2009 Tax Planning

Hi All - I have provided a few links below to help you all plan for tax preparation season.


Checklists to help you identify what items and documentation is needed for 2009 Tax Preparation (I also have a tax organizer that is detailed or you may also want to flip through your prior year return as a memory jogger):

1. General tax preparation checklist


Also, here are some websites I use that have tax research departments much larger than mine.

1. Deloitte & Touche's The Essential Wealth and Tax Planning Guide for 2010 - Deloitte & Touche is among the largest CPA firms (and my first employer) and have extensive tax research resources. Many of us are unable to afford the CPA tax professionals from D&T; however, we all can benefit from the tax resources they make available on their website. Please contact me if you need help.

2. Perez Tax Associates' Tax Planning website - I use several CPA/tax professional websites and found this site to be representative for many small business owners and individuals.


I hope the above links help you prepare for 2009 tax season. I welcome your feedback regarding if you find this type blog postins helpful.

Eura Tunstall, CPA
http://www.euratunstall.com/
Disclaimer: Please note that the information and links provided above are not intended to be legal or tax advice or relied on to unlawfully avoid taxes. Please contact a professional tax or legal professional before relying upon above provided information.

Roth: To Convert or Not to Convert....

Good Morning Everyone - Another question that I am getting from many of you and considering for myself is whether to convert your IRA into a ROTH IRA.

I always try to steer clear of opinion from those who have something to gain (i.e. commissions) and rather try to find guidance that is unbaised (hopefully). Robrt Keebler, CPA wrote this article in Journal of Retirement Planning "To Convert or Not to Convert, That is the Question" , Roth IRA Conversions (this is an easy read - start with this one), as well as, this article which is more pessimistic thinking about conversion "The Great Roth Conversion Farce". I hope that this two article provide you a basis of preparing for your discussions with your CPA and financial planner to help you decide.

In addition to these articles, I have read how there may be differences in asset protection in an IRA versus a Roth IRA (my understanding is Roth trusts are under state jurisdiction while IRAs are governed by ERISA/Federal). Either way, this is an example of why you should probably seek the advice of a qualified professional prior to converting your IRA.

Eura Tunstall, CPA
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Disclaimer: This posting is not intended to be professional accounting or legal advice. Please seek professional quidance. IRS Circular 230 requires that we inform you that the advice contained herein is not intended to be used, and it cannot be used, for the purpose of avoiding penalties that may be imposed by the IRS.

Business Planning/Risk Management

Happy New Year Everyone:

I have attached two posting that I hope will help you plan for your New Year activities. So many of us remain unclear what the economy may hold for our future. We are receiving conflicting information from our news sources. With that in mind, I provide two links that I hope you will find useful in your planning and risk management.

One is a SWOT analysis. I have used this before and think it is worth the time investment, especially if you are expanding your business or making signficant capital/business investments. The current economic environment may add additional creativity to our planning as we all may need to have a plan B and perhaps even a plan C to deal with the risks that may face our business.

People seemed split on the status of the economy. Many think we have "turned the corner". While I don't have the answer, I do tend to be cautious in my business affairs (as most CPAs are). The attached US News article may provide a backdrop for things you may wish to consider and watch while performing your business (or personal) SWOT analysis.

I wish you all much success in the New Year.

Eura Tunstall, CPA
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Disclaimer: This blog is not intended be professional advice, accounting, legal or otherwise. Please seek professional guidance. IRS Circular 230 requires that I inform you that the advice contained herein is not intended to be used, and it connot be used, for the purpose of avoiding penalties that may be imposed by the IRS.

Business and Tax Books "Knowledge is Power"

Hi All - Below are some books I encourage you to take a look at - especially the books about taxes. If you see something mentioned that may apply to your business, please bring the topic up with your accountant or attorney. Those with an * indicate books available at the public library.

1. Lower Your Taxes - Big Time*
2. Tax Savvy for Small Business*
3. LLC or Corporation? How to Choose the Right Form for Your Business*
4. The LLC and Corporation Start-Up Guide*
5. There are various reference books for using QuickBooks



Disclaimer: The above mentioned resources do not constitute tax, legal or otherwis advice. Please consult your professional tax advisor, accountant or attorney. IRS Circular 230 requires that we inform you that the advice contained herein is not intended to be used, and it cannot be used, for the purpose of avoiding penatlies that may be imposed by the IRS.

