We get them from our banks, our retirement plans, and our brokers but are we ever required to issue a 1099? The 1099 series are information returns that report to the IRS various types of payments. This is then matched with the recipients’ reported income.
In an earlier newsletter we gave you advice on how to use Quickbooks to keep track of your 1099 vendors, but how do you know who to put in your 1099 database?
Advertising is communicating with customers in an attempt to influence their buying behavior by conveying a persuasive message about your products or services. Although we may not recognize it, businesses around the world use every media outlet possible to advertise their products or services. Some common advertising outlets include newspapers, Yellow Pages, direct mailing, television commercials, radio advertisings, billboard/vehicle advertising and online marketing (website advertising, business webpages, email chains, social media, etc.). The type of media outlet a business chooses depends on the type of customers the business wishes to reach, also known as the target market.
For businesses that are preparing year-end payroll and information returns from Quickbooks, the following tips are helpful in order to avoid the most common mistakes:
To pre-pay or not to pre-pay? That was the question that was the topic of many discussions relating to taxes at the end of 2017. However, it only scratches the surface of the issues resulting from the passage of the Tax Cuts and Jobs Act (Act). Most, if not all, taxpayers will be affected by the sweeping reforms. Listed below are selected federal Act provisions and selected state tax provisions that may impact you for 2017 and beyond. In light of these changes, we recommend that you begin tax planning as soon as possible. That was the question that was the topic of many discussions relating to taxes at the end of 2017. However, it only scratches the surface of the issues resulting from the passage of the Tax Cuts and Jobs Act (Act). Most, if not all, taxpayers will be affected by the sweeping reforms. Listed below are selected federal Act provisions and selected state tax provisions that may impact you for 2017 and beyond. In light of these changes, we recommend that you begin tax planning as soon as possible.
Looking for an easy way to sign and return documents that are emailed to you? Tired of the long process of printing documents, signing them, scanning them, and attaching them to a reply email? If you own an iPhone, try this simple document signing technique.
When you open the pdf attachment on your iPhone, there is a suitcase-like icon on the bottom right of your screen when the pdf is open. If you click on that suitcase icon, it opens up mark-up tools that you can use to sign the document on your phone. Then, after signing, you simply click on “done” and it automatically brings up the reply email that includes the signed attachment and you then click “send.” Files secured with a password must be sent to you in a format with commenting to be allowed in order for the signature to be able to be added to the document in this manner.
If you are happy with this information, please use your iPhone and the time saved to refer a friend to Capaldi Reynolds & Pelosi, PA.
Exit Planning – It might not be what you think
There’s a sign outside our office that lets the public know that our Firm assists in exit planning. Unfortunately it seems that a lot of people think this is a plan to exit the world of the living. Not so.
A good exit plan asks and answers all the business, personal, financial, legal and tax questions involved in transitioning a privately owned business. It includes contingencies for illness, burnout, divorce and death. Its purpose is to maximize the value of the business at the time of exit, while minimizing taxes and ensuring the owner the ability to accomplish all of his or her personal and financial goals in the process. When you have an exit plan, you are able to control how and when you exit (the business). Please contact Michael Reynolds for more information on exit planning.
By Arthur M. Brown, JD, LLM, CPA
Levine, Staller, Sklar, Chan & Brown, P.A.
Many of our clients associate estate planning with tax planning. While estate planning is often driven by a desire to minimize estate tax, tax savings is only one aspect to consider. Recent increases in the exemption amounts for federal and New Jersey estate tax may make some clients think they no longer need to consider and execute an estate plan, but this could be a critical mistake. More often than not, clients must focus on the “who”, “what”, “when” and “how” a client’s estate will pass to his or her beneficiaries.
By Clayton Himstedt, CPA, MBA
The passing of a loved one is often a very difficult time in an individual’s life. In the case of a long term illness, the loved one has the time to inform family members of the estate assets and the proper distribution of those assets. Unfortunately, there is not always an opportunity to inform family members about the estate. In the cases where a loved one passes suddenly, family members are often left to scramble to locate the deceased’s assets and the will, if one exists. This first part of this article will focus on some steps that all individuals should put in place to assist their family members.
It’s time to update your Quickbooks 1099 vendor list.
Believe or not, the year is almost over and it is a perfect time to update your 1099, miscellaneous vendor list in QuickBooks. The IRS requires all 1099 vendors to provide to the payor a signed W-9 which is to be kept in the vendor file. QuickBooks offers a feature for setting up 1099 Vendors. If set up correctly, a simple report can be printed at year end for your accountant. If you prepare your 1099s and 1096 transmittal forms through Quickbooks, it can also be easily done. Maintaining a correct vendor EIN and address list helps eliminate the costs and stress associated with generating 1099 information at year-end. The steps for setting up a correct list are simple but require guidance. Please feel free to contact our office should you need help setting up the Quickbooks 1099 vendor list.
Sadly, the money that we defer from taxes in our 401(k)s and IRAs during our working lives must eventually leave the shelter of the retirement umbrella whether we like it or not. What is a required minimum distribution? The discussion below is not relevant to inherited retirement accounts. For more on that topic, please contact your accountant.
Required: For all retirement accounts except Roth IRAs, the account owner is required to begin taking distributions by April 1 of the year after turning 70 ½. However, postponing until the year after 70 ½ will mean that two distributions will be required in that year. These distributions are taxable income to the recipient [except for Roth 401(k) distributions] so proper tax planning is required.