By andrea147 March 16, 2017
Hired Conlon and Company to do my overseas taxes a few years ago. Communication was horrible, they couldn't manage the different time zones and work was done late. They actually billed me full price and expected me to pay for tax returns that weren't even started. So I cancelled the work and 3 months later they send me the finished returns and force me to pay. ...read more
By JamieDoger November 08, 2016
He has been my accountant for both my personal finances as well as my business. Highly professional. Always been a great help. ...read more
By jimmyz15 January 14, 2016
Always ready to answer to any questions or concerns. They are great! ...read more
Padgett Business Services of Rochester September Blog/NewlsetterThis Month: SIMPLE Plan Deadline Car Sales -vs- Trade Ins Expense Reimbursements SIMPLE Plan Deadline Approaches A Savings Incentive Match Plan for Employees (SIMPLE plan) is a written arrangement that provides your small business and its employees with a simplified way to make contributions to retirement. Under a SIMPLE plan, employees can choose to defer as much as $11,500 (for 2010) to the plan rather than receiving these amounts as a part of their regular pay, and there generally is a mandatory employer contribution as well. Plan assets grow tax deferred until withdrawal and participants have complete direction over their own retirement as-sets held in their account. New SIMPLE plans must be set up prior to Oct. 1. This requirement does not apply if you are a new employer that comes into existence after October 1 of the year the plan is set up and you set up a SIMPLE plan as soon as administratively feasible after you come into existence. Car Sales vs. Trade In The decision of whether to trade in an old business car or try to sell it for cash ought to hinge on factors such as the amount you can get on a sale versus a trade-in, and the time and bother a sale will entail. However, important tax factors also may affect your decision-making process. Here's an overview of the complex rules that apply to what appears to be a simple transaction, and some pointers on how to achieve the best tax results. In general, the sale of a business asset yields a gain or loss depending on what you receive from the sale and your basis for it. "Basis" is your cost for tax purposes, usually your pur-chase price less the depreciation deductions you claim for the asset over the years. Under the tax-free swap rules, trading in an old business asset for a new, like-kind asset doesn't result in a current gain or loss, and the new asset's basis will equal the old asset's remaining basis plus any cash you paid to trade up. The rules generally are the same for business cars, with a couple of extra twists. Here are some pointers. Consider trading in your old business car: if you used it 100% for business and its basis is very low. The trade-in may avoid a current tax. For exam-ple, if you sell your 100% business car for $9,000, and your basis in it is only $7,000, you will have a $2,000 taxable gain, but if you trade it in, a current tax may be avoided. Consider selling your old business car for cash: if you used it 100% for business and depreciation on the old car was limited by the annual depreciation dollar caps. In this situation, your basis may exceed its value, so if you sell it, you will recognize a loss for tax purposes (but not if you trade it in). For example, if you sell your 100% business car for $14,500 and your basis is 16,000, a $1,500 loss will be recognized. Had it been traded in, there would be no current loss. if you used the standard mileage allowance to deduct car-related expenses. The standard mileage allowance has a built-in allowance for depreciation which must be reflected in the basis of the car. The deemed depreciation for 2010, for example, it is 23 cents per mile. If the depreciation allowance leaves you with a higher remaining basis than the car's value, the car should be sold in order to recognize the loss. Are loans involved? "Boot" can trigger gain recognition on a trade-in. "Boot" can occur if the loan on your old car is higher than the loan on the new car, or when cash is received as part of the trade-in. Was your car partially for business, partially for personal use? The rules are more complicated in this situation, which can occur if you are self-employed, or an employee required to use your car for business. Thinking of leasing a business car? The complex rules that apply to purchased business autos are one reason many businesses are leasing autos instead of buying them. There are, however, a few special angles you should be aware of: If you trade in a car in exchange for a lower lease price on a new car, the transaction won't be a tax-free like-kind swap, so any realized gain or loss will be recognized under the rules that apply to a sale. If you pay an additional sum up-front, it should be amortized over the life of the lease. Any refundable deposit required as part of the lease deal can't be deducted at all. All of this sounds very complicated, and it is. Before you sell or trade in your business car or lease a new one, please give us a call and we'll set up a meeting to discuss the options. Expense Reimbursements The general rule is that funds received in connection with services you render are included in your taxable income. Reimbursements of your out-of-pocket expenses, however, are another matter. Whether reimbursements are taxed depend on how you're reimbursed. If your employer requires you to submit a detailed expense report and reimburses you with the exact amount, then the reimbursement is not taxable, but your out-of-pocket expense is not deductible either. If you do not submit such a report, then the reimbursement is taxable, but the expense may be deducti-ble. The same rule applies if you are an independent contractor. Your W-2 or 1099-MISC should include the re-imbursement only if it is taxable. PADGETT BUS INE S S S ERVICE S® W H E R E Y O U R S U C C E S S T A K E S R O O T ℠ PADGETT BUSINESS SERVICES is dedicated to meeting the tax, government compliance, profit&financial; reporting and payroll needs of businesses with fewer than 20 employees in the retail and service sector of the economy. This publication suggests general business planning concepts that may be appropriate in cer-tain situations. It is designed to provide complete and accurate information to the reader. However, because of the complexities of the tax law and the necessity of determining whether the material discussed herein is appropriate to your business, it is important you seek advice from your Padgett office before implementing any of the concepts suggested in this newsletter. PENALTY NOTICE: As required by U.S. Treasury regulations, you are advised that any written tax advice con-tained herein was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code. ...read more
By Padgett Business Services of Rochester August 27, 2010
