Entrepreneur Tax Tip III: 5 Quick Tips to Get Ready Now!
Entrepreneur Tax Tip III: 5 Quick Tips to Get Ready Now!
You may be confused as to why this post is coming out now that the tax deadline has passed. To that, we answer, 2013’s has passed, yes. But 2014’s is on its way!
That’s why we’re going to give 5 quick tips, adopted from Amrik Andhawa, Entrepreneur columnist, to help next tax season go easier (full article here).
1. Get organized
Amrik, entrepreneur and product developer himself, suggests having standardized formatting for invoices and other legal documents as well as designating a good place to keep necessary documents, more than just a shoebox or plastic bag.
2. Get reconciled
This will save a lot of headache come year end and truthfully, it’s just good business practice for cash flow planning!
3. Review quarterly payments
Amrik suggests, “This exercise can help you get budget for what you might owe or what sort of refund you might get, and it gives your accountant some useful benchmarks when it’s time to prep returns.” This will help eliminate that unpleasant surprise of owing much more tax money than expected.
4. Keep track of legal paperwork
Specifically, keep good track of the W9’s. This can get messy when needing to issue year end 1099’s to contracted work over $600. This ties into number 1, but hey, it’s important, so we can reiterate.
5. Consistently keep books
Keeping books, like keeping reconciled is important not only to your business decision making but for making tax season easier. The more prepared you are for your accountant/tax preparer, the smoother the process will go.
Can you imagine a stress free tax season? Well, here are 5 small tips to making everything much more manageable. Then, while competition is bogged down doing paperwork, you’re out making sales.
We’re here to help, so please don’t forget to include your tax professionals here at GQLaw. Good luck!
What is Probate?
What is Probate?
Probate is a term that is used in several different ways. Probate can refer to the act of presenting a will to a court officer for filing — such as, to “probate” a will. But in a more general sense, probate refers to the method by which your estate is administered and processed through the legal system after you die.
Many people think that “Probate” only applies to those who do not have a will. This is incorrect. Probate is the process that helps transfer your estate in an orderly and supervised way. There is a big difference, however, in how the probate process works depending on whether or not you have a complete and valid Will. If you have a valid Will, this process is pretty painless and easy for those you leave behind. Without a valid or complete will the laws where you live will determine who gets what, or in other terms- your assets are tied up in an ugly, oftentimes long court battle.
Losing a loved one is a sad and difficult time for family, relatives, and friends. In addition, those left behind must often figure out how to transfer or inherit property from the person who has died.
To do this, you must usually go to court. And dealing with the courts and the property of someone who has died is very complicated. Sometimes, however, family or relatives may be able to transfer property from someone who has died without going to court. But it is not always easy to tell whether you need to go to court or qualify to use a different procedure…we still encourage you to talk to a lawyer to get specific answers about your situation. You can usually pay the lawyer’s fees from the property in the case.
California Courts official website
With or without a Will and complete Estate Plan, the Probate process is a bit complicated. We are here to help! We here at GQ Law have been helping people through the Probate process- whether your deceased loved one had a Will or not, since 1989. Please contact out office today to set up a FREE initial consultation to talk about your particular situation.
Let the experts at GQ Law walk you through this complex process.
GQ Law 858-549-8600. We are here for you.
Baby Boomer Retirement Mistakes: No Estate Plan
Retirement Mistakes: No Estate Plan
According to a recent USA Today article, many baby boomers are forgetting an essential part of their retirement plans- creating an estate plan.
Nobody wants to think about death and what all will happen once you go but death without an estate plan can be even worse for those left to deal with your estate. For most people, estate planning is on the bottom end of the priority list but according to wealth and financial advisors, it should be on the top. Estate planning and financial planning go hand in hand.
“There are three important considerations when you sit down to begin your will and estate plan: your property and financial assets; your children (less of an issue for retirees with grown children); and medical decisions.” Ralph Levy, attorney with Dickinson Wright PLLC in Nashville as quoted in USA Today
Baby Boomers are advised to have two sets of eyes on every major financial document — a financial planner and an estate-planning lawyer.
We at GQ Law have been helping people take care of their estates since 1989. We’d love to look over any financial or estate planning documents you already have drawn up or to help you get some started.
Although most associate estate planning with what will happen after you die, estate planning also comes into play in cases of severe illness. With a Healthcare Proxy, Living Will and Power of Attorney (all estate planning legal documents we can help you set up in our office) you can make sure your wishes are granted, even if you aren’t able to make them known due to health issues.
“It isn’t just what happens after you’re gone,” says Bernie Kent at Schechter Investment Advisors in Birmingham, Mich. “It also involves protecting yourself during your lifetime. A medical power of attorney is crucial if you are unable to make medical decisions for yourself. For Baby Boomers these things are just the right thing to do for their families.” USA Today
All in all, an estate plan is an essential part of a solid retirement plan. With retirement just around the corner for many Baby Boomers, there is no better time than now to get your estate plan in order. Call our office today to set up your free initial consultation or request an appointment online.
