing costs.“

For US residents living abroad the IRS provided the following information on its website:

So you will want to file by June 15 if you are a US Resident Living Abroad.  Additionally, you will want to check to see if you qualify for the foreign earned income exclusion.  This is complicated so call me for assistance using the contact information below.  Also, remember you are required to report income from all sources worldwide.  Finally, make sure you comply with the reporting requirements regarding your foreign financial accounts. I can help you with any and all of this.  Feel free to contact me using my contact information below.

Jeff Haywood, CPA
972-439-1955
jeff.jhtaxes@gmail.com

I prepare the following types of tax returns:

Click Here to Follow Jeff Haywood, CPA on Twitter

For recent US income tax content see the following links:

A Most Valuable Resource for Entrepreneurs
How to Profit From Your CPA
Begin With The End In Mind
If the band you are in starts playing different tunes
Where Is It? Tax Refund
Deadline for 2010 Personal Tax Returns Moved
Now is the time to file those late tax returns for previous years
IRS: 8 Things to Know if You Receive an IRS Notice
IRS: Nine Fact on Filing an Amended Return
IRS: Eight Facts on Penalties
IRS Top Ten: Making Federal Tax Payments
Forming a New Business – Please Consult With Your CPA First
Questions After I Have Filed My Return

For a full list of prior posts see the CPA Tax Blog.

Standard Disclaimer:

As always keep in mind that the content provided on this site is general in nature and may or may not apply to your particular case. It is best to check with a tax professional about your circumstances and what is best for you personally. Also, IRS regulations and tax laws are constantly changing and the information on this site is not constantly updated. Again please check with me about your particular circumstances and what will be best in your situation at the given time and law.

Comments:

I do not manage a comments section on this blog. If you have a comment for me, please email me at jeff.jhtaxes@gmail.com.

This article was written by Jeff Haywood, CPA.
Jeff is a licensed CPA in both Texas and Illinois.
He has prepared income tax returns for the public for over 10 years.
He also has an MBA in Finance from Loyola University in Chicago and he has 24 years experience in Corporate Finance and Business Analysis.

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Entrepreneurs:

In a previous post I addressed how you should profit from your relationship with your CPA. In this post I will address how your CPA can help you succeed as an entrepreneur.  Like you, I am an entrepreneur. I am developing a business model/brand and I am looking for the best places to invest my money. So as a CPA when I visit with clients I want to know how I can best serve them and in addition I am open to them serving me and using their experience to benefit my other clients as well without revealing confidential information. For instance, as an entrepreneur, you probably would like to know what type of businesses my wildly successful clients are in and even better what types of new businesses are proving to be successful. While protecting confidential information I will let clients know the answers to these questions and often connect clients that can profit from knowing each other.

I will share with you some developments I learned of this past year. The newest most lucrative businesses I have seen are outsourcing businesses where the owner puts together the client and the need with the person who gets the job done and fills the need. These are highly profitable and low overhead businesses. For example, I had a client whose college student son made big adult money while in college selling a product at the mall. He learned of a business that purchases these same products but after they have been used.  Now this same son started a business buying used products and reselling them to his contact. The dad took an early retirement from Corporation Dinosaur and now he works the business for his son.

Here is the kicker. For my clients I am planning an entrepreneurs networking event at a clients restaurant. I am inviting the entrepreneurs that started these businesses to attend to share ideas and create new opportunities.  Like you, many of my clients are entrepreneurs looking for new ideas to invest in.  My client that owns the restaurant, for example, is eager to meet these entrepreneurs and any others with ideas because he, like you, is interested in new business ventures. Also, all these clients will bring friends and contacts that are entrepreneurs to share ideas and see what they can create together.  Oh, and they will get a meal out of it and my client with the restaurant will get exposure as well.

In this case a CPA can be a connector or networker who gives people an opportunity to connect and create new businesses.  The result will be creative stimulation and fulfillment from giving to others and creating opportunities and connections that will profit entrepreneurs for some time to come.  It is more about the relationships that can be formed than the ideas that can results in new businesses.  Your CPA should connect you with people that can enhance your life, your business, and your future.  For a CPA who does this contact me today using my contact information below.

Also, please come back next week to benefit from a post on “stratospheric success.”

Jeff Haywood, CPA
972-439-1955
jeff.jhtaxes@gmail.com

I prepare the following types of tax returns:

Personal
Business
Estates
Trusts
Federal and State Returns

I especially enjoy discussions about you, your business, your dreams and goals.

