Hoyman Dobson
E-ssentials Bulletin
Our newest profitability and wealth accumulation tips for our clients and contacts. Click on items of interest for more details on each topic.
Building Construction
 
 
Real estate investors and builders as well as financial statement preparers need to be well-informed and prepared for the impact International Financial Reporting Standards (IFRS) will have on financial statements. The Securities and Exchange Commission has developed a proposed roadmap to help U.S. companies make the transition to IFRS.
 
Family Business
 
 
Mediation increasingly is becoming part of the legal landscape. Court systems, some more than others, use mediation to reduce docket load and make breakthroughs in deadlocked cases. Parties on their own increasingly use mediation to resolve divorce, business, employment, contract and other conflicts. Mediation, unlike litigation, has the potential not only to resolve disputes but to address underlying issues that create conflict.
 
General Business
 
 
With high unemployment rates, many people are working in jobs they are overqualified for. Highly qualified employees can bring a lot to an organization -- if they are managed well. Here are some tips.
 
Manufacturing
 
 
It can be a challenge for a manager to cover the duties of an employee who is out on disability or other leave of absence. If an employee quits, you can usually hire a replacement. On the other hand, when an absent employee is expected to return, you have to hold the position open while finding a way to get the work done in the meantime. There are a number of ways to approach this task.
 
Nonprofit Organizations
 
 
If you're thinking of taking on new employees this year, the HIRE act could bring big savings to your nonprofit organization. For any new hire who has been unemployed for the past 60 days, a tax credit is available to employers for their 6.2 percent portion of the new employee's Social Security tax.
 
Physician Services
 
 
Financial statements provide information about the medical practice's performance as a business. There are several types of financial statements: Three important ones are discussed here.
 
Wealth Advice and Financial Planning
 
 
Just over the horizon is the return of the federal estate tax. With the estate tax repeal at the beginning of this year, even the largest estates can currently pass to heirs free of estate tax. But a beefed up estate tax is scheduled to return in 2011.
 
Valuations
 
 
The IRS has continued to litigate - and lose - cases in which it argues that members of a limited liability company should be treated in the same manner as a limited partner when applying the passive activity loss rules.
 
Washington Tax Update
 
 
 
 
 
 
 
 
Latest Business Headlines
 
Reuters
 
Wall Street Journal
 
MSN Money
 
Fox Business
 
New York Times
 

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2010 Mid-Year Tax Planning Letter

Mid-year tax planning for 2010 may require an understanding of one of the most complicated tax years in recent memory.

The 2010 tax year represents a critical time to ascertain and identify any tax traps while maximizing opportunities for dramatic tax savings. Next year may truly be too late ...

There have been many changes to tax law already this year, and more changes are anticipated. As always, the key is to be able to project your anticipated income levels not only for 2010 - but also for the next two to three years.

Although the typical tax planning wisdom has been to avoid paying any taxes for as long as possible, this strategy may have to be dramatically altered. On the other hand, deductions may be worth a great deal more in a year or two.

Unfortunately, any tax projections can require you to predict a series of unknown future events. But, despite the difficulties involved, you will need to make educated guesses and reasonable assumptions. Remember, no tax strategy is cast in stone until the time for changing strategies has passed. Tax planning is a dynamic process, and the earlier you start, the better.

Here are some basic principles that can help guide your overall thinking:

  • If you expect your tax rate will be higher next year, you may want to accelerate income into this year and defer deductions into next year.
  • If you think your tax rate might be lower in 2011, consider deferring income to next year and accelerating deductions into this year.

Remember to pay careful attention to your marginal tax rate - the highest rate at which your last, or marginal, dollar of income will be taxed.

Overall tax rates are scheduled to rise in 2011. However, if your income in 2011will be substantially lower than in 2010, your marginal tax rate may actually decrease.

Here are a couple of additional guidelines:

  • If your deductions might be limited next year, try to accelerate some deductible expenses into this year.
  • If you qualify for the standard deduction in either year, consider shifting the itemized deduction into the year you can itemize.

The critical step is to meet with your tax adviser now, during the middle of the 2010 tax year, while there is still plenty of time to consider and implement appropriate planning strategies.

 

To read the rest of the 2010 Mid-Year Tax Planning Letter,
click here.  

 

For additional information about Hoyman Dobson and its services please visit www.hoyman.com or call 321-255-0088. 

 
Business Tips

 
Planning for Success - Create an "exit" strategy now.
 
Wealth Tips
 
Your Purchases - Be G.O.O.D. - Get out of debt!
 
 

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The technical information in E-ssentials is necessarily brief. No final conclusion on these topics should be drawn without further review and consultation. Please be advised that, based on current IRS rules and standards, the advice contained herein is not intended to be used, nor can it be used, for the avoidance of any tax penalty assessed by the IRS.
 
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