Tax Pro Plus

Tax Pro Plus Inc. New Year's Savings - Coupons for our Returning Clients

2012-01-05T11:34:00.000-08:00

It is that time a year again - Tax Season! We have some exciting news - we moved our offices downstairs. For those of you that hated the stairs, you no longer have to climb them. We are in the same building, just at the back in Unit 3. We have a huge sign, so it should be easy to find. Our new address is 3754 Motor Ave #3, Los Angeles, CA 90034.

We still have our TOP 10 CLUB, where we reward our clients for recommending us. The client with the most referrals gets $300; the other top 9 clients get $100. Remember to tell your friends. Last year we had a tie and split the money 4 ways; our winners were Monique Watts, Renee Ota, David Glazov and, Nuvia Cifuentes. CONGRATULATIONS everyone and thanks for the referrals!

Usually we send out a little flyer, but this year we are emailing them with a coupon. If you would like to save some money, we are offering an early bird discount of 10% for returns started before February 15th. If you can't get in before February 15th, we will give a discount of 5% to those that either drop off, mail, or email their documents. These discounts are for returning clients only, not for new clients. If you are unable to get into the office, we can EVEN pick up and deliver.

We at TAX PRO PLUS, INC. wish you and your family a very happy and healthy New Year.

Sincerely,

Vicki Knight, EA

George Keck, EA

Kathy Igoe, CTEC

Save 10% on Tax Returns submitted before February 15th. Only valid for returning clients. Coupon must be mentioned when making appointment, printed and presented in person. Coupon is non-transferable and has no cash value. Maximum of one coupon per person.
Offer Expires: Wednesday, February 15th, 2012

Save 5% on Tax Returns dropped off, mailed or emailed to us. Only valid for returning clients. Coupon must be presented with documents. Coupon is non-transferable and has no cash value. Maximum of one coupon per person.
Offer Expires: Saturday, April 14th, 2012

Tax Pro Plus Winter Tax Tips: Tax Deductions for Teachers!

2011-12-07T12:04:00.000-08:00

Did you buy supplies for your classroom?

As a small token of appreciation, teachers are allowed to deduct up to $250 on their tax return for money they spent on classroom supplies. The deduction is an "above-the-line" deduction, which means that it's an adjustment to income; filing a Schedule A,Itemized Deductions, isn't necessary to receive the benefit.

Instructors, counselors, principals and aides employed by state-approved K-12 public and private school systems are also eligible to claim this deduction. Deductible items include unreimbursed books, supplies, computer equipment and other materials used in the classroom. The items you purchase for your classroom must be considered ordinary and necessary in order to deduct the costs. But if you receive a reimbursement for the items you purchase, you may not deduct the cost on your tax return.

Tax Pro Plus Small Business Winter Tax Tips - Employee or Independent Contractor?

2011-11-04T09:58:00.000-07:00

This classification determines if payroll taxes are required.

For some business owners, determining whether a worker is an employee or an independent contractor can be tricky. Generally, you must withhold income taxes, withhold and pay social security and Medicare taxes and pay unemployment tax on wages paid to an employee. However, you don’t generally have to withhold or pay any taxes on payments made to independent contractors.

There is a misconception that you may be able to choose which classification works best for your company. In reality, however, the facts and circumstances impose the worker status. In determining whether the person providing a service is an employee or an independent contractor, you must consider all information that provides evidence of the degree of control and independence. You’ll need to answer these four questions:

1. Does the company control or have the right to control what the worker does and how the worker does his or her job?

2. Are the business aspects of the worker’s job controlled by the payer? Examples include how a worker is paid, whether expenses are reimbursed and who provides tools/supplies.

3. Are there written contracts or employee-type benefits like a pension plan, insurance, vacation pay?

4. Will the relationship continue and is the work performed a key aspect of the business?

Businesses must weigh all these factors when determining whether a worker is an employee or independent contractor. Some factors may indicate that the worker is an employee, while other factors indicate that the worker is an independent contractor. No set number of factors makes the worker an employee or an independent contractor and no single factor stands alone in making this determination. The concept is to look at the entire business relationship, consider the degree or extent of the right to direct and control, and finally, to document each of the factors used in coming up with the determination.

If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker. File a Form SS-8 with the IRS if the factors for determining worker status remain unclear.

Tax Pro Plus Winter Tax Tips: Reporting Casualty Losses - Were You Hit By Bad Weather?

2011-10-31T13:45:00.000-07:00

From tornadoes to earthquakes to hurricanes, it was one busy summer for Mother Nature. Unfortunately, this means that a lot of taxpayers experienced destruction. If you're one of them, the loss of business or personal property may provide a deduction on your individual income tax return, but first you need to determine if the loss qualifies for a deduction.