Click Here to Follow Jeff Haywood, CPA on Twitter

For recent US income tax content see the following links:

How to Profit From Your CPA
Begin With The End In Mind
If the band you are in starts playing different tunes
Where Is It? Tax Refund
Deadline for 2010 Personal Tax Returns Moved
Now is the time to file those late tax returns for previous years
IRS: 8 Things to Know if You Receive an IRS Notice
IRS: Nine Fact on Filing an Amended Return
IRS: Eight Facts on Penalties
IRS Top Ten: Making Federal Tax Payments
Forming a New Business – Please Consult With Your CPA First
Questions After I Have Filed My Return

For a full list of prior posts see the CPA Tax Blog.

Standard Disclaimer:

As always keep in mind that the content provided on this site is general in nature and may or may not apply to your particular case. It is best to check with a tax professional about your circumstances and what is best for you personally. Also, IRS regulations and tax laws are constantly changing and the information on this site is not constantly updated. Again please check with me about your particular circumstances and what will be best in your situation at the given time and law.

This article was written by Jeff Haywood, CPA.
Jeff is a licensed CPA in both Texas and Illinois.
He has prepared income tax returns for the public for over 10 years.
He also has an MBA in Finance from Loyola University in Chicago and he has 24 years experience in Corporate Finance and Business Analysis.

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How to Get Your Prior Year Information From the IRS

The IRS has published the following tips for you regarding obtaining your prior year information.  Below is a copy of what the IRS has published on their website:

For help from an experienced CPA in preparing your tax returns for this year and or prior years or for help with IRS issues contact me using my contact information below.

Jeff Haywood, CPA
972-439-1955
jeff.jhtaxes@gmail.com

I prepare the following types of tax returns:

Personal
Business
Estates
Trusts
Federal and State Returns

Click Here to Follow Jeff Haywood, CPA on Twitter

Also, I am available for tax planning and discussions about business, retirement planning and life goals.

For recent US income tax content see the following links:

Begin With The End In Mind
If the band you are in starts playing different tunes
Where Is It? Tax Refund
Deadline for 2010 Personal Tax Returns Moved
Now is the time to file those late tax returns for previous years
IRS: 8 Things to Know if You Receive an IRS Notice
IRS: Nine Fact on Filing an Amended Return
IRS: Eight Facts on Penalties
IRS Top Ten: Making Federal Tax Payments
Forming a New Business – Please Consult With Your CPA First
Questions After I Have Filed My Return

For a full list of prior posts see the CPA Tax Blog.

Standard Disclaimer:

As always keep in mind that the content provided on this site is general in nature and may or may not apply to your particular case. It is best to check with a tax professional about your circumstances and what is best for you personally. Also, IRS regulations and tax laws are constantly changing and the information on this site is not constantly updated. Again please check with me about your particular circumstances and what will be best in your situation at the given time and law.

This article was written by Jeff Haywood, CPA.
Jeff is a licensed CPA in both Texas and Illinois.
He has prepared income tax returns for the public for over 10 years.
He also has an MBA in Finance from Loyola University in Chicago and he has 24 years experience in Corporate Finance and Business Analysis.

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Profit From Your CPA:

You should profit from your CPA.  How so?  You should profit from what your CPAs knows and from their experience in business to get the most return for your investment.  Most likely it will result in more money in your pocket.  What you pay your CPA should not be just an expense but it should be part of your investment in your business(es) that you profit from.

My most successful clients use me as  resource to profit from.  Here is a secret for you.  The clients that want to use me as a resource for success I spend more time with and charge them less per hour than I do other clients.  Why do they pay less?  Because I enjoy talking to them because they are driven to make things happen and they are more exciting and fun.  I can see where these clients are going and it will result in more profits for me in the long run.  Profits not only monetarily but also from fulfillment and positive energy for me and my business.

Think about what you want from a CPA.  Do you only want your taxes, books, financials, payroll etc.?  Then you may get what you pay for.  But if you want insight and positive energy then you are open to receiving more than what you pay for.

Think about who your CPA is and what he has seen.  In the last year he should have talked to hundreds of clients about situations and what they are doing.  A good CPA will want to know where his clients are going and how he can help.  So a good CPA has talked to many more people just like you and like your competitors and suppliers and employees.  What does he know that you can profit from?  Talk about a barometer for the economy and people’s viewpoint, your CPA has a front row seat everyday to what is going on.  He is a tremendous resource regarding trends and developments that you can and should profit from.

