 E-Newsletter Vol 5, Issue 8
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| Welcome! | |
This month we discuss estate planning along with a new approach of nonprofits for increasing donations. We also highlight clients who are making headlines and answer a new question about estimated taxes in the "Ask the Firm" section of the newsletter!
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| Did you know . . . | |
Al Pacino's face was on the original Facebook Homepage! Dubbed the "Facebook guy", an image of Pacino was manipulated by a friend and classmate of Mark Zuckerberg and placed on the homepage until a major homepage redesign in 2007. |
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| The Estate Planning Process | |
It has been said that there are two certainties in life: death and taxes. Estate planning combines both of these issues, making it a sensitive exercise to undertake. The difficulties arise from both practical considerations and emotional issues.
Practical Considerations
- Complicated process: Estate planning is often viewed as confusing and complicated. The process can seem overwhelming.
- Where do we begin? How will we know whether we are making the right decisions? Who should lead the process - lawyers, CPAs, financial planners? Questions like these can easily become excuses for putting off the process indefinitely, often until a crisis makes it critical and time sensitive.
- Time-consuming process: Gathering all of the necessary documents for estate planning can be daunting, and many people do not have all of their records organized in a central location. The task of finding the financial information, current insurance documents, wills and such is not an exciting endeavor.
These and many other issues can make the estate planning process perceived as difficult, however, it's important to consider the greater financial burden that will occur if a plan is not established. For the full article please visit our blog.
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Donor Options Translate to Increased Donations | |
The effort to attract increased donations has led some not-for profits to take a broader approach to contribution requests. In the past they may have requested funds to support a single goal or limited goals. Instead, some are taking the approach of listing many of the organizations goals or populations served to make additional connections with their donors and it's proving to be successful!
For examples of success stories and the full post please visit our blog.
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Clients in the News | |
Congrats to our clients who have been making headlines!
The Vermont Specialty Food Association elected Bob Christoffel of Creative Labels as secretary-treasurer. http://www.vermontguides.com/2012/ha0812.html
Christopher and Susan Grimes' historic inn, Stowehof Inn & Resort was recently showcased in the Business People Vermont's Business Travel Guide. http://www.vermontguides.com/tg/story2.html
Shearer Chevrolet in South Burlington is supporting South Burlington Recreation & Parks through the Chevrolet Youth Soccer Program. The sponsorship will include both monetary and equipment donations during the fall 2012 youth soccer season. http://tinyurl.com/bvsr8q6
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| Staff Spotlight: Jessica Taylor | |
Jessica Taylor (jessicat@dh-cpa.com)
- Position: Associate Accountant
- Memberships: Vermont Society of CPAs (VTCPA)
- Education: University of Vermont, Master's Degree in Accounting; Colby College, Bachelor's Degree in Biology. Studied the Chinese Language at Beida University in Beijing, China. Preparing to sit for CPA exam.
- Resides: Milton, VT
- Quote: "I love what I do because I have the opportunity to help people find practical solutions to problems. I also love numbers - trying to determine budgets and creative ways to save money!"
- Hobbies: Running, gardening, traveling, spending time with family and friends.
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Q. "Will I be charged a penalty if I do not pay the estimated tax payments that the firm set up for me?" 
For the answer to this question we referred to our tax manager
Dawn Grenn, CPA.
A. If you anticipate your income will equal or exceed that of last year and you owed taxes or paid estimates last year of $1,000 or more you do need to pay the estimates we prepared for you. If your income has dropped or you increased your withholdings, you may be able to decrease your estimates.
If you do not pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax. Generally, most taxpayers will avoid this penalty if they:
- Owe less than $1,000 in tax after subtracting their estimates, withholdings and credits,
- If they paid in at least 90% of the tax for the current year, or
- 100% of the tax shown on the return for the prior year, whichever is smaller.
- For those with income in excess of $150,000 they must pay in 110% of their prior year taxes.
If you anticipate changes to your income or deductions, please contact our office so we can re-evaluate your estimates.
Look for the following in next month's Q&A corner:
What is the best practice for bookkeeping of bank loans? |
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Like us on Facebook | |
We are very pleased to announce the launch of our new firm page on Facebook: www.facebook.com/DavisHodgdonCPA. We are updating it weekly with new information, tips and tricks. "Like" our page and look for an upcoming contest to coincide with the launch of our new website in September!
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Follow us on Twitter | |
Being a client and/or referral of Davis & Hodgdon Associates entitles you to the benefit of receiving up-to-the-minute information via Twitter that impacts you and your business, so become a follower today!
Not on Twitter yet? No problem... registration is easy and free. Simply visit www.twitter.com and set up your twitter account today.
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Subscribe to the Davis & Hodgdon Associates Blog | |
Subscribe to the Davis & Hodgdon Associates blog today and get access to information and resources posted weekly. Simply visit: http://blog.dh-cpa.com/ and enter your email address in the "Get Email Updates" field.
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$25 Gift Certificate
As a thank you for referring anyone who becomes a new client, we will give you a $25 gift certificate to a local area restaurant of your choice - - - just mention this ad.
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This E-Newsletter is published by Davis & Hodgdon Associates CPAs as a service for clients, business associates and friends. Recipients should not act on the issues presented without seeking prior professional advice. Additional guidance regarding information contained herein may be obtained by contacting Davis & Hodgdon Associates CPAs at (802) 878-1963. Internal Revenue Service Circular 230 Disclosure. Pursuant to Internal Revenue Service Circular 230, we hereby inform you that the advice set forth herein with respect to U.S. federal tax issues was not intended or written by Davis & Hodgdon Associates CPAs to be used, and cannot be used, by you or any taxpayer, for the purpose of (i) avoiding any penalties that may be imposed on you or any other person under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. | |
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