Friday, August 29, 2014

Retirement Plan Options for Small Businesses

Employer-sponsored retirement plans have become a key component for retirement savings. They are also an increasingly important tool for attracting and retaining the high-quality employees you need to compete in today's competitive environment.

Besides helping employees save for the future, however, instituting a retirement plan can provide you, as the employer, with benefits that enable you to make the most of your business's assets. Such benefits include:

  • Tax-deferred growth on earnings within the plan
  • Current tax savings on individual contributions to the plan
  • Immediate tax deductions for employer contributions
  • Easy to establish and maintain
  • Low-cost benefit with a highly-perceived value by your employees
Here's an overview of four retirement plans options that can help you and your employees save:

SIMPLE: Savings Incentive Match Plan

Thursday, August 28, 2014

New Hampshire Distracted Driving Law to Ban Handheld Devices While Driving

Effective July 1, 2015, the use of all hand-held electronic devices while driving will be illegal in New Hampshire. Although the bulk of the law will not take effect until July 1, a provision requiring that the public be educated is currently in effect, so New Hampshire drivers can expect to see electronic highway signs warning them about the dangers of distracted driving.

On July 25, Gov. Maggie Hassan signed the bill into law, which will make hand-held cell phone use punishable by a $100 fine for the first offense, $250 for a second offense and $500 for subsequent offenses within a 24-month period. According to the Insurance Journal, the law will apply while drivers are temporarily stopped, such as at a red light, but not if they have pulled over, off the roadway. It will still allow hands-free cellphone use, but will ban emailing, texting, and programming GPS systems while driving.

Currently, state law only bans texting while driving, which is not always effective, as it can be difficult to discern whether a driver is typing a text message, dialing, or inputting an address into his/her GPS, for instance. This will no longer be an issue under the new law, as it will prohibit all of these activities, the Insurance Journal reports. The law will also ban all cellphone use by minors while driving, with the exception of emergency calls.

According to the Insurance Journal, the new law will be most heavily promoted in the weeks before it takes effect. For additional information, click here to read the full article on the Insurance Journal.







Wrentham, Norfolk, Plainville, Franklin, Walpole, income tax, tax calculator, hr, irs forms, Jackson Hewitt, tax, tax act, tax return, tax brackets, income tax return, tax refund, taxes, accountant, h&r, tax return calculator, tax forms, free tax filing, federal income tax, federal tax forms, federal tax return, tax online, tax returns, online tax return, irs e file, tax return status, file taxes online, tax preparation, income tax return online, instant tax services, accountants, income tax filing, income tax forms, federal tax, estimate tax return, taxes online, online tax filing, tax services, federal taxes, what is income tax, tax filing, tax questions, online tax, e filing income tax, irs free file, free tax preparation, filing taxes, file taxes, state taxes, tax accountant, h and r, tax planning, free tax return, free federal tax filing, online taxes, free state tax filing, free online tax filing, federal income tax forms, tax help, free tax, how to file taxes, tax preparer, tax consultant, free taxes, income tax returns, complete tax, federal tax forms, free taxes online, income taxes, income tax return efiling, free efile, h&r, tax advisor, tax advice, best place to do taxes in wrentham, wrentham tax, wrentham tax planner, wrentham tax prep, wrentham income, wrentham income tax, wrentham accountant, wrentham accounting

Wednesday, August 27, 2014

Leaving a Business: Which Exit Plan Is Right For You?

Selecting your business successor is a fundamental objective of planning an exit strategy and requires a careful assessment of what you want from the sale of your business and who can best give it to you.

There are only four ways to leave your business: transfer ownership to family members, Employee Stock Option Plan (ESOP), sale to a third party, and liquidation. The more you understand about each one, the better the chance is that you will leave your business on your terms and under the conditions you want. With that in mind, here's what you need to know about each one.

1. Transfer Ownership to Your Children

Transferring a business within the family fulfills many people's personal goals of keeping their business and family together, but while most business owners want to transfer their business to their children, few end up doing so for various reasons. As such, it's necessary to develop a contingency plan to convey your business to another type of buyer.