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This article is for informational purposes only and is not legal advise. Please make an appointment with our office so we can advise you about your particular situation.
5 Reasons To Spend Your Tax Refund on an Estate Plan
5 Reasons To Spend Your Tax Refund on an Estate Plan
With Tax season almost coming to a close, many of us are getting the happy news that our tax return refunds have hit our bank accounts. Deciding what to do with that extra money is the next big step.
Many people simply spend it on things they’ve been wanting but couldn’t afford previously- new TVs, upgraded electronics, taking the kids on a fun trip. Others put the money away in savings or invest it.
We at GQ Law recommend that (more…)
Tax Day Freebies 2015
Tax Day Freebies 2015
Happy April! Here is our list of some awesome tax day freebies. And trust us, this is no April fools, they’re all real deals!
Here is our list of free or discounted things you can take advantage of on or around tax day April 15th. (more…)
IRS Cannot Take Your Call: Tax Season 2015
IRS Cannot Take Your Call
Earlier this year we posted a warning about the bad tax season to come (see “Warning: Miserable 2015 Tax Season is Here”) about how busy the IRS was forecasted to be and how they’d likely only be answering 50% of call. I think that 50% may have been a little too generous. Read on to see what percentage of my calls they’ve answered this tax season.
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Entrepreneur Tax Tip II: Meals
Entrepreneur Tax Tip II: Meals
Meals can be a complicated deduction so we’re going to provide you with 5 tips for doing it right from small business expert, Barbara Weltman (see full article here).
- Only 50 percent is deductible
“To be treated as a deductible cost at 50 percent, the meal must be directly related to the conduct of your business or the meal must directly precede or follow a substantial business discussion. For example, you’re trying to convince a prospect to do business with you in a meeting in your office. Following your presentation, you take the prospect to lunch. This would be a deductible business meal, subject to the 50 percent limit.”
- No deduction for your in-town lunch
“As long as you aren’t ‘away from home’ (in tax parlance this means out of town), your meal costs when eating alone are not deductible in any amount. If you are out of town, your meal costs — eating alone or with others on business — are subject to the percentage limitation discussed earlier.”
- Records are required
“The IRS looks closely at deductions for meal costs because of the potential for abuse and, if your return is questioned, will ask to see required records:
- “A record stating when, where, and why you had the meal. For example, the record could indicate that on November 25, 2013, you had lunch with Ms. Davis, a customer, and you discussed a new project that you’re working on for Ms. Davis.”
- “Receipts for expenses. Exception: You don’t have to retain receipts for a meal costing less than $75.”
- Standard meal allowance rates can ease record keeping
“If you have difficulty keeping records and receipts for meals when out of town on business, you can deduct a standard meal allowance. It may be less than your actual meal costs, but you won’t need receipts. If you have employees who travel on business, you may want to use the standard rate to reimburse them for their meal costs out of town.
“For 2013, the standard meal allowance usually is $46 per day within the continental U.S. It’s higher in New York City, San Francisco and other high-cost locations, including some resort areas. The U.S. General Services Administration publishes the daily standard rates by state. Independent truckers and others in the transportation industry have a special daily meal rate of $59 per day within the continental U.S.”
- Holiday parties are 100 percent deductible
“If you hold a party for your staff — in your facility or a restaurant — you can deduct all of the cost in this instance. As long as the party is for the benefit of employees and is not limited to the top brass, you can write off 100 percent of your costs.”
Hopefully these meal tips help! If you have questions, please, don’t hesitate to call. We look forward to hearing from you!
-Your tax experts at GQLaw
New Student Aid Bill of Rights: 2015
New Student Aid Bill of Rights: 2015
President Obama recently announced a new Student Aid Bill of Rights for all Americans. This new Bill of Rights could make it easier for people owing federal student loans to deal with their loans- specifically, how they may be more able to get rid of/discharge them in a bankruptcy.
Most of the announced changes are geared toward getting rid of payment red tape and making federal student loan repayment options easier. However, one section in particular shows that the government is looking closely at changes to bankruptcy laws that could help student loan debtors.
Debt guru Steve Rhode says that, contrary to popular belief, there have been people successfully discharging both private and federal student loans in bankruptcy. That said, his research found that less than four out of 10 who tried to discharge their student loan debt through bankruptcy were able to.
A Fox Business article written by Rhode quotes the new Student Aid Bill of Rights :
Section 3(b) says, “By July 1, 2015, the Secretary of Education shall issue information highlighting factors the courts have used in their determination of undue hardship, to assist parties who must determine whether to contest an undue hardship discharge in bankruptcy of a Federal student loan.”
