D.E. Rodrigues & Company Accounting Blog

November 2012

What's New in Taxes: IRS gives tax relief to hurricane victims

Written by November 29, 2012

Victims of Hurricane Sandy may be entitled to some tax relief, according to an announcement by the IRS. Certain tax filing and payment deadlines from late October on will be extended until February 1, 2013. This includes the final 2012 estimated tax payment normally due January 15, 2013, and payroll and excise taxes normally due October 31, 2012, and January...

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Upcoming Expired/Expiring Tax Provisions

Written by November 27, 2012

I thought you might find this quick listing of selected expired/expiring tax provisions useful. As you know, Congress could pass legislation at any time extending or revising any or all of these provisions. * SOCIAL SECURITY TAXES. Employee’s share will increase to 6.2% after 2012, up from 4.2%. * INCOME TAX RATES. 2012 rates of 10%, 15%, 25%, 28%, 33%,...

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Final Business Year End Planning Ideas

Written by November 26, 2012

As a business owner, you know the price of inaction is missed opportunity. That’s true in tax planning, too, which is why now is the time to take actions to save money on your 2012 federal income tax return. Here are some ideas to consider before year-end. * Draw up loan documents. To preserve interest deductions, loans you make to...

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End of Year Bonuses

Written by November 20, 2012

With the end of the year fast approaching, many companies issue bonuses at the end of the year to their employees. Please keep in mind that bonuses to employees are treated as payroll and taxes must be withheld. Also keep in mind that bonuses to key employees must be paid by the end of the year in order to be...

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What is a lame duck and what does it have to do with Congress?

Written by November 19, 2012

We’ll have some political lame ducks this year, and Congress will convene a lame duck session after the November election. A quick reminder about lame ducks: A member of Congress who lost his or her bid for reelection in November 2012 will still be in Congress until January 2013. Because the individual will not be in the new 2013 Cong…ress,...

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Make sure you make your RMDs!

Written by November 15, 2012

Reminder: Required minimum distributions (RMDs) must be taken by December 31. RMDs are mandatory withdrawals from certain retirement accounts, generally after you reach age 70½. You must take a withdrawal by December 31 if the rules apply to you — and there’s a hefty penalty for procrastinating. Missing the deadline could cost you 50% of the amount you were required...

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Analyze Your Customers!

Written by November 12, 2012

If your business is like most, you put a lot of effort into attracting new customers. After all, that’s an essential part of growing the business. But sometimes it’s more productive to step back and review your existing customers, and perhaps even get rid of a few. You might be surprised at what you find if you take the time...

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Beware of the Wash Sale Rules

Written by November 9, 2012

If you sell a security before the end of 2012 to take advantage of a capital loss, be aware of the wash sale rules. To make sure the loss is deductible, refrain from buying the same security or a substantially identical security during the 61-day period that begins 30 days before you sell and ends 30 days after.

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Consider Bunching Deductions to Save on Taxes

Written by November 8, 2012

Getting the most benefit from tax deductions requires multi-year planning as well as consideration of the alternative minimum tax (AMT). The multi-year part involves “bunching” your expenses. That’s a strategy where you decide to accelerate or delay payments between different years for itemized deductions such as state income taxes, routine health care, and charitable contributions. You calculate the tax savings...

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