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Client Information Bulletin
Like us on FacebookFollow us on TwitterView our profile on LinkedIn     p: 847.941.0100   May 2012
Greetings! 
 
We've had a terrific response from clients interested in being featured in this newsletter. We appreciate the opportunity to get to know each one of you who has reached out and said "Hello," either on Facebook, by email, in person, or by phone. Let us know how we're doing and how we can help you.   
 

This month The Spotlight is on Firebird Industrial Marketing Advisors, Inc.  Read the interesting story below about the company.

 

We want to put the spotlight on you! Be featured in an upcoming newsletter. Send us an email  and let us know something about you or your business.

Eight Business Myths to Dispel 
Avoid strict observance of "sacred" phrases

Much has been written and spoken about running a small business.  Certain principles seem to have achieved immortality but others are suspect. Here are eight common myths that deserve a closer look.

 
Tax Write-offs for Doing Good
 Common deductions for charitable services

Although you can't deduct the value of the time and effort you expend on behalf of a charity, you can still receive some tax breaks. You must keep adequate records to back up your claims.

 

The IRS may challenge your deductions--especially if the activity involves recreational pursuits.

Read more.

Spotlight On: Firebird Industrial Marketing Advisors, Inc.
An inside look at one of our clients
 
Paul Littledale
Paul A. Littledale 
Firebird Industrial Marketing Advisors, Inc. gets products distributed.

Principal Partner Paul Littledale explained that the company represents businesses that want to get into the maintenance, repair, and operations distribution segment in both the United States and globally.

"Take a pair of scissors," said Paul. "If you want to cut paper, you can go to Walgreens, CVS, or Sears and get scissors." But what if you have another need--perhaps cutting an industrial fabric like KevlarŽ-- then where do you go?

Paul is interested in hearing from other WB clients who have a product that would fit into the industrial marketplace and want to investigate this alternative market. 
Read more.

 

Section 179: Opportunities and Pitfalls
Maximize benefits under current rules 
 
Congress may come to the rescue again, but it appears for now that the half-million dollar Section 179 deductions and 100% bonus depreciation will become a thing of the past. Your business can still take advantage of the tax rules in effect for 2012.
 


Required
Minimum Distributions
Gerry Brin  By Gerry Brin, CPA

Member

 Weltman Bernfield  

 

For those with traditional IRAs and other qualified retirement accounts (401K, profit sharing, etc.) who reach the age of 70 ˝, you

must start taking "Required Minimum Distributions" from your IRA and qualified retirement accounts.

 

The distribution is calculated by taking the value of all of your IRA and qualified retirement accounts and dividing the total by the number that is shown for your age in the "Uniform Lifetime Table" which is published by the IRS.

 

The value of your accounts is the market value of your accounts as of December 31 of the preceding year that you reach 70 ˝ . For example, if you reach 70 ˝  on June 30, 2012, you would use the value of your accounts as of December 31,  2011.

 

You can wait to take your Required Minimum Distribution until the year after the year in which you reach 70 ˝, but if you do that you will have to take two distributions that year.

 

I recommend to my clients that they start taking their distributions in the year in which they reach 70 to avoid the double distribution.

 

There are many other rules that apply to Required Minimum Distributions and accordingly I recommend that you talk to your advisor before starting to take your Required Minimum Distributions.

 

 

 

Offshore Accounts

 

The IRS has revived an amnesty program for taxpayers with offshore bank accounts.

 

To avoid criminal sanctions, participants must pay 27.5% of their offshore assets and overseas bank accounts that total $75,000 or more.  Also, they must disclose the banks and advisors who helped them evade U.S. tax laws. 

 

The IRS collected $4.4 billon in the two prior voluntary discolsure programs for offshore accounts.