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What nonsense to think Mr Obama has any intention of dealing with our problems - he has no clue about anything except how he can gain advantage for progressives in the next election, 2016, where a boat load of senators will come up for reelection.
Believe, Mr Obama will not do anything that will bring prosperity to this country. Food and energy alone will drive millions into poverty. Who ever voted for Mr Obama, and their are millions that should know better, will have to take the responsibility for the destruction of our way of life. In hind site, progressive socialist Democrats have never taken responsibility for anything they have done, not ever. Only Republicans are held to a higher level of moral and fiscal responsibility.
We had one chance to turn our country around but voters decided enslavement and poverty was a better choice then personal freedom and prosperity. Go figure!
The Fiscal Cliff: A Primer
Source: "The Fiscal Cliff: A Primer," Tax Foundation, November 8, 2012.
November 12, 2012
With almost no time to celebrate his reelection, President Obama must quickly come to an agreement with lawmakers on the "fiscal cliff," a combination of spending cuts and tax increases that pose a threat to the fragile economic recovery, says the Tax Foundation.
The fiscal cliff includes such things as:
•Expiring provisions of the 2001 and 2003 Bush Tax Cuts.
•A compromise that will increase the estate tax.
•A patch in the Alternative Minimum Tax.
•A temporary 2 percent payroll tax holiday.
•Five new taxes as a result of the Affordable Care Act.
•In total, the tax increases are slated to cost around $514 billion.
•Additionally, there are spending cuts of $109 billion.
The federal government is borrowing an average of $2.7 billion a day. As a result, the debt is expected to approach the ceiling by the end of 2012, possibly as late as February 2013. Lawmakers expect another political fight between Republicans who resist any future increases to the debt, at least without spending cuts, and Democrats who favor increasing the debt without any future deficit reduction plans.
In the debt ceiling negotiations between Obama and Congress, lawmakers failed to agree on a $4 trillion deficit reduction plan. A law passed in August 2011 stated that if Congress was not able to implement a deficit reduction plan over the next 10 years, then there would be automatic cuts to both defense and non-defense discretionary items. This was done in part to make the cuts so unreasonable to both parties that there would be cooperation in coming up with a deficit reduction plan.
In addition to the debt ceiling, Congress will also pass a new budget or a continuing resolution before March 2013. The last federal budget was passed in April 2009 and since then any spending authorizations have been done through continuing resolutions. In the upcoming year, Congress has the chance to enact a new budget that can reevaluate the priorities of different programs that receive federal funding.
12 Kasım 2012 Pazartesi
Electric Cars A Progressive Boondoggle : More Wasted Tax Dollars
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I can't seem to get my head around why anyone would want to own an electric car? With a driving range of 40 miles or so and the cost so much higher the fossil fuel hybrid cars, what is the rational?
Electric cars have been around for the past 100 years and they have never worked out to the consumers advantage. This is not to say at some point in time a battery, or some other device to store electricity, will be discovered, it's just right now there is no cost effective way to do this. This same problem exists for wind power, among many other problems, but how to store the energy when it's needed, and transport it cost effectively, is the biggest.
Electric Vehicle Economics Don't Pencil Out
Source: "JD Power Study: Electric Vehicle Economics Don't Pencil Out," Los Angeles Times, November 8, 2012.
November 12, 2012
Electric vehicles are doing poorly in the car market because automakers are unable to lower their prices, says the Los Angeles Times.
•Nissan has sold fewer than 6,800 of its Leaf electric cars, down from 16 percent last year.
•Honda leased only 48 of its electric version of the Fit this year.
•Similarly, Mitsubishi sold less than 500 of its MiEV mini-car.
•Tesla Motors, which expects to sell about 3,000 of its electric car this year, has sold fewer than 300.
•Altogether, the industry expects to sell 500,000 gas-electric hybrids, accounting for about 3.5 percent of overall auto sales in the United States.
A survey done by JD Power and Associates looked at the reasons for why people buy or plan to buy electric vehicles.
•Forty-four percent of electric vehicle owners said low emissions are the top benefit of their vehicle.
•However, of the people who plan to buy an electric car, only 11 percent cite environmental concerns as their top reason.
•Instead, 45 percent of people say they plan to buy an electric car because of the savings on fuel.
Savings on fuel can be significant according to the study. Owners found that utility bills went up by only $18 to charge their electric vehicles, yet brought down fuel costs by nearly $147. The main problem the industry faces is that battery powered electric vehicle cost around $10,000 more than a standard gasoline-powered vehicle, meaning it will take consumers more than six years to make the investment worthwhile.
Electric cars have been around for the past 100 years and they have never worked out to the consumers advantage. This is not to say at some point in time a battery, or some other device to store electricity, will be discovered, it's just right now there is no cost effective way to do this. This same problem exists for wind power, among many other problems, but how to store the energy when it's needed, and transport it cost effectively, is the biggest.
Electric Vehicle Economics Don't Pencil Out
Source: "JD Power Study: Electric Vehicle Economics Don't Pencil Out," Los Angeles Times, November 8, 2012.
November 12, 2012
Electric vehicles are doing poorly in the car market because automakers are unable to lower their prices, says the Los Angeles Times.
•Nissan has sold fewer than 6,800 of its Leaf electric cars, down from 16 percent last year.
•Honda leased only 48 of its electric version of the Fit this year.
•Similarly, Mitsubishi sold less than 500 of its MiEV mini-car.
•Tesla Motors, which expects to sell about 3,000 of its electric car this year, has sold fewer than 300.
•Altogether, the industry expects to sell 500,000 gas-electric hybrids, accounting for about 3.5 percent of overall auto sales in the United States.
A survey done by JD Power and Associates looked at the reasons for why people buy or plan to buy electric vehicles.
