Structuring For Success

There’s a lot to consider in starting your own business: developing a business plan, obtaining sufficient funding, marketing and a host of other concerns. Also critical is determining the organizational structure that best suits the business, because it will impact operating efficiency, the way you report income, the taxes you pay and your personal liability. There are four basic types to choose from.

Tax and Legal Zingers of Short Sales and Foreclosures

If you own real estate and your real estate is under water, meaning the debt you owe on your property is greater than its market value, you may be considering a short sale or foreclosure to get out from under the debt burden.   It is important for you to understand the legal pitfalls and tax ramifications so you don’t get ZINGED at tax time or discover you are still responsible for paying the lender after you surrender your property.

Save Tax by Filling Up Your Bracket

As the third quarter of 2010 comes to a close, you probably have a good idea of your income for the year. By matching your projected income with federal tax brackets, you may be able to make some tax saving moves. The 2010 tax rates are listed subsequently. These rates are for taxable income, after you have taken your deductions:

Lifelong Financial Tips

Wherever you are in life, these tips may help you get on solid financial ground and help you stay there.

Get specific with your goals. There’s an old expression: “If you don’t know where you’re going, any road will lead you there.” When it comes to your money, you need to have specific goals. They can be as simple as: “Put aside $500 a month for a down payment on a new home until we have $20,000,” or “Pay back credit card debt in one year with $300 a month minimum.”

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Planning During Uncertain Times

Some of the tax laws that were passed in the early years of this century will expire after 2010. Next year, prior laws could take effect. Alternatively, Congress may pass new tax laws effective in 2011—or even laws that are retroactive to the beginning of 2010. Therefore, tax planning for year-end 2010 is unusually challenging.

The articles in this tax planning letter are based on current law as of this writing. However, Congress may act by year-end, changing current law substantially. Our office will keep you posted on what changes, if any, have been signed into law and how they may affect your personal tax planning.

Securing Your Business Financing

Whether starting a business or expanding, adequate capital is essential. In fact, the right sources of funding could make the difference between success and failure for your company.

As you make your way through the funding process, keep in mind that your CPA, as your professional business adviser, can be an important ally in evaluating all the available funding options, and helping you choose the one that best meets your needs.

Through 2009, you could convert a traditional IRA to a Roth IRA only if your modified adjusted gross income (MAGI) for the year was no greater than $100,000 on a single or joint tax return. The $100,000 cap came off in January 2010. Under current law, this change is permanent. Therefore, high income taxpayers can convert traditional IRAs to Roth IRAs in 2010, 2011, 2012, and so on. For taxpayers who would like to convert their traditional IRA to a Roth IRA, year-end 2010 presents multiple opportunities.