A casualty is defined as the damage, destruction or loss of property resulting from an identifiable event that is sudden, unexpected or unusual. Events that could produce a casualty loss include floods, fires, earthquakes, tornadoes or terrorist attacks. Events that aren't unusual, such as a pet knocking over an antique vase, would not qualify as a casualty loss.

If you have experienced a casualty loss, you'll need to figure out what the lost property was worth; this is the fair market value. You also need to know the change in value of the property before the event compared to after the event. If the decline in value is less than your cost, then the smaller amount is used to determine the loss.

This amount is decreased by any insurance or other reimbursement you receive on the property. Sometimes reimbursements can actually lead to income from the casualty instead of a loss, in which case different rules may apply limiting the reporting of that income to the IRS.

The loss after insurance reimbursement is reduced by $100 and reported on Schedule A, Itemized Deductions. The aggregate total of all casualty losses will be reduced by 10 percent of your adjusted gross income.

Tax Pro Plus - Summer Tax Tips 2011

2011-06-21T13:48:00.000-07:00

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Tax Tips

Small Business Edition

Summer 2011

Employer-Provided Health Coverage

What are your W-2 reporting requirements?

The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan. To give employers more time to update their payroll systems, this requirement is optional for all employers in 2011. In 2012, the government will require any business filing 250 or more W-2 forms to report the cost of their health coverage. Health care reporting will be optional to small businesses that file less than 250 W-2 forms for at least 2012, and will continue to be optional until further guidance is released.

The 2011 Form W-2 is available for viewing and is the W-2 that most employees will receive in early 2012. Employers may use box 12, code DD, to report the cost of coverage under an employer-sponsored group health plan.

This health coverage reporting requirement is for informational purposes only. The purpose of this reporting is to show employees the value of their health care benefits, so they can be more informed consumers. The amount reported does not affect tax liability, as the value of the employer contribution to health coverage continues to be excludible from an employee’s income and is not taxable.

It’s important to note that this reporting requirement relates only to employer-sponsored group health plans. The reporting requirement does not include:

● Coverage only for accident or disability income insurance;

● Coverage issued as a supplement to liability insurance;

● Liability insurance, including general liability insurance and automobile liability insurance;

● Workers’ compensation or similar insurance;

● Automobile medical payment insurance;

● Credit-only insurance; and

● Other similar insurance coverage, specified in the regulations, under which benefits for medical care are secondary or incidental to other insurance benefits.

Purchasing a New Business Asset?

You may be able to expense it under Section §179 Tax Deduction

Are you thinking about making a big purchase for your business? You may be able to expense up to $500,000 of qualifying property acquired for use in a trade of business for 2011. The deduction phase out begins at $2,000,000 on purchases of qualifying property. Taxpayers who have “qualified disaster assistance property” may expense up to $600,000; their deduction phase out begins at $2,600,000. The SUV limit remains at $25,000.

Within the $500,000 limit of Section §179 tax deduction, taxpayers may expense up to $250,000 of qualified real property, defined as qualified restaurant leasehold improvement property, qualified restaurant property and qualified retail improvement property.

Do You Work from Home?

If so, consider a home-office deduction

Generally, in order to claim a business deduction for your home, you must use part of your home exclusively and regularly as your principal place of business, as a place you meet your clients, or in connection with your business, where the business portion of your home is a separate structure not attached to your home.

For the most part, the amount you can deduct depends on the percentage of your home used for business. Your deduction for certain expenses will be limited if your gross income from your business is less than your total business expenses.

It’s important to note that there are special rules for qualified daycare providers and for persons storing business inventory or product samples in their home.

Employee or Independent Contractor?

This classification determines if payroll taxes are required

1. Does the company control or have the right to control what the worker does and how the worker does his or her job?

2. Are the business aspects of the worker’s job controlled by the payer? Examples include how a worker is paid, whether expenses are reimbursed and who provides tools/supplies.

3. Are there written contracts or employee-type benefits like a pension plan, insurance, vacation pay?

4. Will the relationship continue and is the work performed a key aspect of the business?

Self-Employed Consultants

Do you sell goods door-to-door?

Picking up a second job to supplement household income in a tough economy is becoming more common. Many Americans are choosing to become consultants who visit homes to sell make-up, jewelry, candles, kitchen utensils and food products. Some may not realize the tax implications of becoming a sole proprietor and what they need to do to file taxes.

Your first step when starting a business is to open a separate business checking account. It will be easier to track your deductible expenses if they are not commingled with your personal expenses. If you incurred expenses prior to opening your business, keep them separate from your other expenses. Special tax treatment applies to start-up expenses.