•Forty-four percent of electric vehicle owners said low emissions are the top benefit of their vehicle.
•However, of the people who plan to buy an electric car, only 11 percent cite environmental concerns as their top reason.
•Instead, 45 percent of people say they plan to buy an electric car because of the savings on fuel.
Savings on fuel can be significant according to the study. Owners found that utility bills went up by only $18 to charge their electric vehicles, yet brought down fuel costs by nearly $147. The main problem the industry faces is that battery powered electric vehicle cost around $10,000 more than a standard gasoline-powered vehicle, meaning it will take consumers more than six years to make the investment worthwhile.
Environment And Growth Work Wonders Together
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The United States has the largest reserves of natural energy, gas and oil, in the world. The United States has the best CO2 emissions of any country on the planet, not it matters in the least, but consumption of fossil fuels is the main driver of our prosperity. Green energy, solar and wind, account for less then 3%.
A growing economy needs a ever increasing energy supply. Without it prosperity will diminish by the exact amounts of energy denied to that economy. It's a reality. Stacks of studies of history has the proof.
The question now is why would the progressive socialists Democrats, that in power now, restrict energy production when we need it the most in a failing economy that have created? What is their purpose?
Those in our country that voted for Mr Obama should ask these questions, and then find good logical answers that will help solve some of our most pressing problems. On second thought, maybe logic might be beyond the progressive's mental abilities.
Why Growth Is the Environment's Best Friend
Source: Kenneth P. Green, "Why Growth is the Environment's Best Friend," The American, November 7, 2012.
November 12, 2012
Many people argue that as economies grow so does the need for energy production and distribution. As a result, the environment suffers as it is forced to sustain a larger population that produces waste and contributes to destruction, says Kenneth P. Green, a resident scholar at the American Enterprise Institute.
Contrary to popular belief, the single best thing we could do to minimize energy's impact on the environment is not only maximize our own economic growth but also help developing countries increase theirs.
Rather than looking at energy use and environmental degradation as a linear relation, the relationship looks more like an inverted U; this is called the Kuznets curve. The Kuznets curve argues that societies go through a series of phases.
•First, a society overuses a resource.
•Second, the society reaches a point where they realize they are overusing a resource.
•Third, there is a period where the society takes action to reduce their overuse.
•Finally, once the resource consumption is reduced, they reach the maximum sustainable level.
Central to this theory is that countries that are poor use a resource to expand their economy, and once that is accomplished, they can shift their resources to cut their consumption of a resource. In other words, economic growth is the main driver in helping societies get to the point in which they develop solutions to fix the environment.
Developed countries should also help developing countries increase their economic growth as a means of helping the environment. Since many developing countries are focused on economic growth, environmental concerns are put on the backburner.
Some economists argue that this theory only applies to local-area pollutants and resource protection. But when it comes to global environmental issues like greenhouse gas emissions, companies have an incentive to find poor, developing nations to conduct business that don't have strict environmental standards.
A growing economy needs a ever increasing energy supply. Without it prosperity will diminish by the exact amounts of energy denied to that economy. It's a reality. Stacks of studies of history has the proof.
The question now is why would the progressive socialists Democrats, that in power now, restrict energy production when we need it the most in a failing economy that have created? What is their purpose?
Those in our country that voted for Mr Obama should ask these questions, and then find good logical answers that will help solve some of our most pressing problems. On second thought, maybe logic might be beyond the progressive's mental abilities.
Why Growth Is the Environment's Best Friend
Source: Kenneth P. Green, "Why Growth is the Environment's Best Friend," The American, November 7, 2012.
November 12, 2012
Many people argue that as economies grow so does the need for energy production and distribution. As a result, the environment suffers as it is forced to sustain a larger population that produces waste and contributes to destruction, says Kenneth P. Green, a resident scholar at the American Enterprise Institute.
Contrary to popular belief, the single best thing we could do to minimize energy's impact on the environment is not only maximize our own economic growth but also help developing countries increase theirs.
Rather than looking at energy use and environmental degradation as a linear relation, the relationship looks more like an inverted U; this is called the Kuznets curve. The Kuznets curve argues that societies go through a series of phases.
•First, a society overuses a resource.
•Second, the society reaches a point where they realize they are overusing a resource.
•Third, there is a period where the society takes action to reduce their overuse.
•Finally, once the resource consumption is reduced, they reach the maximum sustainable level.
Central to this theory is that countries that are poor use a resource to expand their economy, and once that is accomplished, they can shift their resources to cut their consumption of a resource. In other words, economic growth is the main driver in helping societies get to the point in which they develop solutions to fix the environment.
Developed countries should also help developing countries increase their economic growth as a means of helping the environment. Since many developing countries are focused on economic growth, environmental concerns are put on the backburner.
Some economists argue that this theory only applies to local-area pollutants and resource protection. But when it comes to global environmental issues like greenhouse gas emissions, companies have an incentive to find poor, developing nations to conduct business that don't have strict environmental standards.
Get ready for the new year with January's Tax Due Date Reminders!
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The staff at Holdsworth & Co. joins you in saying goodbye to 2011 and ringing in a healthy and prosperous 2012!
Thanks for visiting our recently launched blogsite. As we begin the new year, we want to help keep you on course with a list of tax due date reminders for January. We're happy to answer any of your questions and are just a phone call away.
The staff at Holdsworth & Co. joins you in saying goodbye to 2011 and ringing in a healthy and prosperous 2012!
