19 Sep 2019
0

IRS is Targeting Virtual Currencies Used in Business Transactions

Roger Rossmeisl, CPA
Small Business Tax Briefs
IRS is Targeting Business Transactions in Virtual Currencies

Bitcoin and other forms of virtual currency are gaining popularity. But many businesses, consumers, employees and investors are still confused about how they work and how to report transactions on their federal tax returns. And it has just been announced that the IRS is targeting virtual currencies that are used in business transactions users in a new “educational letter” campaign. The nuts and bolts Unlike cash or credit cards, small businesses generally don’t accept bitcoin payments for routine transactions. However, a growing number of larger retailers — and online businesses — now accept payments. Businesses can also pay employees or independent contractors with virtual currency. The trend is expected to continue, so more small businesses may soon get on board. Bitcoin has an equivalent value in government issued...

18 Sep 2019
0

Two Types of Power of Attorney Used in Estate Planning

Roger Rossmeisl, CPA
Estate Planning Briefs
Two Types of Power of Attorney Used in Estate Planning

When drafting your estate plan, you and your attorney must account for what happens to your children and your assets after you die. But your plan must also spell out your wishes for making financial and medical decisions if you’re unable to make those decisions yourself. A crucial component of this plan are two types of power of attorney (POA). ABCs of a POA A POA appoints a trusted representative to make medical or financial decisions on your behalf in the event an accident or illness renders you unconscious or mentally incapacitated. Without it, your loved ones would have to petition a court for guardianship or conservatorship, a costly process that can delay urgent decisions. Two types of Power of Attorney in action A POA is a document under...

17 Sep 2019
0

Home Office Deduction Reviewed

Roger Rossmeisl, CPA
Small Business Tax Briefs
Home Office Deduction Reviewed

Working from home has its perks. Not only can you skip the commute, but you also might be eligible to deduct home office expenses on your tax return. Deductions for these expenses can save you a bundle, if you meet the tax law qualifications.  In this Blog Post, the home office deduction is reviewed. Under the Tax Cuts and Jobs Act (TCJA), employees can no longer claim the home office deduction. If, however, you run a business from your home or are otherwise self-employed and use part of your home for business purposes, the home office deduction may still be available to you. If you’re a homeowner and use part of your home for business purposes, you may be entitled to deduct a portion of actual expenses...

16 Sep 2019
0

Importance of Naming Your Trustee

Roger Rossmeisl, CPA
Estate Planning Briefs
Importance of Naming Your Trustee

When it comes to estate planning, trusts are appealing for many reasons. They can enable you to hold and transfer assets for beneficiaries, avoid probate and reduce estate tax exposure. But they can be complicated to set up.  Don't underestimate the importance of naming your trustee.  It may be one of the most important decisions of your life. As the name implies, this individual or financial institution must be above reproach. But that’s just one quality of many that your trustee requires. Both mundane and significant duties Trustees have significant legal responsibilities, primarily related to administering the trust for the benefit of beneficiaries according to the terms of the trust document. But the role can require many different types of tasks. For example, even if a tax expert...

09 Sep 2019
0

“Nanny Tax” Applies to More Than Nannies

Roger Rossmeisl, CPA
Individual Tax Briefs
Nanny Tax Applies to More than Nannies

You may have heard of the “nanny tax.” But even if you don’t employ a nanny, it may apply to you. You see, the "nanny tax" applies to more than nannies. Hiring a housekeeper, gardener or other household employee (who isn’t an independent contractor) may make you liable for federal income and other taxes. You may also have state tax obligations. If you employ a household worker, you aren’t required to withhold federal income taxes from pay. But you may choose to withhold if the worker requests it. In that case, ask the worker to fill out a Form W-4. However, you may be required to withhold Social Security and Medicare (FICA) taxes and to pay federal unemployment (FUTA) tax. FICA and FUTA tax In 2019, you must...

