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Most Businesses May Take Advantage Of Expanded Loss Carryback Option Under New IRS Procedure
Most businesses may use losses incurred during the economic downturn to reduce income from prior tax years, under a revenue procedure issued today by the Internal Revenue Service.
The relief provided under the Worker, Homeownership, and Business Assistance Act of 2009 differs from similar relief issued earlier this year in that the previous relief was limited to small businesses.
The current relief is applicable to any taxpayer with business losses, except those that received payments under the Troubled Asset Relief Program.
The relief also applies to a loss from operations of a life insurance company.
Taxpayers under the procedure may elect to carry back a net operating loss (NOL) for a period of three, four or five years, or a loss from operations for four or five years, to offset taxable income in those preceding taxable years.
An NOL or loss from operations carried back five years may offset no more than 50 percent of a taxpayer's taxable income in that fifth preceding year.
This limitation does not apply to the fourth or third preceding year.
The procedure applies to taxpayers that incurred an NOL or a loss from operations for a taxable year ending after Dec. 31, 2007, and beginning before Jan. 1, 2010.
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| Raymond J. Busch, Ltd. CPA
Newsletter |
Dear ,
Thank you so much everyone for your feedback and participation in my survey and invitation to attend the Small Busness Workshops. I am sure that these classes will provide owners with the powerful tools they will need to have a great 2010 and beyond.
The end of the year is always such a crazy time with the holidays, but don't forget to do some tax planning before the books are closed on 2009! |
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Selecting a Small Business Accountant
11-04-2009 09:40 AM
ByChristineL
www.business.gov
Many small business owners do their finances and taxes on their own, so you may ask: why should I find an accountant? The reason: no matter what stage your small business is in, you can benefit from having an accountant on your side.
Why Hire an Accountant? Accountants often do more than prepare tax forms for their small business clients. They can act as a trusted consultant and advisor to your small business. A good accountant would be able to advise you on growth opportunities, risk management, bookkeeping, and general financial planning.
- If your small business is closely tied to your personal finances, a good accountant can help you make sound judgments that are beneficial to both your personal finances and your small business. This guidance can be especially helpful when you're just starting up and using your own funds to finance business expenses.
- Accountants can serve as a great resource that you can tap into for recommendations on which loans to apply for, banks that satisfy your small business needs, and whatever you need on the finance end.
Good Practices for Choosing an Accountant
Here are some tips for avoiding common pitfalls and needless headaches in your search for a small business accountant:
- Determine your needs
There is no one-size-fits-all method for managing small business finances. Make sure that your accountant specializes in small businesses, and ideally has knowledge of your industry. Beyond that, you will need to decide what level of support is appropriate and affordable for your business. Enrolled agents, certified public accountants, and tax attorneys bring different skills and charge different rates.
- Just ask!
Word of mouth is a good way to find good accountants. Talk to your family, friends, peers, even your attorney for recommendations. You can also inquire with institutions and organizations like the American Institute of Certified Public Accountants*, your state Board of Accountants, or a local Chamber of Commerce.
- Interview your candidates
Remember that you are hiring someone that will fulfill your business needs and requirements. Treat it like a job interview that you would give to any potential employee. Ask about:
- Professional qualifications like their licenses and experience
- Personnel who will actually do the work, and their response times
- Fees and charges to make sure they are in line with your budget
- Specialized services that you may want in the future - for example, audit support
- Clientele (past and current) so you can gauge their expertise
What if My Current Accountant Isn't a Good Fit?
If you had a bad experience with an accountant, take what you've learned to find a better fit for your business. You should also consider your timing - if you're just about to file significant tax changes or take on a large financial project, you'll want to leave yourself enough time to find someone new. After all, a rush to judgment could leave you in the same position you're in.
Remember...
You are the person who is ultimately responsible for your taxes and finances. Be wary of accountants who promise things that seem too good to be true. If you have concerns about an accountant's claims you should contact your state's Board of Accountancy* and/or the IRS Office of Professional Responsibility to check their licenses and ensure they are in good standing.
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10 Important Facts about the Extended First-Time Homebuyer Credit
(IRS Tax Tips)
If you are in the market for a new home, you may still be able to claim the First-Time Homebuyer Credit. Congress recently passed The Worker, Homeownership and Business Assistance Act Of 2009, extending the First-Time Homebuyer Credit and expanding who qualifies.
Here are the top 10 things the IRS wants you to know about the expanded credit and the qualifications you must meet in order to qualify for it.
1. You must buy - or enter into a binding contract to buy a principal residence - on or before April 30, 2010.
2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.
3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.
4. A long-time resident of the same home can now qualify for a reduced credit. You can qualify for the credit if you've lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009.
5. The maximum credit for long-time residents is $6,500. However, married individuals filing separately are limited to $3,250.
6. People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after November 6, 2009. The full credit is available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers.
7. The IRS will issue a December 2009 revision of Form 5405 to claim this credit. The December 2009 form must be used for homes purchased after November 6, 2009 - whether the credit is claimed for 2008 or for 2009 - and for all home purchases that are claimed on 2009 returns.
8. No credit is available if the purchase price of the home exceeds $800,000.
9. The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.
10. A dependent is not eligible to claim the credit.
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Small Business Workshop
"Amplify Your Business"
A Guide To larger Profits & Smarter Choices
Finance - Management - Sales - Goal Setting
Where will you business be in three years?
Are profits not as high as you would like?
How can I grow in these times?
Discover what more can be done to proactively manage your business for greater success.
Learn...
1. How to read a financial statement basics
2. How to analysis your business finances
3. How to increase your profits
4. How to cut payroll costs
5. Business management tools
6. Goal setting tools
7. Tax management that will save you money
8. Pricing strategies to retain customers growth margins
9. How to maintain accountability for business development
Please call 708-691-5633 to reserve your spot 6:30pm-9:00pm on the following dates.... Only $15 seminar with workbook included.
Thursday Evenings on December: 3, 10, or 17
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Sincerely,
Cathy Glenn 
Cathy Glenn
Raymond J. Busch, Ltd CPA |
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