Archive for December, 2011
Six Year-End Tips to Reduce 2011 Taxes – IRS Tax Tips
Mr. CPA, What can I do before the end of the year to reduce my income taxes?
That is a great question and the IRS recently published a list of 6 tips on how to reduce your taxes. Here is their list:
Six Year-End Tips to Reduce 2011 Taxes |
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To reduce your taxable income for your business see my previous post:
Year-End Tax Moves – Take Action Now
I specialize in helping business owners and investors prepare tax returns. I also do individual tax returns and I also specialize in preparing tax returns for expatriates. Please contact me today using the contact information below to make an appointment to discuss your situation.
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
Also, Click Here to Follow My Twitter Account: Taxesforxpats
In addition here are links to a few of my articles about income taxes for expatriates:
Income Tax Returns for Expatriates
US Income Tax Help for Expatriates
Foreign Earned Income Exclusion
Are You Required to Report Foreign Bank and Financial Accounts?
Click Here to Follow My Twitter Account: Taxesforxpats
For recent US income tax content see the following links:
Year-End Tax Moves – Take Action Now
Sometimes Money Costs Too Much
Let’s Accomplish Great Things Together
Can I Use My Loss To Get Money Back From Prior Year Taxes Paid?
IRS Top Ten: Tax Tips for Individuals Who Are Moving This Summer
IRS Top Ten: Tax Tips for Individuals Selling Their Home
IRS Tax Tips: Do You Owe the IRS Money? What You Need to Know.
IRS Tax Tips: Do You Owe the IRS Money? What You Need to Know.
Does the IRS Have Money Waiting For You
Ideas: How Young People Can Become Entrepreneurs and Find a Home
IRS Top Ten: Facts about Amending Your Tax Return
Are You Ready To Get Your First Apartment/Home?
How to Succeed in Business: Pricing
Credit for Education Expenses: American Opportunity Credit – Extended Through 2012
How to Prepare Before a Disaster Strikes
IRS: Summer Day Camp Expenses May Qualify for a Tax Credit
IRS Tax Tips for Students Starting a Summer Job
IRS Tax Tips for Deducting Charitable Contributions
Tax Planning Tips
Tax Tips – Tip Income
Stratospheric Success
Are You Ready to Purchase a Home? Factors to Consider.
Foreign Earned Income Exclusion
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.
Year End Tax Moves: Take Action Now
Year End Tax Moves
Mr. CPA, What can I do to help with my tax situation for 2011?
Before the end of the year you want to look at your tax situation and make decisions and take actions to help with your taxes and your cash-flow. Hopefully your business is doing well in 2011 and you want to minimize your income taxes for the year. So first of all take a look at your income and expenses to get an idea how much profit you will have for the year. You may to add into your calculation business miles and home office expenses. If you have profits that you want to reduce to so as not to pay taxes on them for 2011 there are a few actions you can consider taking.
First, you can control when you receive and report income. So if you are working on a job or finishing a job for a client you can wait to bill them in January. If you are a cash basis taxpayer and you have already billed a client and you want that income in 2012 you can ask the client to wait to pay you until after the end of the year. That is a call they will love to receive.
Second, you can pay bills before the end of the year. As a cash basis taxpayer that wants to reduce 2011 income pay all outstanding bills before the end of the year. You may even want to prepay expenses like rent. For your personal return you can make sure you have paid your property taxes on your home. In some cases, especially where you have no or a very small mortgage balance and hence very little interest expense to deduct, then you may want to plan your property tax payments so every other year you pay two years of real estate taxes so as to be able to itemize your deductions on your tax return. How do you do this? It is simple. As an example you would pay your 2010 taxes on January 1, 2011 and then pay your 2011 taxes before December 31, 2011. By doing this you take two years of real estate taxes in one year. You can do this because the real estate taxes are deductible on your income tax return in the year you make the payment.