09 Sep 2019
0

Your Phone May Be a Fraud Risk

Roger Rossmeisl, CPA
Fraud Briefs
Your Phone May Be a Fraud Risk

As more people use mobile phones, more fraud perpetrators target these devices. According to Javelin Strategy & Research, between 2017 and 2018 the number of fraudulent mobile-phone accounts opened grew by 78%. Schemes in which thieves open a phone account in your name and use it to access your bank account, sign up for credit cards and gain access to personal information are only some of the recent fraud trends. Fraudsters have plenty of ways to defraud consumers through their phones.  It's clear . . . you're phone may be a fraud risk. Your phone may be a fraud risk: Why they’re vulnerable One of the reasons mobile phones are so vulnerable is that phone security hasn’t kept pace with traditional computer security. Mobile devices rarely contain...

26 Aug 2019
0

Assess Fraud Risk Before Experiencing Losses

Roger Rossmeisl, CPA
Fraud Briefs
Assess Fraud Risk Before Experiencing Losses

If you’re like most business owners and executives, you may not actively search for fraud risks — until there’s an incident and you’re facing possible losses. Although publicly traded companies must conduct fraud risk assessments, privately held businesses don’t have the same requirements. Nevertheless, reviewing internal controls for gaps that might allow crooks to slip through is recommended for all companies. Assess fraud risk before experiencing losses: 4 major ways A comprehensive risk assessment might start in the areas where fraud is most likely to happen, such as accounts payable, purchasing and IT. But don’t stop there. If you close a door in only one department, those bent on fraud will find openings elsewhere. Look at your internal controls in the same way a dishonest employee would...

25 Aug 2019
0

An Ideal Time for Roth IRA Conversions

Roger Rossmeisl, CPA
Estate Planning Briefs
An Ideal Time for Roth IRA Conversions

Roth IRAs offer significant estate planning and financial benefits. Do you have a substantial balance in a traditional IRA and are considering converting it to a Roth IRA?  There may be no better time than now. The Tax Cuts and Jobs Act (TCJA) reduced individual income tax rates through 2025. As such, it may be an ideal time for Roth IRA conversions.  By making the conversion now, the TCJA enhances the benefits of a Roth IRA. Estate planning benefits The main difference between traditional and Roth IRAs is the timing of income taxes. With a traditional IRA, your eligible contributions are deductible on your tax returns but distributions of both contributions and earnings are taxable when you receive them. With a Roth IRA, on the other hand,...

25 Aug 2019
0

Buy-Sell Agreements Can Provide Liquidity to Cover Estate Taxes

Roger Rossmeisl, CPA
Estate Planning Briefs
Buy-Sell Agreement Can Provide Liquidity to Cover Estate Taxes

If you own an interest in a closely held business, it’s critical to have a well-designed, properly funded buy-sell agreement.  That's because buy-sell agreements can provide liquidity.  Without one, an owner’s death can have a negative effect on the surviving owners. What would happen If one of your co-owners dies?  You may be forced to go into business with his or her family or other heirs. And if you die, your family’s financial security may depend on your co-owners’ ability to continue operating the business successfully. Estate taxes: buy-sell agreements can provide liquidity to pay them There’s also the question of estate taxes. The federal gift and estate tax exemption is currently $11.4 million,.  As such, estate taxes affect fewer people than they once did. But estate taxes...

25 Aug 2019
0

US Dollar is on Life Support

Roger Rossmeisl, CPA
Economic Concepts
US Dollar is on Life Support

As posted to the GoldSilver YouTube Channel on 08/20/19 (Run time 12 min, 37 sec) What is at the core of the latest turmoil in markets? Is it a trade war? Is it a yield curve inversion? Or is it something far more simple . . . like the fact that the US Dollar is on life support? Mike Maloney shares his analysis drawing on various recent articles . . . (07/24/19) Zero Hedge: We Believe the Dollar Could Lose its Status as the World's Reserve Currency (07/20/19) Asia Crypto Today: Iran Announces Gold-Backed National Cryptocurrency (06/25/19) Forex & Currencies Trading: How the Triffin Dilemma Affects Currencies . . . and financial data: Gross Federal Debt as a Percentage of GDP GDP divided by Gross Federal Debt GDP minus the...

ROGER ROSSMEISL, CPA

Kho & Patel CPAs
160 E. Arrow Highway
San Dimas, CA 91773

(714) 325-0442
roger@khopatel.com

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