Monday, August 25, 2014

How to Save for College Tax-Free

According to a 2014 study published by the Federal Reserve Bank of San Francisco, researchers found that over a lifetime, the average U.S. college graduate will earn at least $800,000 more than the average high school graduate--even after taking into consideration the cost of college tuition and the four years of lost wages it entails. So even though tuition and fees are always on the rise, most people still feel that a college education is well worth the investment. That said however, the need to set money aside for their child's education often weighs heavily on parents.

Fortunately, there are two savings plans available to help parents save money that also provide certain tax benefits. Let's take a closer look.

The two most popular college savings programs are the Qualified Tuition Programs (QTPs) or Coverdell Education Savings Accounts (ESAs). Whichever one you choose, try to start when your child is young. The sooner you begin saving, the less money you will have to put away each year.

Example: Suppose you have one child, age six months, and you estimate that you'll need $120,000 to finance his college education 18 years from now. If you start putting away money immediately, you'll need to save $3,500 per year for 18 years (assuming an after-tax return of 7 percent). On the other hand, if you put off saving until your son is six years old, you'll have to save almost double that amount every year for 12

Friday, August 22, 2014

Five Basic Tax Tips about Hobbies

Millions of people enjoy hobbies that are also a source of income. Some examples include stamp and coin collecting, craft making, and horsemanship.

You must report on your tax return the income you earn from a hobby. The rules for how you report the income and expenses depend on whether the activity is a hobby or a business. There are special rules and limits for deductions you can claim for a hobby. Here are five tax tips you should know about hobbies:

1. Is it a Business or a Hobby?  A key feature of a business is that you do it to make a profit. You often engage in a hobby for sport or recreation, not to make a profit. You should consider nine factors when you determine whether your activity is a hobby. Make sure to base your determination on all the facts and circumstances of your situation. For more about ‘not-for-profit’ rules see Publication 535, Business Expenses.

2. Allowable Hobby Deductions.  Within certain limits, you can usually deduct ordinary and necessary hobby expenses. An ordinary expense is one that is common and accepted for the activity. A necessary expense is one that is appropriate for the activity.

3. Limits on Hobby Expenses.  Generally, you can only deduct your hobby expenses up to the amount of hobby income. If your hobby expenses are more than your hobby income, you have a loss from the activity. You can’t deduct the loss from your other income.

Wednesday, August 20, 2014

IRS Updates Phone Scams Warning

The IRS is again warning the public about phone scams that continue to claim victims all across the country. In these scams, thieves make unsolicited phone calls to their intended victims. Callers fraudulently claim to be from the IRS and demand immediate payment of taxes by a prepaid debit card or wire transfer. The callers are often hostile and abusive.

The Treasury Inspector General for Tax Administration has received 90,000 complaints about these scams. TIGTA estimates that thieves have stolen an estimated $5 million from about 1,100 victims. To avoid becoming a victim of these scams, you should know:

  • The IRS will first contact you by mail if you owe taxes, not by phone.
  • The IRS never asks for credit, debit or prepaid card information over the phone.
  • The IRS never insists that you use a specific payment method to pay your tax.
  • The IRS never requests immediate payment over the telephone.
  • The IRS will always treat you professionally and courteously. 

Monday, August 18, 2014

Trying To Calculate Your Vacation Home Rental Income?

If you rent a home to others, you usually must report the rental income on your tax return. But you may not have to report the income if the rental period is short and you also use the property as your home. In most cases, you can deduct the costs of renting your property. However, your deduction may be limited if you also use the property as your home. Here is some basic tax information that you should know if you rent out a vacation home:



  • Vacation Home.  A vacation home can be a house, apartment, condominium, mobile home, boat or similar property.
  • Schedule E.  You usually report rental income and rental expenses on Schedule E, Supplemental Income and Loss. Your rental income may also be subject to Net Investment Income Tax.
  • Used as a Home.  If the property is “used as a home,” your rental expense deduction is limited. This means your deduction for rental expenses can’t be more than the rent you received. For more about these rules, see Publication 527, Residential Rental Property (Including Rental of Vacation Homes).
  • Divide Expenses.  If you personally use your property and also rent it to others, special rules apply. You must divide your expenses between the rental use and the personal use. To figure how to divide your costs, you must compare the number of days for each type of use with the total days of use.
  • Personal Use.  Personal use may include use by your family. It may also include use by any other