WATCH YOUR WALLET!
A quarterly newsletter for taxpayers
Introducing Brian Singleton
We proudly announce that, Brian Singleton, an information
systems specialist, has joined our firm. A graduate of
Escondido High School and the University of Redlands, Brian
has a strong technical and business background, and will be
pursuing his Masters in Taxation degree this fall to enhance
his credentials.
Starting his career in business technology while still in
high school, Brian has served as a mentor and technical
trainer for hundreds of small and large organizations. His
information technology expertise has been sought by
industry-leading magazines, websites, and newsletters. A
popular technical book author, seminar leader, and the Editor
of Midrange Computing Magazine, Brian has had the unique
opportunity to speak to and work with hundreds of companies,
focusing on enhancing IT investment business value.
“We’re very excited to have Brian on the team”, says Arnie,
president of A. D. Singleton, An Accountancy Corporation. “Now
we’re in a better position to help our small business
customers get the most out of their technology investments.”
Brian invites you to drop by and say ‘hello’ the next time
you are in the area. If you would like an independent, no
cost, evaluation of how your business can best leverage
existing and new information technology, give us a call.
Trash Your Financial Records!
There are many reasons to keep financial records — to
prepare your tax returns, support items reported on the
returns, identify sources of income, track your expenses, and
keep track of property basis, to name a few. Recordkeeping can
require a lot of paper and the space to store it . After all,
you might need these records in case you’re ever audited! But,
maintaining paper files ignores 21st century realities.
The IRS accepts electronic recordkeeping as long as the
method of storage meets certain requirements. You must be able
to “retrieve and reproduce” the records at IRS request,
including making hard copies if those are requested.
Many tax-related transactions that generate paper can now
be done entirely electronically. Some people are more
comfortable going paperless than others. But, the paper you
decide to keep is a judgment call, rather than a
black-and-white “keep or trash” choice.
If you decide to go paperless, just be sure to back up your
data early and often! Call us for help in selecting what to
keep, how to keep it, and how to make safe backups.
Few People Are Likely to Escape Higher
Taxes!
Fines, fees, surcharges, taxes—call it what you may, the
bottom line is that our cash-strapped state wants more of your
tax dollars this year. Forty nine of the fifty states require
a balanced budget, and California’s day of reckoning is
coming. As the federal government is cutting taxes, California
scrambles for money.
Who pays? Smokers, drinkers, gamblers, drivers, traffic
offenders, businesses small and large. Few will escape the
pain. Some will pay more to the state than they get back from
the IRS, others will come out ahead.
Now is the time to assess your changing tax situation. Call
us today while there is still time for us to help you keep as
much of what you earn as possible.
Medical Supplies
and Equipment May Be Deductible—Even Without a Prescription
Generally, amounts paid by an individual for medicines or
drugs that may be purchased without a prescription of a
physician are not deductible. The cost of aspirin, for
instance, is not deductible even though recommended by your
doctor.
However, under a recent Internal Revenue Service ruling,
this does not apply to medical equipment and supplies. Amounts
paid by an individual for equipment, supplies, or diagnostic
devices may be deductible, even though not prescribed by your
doctor.
For example, the costs of diagnostic devices such as blood
sugar test kits used to monitor the blood sugar level in
diabetics may be deductible. Crutches and bandages used to
help someone who injured a leg may also be deductible. The
costs of adult diapers are also deductible, an annual cost
that can be several hundred dollars.
When taken together the costs of non-prescription supplies
and equipment used for medical purposes can add up to a
significant deduction—a deduction that could help to offset
the high cost of healthcare itself.
Hang Up On Those
Annoying Telemarketers!
You can fight back against all those calls interrupting
your busy days, evening meals, and weekends. And, it's a
free service.
Sign up for the National “Do Not Call” Registry online (www.donotcall.gov)
or call 1-888-382-1222 toll-free from the telephone number you
wish to register.
Most telemarketers must stop calling. Exemptions include
calls from charities, pollsters, and on behalf of politicians.
And a company can still call you if you have bought, leased or
rented from it within the past 18 months.
The list will block about 80 percent of unwanted
telemarketing calls. If you register by August 31 you should
see relief from those unwanted calls after October 1. From
September 1 or later it will take three months after you
register. But you will need to renew your registration every
five years.
All
information presented here is general in nature, and does
not take into account your personal situation.
Please call us for information specific to your particular
circumstances.
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