Finally, a CPA is in a position of influence.  He knows people that can help you or that can use your products or services.  So he is an outstanding referral source.  In addition he can be a connector, connecting people who together can create and makes things happen.  I am just saying, your CPA should be providing more for you than just tax returns, financial statements and payroll.

If you are not getting that from your CPA you need to call me today and let’s talk.  Your CPA should be one of your most valuable resources.  You need to be getting more benefit from your CPA than the value of the money you pay him.  That does not come from getting him to reduce his cost it comes from your CPA giving you what he knows which creates opportunities for you.

Call me today and let’s talk about you, what you are doing, and what you want to do.  Use my contact information below.

In addition please visit again for a coming related posts on “a most valuable resource for entrepreneurs” and “stratospheric success.”

Jeff Haywood, CPA
972-439-1955
jeff.jhtaxes@gmail.com

I prepare the following types of tax returns:

Personal
Business
Estates
Trusts
Federal and State Returns

I especially enjoy discussions about you, your business, your dreams and goals.

Click Here to Follow Jeff Haywood, CPA on Twitter

For recent US income tax content see the following links:

A Most Valuable Resource for Entrepreneurs
How to Profit From Your CPA
Begin With The End In Mind
If the band you are in starts playing different tunes
Where Is It? Tax Refund
Deadline for 2010 Personal Tax Returns Moved
Now is the time to file those late tax returns for previous years
IRS: 8 Things to Know if You Receive an IRS Notice
IRS: Nine Fact on Filing an Amended Return
IRS: Eight Facts on Penalties
IRS Top Ten: Making Federal Tax Payments
Forming a New Business – Please Consult With Your CPA First
Questions After I Have Filed My Return

For a full list of prior posts see the CPA Tax Blog.

Standard Disclaimer:

As always keep in mind that the content provided on this site is general in nature and may or may not apply to your particular case. It is best to check with a tax professional about your circumstances and what is best for you personally. Also, IRS regulations and tax laws are constantly changing and the information on this site is not constantly updated. Again please check with me about your particular circumstances and what will be best in your situation at the given time and law.

Comments:

If you have a comment to share about this post or for me, please email me at jeff.jhtaxes@gmail.com.

This article was written by Jeff Haywood, CPA.
Jeff is a licensed CPA in both Texas and Illinois.
He has prepared income tax returns for the public for over 10 years.
He also has an MBA in Finance from Loyola University in Chicago and he has 24 years experience in Corporate Finance and Business Analysis.

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Can I receive a tax refund if I am currently in a payment plan for prior year’s federal taxes?

That is a great question and knowing the answer can save you some frustration.  The Bible says “Expectation postponed is making the heart sick”.  So you could be getting frustrated waiting for a refund that will not come to you.  Notice what the IRS says about this question on its website:

Typically I get asked if there is anyway around this so you can get your refund.  I have not seen the IRS make an exception and give someone a refund rather than apply it to the amount due from prior years.

Click Here to Follow Jeff Haywood, CPA on Twitter

For my assistance to prepare your tax returns or help you with a issue with the IRS contact me using my contact information below.

Jeff Haywood, CPA
972-439-1955
jeff.jhtaxes@gmail.com

I prepare the following types of tax returns:

Personal
Business
Estates
Trusts
Federal and State Returns

Also, I am available for tax planning and discussions about business, retirement planning and life goals.

For recent US income tax content see the following links:

Begin With The End In Mind
If the band you are in starts playing different tunes
Where Is It? Tax Refund
Deadline for 2010 Personal Tax Returns Moved
Now is the time to file those late tax returns for previous years
IRS: 8 Things to Know if You Receive an IRS Notice
IRS: Nine Fact on Filing an Amended Return
IRS: Eight Facts on Penalties
IRS Top Ten: Making Federal Tax Payments
Forming a New Business – Please Consult With Your CPA First
Questions After I Have Filed My Return

For a full list of prior posts see the CPA Tax Blog.

Standard Disclaimer:

As always keep in mind that the content provided on this site is general in nature and may or may not apply to your particular case. It is best to check with a tax professional about your circumstances and what is best for you personally. Also, IRS regulations and tax laws are constantly changing and the information on this site is not constantly updated. Again please check with me about your particular circumstances and what will be best in your situation at the given time and law.

This article was written by Jeff Haywood, CPA.
Jeff is a licensed CPA in both Texas and Illinois.
He has prepared income tax returns for the public for over 10 years.
He also has an MBA in Finance from Loyola University in Chicago and he has 24 years experience in Corporate Finance and Business Analysis.