Now you also want to consider purchasing equipment for your business before the end of the year. If you need equipment you may be able deduct the full purchase price of the equipment this year if you purchase the equipment before the end of the year. Know that equipment you purchase using a credit card is potentially deductible when you charge it even though you do not payoff the credit card before the end of the year. So you may be able to by equipment in December that you can deduct on your income tax return for this year and with some retail credit cards not pay for it for six months or so without paying any interest. Keep in mind that your interest on your business credit card is also deductible. Finally, know that there are limits as to how much you can deduct in a year for equipment purchases. Check with your CPA or call me to discuss your situation.
Many taxpayers are not aware of these strategies. Your CPA should bring these to your attention and you should be having a year-end discussion every year. These discussions help you to get an idea or an expectation of what your taxes will be when you file your tax returns. A big tax bill is difficult enough but it is worse when you are not expecting it. So let’s have a conversation today about your situation. Feel free to use my contact information below to set an appointment for that discussion.
Know too that you may be able to reduce your taxable income by making a contribution to your retirement account. If you use an IRA you have until April 15th to make that contribution and use it to reduce your taxable income this year.
Please do not keep me as a secret. Please tell others about me and this site. I keep my practice at a manageable size so all my clients get the attention they need for their business and their personal income tax situations. I specialize in helping business owners and investors and also expatriates living out of the country. I also do individual tax returns. Please contact me today using the contact information below to make an appointment to discuss your situation.
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.
Take a look at these related posts:
Let’s Accomplish Great Things Together
How to Profit From Your CPA
A Most Valuable Resource For Entrepreneurs
Forming a New Business – Please Consult With Your CPA First
Click Here to Follow Jeff Haywood, CPA on Twitter
Also, Click Here to Follow My Twitter Account: Taxesforxpats
In addition here are links to a few of my articles about income taxes for expatriates:
Income Tax Returns for Expatriates
US Income Tax Help for Expatriates
Foreign Earned Income Exclusion
Are You Required to Report Foreign Bank and Financial Accounts?
Click Here to Follow My Twitter Account: Taxesforxpats
For recent US income tax content see the following links:
Sometimes Money Costs Too Much
Let’s Accomplish Great Things Together
Can I Use My Loss To Get Money Back From Prior Year Taxes Paid?
IRS Top Ten: Tax Tips for Individuals Who Are Moving This Summer
IRS Top Ten: Tax Tips for Individuals Selling Their Home
IRS Tax Tips: Do You Owe the IRS Money? What You Need to Know.
IRS Tax Tips: Do You Owe the IRS Money? What You Need to Know.
Does the IRS Have Money Waiting For You
Ideas: How Young People Can Become Entrepreneurs and Find a Home
IRS Top Ten: Facts about Amending Your Tax Return
Are You Ready To Get Your First Apartment/Home?
How to Succeed in Business: Pricing
Credit for Education Expenses: American Opportunity Credit – Extended Through 2012
How to Prepare Before a Disaster Strikes
IRS: Summer Day Camp Expenses May Qualify for a Tax Credit
IRS Tax Tips for Students Starting a Summer Job
IRS Tax Tips for Deducting Charitable Contributions
Tax Planning Tips
Tax Tips – Tip Income
Stratospheric Success
Are You Ready to Purchase a Home? Factors to Consider.
Foreign Earned Income Exclusion
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.
Income Tax Returns for US Expatriates
What Do I Need to Know About My US Income Taxes if I Move Out of the Country?
If you are a US Expatriate you may need to file a US Income Tax return even though you are living outside the US. Not all CPA’s are experienced with preparing tax returns and the tax provisions or reporting requirements for US Expatriates. I am amending a return right now for US Expatriates to help them benefit from the tax provisions the IRS makes available. These are tax provisions their previous CPA was not aware of. Yes, if you are US Expatriates or are planning to move outside the US you need a CPA who is experienced preparing these tax returns and reporting foreign bank accounts. I prepare these returns for many clients and would like to help you. Contact me today using the information below to schedule a time to discuss your situation.
In addition here are links to a few of my articles about income taxes for expatriates:
US Income Tax Help for Expatriates
Foreign Earned Income Exclusion
Are You Required to Report Foreign Bank and Financial Accounts?