Thanks for visiting our recently launched blogsite. As we begin the new year, we want to help keep you on course with a list of tax due date reminders for January. We're happy to answer any of your questions and are just a phone call away.
| January 10 | Employees - who work for tips. If you received $20 or more in tips during December, report them to your employer. You can use Form 4070, Employee's Report of Tips to Employer. |
| January 17 | Employers - Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in December 2011.Individuals - Make a payment of your estimated tax for 2011 if you did not pay your income tax for the year through withholding (or did not pay in enough tax that way). Use Form 1040-ES. This is the final installment date for 2011 estimated tax. However, you do not have to make this payment if you file your 2011 return (Form 1040) and pay any tax due by January 31, 2012.Employers - Nonpayroll Withholding. If the monthly deposit rule applies, deposit the tax for payments in December 2011.Farmers and Fishermen - Pay your estimated tax for 2011 using Form 1040-ES. You have until April 17 to file your 2011 income tax return (Form 1040). If you do not pay your estimated tax by January 17, you must file your 2011 return and pay any tax due by March 1, 2012, to avoid an estimated tax penalty. |
| January 31 | Employers - Give your employees their copies of Form W-2 for 2011 by January 31, 2012. If an employee agreed to receive Form W-2 electronically, post it on a website accessible to the employee and notify the employee of the posting by January 31.Businesses - Give annual information statements to recipients of 1099 payments made during 2011.Employers - Federal unemployment tax. File Form 940 for 2011. If your undeposited tax is $500 or less, you can either pay it with your return or deposit it. If it is more than $500, you must deposit it. However, if you already deposited the tax for the year in full and on time, you have until February 10 to file the return.Employers - Social Security, Medicare, and withheld income tax. File Form 941 for the fourth quarter of 2011. Deposit any undeposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the quarter in full and on time, you have until February 10 to file the return.Employers - Nonpayroll taxes. File Form 945 to report income tax withheld for 2011 on all nonpayroll items, including backup withholding and withholding on pensions, annuities, IRAs, gambling winnings, and payments of Indian gaming profits to tribal members. Deposit any undeposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the year in full and on time, you have until February 10 to file the return.Individuals - who must make estimated tax payments. If you did not pay your last installment of estimated tax by January 17, you may choose (but are not required) to file your income tax return (Form 1040) for 2011. Filing your return and paying any tax due by January 31 prevents any penalty for late payment of last installment.Payers of Gambling Winnings - If you either paid reportable gambling winnings or withheld income tax from gambling winnings, give the winners their copies of Form W-2G.Certain Small Employers - File Form 944 to report Social Security and Medicare taxes and withheld income tax for 2011. Deposit or pay any undeposited tax under the accuracy of deposit rules. If your tax liability is $2,500 or more from 2011 but less than $2,500 for the fourth quarter, deposit any undeposited tax or pay it in full with a timely filed return. |
Discover Your Pot o' Gold...in Your Tax Deductible Vacation!
To contact us Click HERE
Tim, who owns his own business, decided he wanted to take a two-week trip around the US. So he did--and was able to legally deduct every dime that he spent on his "vacation". Here's how he did it.
1. Make all your business appointments before you leave for your trip.
Most people believe that they can go on vacation and simply hand out their business cards in order to make the trip deductible.
Wrong.
You must have at least one business appointment before you leave in order to establish the "prior set business purpose" required by the IRS. Keeping this in mind, before he left for his trip, Tim set up appointments with business colleagues in the various cities that he planned to visit.
Let's say Tim is a manufacturer of green office products looking to expand his business and distribute more product. One possible way to establish business contacts--if he doesn't already have them--is to place advertisements looking for distributors in newspapers in each location he plans to visit. He could then interview those who respond when he gets to the business destination.
In order to deduct all of your on-the-road business expenses, you must be traveling on business. The IRS states that travel expenses are 100% deductible as long as your trip is business related and you are traveling away from your regular place of business longer than an ordinary day's work and you need to sleep or rest to meet the demands of your work while away from home.
For every day you are on business travel, you can deduct 100% of lodging, tips, car rentals, and 50% of your food. Tim spends three days meeting with potential distributors. If he spends $50 a day for food, he can deduct 50% of this amount, or $25.
If you have a business day on Friday and another one on Monday, you can deduct all on-the-road expenses during the weekend.
The IRS says that you can deduct transportation expenses if business is the primary purpose of the trip. A majority of days in the trip must be for business activities, otherwise, you cannot make any transportation deductions.
Since Tim accrued six business days, he could spend another five days having fun and still deduct all his transportation to San Diego. The reason is that the majority of the days were business days (six out of eleven). However, he can only deduct six days worth of lodging, dry cleaning, shoe shines, and tips. The important point is that Tim would be spending money on lodging, airfare, and food, but now most of his expenses will become deductible.
Consult us before you plan your next trip. We'll show you the right way to legally deduct your vacation when you combine it with business. Bon Voyage!
Tim, who owns his own business, decided he wanted to take a two-week trip around the US. So he did--and was able to legally deduct every dime that he spent on his "vacation". Here's how he did it.
1. Make all your business appointments before you leave for your trip.
Most people believe that they can go on vacation and simply hand out their business cards in order to make the trip deductible.
Wrong.
You must have at least one business appointment before you leave in order to establish the "prior set business purpose" required by the IRS. Keeping this in mind, before he left for his trip, Tim set up appointments with business colleagues in the various cities that he planned to visit.
Let's say Tim is a manufacturer of green office products looking to expand his business and distribute more product. One possible way to establish business contacts--if he doesn't already have them--is to place advertisements looking for distributors in newspapers in each location he plans to visit. He could then interview those who respond when he gets to the business destination.
In order to deduct all of your on-the-road business expenses, you must be traveling on business. The IRS states that travel expenses are 100% deductible as long as your trip is business related and you are traveling away from your regular place of business longer than an ordinary day's work and you need to sleep or rest to meet the demands of your work while away from home.