Another section quoted in the same article reads:
“After assessing the potential applicability of consumer protections in the mortgage and credit card markets to student loans, recommendations for statutory or regulatory changes in this area, including, where appropriate, strong servicing standards, flexible repayment opportunities for all student loan borrowers, and changes to bankruptcy laws.”
For more details on the Student Aid Bill of Rights itself, please visit this website.
To learn more about how this updated Bill of Rights may affect your tax situation please contact our office at 858-549-8600 to let Attorney Gary Quackenbush and his staff discuss your particular situation with you. Gary has been helping people like you since 1989 and is sure to get you the best tax and debt relief possible. Call today for your free consultation!
Entrepreneur Tax Tip I: 75 Items You May be Able to Deduct
Entrepreneur Tax Tip I: 75 Potential Tax Deductions
Feeling a little bit like the Sheriff of Nottingham is pounding at your broken foot for your last few bit of tax dollars? Well, you’re not alone. For entrepreneurs, this time of year can be painful and even sometimes scary. In honor of the tax season this year, we’re going to give you three different posts on how to maximize your tax benefits.
- 75 Items You May be Able to Deduct
- Meal Tips
- Late Filers
75 Potential Tax Deductions
This first post comes as an introduction to what’s out there that an entrepreneur might be able to deduct. More research will have to be done for each person’s individual situation, but it’s important to know the possibilities.
The most important thing perhaps, is that you are rather meticulous about tracking your expenses. Mark Kohler, CPA shares his opinion:
“When documenting, go beyond collecting receipts. If you hire your teenager as an employee, document his or her duties and hours. On parking and toll receipts, write your destination and business reason for the road trip. You should track every business expense and comb over them with your CPA at the end of the year to ensure you only take legitimate deductions, both to minimize your risk of audit and to have the documentation in place in case the IRS ever comes knocking.”
Now for that list of possible deductions (click here for source):
Accounting fees
Advertising
Amortization
Auto expenses
Bad debts that you cannot collect
Banking fees
Board meetings
Building repairs and maintenance
Business association membership dues
Business travel
Cafeteria health-insurance plan (requires plan)
Charitable deductions made for a business purpose
Cleaning/janitorial services
Collection Expenses
Commissions to outside parties
Computers and tech supplies
Consulting fees
Continuing education for yourself to maintain licensing and improve skills
Conventions and trade shows
Costs of goods sold
Credit card convenience fees
Depreciation
Dining during business travel
Discounts to customers
Education and training for employees (new)
Employee wages
Entertainment for customers and clients
Equipment
Equipment repairs
Exhibits for publicity
Family members’ wages
Franchise fees (new)
Freight or shipping costs
Furniture or fixtures
Gifts for customers ($25 deduction limit for each)
Group insurance (if qualifying)
Health insurance
Home office
Interest
Internet hosting and services
Investment advice and fees
Legal fees
License fees
Losses due to theft
Management fees
Materials
Maintenance
Medical expenses (with plan)
Mortgage interest on business property
Moving
Newspapers and magazines
Office supplies and expenses
Outside services
Payroll taxes for employees, including Social Security, Medicare taxes and unemployment taxes
Parking and tolls
Pension plans
Postage
Publicity
Prizes for contests
Real estate-related expenses
Rebates on sales
Rent
Research and development
Retirement plans
Royalties
Safe-deposit box
Safe
Software and online services
Storage rental
Subcontractors
Taxes
Telephone
Utilities
Website design
Workers’ compensation insurance
As always, if you need tax advice or counsel, give our professional tax team a call here at GQLaw. We look forward to hearing from you!
Common Tax Mistakes: Tax Season 2015
Common Tax Mistakes: Tax Season 2015
With tax season in full swing its time to remind ourselves of the common mistakes that tax payers make when filing taxes.
A recent article published by ABC News outlines some of the most common tax mistakes made by filers each year. Many of these mistakes can be avoided by proper planning and organization and a good, thorough proofreading of your return. Want more return filing advice? The IRS lists out their top 8 common tax mistakes in this article. Here are the highlights.
Social Security Numbers: Be sure to double check your SSN, that of your spouse and dependents. If they’re not correct, your return will get rejected.
Double check names: Misspelled names will get your return rejected as well.
Paper returns: Don’t forget to attach W2s and other documents if you file by mail. The IRS actually recommends that you file online.
You can avoid most tax return errors by using IRS e-file. People who do their taxes on paper are about 20 times more likely to make an error than e-filers. IRS e-file is the most accurate way to file your tax return.
Proofread: Be sure to proof read your returns for type-os.
Math mistakes: Be sure to double check your calculations.
We hope this tax season goes smoothly for all of you and that you can avoid these common tax mistakes. As always, if you are in need of tax help whether that be help with filing your return this year or getting out from under back taxes, we are here to help! Please call our office today to set up a FREE initial consultation with Attorney Gary Quackenbush and his team. 858-549-8600