Also, click Here to Follow My Taxes For Expats Twitter Account
Jeff Haywood, CPA
972-439-1955
jeff.jhtaxes@gmail.com
Also, take a look at these related posts:
Let’s Accomplish Great Things Together
How to Profit From Your CPA
A Most Valuable Resource For Entrepreneurs
Forming a New Business – Please Consult With Your CPA First
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
Click Here to Follow My Taxes For Expats Twitter Account
For recent US income tax content see the following links:
Can I Use My Loss To Get Money Back From Prior Year Taxes Paid?
IRS Top Ten: Tax Tips for Individuals Who Are Moving This Summer
IRS Top Ten: Tax Tips for Individuals Selling Their Home
IRS Tax Tips: Do You Owe the IRS Money? What You Need to Know.
IRS Tax Tips: Do You Owe the IRS Money? What You Need to Know.
Does the IRS Have Money Waiting For You
Ideas: How Young People Can Become Entrepreneurs and Find a Home
IRS Top Ten: Facts about Amending Your Tax Return
Are You Ready To Get Your First Apartment/Home?
How to Succeed in Business: Pricing
Credit for Education Expenses: American Opportunity Credit – Extended Through 2012
How to Prepare Before a Disaster Strikes
IRS: Summer Day Camp Expenses May Qualify for a Tax Credit
IRS Tax Tips for Students Starting a Summer Job
IRS Tax Tips for Deducting Charitable Contributions
Tax Planning Tips
Tax Tips – Tip Income
Stratospheric Success
Are You Ready to Purchase a Home? Factors to Consider.
Foreign Earned Income Exclusion
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.
Sometimes Money Costs Too Much
Is Money Your Friend?
You have heard the line from the movie “SHOW ME THE MONEY” but what has seeing the money done for you? How does money or the thought of money affect you? An honest look may surprise you. Is money your friend or does it cause you to become something you do not like. How you view money may be healthy or it may be costing you and/or will cost you big time. Everything does have a price even money and like other things sometimes money costs too much.
Try this on. What do you do to make money? Maybe a better question for you is what do you do to save money? I meet with many people each year preparing tax returns and wow, the things I have seen and heard are just incredible ranging for what appears to be not much concern about money to outright obsessions about money. Realize that how you act about money affects your relationships with others. Now ask yourself what is more important to you having money or having real friends? Another question for you is what are you willing to spend/risk to save a dollar?
The Government and Taxes:
What shows up about how you behave when it comes to saving money on the taxes you pay? I help people pay as little as legally possible but even then there is usually a trade-off between paying now and paying later. Sometimes with good planning and communication there are large sums of money to be saved in taxes legally. However, at times some want to cross the line and be dishonest to “stick it to” “the no good government” (actual terminology is not suitable for my blog). So what shows up here? People at times choose to be dishonest to pay less taxes. If you can choose to be dishonest with the government on your taxes who else do you choose to be dishonest with? Do you have any friends? Do your family members even like you? Now why are you choosing to be dishonest and risk jail time? For money? Really! What really is money but paper and coins. Have you been programmed to overvalue money and be afraid of not having enough? Really it is shocking to me that people will choose to be dishonest to save some paper and metal. Really! By being dishonest you are becoming a liar and a thief and that affects who you are in all your relationships. I am just saying…why again would you do this? Try this on > integrity, honesty and friendships > what are they worth? Believe me they are worth much more than paper and coins. In addition people are interesting while money, paper, and coins are not even living.
OK then there is the business owner who wants to spend like crazy at the end of the year so he does not owe any taxes. OK that is fine if you would buy those things anyway but what is the point. I have seen men choose to spend many dollars to save pennies on the dollar. Why? Because he does not want the government to have any of his money. So he spends money that he otherwise would not spend to save say 30% on each dollar spent. Hello, do you not want to maximize the money you have? Somewhere along the line there was training or programming that caused him to be irrational. Take a look at what you have been programmed to think about money.
