03 Dec 2019
0

Cost Segregation Studies Accelerate Depreciation

Roger Rossmeisl, CPA
Small Business Tax Briefs
Accelerate Depreciation Deductions with a Cost Segregation Study

Is your business depreciating over a 30-year period the entire cost of constructing the building that houses your operation? If so, you should consider a cost segregation study. It may allow you to accelerate depreciation deductions on certain items, thereby reducing taxes and boosting cash flow. And under current law, the potential benefits of cost segregation studies are now even greater than they were a few years ago due to enhancements to certain depreciation-related tax breaks. Depreciation basics Business buildings generally have a 39-year depreciation period (27.5 years for residential rental properties). Most times, you depreciate a building’s structural components, including walls, windows, HVAC systems, elevators, plumbing and wiring, along with the building. Personal property — such as equipment, machinery, furniture and fixtures — is eligible for...

02 Dec 2019
0

Importance of an Estate Plan

Roger Rossmeisl, CPA
Estate Planning Briefs
Importance of an Estate Plan

Despite what you might think, the importance of an estate plan isn’t limited to only the rich and famous. In fact, your family is likely to benefit from a comprehensive plan that divides your wealth, protects your well-being and provides a compass for your family’s future. Dividing your wealth Estate planning is often associated with the division of your assets, and this is certainly a key component. It’s typically accomplished, for the most part, by drafting a will, which is the foundation of an estate plan. With a valid will, you determine who gets what. It can cover everything from the securities in your portfolio to personal property, such as cars, artwork or other family heirlooms. In contrast, if you die without a will — referred to as dying...

17 Nov 2019
0

Using Benford’s Law to Find Fraud

Roger Rossmeisl, CPA
Fraud Briefs
Using Benfords Law to Find Fraud

Benford’s Law is a long-standing statistical precept that remains as relevant and widely accepted in fighting fraud as ever. By using Benford's Law to find fraud, experts can cut down fraudsters who unknowingly reveal their wrongdoings in dubious digits. Historical background The rule is named for Frank Benford, a physicist who noted that, in sets of random data, multidigit numbers beginning with 1, 2 or 3 are more likely to occur than those starting with 4 through 9. Studies have determined that numbers beginning with 1 will occur about 30% of the time, and numbers beginning with 2 will appear about 18% of the time. Those beginning with 9 will occur less than 5% of the time. Further, these probabilities have been described as both “scale invariant” and...

17 Nov 2019
0

Beware Tax-Related Scams

Roger Rossmeisl, CPA
Individual Tax Briefs
Beware Tax-Related Scams

“Thousands of people have lost millions of dollars and their personal information to tax scams,” according to the IRS. Criminals can contact victims through regular mail, telephone calls and email messages. Beware tax-related scams by being aware of these two scams the tax agency has seen in recent months. Fake property liens. A tax bill is sent from a fictional government agency in the mail. The fake agency may have a legitimate sounding name such as the Bureau of Tax Enforcement. The bill is accompanied by a letter threatening an IRS lien or levy based on bogus overdue taxes. (A levy is a legal seizure of property to satisfy a tax debt. A lien is a legal claim against your property to secure payment of...

17 Nov 2019
0

Estate Tax Relief for Family Businesses

Roger Rossmeisl, CPA
Estate Planning Briefs
Estate Tax Relief for Family Businesses

Fewer people currently are subject to transfer taxes than ever before. But gift, estate and generation-skipping transfer (GST) taxes continue to place a burden on families with significant amounts of wealth tied up in illiquid closely held businesses, including farms.  Fortunately, Internal Revenue Code §6166 provides some estate tax relief, allowing the estates of family business owners to defer estate taxes and pay them in installments if certain requirements are met. §6166 benefits For families with substantial closely held business interests, an election to defer estate taxes under §6166 can help them avoid having to sell business assets to pay estate taxes. It allows an estate to pay interest only (at modest rates) for four years and then to stretch out estate tax payments over 10 years in...

17 Nov 2019
0

The Truth About the Fed’s Rate Cuts

Roger Rossmeisl, CPA
Current Events, Economic Concepts
The Truth About the Fed's Rate Cuts

Mike Maloney, the owner of GoldSilver.com is doing a great service by releasing regular video clips which analyze and comment on the economy in a way you’re just not going to hear on main stream media. Mike’s latest video entitled “The Truth about the Fed’s Rate Cuts” (released November 11, 2019) is actually not about the economy, per se, but about currency abuse, interest rate cuts, and a big fat warning about the coming recession. (Run Time: 3 min, 29 sec) As  posted to the GoldSilver YouTube Channel on 11/11/19 (Run Time: 9 min, 23 sec) Download Mike Maloney's best-selling book for free here: https://pages.goldsilver.com/freebook (This is Blog Post #655) Michael Maloney, founder of www.GoldSilver.com is also the author of the world’s best selling book on precious metals investing.  Since 2003 he has...

15 Nov 2019
0

U.S. Economy is a House of Cards Built on Unsustainable Debt

Roger Rossmeisl, CPA
Current Events
U.S. Economy is a House of Cards Built on Unsustainable Debt

As posted to the David Stockman YouTube Channel on 11/12/19 David Stockman appears on RT's "The News with David Sanchez" to discuss the recent decision by the Fed to add money to the financial system through the repo markets.  Also discussed is the fact that we are at the top of the longest business cycle in history (month 130 of month 125) and in the last four months, the Treasury has borrowed $800 billion. (This is Blog Post #654) David Stockman is a former businessman and U.S. politician who served as a Republican U.S. Representative from the state of Michigan and as the Director of the Office of Management and Budget under President Ronald Reagan.  He is the author of a number of books including "The Great Deformation:...

14 Nov 2019
0

Encourage Sales Staff to Walk an Ethical Line

Roger Rossmeisl, CPA
Fraud Briefs
Encourage Your Sales Staff to Walk an Ethical Line

When market competition heats up, you might provide extra incentives for your sales staff to perform. But be careful: Some employees may step over the line — to earn bigger bonuses or out of enthusiasm for the challenge — and use unethical sales tactics. Take steps to ensure your salespeople always walk an ethical line and operate with integrity. Walk an ethical line: make a commitment to honesty Culture starts at the top. If you clearly demonstrate, through both words and behavior, your commitment to honesty, your sales team will get the message. Your customers will too. Try to anticipate the challenges your sales force may face as they attempt to meet sales goals. The temptation to sell more than your company can deliver, for example — or...

13 Nov 2019
0

Controlling Unemployment Tax Costs of Your Business

Roger Rossmeisl, CPA
Small Business Tax Briefs
Controlling Unemployment Tax Costs of Your Business

As an employer, you must pay federal unemployment (FUTA) tax on amounts up to $7,000 paid to each employee as wages during the calendar year. The rate of tax imposed is 6% but can be reduced by a credit (described below). Most employers end up paying an effective FUTA tax rate of 0.6%. An employer taxed at a 6% rate would pay FUTA tax of $420 for each employee who earned at least $7,000 per year, while an employer taxed at 0.6% pays $42.  That said, what are you doing toward controlling unemployment tax costs of your business? Tax credit Unlike FICA taxes, only employers — and not employees — are liable for FUTA tax. Most employers pay both federal and a state unemployment tax. Unemployment tax...

ROGER ROSSMEISL, CPA

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

(714) 325-0442
roger@khopatel.com

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