For every day you are on business travel, you can deduct 100% of lodging, tips, car rentals, and 50% of your food. Tim spends three days meeting with potential distributors. If he spends $50 a day for food, he can deduct 50% of this amount, or $25.
If you have a business day on Friday and another one on Monday, you can deduct all on-the-road expenses during the weekend.
The IRS says that you can deduct transportation expenses if business is the primary purpose of the trip. A majority of days in the trip must be for business activities, otherwise, you cannot make any transportation deductions.
Since Tim accrued six business days, he could spend another five days having fun and still deduct all his transportation to San Diego. The reason is that the majority of the days were business days (six out of eleven). However, he can only deduct six days worth of lodging, dry cleaning, shoe shines, and tips. The important point is that Tim would be spending money on lodging, airfare, and food, but now most of his expenses will become deductible.
Consult us before you plan your next trip. We'll show you the right way to legally deduct your vacation when you combine it with business. Bon Voyage!
 |
| Dublin, Ireland |
Tim, who owns his own business, decided he wanted to take a two-week trip around the US. So he did--and was able to legally deduct every dime that he spent on his "vacation". Here's how he did it.
1. Make all your business appointments before you leave for your trip.
Most people believe that they can go on vacation and simply hand out their business cards in order to make the trip deductible.
Wrong.
You must have at least one business appointment before you leave in order to establish the "prior set business purpose" required by the IRS. Keeping this in mind, before he left for his trip, Tim set up appointments with business colleagues in the various cities that he planned to visit.
Let's say Tim is a manufacturer of green office products looking to expand his business and distribute more product. One possible way to establish business contacts--if he doesn't already have them--is to place advertisements looking for distributors in newspapers in each location he plans to visit. He could then interview those who respond when he gets to the business destination.
Example: Tim wants to vacation in Hawaii. If he places several advertisements for distributors, or contacts some of his downline distributors to perform a presentation, then the IRS would accept his trip for business.
Tip: It would be vital for Tim to document this business purpose by keeping a copy of the advertisement and all correspondence along with noting what appointments he will have in his diary.2. Make Sure your Trip is All "Business Travel."
In order to deduct all of your on-the-road business expenses, you must be traveling on business. The IRS states that travel expenses are 100% deductible as long as your trip is business related and you are traveling away from your regular place of business longer than an ordinary day's work and you need to sleep or rest to meet the demands of your work while away from home.
Example: Tim wanted to go to a regional meeting in Boston, which is only a one-hour drive from his home. If he were to sleep in the hotel where the meeting will be held (in order to avoid possible automobile and traffic problems), his overnight stay qualifies as business travel in the eyes of the IRS.
Tip: Remember: You don't need to live far away to be on business travel. If you have a good reason for sleeping at your destination, you could live a couple of miles away and still be on travel status.3. Make sure that you deduct all of your on-the-road -expenses for each day you're away.
For every day you are on business travel, you can deduct 100% of lodging, tips, car rentals, and 50% of your food. Tim spends three days meeting with potential distributors. If he spends $50 a day for food, he can deduct 50% of this amount, or $25.
Tip:The IRS doesn't require receipts for travel expense under $75 per expense--except for lodging.
Example: If Tim pays $6 for drinks an the plane, $6.95 for breakfast, $12.00 for lunch, $50 for dinner, he does not need receipts for anything since each item was under $75.
Tip: He would, however, need to document these items in your diary. A good tax diary is essential in order to audit-proof your records. Adequate documentation shall consist of amount, date, place and business reason for the expense.
Example: If, however, Tim stays in the Bates Motel and spends $22 on lodging, will he need a receipt? The answer is yes. You need receipts for all paid lodging.
Tip: Not only are your on-the-road expenses deductible from your trip, but also all laundry, shoe shines, manicures, and dry-cleaning costs for clothes worn on the trip. Thus, your first dry cleaning bill that you incur when you get home will be fully deductible. Make sure that you keep the dry cleaning receipt and have your clothing dry cleaned within a day or two of getting home.4. Sandwich weekends between business days.
If you have a business day on Friday and another one on Monday, you can deduct all on-the-road expenses during the weekend.
Example: Tim makes business appointments in Florida on Friday and one on the following Monday. Even though he has no business on Saturday and Sunday, he may deduct on-the-road business expenses incurred during the weekend.5. Make the majority of your trip days business days.
The IRS says that you can deduct transportation expenses if business is the primary purpose of the trip. A majority of days in the trip must be for business activities, otherwise, you cannot make any transportation deductions.
Example: Tim spends six days in San Diego. He leaves early on Thursday morning. He had a seminar on Friday and meets with distributors on Monday and flies home on Tuesday, taking the last flight of the day home after playing a complete round of golf. How many days are considered business days?All of them. Thursday is a business day, since it includes traveling - even if the rest of the day is spent at the beach. Friday is a business day because he had a seminar. Monday is a business day because he met with prospects and distributors in pre-arranged appointments. Saturday and Sunday are sandwiched between business days, so they count, and Tuesday is a travel day.
Since Tim accrued six business days, he could spend another five days having fun and still deduct all his transportation to San Diego. The reason is that the majority of the days were business days (six out of eleven). However, he can only deduct six days worth of lodging, dry cleaning, shoe shines, and tips. The important point is that Tim would be spending money on lodging, airfare, and food, but now most of his expenses will become deductible.
Consult us before you plan your next trip. We'll show you the right way to legally deduct your vacation when you combine it with business. Bon Voyage!
Tim, who owns his own business, decided he wanted to take a two-week trip around the US. So he did--and was able to legally deduct every dime that he spent on his "vacation". Here's how he did it.
1. Make all your business appointments before you leave for your trip.
Most people believe that they can go on vacation and simply hand out their business cards in order to make the trip deductible.