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Where are you and where are you going?

We should wonder; am I living life or is life living me?  Very clearly this is about control, control of your own life.  So we may think: of course I am in control of my life.  But if we clearly do not know how we got where we are and where we are going and also how we are going to get there then life is living us and we need to take control of our lives.  So let’s take control and keep that control.  How do you do that?  One secret is to “begin with the end in mind,” Stephen Covey’s second habit in his book The 7 Habits of Highly Effective People. On the Stephen Covey website it says:

“Begin with the End in Mind means to begin each day, task, or project with a clear vision of your desired direction and destination, and then continue by flexing your proactive muscles to make things happen.”

So for the client I met with this morning it meant that we discussed how his different business locations have done and what “end” he wants for the coming period and the need to communicate that with his staff.  He is now equipped to communicate the expectation for the coming period and empower his staff with a way to make it happen.  We will do this regularly so proactive activities can be undertaken to get to the “end” he wants rather than letting the wind of life dictate his “end.”

Now make sure you understand the “end” is not only the next period but also the next year, the next few years and the rest of his life.  One “end in mind” for this client is to spend more time in his favorite location scuba diving and then while he is there he will not be happy unless he has a business to run. He now sees an “end” where he can run his business in the US virtually from his favorite location.  How did he develop in his mind this “end?”  Well he is open to creating his own life rather than taking what life deals him.  Also, he surrounds himself with people that are creative givers.

Empowered to Succeed By Giving of Your True Self

OK, here we go with another book.  Well not just another book but the best book on business and life that I have read in the past 30 years, except of course for the Bible.  That book is The Go-Giver by Bob Burg and John David Mann.  This is truly a liberating book that will help you to see the need to give yourself and success will result.  Not the self you have been told to be but who you really are.  No more trying to be something you are not because you read in a book or heard at a seminar that you need to be something else to close a deal with a certain technique.  After reading this book you will be excited about what you can accomplish by applying what you read.

In order to surround yourself with creative givers you must first be a creative giver yourself.  My client is just that and he is open to receiving as well as giving, a principle from The Go-Giver.  My client listened to the eBook and created the opportunity for him to be a connector and he thinks his CPA is a connector also.  In addition he saw how his CPA, who is far from retirement, realized an “end” by moving to Acapulco.  My client was skeptical about how I would be able to work from Acapulco but he has seen over the last year that we still meet regularly and even do so face to face using available technology.  We are even planning a software conversion on his wife’s business computer with me assisting from Mexico.   Now he is not only OK with his CPA being in Mexico but he brags about it to his connections.  Last week I spoke to his financial adviser who was amazed I can do this.  In reality he could do it too if he created it as an “end in mind.”  But let’s make sure this is clear.  It is not just the available technology it is the state of mind that makes living life possible.

If you want a CPA that “begins with the end in mind” and who will be a creative influence in your life then contact me using my contact information below.  Let’s work together to make your “end(s)” happen.

Click Here to Follow Jeff Haywood, CPA on Twitter

Jeff Haywood, CPA
972-439-1955
jeff.jhtaxes@gmail.com

I prepare the following types of tax returns:

Personal
Business
Estates
Trusts
Federal and State Returns

Also, I am available for tax planning and discussions about business, retirement planning and life goals.

For recent US income tax content see the following links:

If the band you are in starts playing different tunes
Where Is It? Tax Refund
Deadline for 2010 Personal Tax Returns Moved
Now is the time to file those late tax returns for previous years
IRS: 8 Things to Know if You Receive an IRS Notice
IRS: Nine Fact on Filing an Amended Return
IRS: Eight Facts on Penalties
IRS Top Ten: Making Federal Tax Payments
Forming a New Business – Please Consult With Your CPA First
Questions After I Have Filed My Return

For a full list of prior posts see the CPA Tax Blog.

Standard Disclaimer:

As always keep in mind that the content provided on this site is general in nature and may or may not apply to your particular case. It is best to check with a tax professional about your circumstances and what is best for you personally. Also, IRS regulations and tax laws are constantly changing and the information on this site is not constantly updated. Again please check with me about your particular circumstances and what will be best in your situation at the given time and law.

This article was written by Jeff Haywood, CPA.
Jeff is a licensed CPA in both Texas and Illinois.
He has prepared income tax returns for the public for over 10 years.
He also has an MBA in Finance from Loyola University in Chicago and he has 24 years experience in Corporate Finance and Business Analysis.

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