D.E. Rodrigues & Company Accounting Blog

January 2013

Want to help your child buy a home?

Written by January 31, 2013

consider include lending your child money, gifting under the annual gift tax exclusion, pledging securities, and equity sharing. Assuming you have enough liquid assets, you can effectively act as the mortgage lender to your child by lending money to pay for the house. Another option is to give the child money for a down payment on a house. Making a...

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Delayed tax filing affects farmers and fishermen

Written by January 30, 2013

If your business is farming or fishing, you have until April 15, instead of March 1, to file your 2012 tax return and pay any tax due for 2012. Farmers and fishermen normally must file and …pay by March 1 if they didn’t make quarterly estimated tax payments during the previous year. Because a new tax law was signed on...

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IRS delays start to the 1040 filing season

Written by January 29, 2013

The delayed passage of the “American Taxpayers Relief Act of 2012” has put the IRS behind schedule. Due to several provisions of the law affecting 2012 tax returns, the IRS could not open the Form 1040 filing season for the majority of taxpayers until late January. Those taxpayers filing Form 5695 (Energy Credit), Form 4562 (Depreciation), and Form 3800… (General...

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One Way to Save for Education

Written by January 28, 2013

As everyone knows, the cost of higher education goes up each year. While many of us are already familiar with 529 plans and education IRAs, many don’t realize that contributions to these plans, do not generate any tax deduction for the don…or. One way used by some businesses and self employed individuals is to employ their children in the business,...

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Speed Up your IRA Deduction

Written by January 25, 2013

If you did not contribute the 2012 maximum to your IRA by December 31, 2012, and you make any IRA contributions before April 15, 2013, tell your bank or other trustee that these 2013 contributions are for 2012 until you reach the $5,000 limit ($6,000 if you’re 50 or older). You can then deduct these 2013 amounts on your 2012...

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Don't Overlook the Tax Implications of a Divorce

Written by January 23, 2013

Tax rules are daunting at the best of times – and they’re more so at the worst of times, such as during a divorce, when you may feel too stressed to face decisions involving your taxes. Yet the choi…ces you make will affect your future, both financially and personally. Here’s where to start. * Filing status For tax purposes, the...

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Save More for Retirement

Written by January 22, 2013

The amount you can contribute to your retirement plan increases in 2013. The 401(k) maximum salary deferral increases from the 2012 limit of $17,000 to $17,500. The catch-up limit for those 50 and older remains unchanged at $5,500. The maximum deferral for a SIMPLE increases from the 2012 limit of $11,500 to $12,000. The catch-up limit for 50 and older...

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All Companies Need to Establish Controls

Written by January 21, 2013

Unless the owner handles all aspects of computing and paying payroll, there is room for fraud in every small business. The fact that your company has only a few employees does not guarantee that you will be safe. Perhaps one of the easiest payroll fraud techniques is the overpayment of withholding or payroll taxes. Your bookkeeper simply overpays the government....

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International Tax Considerations for the Ordinary Person

Written by January 18, 2013

Did you know that as a US citizen, you are required to report your worldwide income from all sources on your US tax return? Did you also know that foreign bank accounts over a certain limit are also required to be disclosed? Were you also …aware that there has been an ongoing project by the IRS to identify those US...

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Get a Partnership Agreement Together Before Starting a Business!

Written by January 18, 2013

It is interesting to note how many partnerships were formed over a weekend. You meet someone at a party on Friday and by Monday you are in business together. No courtship, no honeymoon, just off you go into business. Well, let me suggest th…at such partners secure a good set of boxing gloves, because they are going to need them....

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