Wrong.
You must have at least one business appointment before you leave in order to establish the "prior set business purpose" required by the IRS. Keeping this in mind, before he left for his trip, Tim set up appointments with business colleagues in the various cities that he planned to visit.
Let's say Tim is a manufacturer of green office products looking to expand his business and distribute more product. One possible way to establish business contacts--if he doesn't already have them--is to place advertisements looking for distributors in newspapers in each location he plans to visit. He could then interview those who respond when he gets to the business destination.
Example: Tim wants to vacation in Hawaii. If he places several advertisements for distributors, or contacts some of his downline distributors to perform a presentation, then the IRS would accept his trip for business.
Tip: It would be vital for Tim to document this business purpose by keeping a copy of the advertisement and all correspondence along with noting what appointments he will have in his diary.2. Make Sure your Trip is All "Business Travel."
In order to deduct all of your on-the-road business expenses, you must be traveling on business. The IRS states that travel expenses are 100% deductible as long as your trip is business related and you are traveling away from your regular place of business longer than an ordinary day's work and you need to sleep or rest to meet the demands of your work while away from home.
Example: Tim wanted to go to a regional meeting in Boston, which is only a one-hour drive from his home. If he were to sleep in the hotel where the meeting will be held (in order to avoid possible automobile and traffic problems), his overnight stay qualifies as business travel in the eyes of the IRS.
Tip: Remember: You don't need to live far away to be on business travel. If you have a good reason for sleeping at your destination, you could live a couple of miles away and still be on travel status.3. Make sure that you deduct all of your on-the-road -expenses for each day you're away.
For every day you are on business travel, you can deduct 100% of lodging, tips, car rentals, and 50% of your food. Tim spends three days meeting with potential distributors. If he spends $50 a day for food, he can deduct 50% of this amount, or $25.
Tip:The IRS doesn't require receipts for travel expense under $75 per expense--except for lodging.
Example: If Tim pays $6 for drinks an the plane, $6.95 for breakfast, $12.00 for lunch, $50 for dinner, he does not need receipts for anything since each item was under $75.
Tip: He would, however, need to document these items in your diary. A good tax diary is essential in order to audit-proof your records. Adequate documentation shall consist of amount, date, place and business reason for the expense.
Example: If, however, Tim stays in the Bates Motel and spends $22 on lodging, will he need a receipt? The answer is yes. You need receipts for all paid lodging.
Tip: Not only are your on-the-road expenses deductible from your trip, but also all laundry, shoe shines, manicures, and dry-cleaning costs for clothes worn on the trip. Thus, your first dry cleaning bill that you incur when you get home will be fully deductible. Make sure that you keep the dry cleaning receipt and have your clothing dry cleaned within a day or two of getting home.4. Sandwich weekends between business days.
If you have a business day on Friday and another one on Monday, you can deduct all on-the-road expenses during the weekend.
Example: Tim makes business appointments in Florida on Friday and one on the following Monday. Even though he has no business on Saturday and Sunday, he may deduct on-the-road business expenses incurred during the weekend.5. Make the majority of your trip days business days.
The IRS says that you can deduct transportation expenses if business is the primary purpose of the trip. A majority of days in the trip must be for business activities, otherwise, you cannot make any transportation deductions.
Example: Tim spends six days in San Diego. He leaves early on Thursday morning. He had a seminar on Friday and meets with distributors on Monday and flies home on Tuesday, taking the last flight of the day home after playing a complete round of golf. How many days are considered business days?All of them. Thursday is a business day, since it includes traveling - even if the rest of the day is spent at the beach. Friday is a business day because he had a seminar. Monday is a business day because he met with prospects and distributors in pre-arranged appointments. Saturday and Sunday are sandwiched between business days, so they count, and Tuesday is a travel day.
Since Tim accrued six business days, he could spend another five days having fun and still deduct all his transportation to San Diego. The reason is that the majority of the days were business days (six out of eleven). However, he can only deduct six days worth of lodging, dry cleaning, shoe shines, and tips. The important point is that Tim would be spending money on lodging, airfare, and food, but now most of his expenses will become deductible.
Consult us before you plan your next trip. We'll show you the right way to legally deduct your vacation when you combine it with business. Bon Voyage!
11 Kasım 2012 Pazar
Discover Your Pot o' Gold...in Your Tax Deductible Vacation!
To contact us Click HERE
Tim, who owns his own business, decided he wanted to take a two-week trip around the US. So he did--and was able to legally deduct every dime that he spent on his "vacation". Here's how he did it.
1. Make all your business appointments before you leave for your trip.
Most people believe that they can go on vacation and simply hand out their business cards in order to make the trip deductible.
Wrong.
You must have at least one business appointment before you leave in order to establish the "prior set business purpose" required by the IRS. Keeping this in mind, before he left for his trip, Tim set up appointments with business colleagues in the various cities that he planned to visit.
Let's say Tim is a manufacturer of green office products looking to expand his business and distribute more product. One possible way to establish business contacts--if he doesn't already have them--is to place advertisements looking for distributors in newspapers in each location he plans to visit. He could then interview those who respond when he gets to the business destination.
In order to deduct all of your on-the-road business expenses, you must be traveling on business. The IRS states that travel expenses are 100% deductible as long as your trip is business related and you are traveling away from your regular place of business longer than an ordinary day's work and you need to sleep or rest to meet the demands of your work while away from home.
For every day you are on business travel, you can deduct 100% of lodging, tips, car rentals, and 50% of your food. Tim spends three days meeting with potential distributors. If he spends $50 a day for food, he can deduct 50% of this amount, or $25.
If you have a business day on Friday and another one on Monday, you can deduct all on-the-road expenses during the weekend.