It’s also important to keep track of your mileage, because you might be able to deduct it on your tax return. If you are self-employed and maintain an eligible office in your home, you can deduct the mileage to and from your client’s or customer’s place of business, as well as between jobs. There are two ways to calculate your auto deductions: the standard mileage rate or actual expenses. The standard mileage rate is the easier method to use because you simply take your total business mileage and multiply it by the current rate ($.51 for 2011). The actual expense method requires you to record the actual expenses, such as the cost of gas, oil, insurance, repairs, maintenance, tires, washing, licenses and depreciation. If you use your car for personal and business purposes, you’ll have to divide the expenses between the personal and business portion, so keeping detailed records is a must. The business miles for the year divided by the total miles for the year determine the business percentage of your actual expenses.

Bartering Income

How can it impact your taxes?

Many small business owners use bartering as a way to save a little money. But many do not realize the tax consequences associated with bartering. When bartering occurs, there is usually no money exchanged, just goods and/or services.

In general, you are required to issue a Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, to the party you traded with. This form indicates the fair market value of the item you traded.

The fair market value of the item you receive is income to you and is taxable in the year the service is received. Your bartering activities also may result in ordinary business income, capital gains or capital losses, or you may have a nondeductible personal loss. In addition, the fair market value of the item you traded, may also be deductible to the extent the barter received is a deductible expenditure. Bartering income may result in liabilities for income tax, self-employment tax, employment tax or excise tax.

Form 1099 Reporting Requirements Repealed

Small businesses, landlords spared from increased burden

Part of the Patient Protection and Affordable Care Act (PPACA) would have required business owners who pay a non-employee taxpayer more than $600 in any tax year to furnish that taxpayer with a Form 1099 beginning in 2012. These payments would have included, interest, rents, royalties and amounts paid for goods or services.

This past April, President Obama signed the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 (HR 4), which repealed the section of the PPACA that enacted these reporting requirements. In addition, HR 4 also repealed the Form 1099 reporting requirements imposed on landlords, which was to take effect in 2011 under the Small Business Jobs Act of 2010. This provision required persons who received income from rental property to report payments of $600 or more to service providers on Form 1099-MISC.

The repeal of these expanded reporting requirements reinstates the old rules requiring business owners to issue Form 1099-MISC for payments of $600 or more for rents, services, prizes and awards or other income payments, excluding payments to corporations.

Sales Tax

As we all know the economy is not the greatest and both the federal, state and city are no exception.

California is looking for money where ever they can find it and one of the places they are really looking at is for products that are purchased over the internet. People are purchasing items over the internet from Amazon,com, and are not charging sales tax to the customer. They are trying to make them register these items and sales so that they will require us the consumer to pay the sales tax on our tax return, when you come and see me next year. So you as a taxpayer need to keep track of all the items that you buy on line that you are not paying sales tax on, and when you come into see me we will need to report them on your tax returns.

Keep track of the Kindles, the downloads, anything and everything that you did not pay sales tax on and we will claim it on your tax return. I know, not fun.

Business License

Do you have your own little side business, do you just do some free lance gigs. Guess what! According

the City of Los Angeles, if you did work in Los Angeles you need to have a business license, even a couple of free lance jobs. If you file the license ahead of time, and renew it between January 1, and February 28 and you bring in under $100,000. (There are some exceptions) you will not owe and tax but beware you do need to make sure you file.

User Tax

If you have a small business and you bring in over $100,000. You are required to file with the State

Board of Equalization, this is an Information Return, they ask how much product you sold. If you are charging sales tax on any products you sale you also need to file a sales tax return.

Reminder

If you filed an extension this is a reminder that the Corporation extensions are due September 15, 2011 and personal returns are due on October 15, 2011. To insure that they are timely filed be sure to get them in early.

This is a reminder that if you receive a notice from the Internal Revenue, State of California, Franchise

Tax Board or State Board of Equalization; give us a call so that we can take care of anything that needs to be taken care of as quickly as possible.

Vacation

Just to let you know that no one will be in the office from August 6, 2011 to August 29, 2011. Vicki will be on vacation and the voicemail will be working, you can always email, she will have limited email access.

Quick Tips

1. The standard mileage rate for business travel in the remainder of 2011 is 55.5 cents per mile.

2. The maximum amount of wages subject to social security tax is $106,800 in 2011. There is no limit on wages subject to Medicare tax.

3. Maximum employee elective deferrals to 401(k) or 403(b) plans are $16,500 for 2011.

4. Up to $230 per month for employer-provided transit and carpooling benefits can be provided

as a tax-free fringe benefit to employees in 2011. Also, $230 per month for qualified parking can be provided by the employer as a tax-free fringe benefit to employees in 2011.

5. The maximum amount that can be contributed to your employees’ health savings accounts (HSAs) in 2011 is $3,050 for employees with self-only coverage and $6,150 for employees with family coverage.

