 E-Newsletter Vol 5, Issue 11
|
|
|
|
|
|
| Welcome! | |
This month we invite you to checkout our new website! We also highlight the tax consequences of the presidential election as well as share some individual year-end planning tips. Finally, we answer a client question regarding retained earnings in the "Ask the Firm" section of the newsletter. |
| Did you know . . . | |
Presidential incumbents have run in 31 of the 56 presidential elections in US history through 2012. The incumbents have won 21 times and lost 10 times.
|
|
|
|
|
|
|
You're Invited... Check out the new www.dh-cpa.com! | |
The firm's new website has launched and we have something for everyone. The new site is easy to navigate and loaded with references - from personal finance aids to business guides, tax info (of course) and more!
Our social media platforms including the always informative weekly blog posts are now fully integrated into our site and easily accessible from our home page. Take a look and let us know what you think.
|
|
Presidential Election Tax Consequences | |
Mention of the "fiscal cliff" may have been a surprise to many because it wasn't discussed as a key election issue. The fiscal cliff is an event on January 1, 2013 when many of Bush's tax cuts are set to expire and the Budget Control Act of 2011 may go into effect. This would affect income tax rates, capital gains rates, dependent care expenses, and the estate exemption to name a few. The extended unemployment benefits for the long-term unemployed are also about to expire along with the temporary payroll tax cuts and research and development deductions for businesses will be substantially reduced.
It is likely that many of the tax cuts affecting households earning less than $250,000 will be extended, but if your household earns more than $250,000 a year, you should expect your taxes to increase. |
|
Individual Year-End Planning Tips | |
The following are a few year-end tax planning strategies for individuals. For more suggestions and details please click on the following link. Individual Year-End Planning Tips
- Minimize Tax on Capital Gains
- Don't Lose the Benefit of Itemized Deductions
- Consider a Health Savings Account (HSA)
- Donate (rather than sell) Appreciated Securities
- Consider Contributing to 401(k) Plans that Accept Roth 401(k) Contributions
- Convert Traditional IRA to Roth IRA
We welcome the opportunity to discuss your situation in detail so please don't hesitate to call us if you would like to schedule a tax planning strategy session: 802.878.1963. |
|
Clients in the News
| |
Congrats to our clients who have been making headlines!
Eden Ice Cider Company is donating 100% of profits from sales in NY and NJ to the American Red Cross for the victims of Hurricane Sandy. http://www.edenicecider.com/Donate-for-Hurricane-Sandy-Victims.html
Lisa Ransom of Grow Compost Vermont was interviewed by WCAX for a story on the future of farming. http://www.wcax.com/story/20088360/vtc-considers-future-of-farming-in-vt
Congratulations to Kelly Conklin from Gordon's Window Decor for being named one of the Rising Stars of 2012. http://gordonswindowdecor.com/2012/11/20/kelly-conklin-part-of-the-class-of-2012-rising-stars/
|
| Staff Spotlight: Dawn G. Grenn, CPA | |
Dawn G. Grenn, CPA (dawn@dh-cpa.com)
- Position: Tax Manager
- Memberships: VT Society of CPAs, Treasurer on the VT Make-a-Wish Foundation board
- Education: BS in Accounting from University of New Orleans
- Resides: Essex
- Hobbies: Reading, hiking and traveling
|
|
| |
Q. What are "Retained Earnings" and why is it important?
A. Retained earnings (RE) are the amount of net earnings retained by a company and not paid out to the shareholders. They are calculated as Beginning RE + Net Income - Dividends = Ending RE. If there is a net loss greater than beginning RE, retained earnings can become negative. Typically negative retained earnings are called "accumulated deficit". The account balance should not change during the year.
Retained earnings are important because they reflect that the company has reinvested their earnings, either investing in assets or reducing liabilities. In some cases, companies will have higher retained earnings because they want to hold onto their cash for the future, but it is important to note that this is not cash. Eventually, the company will use the reserves it is building to invest more, reduce liabilities, or pay dividends. |
|
Like us on Facebook | |
Be sure to check out the 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.
|
|
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.
|
|
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.
|
|
|
$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.
|
|
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. | |
|