3rd Quarter 2010 Due Dates August 2: Employers. File Form 941 for 2nd quarter 2010. Employers. Form 5500 or 5500-EZ for calendar year 2009 due if you maintain an employee benefit plan, or file Form 5558 to request an ex-tension. September 15: Individuals. 3rd install-ment of 2010 estimated tax due. Calendar-year C Corpora-tions. 3rd installment of 2010 estimated tax due. Corporations. 2009 re-turns due for calendar- year C and S corporations (Form 1120 &1120S) if on extension. Partnerships. Calendar year 2009 return due (Form 1065) if on exten-sion. Tax Deductible Vacations Business or Pleasure. The IRS doesn't specify the determi-nation of whether a trip is for business or pleasure on do-mestic trips. However, looking to the rules on international travel for guidance, the number of days spent on each type of activity is the key. An important factor in determining if the trip is primarily business or pleasure is the amount of time spent on each, although this isn't the sole factor. In general, the trip is primarily for business if more than half of the days are spent on business activities. Tax Deductible Vacations Although business is business, and pleasure is pleasure, the world rarely adheres to absolutes. So, as the summer vaca-tion season begins to unfold, you may want to consider mix-ing some leisure time in with your business travel. With a lit-tle planning, you can get Uncle Sam to subsidize your down-time. The following days count toward your total business days: Travel days; Weekends and holidays, if they fall be-tween days devoted to business and it would be impractical to return home; "Standby days,‖when your physical pres-ence is required, also count as business days even if you're not called upon to work on those days; Any other day principally devoted to busi-ness activities during normal business hours; and days you intended to work but couldn't due to reasons beyond your control (local transportation difficulties, power failures, etc.). If the trip doesn't involve the actual conduct of business but is for the purpose of attending a convention, seminar, etc., IRS checks the nature of the meetings carefully to make sure they are not vacations in disguise. Be careful to save all material helpful in establishing the business nature of this travel. Meticulous recordkeeping and thorough planning are necessary. Transportation Costs. The cost of traveling within the United States is 100% deductible as long as the primary purpose for the trip is business rather than pleasure. In contrast, no travel deductions are allowed if the main rea-son for a trip is personal. Meals and Lodging. Once at your destination, expenses for such items as lodging, hotel tips, local cab fares, and 50% of meals are deducti-ble when related to business days. However, these same types of expenses aren't deducti-ble for non-business days. Additionally, no deduction will be allowed for meals or lodging to the extent the expense is lavish or extravagant. Although this term isn't defined in the tax rules, it has been interpreted to mean unreasonable. Personal entertainment costs on the trip aren't deductible (such as a sightseeing tour), regardless of the day on which they fall. But business-related costs such as dry-cleaning, phone calls, and computer rentals are. Taking Your Spouse. The rules on deducting the costs for a spouse accompanying you on a business trip are very restrictive. No deduction is allowed unless your spouse is an employee of yours or your company and his or her travel is also for a business purpose. This means you can't deduct the travel costs of a spouse, even if his or her presence has a bona fide business purpose, unless your spouse is a bona fide employee of your business. If your spouse is your employee, and if his or her presence on the trip serves a bona fide business purpose, then you can deduct his or her travel costs. Merely having your spouse perform some incidental business service - such as typing up notes from a meeting - isn't enough to establish a business purpose. In general, it isn't sufficient for your spouse's presence to be helpful‖to your business pursuits it must be necessary. If your spouse's travel is not deductible, you can still deduct your own travel and meals; however, a shared cost - as with lodging - is deductible only at the single rate. Not sure whether your travel expenses will be deductible? Take a few minutes to give our office a call.585-292-6657 or remember 585-BzBooks Summertime Child Care Expenses May Qualify for a Tax Credit Did you know that your summer day care ex-penses may qual-ify for an income tax credit? Many parents who work, or are look-ing for work, must arrange for care of their chil-dren under 13 years of age during the school vacation. Those ex-penses may help you get a credit on next year's tax return. Here are five facts the IRS wants you to know about a tax credit available for child care expenses. The Child and Dependent Care Credit is available for ex-penses incurred during the lazy hazy days of summer and throughout the rest of the year. 1. The cost of day camp may count as an expense towards the child and dependent care credit. 2. Expenses for overnight camps don't qualify. 3. If your childcare provider is a sitter at your home or a daycare facility outside the home, you'll get some tax benefit if you qualify for the credit. 4. The actual credit can be up to 35 percent of your qualifying expenses, depending upon your in-come. 5. You may use up to $3,000 of the unreimbursed expenses paid in a year for one qualifying indi-vidual or $6,000 for two or more qualifying indi-viduals to figure the credit. For more information on Child and Dependent Care Expenses, contact your Padgett Office today 585-292-6657 or remember 585-BzBooks. PADGETT BUSINESS SERVICES ® is dedicated to meeting the tax, government compliance, profit&financial reporting and payroll needs of businesses with fewer than 20 employees in the retail and service sector of the economy. This publication suggests general business planning concepts that may be appropriate in cer-tain situations. It is designed to provide complete and accurate information to the reader. However, because of the complexities of the tax law and the necessity of determining whether the material discussed herein is appropriate to your business, it is important you seek advice from your Padgett office before implementing any of the concepts suggested in this newsletter. PENALTY NOTICE: As required by U.S. Treasury regulations, you are advised that any written tax advice con-tained herein was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code. ...read more
By Padgett Business Services of Rochester August 16, 2010
Any tax/accounting questions out there? ...read more
By Mear David J CPA July 30, 2008
Payroll accountants are responsible for tracking the expenditure of money and assets through a company. Their job is to help companies track their income and maintain a timely payment record for expenses and bills. If you are interested in becoming a payroll accountant, you will have to be... ...read more
Computer files can sometimes be deleted by accident, get lost or damaged. This could be a potential nightmare, especially if these are small business accounting files. You have peace of mind by knowing how to use the "Backup and Restore" function in Microsoft Small Business Accounting. With a few keys... ...read more
