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Rules on Charitable Contributions| Tax Tip of the Week | No. 135 February 29, 2012

Posted by bradstreetblogger in : Tax Tip, Taxes, Taxes, Uncategorized , add a comment

Charitable Giving – Up Close and Personal

This week we are going to look at a couple of fundraising efforts that are going on in our firm.

 A couple of weeks ago I was involved in the planning and running of a chili cook-off/silent auction/raffle that was held in a local tavern.  The event was to raise money for a 21 year old young lady named Rachel.  Rachel had just graduated from OSU and was starting her adventure in life when she was diagnosed with a very rare and aggressive form of cancer.

Fortunately the fund raiser was a success and we donated over $11,000 to Rachel and her family to help pay some of their mounting debts.

I had to point out to all the participants, however, that any contributions made were NOT tax deductible.  Contributions made to a specific individual are considered non-deductible gifts.  In order to be a tax deductible contribution, the donation must be made to a qualified non-profit organization.

Recently, the owners of our firm, Mark & Dawn Bradstreet, were devastated to learn that the nine year old son of their friends and neighbors was diagnosed with ALL Leukemia.  This lively young boy (his name is Caulin) is currently undergoing a three year chemotherapy treatment plan at Children’s Hospital.

Motivated by the young boy’s courageous spirit in fighting this disease, Mark and Dawn are going to run in the upcoming Flying Pig Marathon in Cincinnati.  Both are going to run a half marathon, Dawn is running for Team in Training on his behalf.

Dawn has created a web site http://pages.teamintraining.org/soh/flypig12/flypigdb to provide updates on Caulin’s progress and to raise money for the Leukemia & Lymphoma Society (a qualified 501(c)(3) non-profit group).

We invite you visit Dawn’s web site and make a tax deductible contribution to their marathon runs if you would like to help.

Helping others is the right thing to do—whether it is tax deductible or not.  But I have to say, I think it is a lot more fun eating chili and drinking beer in a tavern than it is running 13.1 miles up and down hills!

Give us a call if you have any questions about your involvement in charity events. 

You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.

Rick Prewitt – the guy behind TTW

Tax Tip of the Week Video Series:

http://youtu.be/BlhqUiVEsJo

…until next week.

 

News From a Recent Court Case | Tax Tip of the Week | No. 134 February 22, 2012

Posted by bradstreetblogger in : Tax Tip, Taxes, Taxes, Uncategorized , add a comment

No Tenants?–Still a Write-off

In a recent Tax Court case (Bonds, TC Summ. Op. 2011-122) the Court said that a lack of tenants is not sufficient grounds to deny a rental expense deduction. 

In this case, the IRS audited Ms. Bonds’ rental activity and denied her any rental losses due to lack of rental income.  The Tax Court overruled the audit findings and allowed rental losses for the two years after the last tenant moved out.  In the Court’s view, the property was still held for income-producing purposes and she actively participated in the rental activity. 

Editors Note– Good for Ms. Bonds!  However, it is still a good rule of thumb, if possible, to show a profit in at least three out of every five years in any business endeavor. 

Do you have any losses you want to discuss?  Just give us a call. 

You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.

Rick Prewitt – the guy behind TTW

Tax Tip of the Week Video Series:

http://youtu.be/BlhqUiVEsJo

…until next week.

 

How to Save on Workers’ Comp | Tax Tip of the Week | No. 133 February 15, 2012

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Ohio’s Workers’ Compensation

For businesses that have workers in the state of Ohio, Workers’ Compensation (OBWC) premiums can be a sizable, but necessary, expense.  What can you do to help reduce costs in this area?

Ohio’s Group Rating Program:  The maximum group rating discount can save you up to 53% of your premium beginning in July 2012.  This is great news, as the maximum discount for the fiscal year July 2011- June 2012 was 51%.  If you are currently in a group, you should have recently received renewal forms to return to remain in that group.  If you are not currently in a group, and are a private employer, you have until the last day of February to enroll for the period beginning July 1, 2012.  Rates for group membership can vary, but the maximum savings will not differ.

Other Program Options: OBWC also offers discounts related to various programs.  A new program option called “Destination: Excellence” will be available beginning July 1, 2012 and will offer additional financial rebates and premium discounts to employers who meet claims management and safety related goals.

Call us if you are interested in keeping your workers’ compensation premiums to a minimum and want to make sure you are getting all of the discounts available to you.

This week’s author – Linda Johannes, CPA

You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.

Rick Prewitt – the guy behind TTW

Tax Tip of the Week Video Series:

http://youtu.be/BlhqUiVEsJo

…until next week.

 

A New Tax Credit….. | Tax Tip of the Week | February 8, 2012 | No. 132 February 8, 2012

Posted by bradstreetblogger in : Tax Tip, Taxes, Taxes, Uncategorized , add a comment

Hire A Vet!

A new tax credit for businesses that hire unemployed veterans is now in effect.  The credit amount varies with how long the veterans have been unemployed.  It is 40% of the first $14,000 of wages paid to a veteran ($24,000 in wages if the vet is disabled) who have been jobless for six months or more in the year before they were hired.  The credit is 40% of the first $6,000 of wages for vets who have been out of work at least four weeks but less than six months.

The credit applies for eligible veterans starting work after November 21, 2011 and before January 1, 2013.

Tax exempt groups can take the credit as an offset against payroll taxes.

Think of those who have served our country the next time you need to hire someone!

As always, give us a call if you have any questions.

You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.

Rick Prewitt – the guy behind TTW

Tax Tip of the Week Video Series:

http://youtu.be/BKfzpFDLYsY

…until next week.

 

Start the New Year Right! | Tax Tip of the Week | No. 131 February 1, 2012

Posted by bradstreetblogger in : Tax Tip, Taxes, Taxes, Uncategorized , add a comment

Getting Your Books in Order

If you own your own business, it is imperative that you have a solid bookkeeping/accounting system in place. Not only will you need these records to complete your tax return, but you also need the information available to you to make the proper management decisions throughout the year. 

You probably already have some sort of system in place. But is it adequate and are you taking advantage of its features, both reporting and time-saving features? For example, can you print an Aged Receivables Report? Is everything organized for closing out your 2011 books? 

If you are not currently using accounting software in your business, the beginning of the year is a great time to start. If you are currently using a software package like QuickBooks or some other software solution, this is the time of year to “clean-up” your books. Don’t let too much of the New Year slip by … now is the time to get your accounting system organized! 

Looking for help using or getting started with QuickBooks? We are a Certified QuickBooks ProAdvisor. We assist many business owners in using this software efficiently so that you can concentrate on running the business rather than doing the bookkeeping. It is well worth your time and money to invest in getting some help as you start the 2012 tax year.

Let us know if you have any questions.

You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.

Rick Prewitt – the guy behind TTW

Tax Tip of the Week Video Series:

http://youtu.be/ZLy73yk6zR4

…until next week.