Save Save Save:
I am all for saving money but at what cost? You realize that if you save $.04 a gallon on a 20 gallon tank of gas then you saved $.80, that is 80 cents? How far did you drive and how much time did you spend to save 80 cents. Do you realize if it took you 15 minutes to get to the station with the gas at $.04 less then you made the equivalent of $3.20 an hour? Would you take a job at that pay rate? Some even spend time researching where to save their $.04 a gallon while drinking an awful bitter tasting cup of something they have the nerve to call coffee for like $4.00 while you can get actual good coffee for around a dollar. Hello, why the madness to save $.04 a gallon but the willingness to pay all that money for coffee, cable tv, the latest tv set, cellphone, cigarettes, booze, lottery tickets, etc.?????
Now the time spent to save practically nothing does not even compare to the insanity of negotiating someone out of most all and sometimes all of their profit. Now it is one thing to negotiate a loaf of bread for as little as you can get for it from a stranger but what about getting the best deal on renting a house for a year from a friend? The purchase of a loaf of bread is momentary exchange (maybe) while you will have at least or at most a one year relationship with your landlord/friend. (This is just an example). So now you have this tense relationship for a year with your landlord/former friend and then he is going to stiff you out of your security deposit. Ask yourself what do you value more your relationships with people or money? I have news for you, people will provide much more spice to your life than money will. In addition, the poor guy who sold you his loaf of bread at cost probably will not lift a finger for you when he sees you get in trouble when a flash mob over takes you. Try on generosity. Not only will people like you but you will probably end up with more money and better opportunities than if you try to get the best of every negotiation. I am just saying…think about what you are choosing to be for some pieces of paper and some coins.
So you saved some money. Good for you. Did you save more than you spent and the value of your time? Did you sell your soul to save the paper and coins? Some genuine opportunities to save money exist and you should consider them. Other opportunities are like the gas versus coffee example. Think about what your relationship with money is getting you to do. In Wall Street, Money Never Sleeps money is referred to as a whore who watches you while you sleep and one day she will just be gone. There may or may not be some truth in that. Money does not make you behave a certain way. Rather you choose to behave how you want to behave. Take charge of your relationship with money and look at what you have heard or are hearing about money. You may need some different friends.
Although the product I produce are tax returns for you, what I really do that is of value is talk to you about things like money and what you really want to be and how to be it. If you want a CPA who will help you to succeed in meaningful ways then use the contact information below to contact me and let’s accomplish great things together and enjoy good friends.
Jeff Haywood, CPA
972-439-1955
jeff.jhtaxes@gmail.com
Also, take a look at these related posts:
Let’s Accomplish Great Things Together
How to Profit From Your CPA
A Most Valuable Resource For Entrepreneurs
Forming a New Business – Please Consult With Your CPA First
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
Click Here to Follow My Taxes For Expats Twitter Account
For recent US income tax content see the following links:
Can I Use My Loss To Get Money Back From Prior Year Taxes Paid?
IRS Top Ten: Tax Tips for Individuals Who Are Moving This Summer
IRS Top Ten: Tax Tips for Individuals Selling Their Home
IRS Tax Tips: Do You Owe the IRS Money? What You Need to Know.
IRS Tax Tips: Do You Owe the IRS Money? What You Need to Know.
Does the IRS Have Money Waiting For You
Ideas: How Young People Can Become Entrepreneurs and Find a Home
IRS Top Ten: Facts about Amending Your Tax Return
Are You Ready To Get Your First Apartment/Home?
How to Succeed in Business: Pricing
Credit for Education Expenses: American Opportunity Credit – Extended Through 2012
How to Prepare Before a Disaster Strikes
IRS: Summer Day Camp Expenses May Qualify for a Tax Credit
IRS Tax Tips for Students Starting a Summer Job
IRS Tax Tips for Deducting Charitable Contributions
Tax Planning Tips
Tax Tips – Tip Income
Stratospheric Success
Are You Ready to Purchase a Home? Factors to Consider.
Foreign Earned Income Exclusion
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.