The IRS says that you can deduct transportation expenses if business is the primary purpose of the trip. A majority of days in the trip must be for business activities, otherwise, you cannot make any transportation deductions.
Since Tim accrued six business days, he could spend another five days having fun and still deduct all his transportation to San Diego. The reason is that the majority of the days were business days (six out of eleven). However, he can only deduct six days worth of lodging, dry cleaning, shoe shines, and tips. The important point is that Tim would be spending money on lodging, airfare, and food, but now most of his expenses will become deductible.
Consult us before you plan your next trip. We'll show you the right way to legally deduct your vacation when you combine it with business. Bon Voyage!
Tim, who owns his own business, decided he wanted to take a two-week trip around the US. So he did--and was able to legally deduct every dime that he spent on his "vacation". Here's how he did it.
1. Make all your business appointments before you leave for your trip.
Most people believe that they can go on vacation and simply hand out their business cards in order to make the trip deductible.
Wrong.
You must have at least one business appointment before you leave in order to establish the "prior set business purpose" required by the IRS. Keeping this in mind, before he left for his trip, Tim set up appointments with business colleagues in the various cities that he planned to visit.
Let's say Tim is a manufacturer of green office products looking to expand his business and distribute more product. One possible way to establish business contacts--if he doesn't already have them--is to place advertisements looking for distributors in newspapers in each location he plans to visit. He could then interview those who respond when he gets to the business destination.
In order to deduct all of your on-the-road business expenses, you must be traveling on business. The IRS states that travel expenses are 100% deductible as long as your trip is business related and you are traveling away from your regular place of business longer than an ordinary day's work and you need to sleep or rest to meet the demands of your work while away from home.
For every day you are on business travel, you can deduct 100% of lodging, tips, car rentals, and 50% of your food. Tim spends three days meeting with potential distributors. If he spends $50 a day for food, he can deduct 50% of this amount, or $25.
If you have a business day on Friday and another one on Monday, you can deduct all on-the-road expenses during the weekend.
The IRS says that you can deduct transportation expenses if business is the primary purpose of the trip. A majority of days in the trip must be for business activities, otherwise, you cannot make any transportation deductions.
Since Tim accrued six business days, he could spend another five days having fun and still deduct all his transportation to San Diego. The reason is that the majority of the days were business days (six out of eleven). However, he can only deduct six days worth of lodging, dry cleaning, shoe shines, and tips. The important point is that Tim would be spending money on lodging, airfare, and food, but now most of his expenses will become deductible.
Consult us before you plan your next trip. We'll show you the right way to legally deduct your vacation when you combine it with business. Bon Voyage!
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| Dublin, Ireland |
Tim, who owns his own business, decided he wanted to take a two-week trip around the US. So he did--and was able to legally deduct every dime that he spent on his "vacation". Here's how he did it.
1. Make all your business appointments before you leave for your trip.
Most people believe that they can go on vacation and simply hand out their business cards in order to make the trip deductible.
Wrong.
You must have at least one business appointment before you leave in order to establish the "prior set business purpose" required by the IRS. Keeping this in mind, before he left for his trip, Tim set up appointments with business colleagues in the various cities that he planned to visit.
Let's say Tim is a manufacturer of green office products looking to expand his business and distribute more product. One possible way to establish business contacts--if he doesn't already have them--is to place advertisements looking for distributors in newspapers in each location he plans to visit. He could then interview those who respond when he gets to the business destination.
Example: Tim wants to vacation in Hawaii. If he places several advertisements for distributors, or contacts some of his downline distributors to perform a presentation, then the IRS would accept his trip for business.
Tip: It would be vital for Tim to document this business purpose by keeping a copy of the advertisement and all correspondence along with noting what appointments he will have in his diary.2. Make Sure your Trip is All "Business Travel."
In order to deduct all of your on-the-road business expenses, you must be traveling on business. The IRS states that travel expenses are 100% deductible as long as your trip is business related and you are traveling away from your regular place of business longer than an ordinary day's work and you need to sleep or rest to meet the demands of your work while away from home.
Example: Tim wanted to go to a regional meeting in Boston, which is only a one-hour drive from his home. If he were to sleep in the hotel where the meeting will be held (in order to avoid possible automobile and traffic problems), his overnight stay qualifies as business travel in the eyes of the IRS.
Tip: Remember: You don't need to live far away to be on business travel. If you have a good reason for sleeping at your destination, you could live a couple of miles away and still be on travel status.3. Make sure that you deduct all of your on-the-road -expenses for each day you're away.
For every day you are on business travel, you can deduct 100% of lodging, tips, car rentals, and 50% of your food. Tim spends three days meeting with potential distributors. If he spends $50 a day for food, he can deduct 50% of this amount, or $25.
Tip:The IRS doesn't require receipts for travel expense under $75 per expense--except for lodging.
Example: If Tim pays $6 for drinks an the plane, $6.95 for breakfast, $12.00 for lunch, $50 for dinner, he does not need receipts for anything since each item was under $75.
Tip: He would, however, need to document these items in your diary. A good tax diary is essential in order to audit-proof your records. Adequate documentation shall consist of amount, date, place and business reason for the expense.
Example: If, however, Tim stays in the Bates Motel and spends $22 on lodging, will he need a receipt? The answer is yes. You need receipts for all paid lodging.
Tip: Not only are your on-the-road expenses deductible from your trip, but also all laundry, shoe shines, manicures, and dry-cleaning costs for clothes worn on the trip. Thus, your first dry cleaning bill that you incur when you get home will be fully deductible. Make sure that you keep the dry cleaning receipt and have your clothing dry cleaned within a day or two of getting home.4. Sandwich weekends between business days.