Independent Contractor (self-employed) or Employee?

Hi All - I am receiving numerous inquiries regarding independent subcontractors. I encourage you all the understand the reporting requirements to ensure you are in compliance with tax laws. There are also legal ramifications as well (please consult your attorney). This is a hot topic with the IRS and I can not stress the importance of getting this right. Please give me a call if you still have questions.

Please review this IRS guidance: Independent Contractor (self-employed) or Employee?
and Who is Self-Employed? (see 1099 annualy reporting requirements due January 31st). I also encourage you to view the webcast.

IRS Circular 230 requires that we inform you that the advice contained herein is not intended to be used, and it cannot be used, for the purpose of avoiding penalties that may be imposed by the IRS.

Starting a New Business? Need "free" help?

This blog is to help business owners have a basic understanding of basic requirements to running their business in NC. This post provides a link that will help new business owners navigate through some basic business start-up questions. I recommend each new business owner take a look at the following:

http://www.nccommerce.com/en/BusinessServices/StartYourBusiness * get the pdf file labeled "Business Notes: A Comprehensive Guide to Doing Business in North Carolina" - as a quick reference guide. Use this guide in conjunction with professional accounting and legal advice.

Please give me a call if I can help. Eura Tunstall, CPA 704-999-1775

Disclaimer: This is not tax, accounting or legal advice. Please consult with your tax, accounting, and legal professionals.

IRS Circular 230 requires that we inform you that the advice contained herein is not intended to be used, and it cannot be used, for the purpose of avoiding penalties that may be imposed by the IRS.

Travel, Entertainment, Gift, Car Expenses & Business Use of Home Deduction

Many questions I receive from new clients are regarding deductibility of entertainment, travel, and business use of home. Here are some articles and links to IRS Publications that will help get your started. http://www.irs.gov/app/picklist/list/publicationsNoticesPdf.html and insert in the “Find” Box the Publication number you are searching for. I recommend Publication #334 “Tax Guide for Small Business”; #587 Business Use of your Home; and #463 Travel, Entertainment, Gift, and Car Expenses.

Disclaimer: This post does not constitute tax advice or financial planning advice (articles may be outdated). Please consult with your professional accountant or professional financial planner.

Importance of Recordkeeping:
http://www.unclefed.com/AuthorsRow/GretaHicks/problems.html - I like this article because it emphasizes the importance of good record keeping. Specifically, she states “The IRS presumes all assets and deductions are personal unless the taxpayer has the records to prove otherwise.”


Pub 463: Travel, Entertainment, Gift and Car Expenses:

http://www.irs.gov/pub/irs-pdf/p463.pdf

A few pages from Pub 463 I wish to highlight:

Pg 10 and Pg 11 – See Table 2-1 “When are Entertainment Expenses Deductible” and Figure A “Does the 50% Limit Apply to Your Expenses”

Pg 13 – See “What Entertainment Expenses are (generally) not Deductible.

Pg 25 – See Recordkeeping requirements.

A few articles that may interest you:

http://ezinearticles.com/?Small-Business-Deductions---How-to-Drive-the-IRS-Crazy&id=135944 - An article regarding the Vehicle deduction

http://www.yousaveontaxes.com/tax-tidbit-3.html - An article regarding use of the Per Diem method – there are other “tax tidbit” articles included here that may be of interested to you.


Pub 587: Business Use of Your Home:

http://www.unclefed.com/Tax-Help/irs-tt/tc509.html - An article written about claiming the Business Use of Home deduction.

Here is the Link to Publication # 587 Business Use of Home
http://www.irs.gov/pub/irs-pdf/p587.pdf


A few pages from Pub 587 I wish to highlight:

Pg 4 figure A – Use this diagram to see if you qualify to claim the business use of your home deduction.

Pg 7 – See how a typical deduction is calculated. This will help you start gathering the information needed to calculate your deduction.

Pg 14 and 15 – This describes how you may be required to recapture prior business use of home deduction (depreciation related deductions) when you sale your home.

DISCLAIMER: Information provided is not intended for use as accounting, tax, or legal advice; rather, consult with a professional.

IRS Circular 230 requires that we inform you that the advice contained herein is not intended to be used, and it cannot be used, for the purpose of avoiding penalties that may be imposed by the IRS.