Have you thought about Exit Planning?

Author: Michael J. Reynolds, CPA, CEPA 

If you’re a business owner, one of your most valuable assets is your business.

It is also probably true that you devote a lot of time and thought to managing and growing your company and much less time imagining your company if you are not part of it. Have you ever asked yourself:

  • What will happen to my business if I am no longer able to run it – for example, if I suddenly become too ill to run the business?
  • When am I planning to step down to let the next generation of my family take over my business, and is the next generation ready to do so? Do I have family who are willing to take over the family business and do they have had the proper training and experience to do so?
  • Who would assume the responsibility that I have to my customers and employees if suddenly I were unable to work?

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Charitable Contributions – A Sound Strategy for Tax Reduction

Author: Frank Pelosi, CPA, CVA

One of the strategies to reduce your taxable income is to make a charitable contribution to a qualified organization before the calendar year ends.

DonateCommon examples of qualified organizations include churches, religious organizations, nonprofit educational organizations, nonprofit hospitals and medical research organizations, volunteer fire companies, etc. Some foreign charities also qualify as qualified organizations. To ensure that you are eligible for a charitable contribution deduction, ask your organization if it is a qualified organization OR you can use the online tool
[1] on the IRS website to determine the status of an organization.

In addition to assuring that the contribution is to a qualifying organization, it’s important to maintain proper documentation of your contribution. A valid charitable contribution may be disallowed by the IRS if not adequately substantiated.

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Assessing the Potential Impact of the Supreme Court Ruling on Maryland Tax Law on Individuals

Estimated $200 Million in Refunds Will Be Made Available to Maryland Residents… Will Residents of Your Home State Benefit Next?

Maryland v. WynneMonday, May 18th marked the date of a landmark ruling by the U.S. Supreme Court. In a five-to-four ruling, the Supreme Court ruled (in Comptroller of the Treasury of Maryland v. Wynne et ux.) against the Maryland tax law’s double-taxation treatment of income earned by residents who work out of state. Maryland’s current tax structure is based on a two-tier system, whereby residents are assessed a state tax of up to 5.75% on their income, in addition to a county tax of up to 3.2% depending on the resident’s county of domicile. Residents who earned income from out-of-state sources, and thus paid tax to those foreign jurisdictions, were afforded a credit for taxes paid on the state portion of their income tax assessment, but not for the county portion. Thus the Supreme Court ruled that the failure to allow a credit on all taxes imposed by the state of Maryland was “inherently discriminatory and operates as a tariff”, and is thus unconstitutional under the dormant Commerce Clause, which grants the federal government regulatory authority over the states where instances of double-taxation that might discourage interstate commerce are found.
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The Press of Atlantic City Features Capaldi Reynolds & Pelosi

As published in
The Press of Atlantic City – posted here with permission.
See original article.
Author: Martin DeAngelis

Capaldi Reynolds & Pelosi is a mature institution, an 80-year-old accounting firm whose chairman, Bob Reynolds, has been with the business for 57 years. But the company has been on a growth spurt lately, adding 26 new partners and staff members in 24 months and doubling the size of its Northfield offices to hold all those people.

In October 2012, Capaldi Reynolds had 34 accountants and 44 total employees. By last October, after a series of mergers, the firm was up to 52 accountants and 70 employees, meaning it had grown by close to 60 percent in just two years — and in a region where the business climate has suffered badly in that same time.

Matt Reynolds, one of three managing partners, starts that growing-up-fast story in November 2012, when Capaldi Reynolds merged with Morowitz & Co., of Galloway Township, and added seven people to CRP. Read more

Investing in Bonds & Stocks 101

Stocks & BondsWhen it comes to constructing a portfolio it is generally not a matter of stocks or bonds, it is a matter of both. As a matter of fact, there are two other asset classes, cash and alternative investments that also should also be considered for a well-diversified portfolio. The percentage of each asset type, a.k.a. asset allocation, is the prime determinant of your portfolio’s return and volatility. Asset allocation is based upon the investor’s risk tolerance, which is a function of many factors including age, stability of income, family responsibilities, other resources, personal plans, and propensity for risk. There are also a number of objectives to consider such as the desire for capital preservation, current income, growth, risk aversion, and tax issues. A financial planner can assist you in determining your risk tolerance and developing an appropriate comprehensive plan.
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Make Your Personal Financial Life More Effective (Part 1 of 2)

There are many core principles that each of us regularly follow throughout our lives. These principles help us navigate through the many decisions we make daily.
I have 10 favorite axioms that I follow — and share with my college classes and clients — to make personal financial life more satisfying and effective. Sometimes, many years after the class or meeting, former students and business acquaintances reflect upon the axiom and remark how it positively influenced their lives.

Here are the first five:
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Capaldi Reynolds & Pelosi acquires Lavinsky, Horowitz & Pollard

Capaldi Reynolds & Pelosi, (CRP) is pleased to announce Lavinsky, Horowitz & Pollard (LH&P), CPAs and Business Advisors have agreed to join our team to form the largest locally based accounting, tax, audit and business advisory firms in South Eastern New Jersey.  Jointly the new firm will have 36 CPA’s and along with our sister company CRA Financial Advisors will have over 70 employees.
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What’s New on the Form 1040 (2013)

Tax form

Change in Tax Rates

Beginning in 2013, the American Taxpayer Relief Act of 2012 imposes new higher 39.6% and 20% tax rates on ordinary income and long-term capital gains, respectively. The new top ordinary income tax rate of 39.6% is imposed on taxable income over $400,000 for single filers, $425,000 for head-of-household filers and $450,000 for married taxpayers filing jointly ($225,000 for each married spouse filing separately). The 20% capital gain tax rate applies to capital gains and dividends for individuals above the top income tax bracket threshold.
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Social Security Planning

Work Or Retire Finding the right age and correct strategy to claim Social Security retirement benefits can have a substantial impact on a retiree’s financial security. It is essential for CPA personal financial planners to educate clients about the options and run the numbers pertaining to different claiming scenarios assuming different life expectancies. Traditionally, the Social Security Administration’s (SSA) default position has been to recommend the option that provides recipients the largest benefit today, which may be a good idea if you are in ill health and without sufficient assets. However, after considering early retirement penalties, delayed retirement credits, survivor benefits, inflation cost of living adjustments, two-income households, the tax advantage of Social Security and longer life expectancies, it may make sense for one or both spouses to delay to age 70.
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phone: (609)641-4000
email: info@capaldireynolds.com

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