If you have a business day on Friday and another one on Monday, you can deduct all on-the-road expenses during the weekend.
Example: Tim makes business appointments in Florida on Friday and one on the following Monday. Even though he has no business on Saturday and Sunday, he may deduct on-the-road business expenses incurred during the weekend.5. Make the majority of your trip days business days.
The IRS says that you can deduct transportation expenses if business is the primary purpose of the trip. A majority of days in the trip must be for business activities, otherwise, you cannot make any transportation deductions.
Example: Tim spends six days in San Diego. He leaves early on Thursday morning. He had a seminar on Friday and meets with distributors on Monday and flies home on Tuesday, taking the last flight of the day home after playing a complete round of golf. How many days are considered business days?All of them. Thursday is a business day, since it includes traveling - even if the rest of the day is spent at the beach. Friday is a business day because he had a seminar. Monday is a business day because he met with prospects and distributors in pre-arranged appointments. Saturday and Sunday are sandwiched between business days, so they count, and Tuesday is a travel day.
Since Tim accrued six business days, he could spend another five days having fun and still deduct all his transportation to San Diego. The reason is that the majority of the days were business days (six out of eleven). However, he can only deduct six days worth of lodging, dry cleaning, shoe shines, and tips. The important point is that Tim would be spending money on lodging, airfare, and food, but now most of his expenses will become deductible.
Consult us before you plan your next trip. We'll show you the right way to legally deduct your vacation when you combine it with business. Bon Voyage!
Tim, who owns his own business, decided he wanted to take a two-week trip around the US. So he did--and was able to legally deduct every dime that he spent on his "vacation". Here's how he did it.
1. Make all your business appointments before you leave for your trip.
Most people believe that they can go on vacation and simply hand out their business cards in order to make the trip deductible.
Wrong.
You must have at least one business appointment before you leave in order to establish the "prior set business purpose" required by the IRS. Keeping this in mind, before he left for his trip, Tim set up appointments with business colleagues in the various cities that he planned to visit.
Let's say Tim is a manufacturer of green office products looking to expand his business and distribute more product. One possible way to establish business contacts--if he doesn't already have them--is to place advertisements looking for distributors in newspapers in each location he plans to visit. He could then interview those who respond when he gets to the business destination.
Example: Tim wants to vacation in Hawaii. If he places several advertisements for distributors, or contacts some of his downline distributors to perform a presentation, then the IRS would accept his trip for business.
Tip: It would be vital for Tim to document this business purpose by keeping a copy of the advertisement and all correspondence along with noting what appointments he will have in his diary.2. Make Sure your Trip is All "Business Travel."
In order to deduct all of your on-the-road business expenses, you must be traveling on business. The IRS states that travel expenses are 100% deductible as long as your trip is business related and you are traveling away from your regular place of business longer than an ordinary day's work and you need to sleep or rest to meet the demands of your work while away from home.
Example: Tim wanted to go to a regional meeting in Boston, which is only a one-hour drive from his home. If he were to sleep in the hotel where the meeting will be held (in order to avoid possible automobile and traffic problems), his overnight stay qualifies as business travel in the eyes of the IRS.
Tip: Remember: You don't need to live far away to be on business travel. If you have a good reason for sleeping at your destination, you could live a couple of miles away and still be on travel status.3. Make sure that you deduct all of your on-the-road -expenses for each day you're away.
For every day you are on business travel, you can deduct 100% of lodging, tips, car rentals, and 50% of your food. Tim spends three days meeting with potential distributors. If he spends $50 a day for food, he can deduct 50% of this amount, or $25.
Tip:The IRS doesn't require receipts for travel expense under $75 per expense--except for lodging.
Example: If Tim pays $6 for drinks an the plane, $6.95 for breakfast, $12.00 for lunch, $50 for dinner, he does not need receipts for anything since each item was under $75.
Tip: He would, however, need to document these items in your diary. A good tax diary is essential in order to audit-proof your records. Adequate documentation shall consist of amount, date, place and business reason for the expense.
Example: If, however, Tim stays in the Bates Motel and spends $22 on lodging, will he need a receipt? The answer is yes. You need receipts for all paid lodging.
Tip: Not only are your on-the-road expenses deductible from your trip, but also all laundry, shoe shines, manicures, and dry-cleaning costs for clothes worn on the trip. Thus, your first dry cleaning bill that you incur when you get home will be fully deductible. Make sure that you keep the dry cleaning receipt and have your clothing dry cleaned within a day or two of getting home.4. Sandwich weekends between business days.
If you have a business day on Friday and another one on Monday, you can deduct all on-the-road expenses during the weekend.
Example: Tim makes business appointments in Florida on Friday and one on the following Monday. Even though he has no business on Saturday and Sunday, he may deduct on-the-road business expenses incurred during the weekend.5. Make the majority of your trip days business days.
The IRS says that you can deduct transportation expenses if business is the primary purpose of the trip. A majority of days in the trip must be for business activities, otherwise, you cannot make any transportation deductions.
Example: Tim spends six days in San Diego. He leaves early on Thursday morning. He had a seminar on Friday and meets with distributors on Monday and flies home on Tuesday, taking the last flight of the day home after playing a complete round of golf. How many days are considered business days?All of them. Thursday is a business day, since it includes traveling - even if the rest of the day is spent at the beach. Friday is a business day because he had a seminar. Monday is a business day because he met with prospects and distributors in pre-arranged appointments. Saturday and Sunday are sandwiched between business days, so they count, and Tuesday is a travel day.
Since Tim accrued six business days, he could spend another five days having fun and still deduct all his transportation to San Diego. The reason is that the majority of the days were business days (six out of eleven). However, he can only deduct six days worth of lodging, dry cleaning, shoe shines, and tips. The important point is that Tim would be spending money on lodging, airfare, and food, but now most of his expenses will become deductible.
