A page where you can get tax tips and investment advice, access to our message board, and email access directly to Charles Coker, CPA - to get your specific questions answered.
Tax Tips:
• The error rate is significantly reduced from 20 percent with paper returns to about 1 percent with e-filed returns. We include FREE electronic filing when we prepare your income taxes.
•What records should you keep for at least 3 years? Any and all documents that have an impact on your tax return, including: W2, 1099's, 1098, bills, credit card and other receipts, invoices, mileage logs, canceled checks, any other records to support deductions or credits you claim on your return.
• How long should you keep your tax records? Normal tax records should be kept for three years, but some documents - such as records relating to a home purchase or sale, stock transactions, IRA and business or rental property - should be kept longer.
• According to the IRS, the average time required to complete and file a Form 1040 is 26 hours. Let us help you save time (and money) by having a professional CPA prepare your tax return. Our goal is to make your life less taxing.
• Make sure you are taking all the deductions you are allowed, including education and moving expenses. Talk to Charles about your unique situation to help reduce your tax liability.• Need information on running a small business? This new web site, operated by the Small Business Administration, provides guides on starting and manageing a business, government contracting, taxes, and a host of other helpful topics, including what types of permits and licenses are needed for your location and type of business. Visit www.business.gov
• Will you be susceptible to the AMT (alternative minimum tax) this year? Come in for a fall tax planning session or give me a call to review your situation.
• Other deductable items that you should keep track of include: child care expenses, alimony payments, non-reimbursed business expenses (such as union dues and subscriptions), and your safe deposit box fee.
• Ideas for helping to keep track of your income tax deductions: 1) Keep a seperate folder or envelope for tax deductible receipts, and drop items in it throughout the year. 2) In your checkbook, mark checks with a code for deductible items, such as MD for medical, CH for charitiable, TU for tuition. • Do you qualify for a home office deduction? Yes if your home office is the principal place of business. The IRS also considers the nature and extent of activities, and time spent at other locations. •When you're putting your warm weather clothes away - consider bundling up those items you never wore and donating them to a charity. Keep the receipt, and you can take that as a deduction on your taxes. •Review your income taxes withheld on your year-to-date pay stub. If you made any major tax-related changes this year- such as maritial status, mortgage, dependents or capital gain/loss - you may want to change your withholding deductions for the rest of of the year.
and more Tips:
• As the stock markets are beginning to move up again, now is a good time to 'buy low' - select companies that have a history of a high dividend yield AND have shown relative stability during the economic downturn.
• Do you have the right mix of investments based on your age or near-retirement status? As you get closer to retirement, you may want to consider moving towards a 40% equity, 60% fixed income balance. Despite the decline in the stock market and concerns about the economy, you need to be careful not to overreact.
• Government bonds are a good investment right now, and less volatile than the stock market. Sign up for Treasure Direct to invest at http://www.treasurydirect.gov/tdhome.htm
• With a $1 value menu and 4th quarter growth, McDonald's Corporation (MCD) may be a good investment for 2009.
• Companies that generally still do well even in a recession are involved in health care and produce or sell consumer necessities. Candidates include: Abbott Laboratories (ABT) , CVS (Caremark), Kraft Foods (KFT) and Wal-Mart (WMT).
• A good dividend paying stock is Johnson & Johnson (JNJ). They sell everything from bandaids to drugs, and are little affected by the changes in the economy.
• Capital Gains can be offset by capital losses, so selling stocks, mutual funds and other investments for a loss can help your tax situation.
• Look to the relatively recession-proof business of government contracting for an investement opportunity. • If you need to reduce your capital gains this year, now would be a good time to unload a few loser stocks.
• Lower your credit card rates now, by asking your credit card companies for a better deal. Take advantage of 0% balance-transfer offers and payoff the balance within the prescribed time. You can save money by paying less interest. • In this roller coaster economy, it is important to stay out of debt. If you plan to retire soon, paying off your mortgage will give you a lot more flexibility, especially if your expenses have increased and your investments are down. •The market will hit a bottom soon. Don't overextend yourself by tapping into a margin account for funds. If you do have money to buy, look for big companies that have a high return on investment, such as Walmart, United Technologies, Exxon and IBM. •There are some good buys on the stock market right now - I'm buying Microsoft (MSFT on the NASDAQ exchange). It's a strong company, with no debt, and a 17% return on investment rate. •With the roller coaster ride the stock market is on now, you'll take a loss if you panic and sell now. If you have good stocks, just hold onto them... they'll go back up eventually.
For our existing clients only - to make your life less taxing, you can mail in or drop off your income tax paperwork. Please download these instructions.... and call us if you have any questions. Thanks.
