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Tax Tips Newsletter
Serving you since 1993
July 2014 - Vol 9, Issue 7
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Greetings!

This beautiful girl is Olive. If you live in Southern California you may have heard about her and her brother Leno. They were cute little cubs that were found under a car in Burbank a couple of years ago.

Olive and Leno have recently been acquired by one of my clients, Animazonia Wildlife Foundation. They are having a fund raiser on Saturday, September 13, 2014. It's going to be a wonderful wine and treats afternoon. They are hoping to raise money to make sure that Olive and Leno have a wonderful life at their reserve in Perris. If you would be interested in finding out more about Olive and Leno and Animazonia, please check out their website. Animazonia Wildlife Foundation

If you are a business client that is on extension, just a reminder that the deadline to get your corporation, partnership or trust information to us is August 1, 2014.

Many thanks for your referrals. I appreciate your confidence in my staff and me.

Business Team in Meeting
When your job situation changes, your taxes could be affected. Here are four issues to keep in mind.

* Unemployment benefits. State unemployment benefits are taxable income. Depending on your total income, you may want to adjust your federal tax withholding. You can elect to have withholding deducted from your unemployment benefits, or you can make estimated payments.

* Retirement plans. If you're under age 59½ at the time of a job loss, withdrawals from your 401(k) or other retirement plans are generally taxable income to you, and you may have to pay a penalty as well. A nontaxable alternative: Roll over your account balance to your new employer's plan or to an IRA.

* Job search expenses. The costs of looking for a new job in your current line of work are deductible if you itemize. That's true even if you are unsuccessful in your efforts. To be of benefit to you, the total costs must be more than 2% of your adjusted gross income. Eligible expenses include employment agency fees, career counseling, and some travel costs.

* Moving expenses. If you meet the tests for a job-related move, you can deduct the costs to move your household and personal effects, including your in-transit travel expenses and storage expenses.

Give me a call whenever your employment situation changes. I am here to help you plan for the tax effects.
Seaside bliss
During warm summer days, you may be tempted to forget about serious things like taxes. But that could lead to a higher 2014 tax bill. Here are just a few summertime tax-saving ideas to consider.

* If spring cleaning left you with outgrown clothing and household items you no longer use, donate them to charity. Items in good used condition qualify for a deduction.

* If you and your spouse work, consider sending your children to a summer day camp. The cost may qualify for the dependent care tax credit.

* Do you own a boat or recreation vehicle? Are you thinking about buying one? As long as the vehicle has sleeping space, a bathroom, and cooking facilities, you may be able to claim it as a second home and deduct the interest payments on your loan.

* If you have vacation/rental property, you can control your tax deductions by changing the number of days you use your vacation home. In planning your vacations, be sure to find out how many days of personal use will lead to the best tax deductions on your property.

* If you operate an unincorporated business, consider hiring your children to work for you this summer. You can deduct reasonable wages paid to them for the work they perform, and there's no social security tax on their wages if they are under age 18.

* Summer is great for entertaining customers or clients. Keep records of the cost, the date, who was entertained, and what the business purpose was. Your tax deduction is limited to 50% of your cost.

* Combine business with your summer travel, and you may be able to take a tax deduction for the business portion of your costs.

By all means, enjoy your summer. But don't forget taxes. Give me a call if you would like to discuss tax-cutters suited to your specific situation.
Tax Tip of the Week:In the event you are ever a disaster victim, the IRS and Franchise Tax Board offer several types of relief. Check out this article for ways they can help you with your taxes.

Business Tip of the Month: Business owners can be their own worst enemy!! If you don't pay attention to the financial statements, disregard customer complaints and live beyond the company's means, you are headed for a bankrupt business! Check out this article for more info to help you keep your eyes on building your business and not bleeding it!

Financial Tip of the Month: Buying health insurance is getting more and more complicated and very confusing on what to buy or not buy! If you're 65 and ready for Medicare then it just keeps getting more complicated!! Read this article for information on what you need to know about a "Medigap" insurance for when you turn 65.

Fraud Alert: One of the most expensive repairs/replacements on a house is the roof. Usually when we realize that we need a roof, we are in a desperate situation and need to get it done NOW! Beware of roofing contractor scams. There are some great tips in this article to help you beware of being scammed. Also, remember that you may need a patch-up or a quick fix and you want that roofer to be there. A large percent of roofers are out of business within 5 years!
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Sincerely,
Linda Heineman
Linda L. Heineman, CPA

phone: 626-577-0979