Saturday, October 24, 2009

Tax Whammies

#1 - IS IT A JUST A COINCIDENCE?

October was the final filing date for 2008 taxes.
October is National Disability Month.
Coincidence? Makes a person wonder.

Just my dry humor, Sorry

#2 - SALES TAX DEDUCTION FOR NEW CAR BUYERS WILL BE EXTENDED
UNTIL YEAR-END

Purchases of a new (not used) car, light truck, motor home or motorcycle could qualify you for a special deduction for the state and local sales and excise taxes on 2009 tax returns.

The deduction is only for purchases made by the last day of 2009, and is limited to the taxed paid on up to $49,500 of the purchase price of the new vehicle.

You can get this deduction whether or not you itemize your deductions. If you do not itemize, you add this additional amount to the Standard Deduction on your 2009 tax return.

#3 - WARNING: IRS PUTS A 'TRIPLE-WHAMMY'ON HOME-BUSINESS OWNERS

Driven by Washington's massive spending spree, auditors are under more pressure than ever to "bring home the bacon" - and it's YOUR bacon!

In the coming year, if you are a Schedule C filer (sole proprietor or LLC), your chances of being audited just doubled.

That’s whammy #1.

Whammy #2 -- And if they do audit you, they will try to prove that you are not running a "business with the intent to make a profit" (which would kill ALL of your home business tax deductions).

The third "whammy" is the careful look they will take at the deduction you took -- or didn’t take -- for business use of your home (i.e., home office).

The taxpayer's problem will NOT come from CLAIMING this deduction, but from NOT claiming it.

You see, auditors are being taught that every legitimate business must be "based" somewhere.

If you claim to be a home-BASED business (HBB), but you don’t claim a home office, where is it BASED?

Saturday, October 17, 2009

Saturday Tax Advice

IS YOUR "TAX PREPARER" A "TAX PROFESSIONAL ?"

In most states anyone can hang out a shingle claiming to be a "Tax Preparation Service," without any licensing or certification of any kind.

Some of them are well informed and handle the task exceedingly well. But not all of them.

Congress is yielding to pressure from the IRS to implement a registration requirement of some kind.

Expect legislation later this year, but don't expect
it to take effect until AFTER the coming tax season.


E-FILING OR PAPER-FILING? SURPRISE: THE IRS DOESN'T WANT US TO HAVE A CHOICE

If you have my book and read my Tax Tips, you know I am NOT a fan of E-Filing of Tax Returns, because it robs you of audit-proofing options and increases your chances of an audit.

The BAD NEWS:
The IRS is pushing Congress to force all taxpayers to file returns electronically by 2011. But so far, it looks like the requirement will apply only to all tax preparers who process 100 or more tax returns.

The SOLUTION:
After our tax pro has finished his or her work for us, maybe we'll have to tell them: DON'T SIGN my tax return. That would still leave us the option of filing our OWN Tax Return as a PAPER return.


Lenisa
With Help for You Taxes

Saturday, October 10, 2009

Deadline Fast Approaching!!!

FINAL TAX-FILING DEADLINE IS JUST ONE WEEK AWAY. BUT, WHAT IF YOU ARE STILL NOT READY TO FILE?

If you filed for an extension to file your 2008 Tax Returns, your final deadline is one week from today, on Thursday Oct. 15.

If you miss that deadline, but THEY owe YOU money, don't worry, they are happy to keep it a little longer - but don’t expect them to pay interest.

But what if YOU OWE THEM?

That is a WHOLE DIFFERENT MATTER!

When you filed for an extension, that gave you more time to FILE, but it did NOT give more time to PAY. All underpaid taxes were due on April 15th.

Even if you DO file on or before Oct, 15, you will owe interest dating back to Aril 15, but if you ALSO FAIL TO FILE by Oct. 15, that's when they hit you with serious penalties -- on top of the interest!

Important questions you may have, are:
What if I just CAN'T BE READY by Thursday?
What if I DON'T HAVE THE MONEY I owe?
Can I get another extension for a little longer?

THOSE QUESTIONS ARE ANSWERED in a free one-page bullet-point summary. Just go to www.HomeBusinessTaxSavings.com to get it. You'll find the download link just TO THE LEFT of the box offering a free video that reveals:

"#1 Secret to Slashing Your Taxes in Half."

HAVE YOU COMPLETED YOUR 90-DAY VEHICLE-USE LOG? IF NOT, READ ON…

Without at least a 90-day log, you risk losing ALL deductions for business use of personal vehicles. Guess what? There are exactly 85 days left in 2009.