Tax Pro Plus - Tax Tips Winter 2010

2010-11-12T09:20:00.000-08:00

At Tax Pro Plus, we take the stress out of taxes. Enjoy these useful Winter 2010 tax tips including answers about dependents, divorce, first time home buyer credit, gift giving, non-business energy credit, deductible IRAs, Roth conversions and more!Tax Pro Plus Tips Winter 2010

Tax Pro Plus Tips - Health Savings Account

2010-07-29T12:30:00.000-07:00

Open publication - Free publishing - More tax pro plus

Tax Pro Plus Free Small Business Seminar

2010-05-01T09:51:00.000-07:00

Tax Pro Plus Inc.
"We take the stress out of taxes!"

Starting a business?

Don't know where to begin?

Already have a business?

Paying too much in taxes?

Defining a business' entity?

Questions about taxes?

FREE Small Business Seminar

Wednesday, May 26th
6:30pm - 9:30pm

Veteran's Memorial Auditorium

4117 Overland Ave.

Culver City, CA 90230

Please RSVP Today

Tax Pro Pluc Inc.

email: TaxProPlusInc@aol.com

phone: 310-827-4829

Tax Pro Plus - Tax Tips: Winter 2009/2010

2009-11-06T10:29:00.000-08:00

Tax Pro Plus

Money Back for New Vehicle Purchases

2009-06-12T08:49:00.000-07:00

Taxpayers who buy certain new vehicles in 2009 can deduct the state and local sales taxes they paid. The American Recovery and Reinvestment Act of 2009 (ARRA) provides a deduction for state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles through 2009. The deduction is available regardless whether a taxpayer itemizes deductions on Schedule A. Purchased before February 17, 2009 are not eligible for the special deduction. Purchases must be made prior to January 1, 2010.

The deduction is limited to the tax on up to $49,500 of the purchased price of an eligible motor vehicle. The deduction is phased out for joint filers with modified adjusted gross income between $250,000 and $260,000 and other taxpayers with modified AGI between $125,000 and $135,000.

Tax Credits for Home Energy Efficiency Improvements

2009-06-04T07:53:00.000-07:00

Tax Credits for Home Energy Efficiency Improvements Home Owners can get bigger tax credits for making energy efficiency improvements or installing alternative energy equipment: a credit of up to 30% of the cost of qualifying improvements up to $1500, such as adding insulation, energy efficient exterior windows, energy efficient heating and air conditioning systems.

First Time Homebuyer Credit Expands

2009-06-04T07:47:00.000-07:00

First Time Homebuyer Credit Expands - Home buyers who purchase a home from January 1, 2009 to November 30, 2009, may be eligible for a refundable tax credit up to $8,000 with no payback requirement. If you have not owned a home in the last 3 years, you may still qualify to be a first time homeowner. This credit applies to the purchase of taxpayers principal residence. If you have purchased a home this year and closed escrow, we can amend your 2008 return and request the credit now instead of waiting until you file next year's tax return. This credit reduces a tax payers bill or increases their refund dollar for dollar. This refund is fully refundable and will be paid to eligible taxpayers.

For houses purchased between April 8, 2008 and December 31, 2008 there is a first time home buyers credit up to $7,500 that will have to be paid back, the credit is similar to a no interest loan and must be repaid in 15 equal annual installments beginning with the 2010 income tax year.

Tax Pro Plus - Medical Expense Sheet

2009-05-26T13:08:00.001-07:00

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2009 Summer Tax Tips from Tax Pro Plus

2009-05-20T11:09:00.000-07:00

Tax extensions are due for individuals on October 15th, 2009

Corporation extensions are due on September 15th, 2009

State of California is requiring that corporations pay estimated taxes.

First Time home buyers get a credit of up to $8000 (first time home buyers are people that haven't had a house in the last 3 years). Credit is good for houses purchased prior to December 1st, 2009.

Taxpayers can get a credit from the sales that they paid for a new car purchased this year.

Checks for $250 are going out to Social Security receipents which is part of the stimulus package.

Individual taxpayers are getting their stimulus money in their monthly checks. Starting in April their checks should have gone up about $15 each week.

We also help our clients pay less taxes we make suggestions to small businesses that they may need to be incorporated and we can help clients go through this process.

Vicki "Tax Lady" Knight, Enrolled Agent

2009-04-21T10:44:00.000-07:00

Vicki "Tax Lady" Knight, Enrolled Agent

Vicki Knight has been preparing taxes for the past 12 years and for the last 2 year as an Enrolled Agent. She began her career at one of the major chain tax preparation companies. While with the major chain, she managed several offices, prepared clients for audits with the IRS and Franchise Tax Board and taught tax preparation courses.

Vicki is a member of the National Association of Enrolled Agents, California Society of Enrolled Agents, California Society of Tax Consultants and National Notary Association.

She also holds a Life Insurance License, Series 6 & 63 Securities Licenses, a California Real Estate License and she is a Notary Public.

If you are in need of tax services or just have questions, please call Vicki at (310) 827- 4TAX.