February, 2013

Business Gifts

I’m seeing more clients who are giving business gifts this year. There is a limit of $25 per person per year. Really. This is Regulation Section 1.274-3. Seems a bit low, eh? Well, it is. You can still give your tax preparer an $80 bottle of wine, but you’ll only be able to deduct $25 on your business tax return.

Incidental costs don’t count—incidental, like labeling the bottle with your business name, mailing or gift wrapping.

Certain gifts to employees may be deductible to a greater extent, there are different rules for that. If you’re not sure, feel free to email and ask

100 Taxing Years

February 3rd, 1913 is the date the 16th Amendment went into effect. The first tax was 1% on personal income over $3,000 and topped out at 6%. Happy Anniversary IRS – maybe for old times’ sake we could go back to the original rates? It should be simple, except agreeing on what “personal income” is!

Classes – S Corporations, Official IRS Education Provider, New On Line Catalog, Basic Payroll, Schedule C

S Corporations
We’ll review the S Corporation requirements, advantages, and disadvantages. There will be practical solutions for filing returns and dealing with clients, even when they have not had the benefit of sound advice (either because they didn’t listen, or the corporation is a “surprise!”) There will be 4 hours of CPE for Enrolled Agents in Federal Tax Law and I’ll reveal all my secrets as well as the latest court cases, and even some old cases that still apply. Email me to be added to the list; cost is $175 per attendee. Send your questions early and I’ll ensure we cover them at the seminar. Andy@TaxBuddha.com.

Saturday, February 23, 9:00 am – 1:00 pm
LET ME KNOW if you’ll be attending so I can produce enough notebooks. The location is to be determined, but probably Alameda depending on the number of attendees

Here’s a link to the seminars page on my website: www.taxbuddha.com/seminars.html

I’m an official Education Provider. You can find my name (Tax Buddha) listed at the IRS website: https://ssl.kinsail.com/partners/irs/publicListing.asp where you’ll see I’m qualified to provide federal tax update and federal tax classes for EA’s and RTRP’s. (I just knew I should have used the name AAAAA Tax Buddha!)

Basic Payroll
In conjunction with the IRS and EDD, I’m going to be doing some Basic Payroll seminars coming up in the near future.

Basic Payroll Seminar runs 9 am ­ 3 pm with an hour for lunch

The next seminars will be:

San Rafael at 1515 Clay Street, 2nd Floor, Room 11, in the Eliju Harris Building
Thursday, February 7, 9:00 am – 3:00 pm

San Francisco at the SBA office 455 Market Street, 6th floor (I take BART to Embarcadero or Montgomery Street)
Tuesday, March 5, 9:00 am – 3:00 pm

Register by going to http://www.edd.ca.gov/Payroll_Tax_Seminars/ and find your favorite location.

These seminars have proven to be very popular for business owners and bookkeepers, plus they’re free.

How to Prepare your Own Schedule C
Get ready for next year and filing your own Schedule C for last year. Review what the IRS wants to know from you and how to report it for your business. This is a class for business owners who need a basic understanding of their 1040 Schedule C tax forms. We’ll also talk about what to do with the numbers once you have them. We can’t guarantee you won’t get audited, but this class will make it less likely.

I will be at the US SBA office in San Francisco at 455 Market Street, 6th Floor.
Tuesday, February 13, 6:00 pm – 8:30 pm.

The Eightfold Path to Pay Less Tax and Avoid an Audit

Eight basic things business owners want to know printed in a booklet in “executive summary” form. This is ten years of working with the IRS Tax Code distilled down so it doesn’t take YOU ten years.

Just another way we’re trying to simplify your life. And the purchase is tax deductible!

You can order from Amazon.com. Here’s the link to Amazon: http://www.amazon.com/Eightfold-Path-Less-Avoid-Audit/dp/0615233422/ref=sr_1_22?ie=UTF8&s=books&qid=1226611038&sr=1-22 

The booklet also contains sections on how returns are selected for audit, when to seek professional help, and how long to keep your tax records.

Little Box of Inc: Incorporations Made Easy published on Kindle

The book with tips about how the S Corporation works is now published to Amazon’s Kindle, updated with additional information about S Corporations, and can be found by searching for Andrew S Rogers as author, and click on “Kindle.” Here’s the blurb:

Considering incorporating as an S Corporation? This booklet will help you understand how the S Corporation works, what you need to do to become incorporated and what you need to do once you have a corporation to stay out of trouble. The structure and the requirements are reviewed, as well as helpful tips to use your corporation to reduce your tax liability and retain your status as an S Corporation. I’ve worked with S Corporations for many years, and as a tax preparer, I can choose the kind of entity I have for my business: I choose the S Corporation myself, and I’ve convinced many of my fellow tax preparers to incorporate as well. I’ve divided the information into clear, easy-to-understand topics, and cross-referenced sections when it might be helpful.

After you’ve read this material, you can view on-line videos via YouTube.com for free to access more advanced information about S Corporations. You may also be interested in my “Choice of Entity” class – see below.


Tax Buddha Messenger Bags

Want to be the first person in your tax bracket to sport the fabulous Tax Buddha Messenger Bag? I’ve now got a “shop” on Café Press at www.cafepress.com/TaxBuddha in case you’d like to order your own Tax Buddha logo items. The messenger bag came out particularly well, not quite “saffron,” but easy to find in an airport.

Phone and Fax Numbers

Our northern California occasional in Alameda:
1516 Oak Street, Suite 109
Alameda CA 94501
Phone numbers are:
Phone (510) 332-0401
Fax (925) 478-2726

“You too can be enlightened about tax” — Tax Buddha