That's 5 days short of 90, but you can "recreate" your vehicle use for the past 5 days, and then keep accurate records for the next 85 days. Then, voila- you have a 90 day log, and thus get to claim vehicle deductions for the WHOLE YEAR. BUT if you wait a few more days to begin your log -- you will LOSE $3,000 to $5,000 or more in tax deductions.


WHEN YOU TRAVEL FOR BUSINESS -- ARE YOU USING "PER DIEM RATES" TO DETERMINE MEAL DEDUCTION AMOUNTS?

If so, could you stand some GOOD news?

PER DIEM rates are based on the Government Fiscal Year -- October 1 through September 30 -- NOT on the Jan.1 to Dec. 31 calendar-year and Tax-Year.

Technically, for travel between Oct. 1 and Dec. 31, 2009, you can choose whether you want to use the
"old" FY 2009 rates or the "new" FY 2010 rates.

I say "technically" because you COULD use the 2009 rates, but you'd be an idiot if you did, because they have INCREASED in the 2010 Per Diem schedule.

The amounts allowed for breakfast and lunch have remained unchanged, but Dinner rates have increased by $5.00, no matter where you are traveling in the U.S., and the deduction for Incidentals has increased from $3.00 to $5.00 per day.

"Incidental Expenses" include fees and tips to porters, baggage carriers, bellhops, hotel maids, and shipboard
stewards and stewardesses, according to examples the IRS provides.

The deductible rates for Meals and Incidental Expenses (M&IE) depends on your business travel destination, and
sometimes also on time-of-year.

For high-cost locations, the total daily M&IE rate is $71 for FY10. The rate for the lowest-cost locations rate $46. And there are in-between rates.

How do you know how much you can claim?

FIRST go to www.gsa.gov/perdiem to see the M&IE rate for the location you are traveling to.THEN go to www.gsa.gov/mie to see the breakdowns of Breakfast, Lunch, Dinner, and Incidentals deductions.

Get those deductions!!! It is legal and it is YOUR’S…

Lenisa Cooper
LenisasPersonalTouch.ning.com

Saturday, September 19, 2009

Auto Use Records

Time is winding down for you to be able to start creating a log for your auto use if you are going to claim it on your tax return. This may be the biggest tax break of them all. Who wouldn't want to get a $5K to $6K tax break. And it is a simple thing to do.

The IRS requires that you keep a log for no less than 90 days and you will get the tax deduction for the entire year.

For the next 90 days just keep track of you auto use for Biz purposes. These are the 4 things to keep track of:


Date / Destination / Primary Purpose / Miles

You can get the 2009 Vehicle Use Log by visiting www.HomeBusinessTaxSavings.com and click on the Free Downloads under the Resourse Center tab.

Destination does not have to be exact. For example, you could simply put Joe's Cafe'. You do not need the address of the Cafe'.

Primary Purpose is simply why you are going there. Miles are just that. How far away is it. If you went 12 miles, then 12 miles is what you write down.

You can get $550 for every 1,000 miles you drive. That is like getting $200 in tax deductions for every tank of gas you buy for you car.

So over the past year, if you put 10,000 miles on your car for business use, adn you kept track of it, you qualify for $5,500 in tax deductions.

Often there are ways to include errends and shopping miles too.

Here is an example how that works. With a little planning this can be of great benefits.

Let's say you have to get groceries, pay a few bills but you also have to go to the post office box to get your business mail and the copy shop to print business flyers and fax a proposal.

If you do that all that in one trip, all the miles you just racked up become business miles. On your log you put the date, the destination is the furthest business destination, say the Post Office or Copy Store. Primary purpose is what ever you did at the post office or copy shop. Total miles is what you racked up when you pull back into your driveway.

The fact that you also did grocery shopping and some other errond is secondary. The Secondary Purpose is not required to be logged. The Federal Tax Courts have given the taxpayer the right to determine what is Primary.

If you made two seperate trips, you put all those miles on your car and can only claim about half of your driving. By combining what you do, you get 100% of your miles deducted.

Each time you need to go somewhere, think of what business errand you could accomplish while you are gone. Sometimes you will not have any business to take care of but sometimes you will and that could wind up being a significant tax savings for you.

Two methods of figuring the Tax deductions for you Vehicle.