Consult us before you plan your next trip. We'll show you the right way to legally deduct your vacation when you combine it with business. Bon Voyage!
Entitlement Cliff Ignored : Disaster For America
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This is something that most of us that live in the real world knew before the a majority of the population reelected Mr Obama. Our economic situation must change if we are to survive as a free nation.
What's so worry-some now is that the majority, although small that voted for 'more of the same', must believe there is no problem with our entitlement programs, all we really need is to be told by someone they will fix the problem and it will be fixed. All is well. Pay no more attention, we are a path to recovery.
It's really amazing how many people in this country believe that just by hoping the problems will be fixed, saying that are fixed or hoping they will go away if they are ignored is enough. After 4 years of this agenda, we are still facing the same problems only they are worse, and apparently, reelecting the person the made them worse is a good solution.
Are the millions of people that voted in this election cycle truly believe this or are they just ignorant, badly informed or plainly stupid.
Why is this approaching disaster so clear to me, and others, but lost completely to so many others? This is not that complicated. Spend more then you make will always cause systems to fail. It's no more complicated then falling down, it's a fact you will hit the ground.
The Coming Entitlements Cliff
Source: Merrill Matthews and Mark E. Litow, "The Coming Entitlements Cliff," Institute for Policy Innovation, October 30, 2012.
November 8, 2012
The fiscal cliff approaching at the end of this year pales in comparisons to the impending entitlements program cliff, say Merrill Matthews, a resident scholar with the Institute for Policy Innovation, and Mark E. Litow, a retired actuary and chairman of the Social Insurance Public Finance Section of the Society of Actuaries.
According to the U.S. Census Bureau, 108 million Americans live in households where at least one person participates in a means-tested program. The number has grown rapidly under the Obama administration.
•Medicaid has grown from 46.9 million to 56 million people.
•Disability beneficiaries increased from 7.5 million to 8.8 million.
•Food stamp recipients have grown from 32 million to 47 million Americans.
The budgetary challenges for these programs are enormous.
•For the 2012 fiscal year, the nation spent around $2.2 trillion of its $3.7 trillion budget on entitlement programs.
•The cost of entitlement programs plus the interest on debt is nearly equal to total federal revenue today.
•Everything the government does is on borrowed, or printed, money.
Who is going to pay for all these benefits?
•The $2.2 trillion expenditures for 120 million-plus entitled individuals translates to $18,000 per beneficiary.
•Moreover, an estimated 10,000 people are retiring every day. As the 77 million baby boomers transition from being taxpayers to net benefit recipients, the funding stream further diminishes.
•Sustaining this level of entitlement expenditure will only result in a reduction in work effort, reduced employment opportunities, and more people moving onto entitlements.
To solve this crisis, three things must happen.
•Entitlement spending must decrease: Benefits program must be reengineered into a real safety net, helping those who need it most without having to create economic incentives to remain on welfare.
•Policies that encourage economic growth must be implemented.
•Several programs must transition to prefunded personal accounts.
What's so worry-some now is that the majority, although small that voted for 'more of the same', must believe there is no problem with our entitlement programs, all we really need is to be told by someone they will fix the problem and it will be fixed. All is well. Pay no more attention, we are a path to recovery.
It's really amazing how many people in this country believe that just by hoping the problems will be fixed, saying that are fixed or hoping they will go away if they are ignored is enough. After 4 years of this agenda, we are still facing the same problems only they are worse, and apparently, reelecting the person the made them worse is a good solution.
Are the millions of people that voted in this election cycle truly believe this or are they just ignorant, badly informed or plainly stupid.
Why is this approaching disaster so clear to me, and others, but lost completely to so many others? This is not that complicated. Spend more then you make will always cause systems to fail. It's no more complicated then falling down, it's a fact you will hit the ground.
The Coming Entitlements Cliff
Source: Merrill Matthews and Mark E. Litow, "The Coming Entitlements Cliff," Institute for Policy Innovation, October 30, 2012.
November 8, 2012
The fiscal cliff approaching at the end of this year pales in comparisons to the impending entitlements program cliff, say Merrill Matthews, a resident scholar with the Institute for Policy Innovation, and Mark E. Litow, a retired actuary and chairman of the Social Insurance Public Finance Section of the Society of Actuaries.
According to the U.S. Census Bureau, 108 million Americans live in households where at least one person participates in a means-tested program. The number has grown rapidly under the Obama administration.
•Medicaid has grown from 46.9 million to 56 million people.
•Disability beneficiaries increased from 7.5 million to 8.8 million.
•Food stamp recipients have grown from 32 million to 47 million Americans.
The budgetary challenges for these programs are enormous.
•For the 2012 fiscal year, the nation spent around $2.2 trillion of its $3.7 trillion budget on entitlement programs.
•The cost of entitlement programs plus the interest on debt is nearly equal to total federal revenue today.
•Everything the government does is on borrowed, or printed, money.
Who is going to pay for all these benefits?
•The $2.2 trillion expenditures for 120 million-plus entitled individuals translates to $18,000 per beneficiary.
•Moreover, an estimated 10,000 people are retiring every day. As the 77 million baby boomers transition from being taxpayers to net benefit recipients, the funding stream further diminishes.
•Sustaining this level of entitlement expenditure will only result in a reduction in work effort, reduced employment opportunities, and more people moving onto entitlements.
To solve this crisis, three things must happen.
•Entitlement spending must decrease: Benefits program must be reengineered into a real safety net, helping those who need it most without having to create economic incentives to remain on welfare.
•Policies that encourage economic growth must be implemented.
•Several programs must transition to prefunded personal accounts.
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