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Tax Tips Newsletter
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December 2011 - Vol 6, Issue 12
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Greetings!
Simon Santa

HAPPY HOLIDAYS! It seems like 2011 just started and here we are, almost to the end of it. It's been a challenging year for many. Hopefully 2012 will be a terrific year and bring you much health, prosperity and happiness.

I would like to take this opportunity to thank my clients and friends for their referrals. I am so appreciative of your confidence in me and my staff. We continually strive to provide you with the best service, accounting and tax services that we can.

I would also like to thank my staff. They make it all happen. I could not be in business without them. As of next week Sandi will have worked for me for 15 years. She is definitely my right hand and there is no way I could be in business without her assistance. She is just the best. Mary-Ann has done a great job as the person who does many of the administrative functions. She's also done a great job on this newsletter and my new Facebook page. Felix has been a great addition in helping me get out the tax returns. It's really nice to have another CPA to help out. I think that we make a great team and really enjoy working together.

The organizers for 2012 will be mailed out around New Year's Day. If you would prefer to have a PDF organizer, please let me know before Wednesday December 13.

The office will be closed on Monday, December 26th and Monday, January 2 for the holidays.

Flag & Eagle
On November 21, 2011, President Obama signed the "Three Percent Withholding Repeal and Job Creation Act." This new law repeals three percent withholding on certain payments to government contractors, and it provides tax credits to employers who hire unemployed veterans.

The law creates the "Returning Heroes Tax Credit" and the "Wounded Warriors Tax Credit." Employers may qualify for a credit of up to $5,600 for hiring a veteran who has been looking for employment for more than six months. A credit of up to $2,400 applies for veterans who have been unemployed for more than four weeks but less than six months.

Employers who hire an unemployed veteran with service-connected disabilities who has been looking for work for more than six months may be eligible for a tax credit of up to $9,600.

The credits apply to new hires after November 21, 2011, through December 31, 2012. For more information about the new law, contact my office.
Time to give to charity
As the holidays approach, you're probably going to give a little extra to your favorite charity. If you itemize deductions, your kindness may bring you an extra reward in the form of a tax deduction.

Here's a short list of tax reminders for this year's charitable deductions:

* Make sure the organization qualifies for a deduction. Remember that contributions to civic groups, unions, chambers of commerce, and political candidates usually don't qualify. If in doubt, check IRS Publication 78 which lists all qualified organizations. It's available online or at many libraries.

* The law has strict recordkeeping requirements for deducting charitable contributions. For cash contributions under $250, you must have a bank record such as a cancelled check, credit card record, or receipt from the charity. For donations of $250 or more, a receipt from the charity must be obtained before filing your return.

* If you donate property, make sure you claim a realistic value. Used clothing and household items donated to charity must be "in good condition or better." A written receipt from the charity is necessary for a deduction. You'll need an independent appraisal for any donated item valued above $5,000.

* Don't forget to deduct your mileage and other out-of-pocket expenses for charitable work. Track your mileage and claim 14 cents a mile in 2011.

If you have any questions concerning your charitable donations, contact my office.
Gingerbread Houses
Tax Tip of the Week: Does the required minimum distribution rules apply to you? If you have a traditional IRA and you are/or are turning 70 1/2 in 2011, then the RMD does apply to you. Check out the article on my web site for more info and call me with any questions.

Business Tip of the Month. As a business owner here are some tips to make sure that your customers spread good news about their experiences at your place of business. Good news and bad news can travel very fast in this day of instant media outlets!

Financial Tip of the Month. Next month many of us will be making new year resolutions and by February, be breaking most of them! Stick to these great suggestions in the article on my web site and at this time next year, you'll be reaping the fruits of sticking to your financial resolutions!

Fraud Alert. Tis the season for giving but be careful what charity you'll be giving your money to. Be sure you know your charity and where your money is going as the scammers are out in full force at this time of year. Check out this article for suggestions on how to find out about the charity before you give.

https://www.facebook.com/pages/Linda-L-Heineman-CPA/266124360085715?ref=tn_tnmn

Photos © Bigstockphotos.com, istockphoto.com, Felix Orona>

Sincerely,
Linda Heineman
Linda L. Heineman, CPA

phone: 626-577-0979