The standard method - the one above and the Actual Operating Cost method. (AOC)

The AOC method requires you to keep records all year long but may give you an even higher deduction. This takes into account the tires you buy, battery you needed to replace, depriciation and repairs of you vehicle.

Does this seem to be a lot to keep track of. It doesn't have to be a bother. Here is how you can simplify it for next year.

#1 Use a credit card with a zero balance and use this one card for only and all things related to the operation of the vehicle. This also includes car payments for owning or leasing.

#2 Write checks for anything you can not put on the card that relates to the vehicle expense. You will need to write down the check number, date, payee, amount and reason for the check on a ledger or some thing you use for your record keeping. Keep a running total.

#3 Cash payments. There will always be instances that you need to pay cash such as toll payments. Be sure to jot these down in the ledger also. Keep a running total.

At the end of the year, total up your 12 months of credit card statements, the total from you check ledge and the total from your cash ledger. Once all 3 are combined, you have your yearly total for vehicle expenses.

Thursday, September 3, 2009

Media Hype or do we Think for Ourselves?

What is wrong with us????

Or should I say, what is wrong with what we believe in the media?

Somebody help me here. I am reading an article written by Lili Ladaga, a Yahoo news blogger. According to Ms Ladaga, we parents are up in arms about the upcoming speech by President Obama to our children on Sept. 8th.

Some parents and conservatives are blasting the president, calling the speech an excuse to brainwash American children.

Mr. Obama told an 11 year old student reporter Damon Weaver, of his big back-to-school plan:

“I'm going to be making a big speech to young people all across the country about the importance of education; about the importance of staying in school; how we want to improve our education system and why it’s so important for the country. So I hope everybody tunes in."
Now here is where my problem is. What is wrong with what the President wants to say to our children?

NBC spoke with Katie Gordon, a spokeswoman for the Florida Republican Party, who said the party's "beef" is with the accompanying lesson plans. The guide for pre-K through grade 6 suggests questions students think about during the speech, such as "What is the President trying to tell me? What is the President asking me to do?"

The plan for grades 7-12 includes a "guided discussion," with suggested topics: "What resonated with you from President Obama's speech? What is President Obama inspiring you to do?"

Will someone please explain to me what the heck is wrong with this? You have someone in a positive roll asking for our kids to THINK about what they have just heard. And what they will hear is someone telling them how important school is. How important paying attention and getting good grades are.

Hello???!!!. What gives??? If I ask my son this or do this, he looks at me like, Mom you just don’t understand. Basketball is my future. Or, hey Mom, chill out. School is not all that important. I am going to be the next great Football hero.

No we have a man who people take notice of because he is a successful Black man who made it to where, until now, I would not have even suggested that my son strive for.

Besides all that, what parents are upset? I wasn’t asked if I was upset. Where you asked if this makes you upset?

I am sick of media telling me how I am supposed to feel about this or that subject. I can think for myself. And I am sure you can too.

They say the President Obama is brainwashing our kids. Brainwashing them to do what??? Do better???? Get better grades???? Make something out of them selves????

In the Sept. 8th speech, President Obama will challenge students to work hard, set goals for their education and take responsibility for their learning, Education Secretary Arne Duncan said in a letter to principals.

"He will also call for a shared responsibility and commitment on the part of students, parents and educators to ensure that every child in every school receives the best education possible so they can compete in the global economy for good jobs and live rewarding and productive lives as American citizens," Duncan said in a press release.

But a chairman for the Republican Party in Florida is condemning President Obama's speech as an attempt to "indoctrinate America's children to his socialist agenda."

"The idea that school children across our nation will be forced to watch the President justify his plans for government-run health care, banks, and automobile companies, increasing taxes on those who create jobs, and racking up more debt than any other President, is not only infuriating, but goes against beliefs of the majority of Americans, while bypassing American parents through an invasive abuse of power," Chairman Jim Greer said in a press release.

Now, I am sorry but that is not what President Obama said he was going to talk about. Where does this fall into the speech about education. I am sure he knows a little 3rd grader knows little about the things we adults are concerned with. But if you bring them up thinking about how important education is, you will see a big difference in the grades they get and then the jobs they are qualified for once they reach adult hood.

This is far better than what has been going on the last few decades.

Come on people. When you read something the media puts out there, investigate it yourself before you just act the way the media tells you to act.
I for one parent, am not the least bit upset about what the President will say to my children on Sept 8th.

But then again, I wasn’t asked.

Lenisa

Tuesday, September 1, 2009

Marketing Tips

Hi Everyone,

This is a news letter that I subscribe to. When it is this good, I have just got to pass it on.


Internetwork Marketing Newsletter September 2009

Does your online copy writing sell? All too often for many
people it does not. I have been studying quite a bit on this
subject and making some changes to the copy on my websites and I
have to tell you it does make a difference.

After making a few minor wording changes and layout to my
website, I doubled the amount of subscribers to this list.

If you are struggling to make money online, I encourage you to
learn all you can about effective copy writing.

I compiled this Squidoo lens to help you.

http://getresponse.com/click.html?x=a62b&lc=r1Bv&mc=f&s=Se3pp&y=T&

You can also visit message boards and forums and ask for
feedback. This is an excellent way to view your website through
the eyes of other people.

Here are a few basic things to consider when writing copy for
your website or for any blog post, article or text online.

1. What are the main keywords? This is crucial for the search
engines. Make sure that these are in the title of your web page
and ideally they should also appear in the title on your page.
2. Always make the title on your web page a bit larger than the
rest of the print. You may also want to bold it and make it red
so that it stands out from everything else.
3. Is your title catchy, and interesting? Many people will not
continue reading the rest of the page, if the title does not
grab
their attention.
4. Is the rest of the text clear, easy to understand, written at
a ninth grade level, and free of any unnecessary words?
5. Is there a clear call to action? Or there may even be more
than one if you are both selling a product and offering a free
report or something else.
6. Do you avoid linking to a lot of off site pages, which may
distract the reader and cause them to leave your site?

Recommended Resource

The 100 Greatest Headlines Ever Written-

http://getresponse.com/click.html?x=a62b&lc=r1BK&mc=f&s=Se3pp&y=c&

These headlines are the classics that have made millions when
they were used either in advertising, or books.

Best of luck with your copy writing!
This all comes from a news letter by AnnaLaura Brown that I just had to pass on to you.

Thanks for reading, Lenisa

Saturday, August 15, 2009

Tax Helps Aug 15th

Okay, now let’s talk about those 3 qualifications for the home business tax breaks that I mentioned last Saturday.

The first one is:

RUNNING YOUR BUSINESS CONSISTANTLY:

This can be 3 to 4 hours a week. Week after week, why?
Because the Government wants you to be able to ramp up this so called part time job to full time should the need arise.

This is the biggest objective the Government had. To encourage every taxpayer to have a home based business and to run it
actively because it provides the ideal safety net in these times of economic stress and layoffs.

The second requirement:

HAVE PROFIT INTENT:

Here is the easy part. Some of the activities you do for requirement number one are the same activities you will do to prove profit intent.

So, does the time and effort you are putting in your business indicate an intention to make a profit.

Do you depend on the income from the business? Would the income from this business help you to survive should you get laid off or lose your day job? This means you have profit intent. No one does things to lose money and continues to do so.

If you have losses, are they due to circumstances beyond your control or did they occur during the start up phase of your business.

Do you have knowledge needed to run your business successfully?
This does not mean you have to personally be an expert. Are you learning from someone who is? Do you read up on the subject? Take relevant classes. Does your day planner have notations of times spent learning up on the subject in an effort to establish expertise?

And by the way, if your business has made a profit any 3 of the past 5 years, the above factors are not even a consideration.

And finally,

qualification number 3:

KEEP GOOD RECORDS:

Do not let this scare you. It is not a difficult thing. Let me help you organize.

I find the envelope system helps me a great deal. Keep all receipts. When you come home from shopping for supplies, having a business luncheon, getting gas, what ever you did that on that trip from the house to time you come back to the house. Keep all proof of what your activities were.

In your car: Keep pad and pencil to jot down your miles. Again, from the time you leave the house to when you return. Even if you went to the grocery store before returning home, keep the track of the miles.

Your envelopes should be marked for current months use. Place only the receipts for that month in that envelope. Do this for each month. Set aside a day to take that months receipt and further organize them by the activity they represent.

Now you can do this each day if it is easier for you. I am not that particular. I have what I call the end of the month records day. I take an hour or two that day, just for me to further separate and organize that month’s envelope. After making sure each item is in it’s correct category, then that envelope is placed in a shoe box that holds all the other years envelopes and other papers required for my business.

Then when tax time comes, all I need do is take along my shoe box.

It is that simple.


Next week: How some of your personal expenses can become valuable Business Deductions.

Yours Truly,
Lenisa
Dish Gardens by Lenisa
www.Lenisa.Etsy.com
Lenisahbb@yahoo.com