holiday office hours
Our office will be closed in observance of the Christmas and New Year’s holidays on the following dates:
- December 24, 2008
- December 25, 2008
- December 26, 2008
- January 1, 2009
- January 2, 2009
HAPPY HOLIDAYS!
pa unemployment compensation deadlines
There are important deadlines after the Department of Labor & Industry issues your Pennsylvania Unemployment Compensation (UC) Contribution Rate Notice for calendar year 2009, Form UC-657. The department expects to issue Form UC-657 for calendar year 2009 rates to the majority of employers on Dec. 31, 2008.
If you want to appeal your contribution rate, you must do so within 90 days of the mailing date of Form UC-657. This means timely appeals, based on the Dec. 31, 2008 mailing date, are due by March 31, 2009. If your Form UC-657 is dated after Dec. 31, 2008, adjust your appeal deadline accordingly.
If you want to make a voluntary contribution to reduce your rate, it must be made no more than 30 days after the mailing date of Form UC-657. For example, if your Form UC-657 is issued Dec. 31, 2008, a timely voluntary contribution will be due by Jan. 30, 2009. However, in order to affect your 2009 rate, a voluntary contribution must be submitted by April 30, 2009, even if April 30 is fewer than 30 days from the date of Form UC-657.
April 30, 2009, is the last day an employer with a debit reserve account balance may elect to adjust the balance to an amount equal to negative 20 percent of its average annual taxable payroll. In return for the adjustment, the employer must pay contributions at the maximum rate for three years.
We can assist you in determining if it would be in your best interest for you to make a contribution to reduce your rate. Call our office today to schedule an appointment!
more news on charitable contributions
IRS research data has indicated that overstating tax deductions for charitable contributions is rampant. In 2005, 46% of folks who donated noncash items such as vehicles or household goods committed errors. But tighter substantiation requirements enacted in 2006 won’t eliminate the problem. Unlike other commonly deducted items, donations aren’t subject to rules requiring third parties to furnish the IRS with corroborating data. Lawmakers won’t require charities to report receipt of donations, however. They know such third-party reporting would place a huge burden on the groups. Instead, the IRS will work harder to spot gifts that are out of line with filers’ incomes. Failure to comply with substantiation rules nixes a deduction for donations. The Tax Court re-affirmed this with a couple who tithed their church one year, writing 10 check totaling more than $6,000. Even though the donations went to a bona fide charity and the couple had canceled checks, the IRS denied the write-off, and the Court agreed because the couple lacked proper written acknowledgments from the church for each gift. They are required for donations in excess of $250. (Gomez, TC Summ. Op. 2008-93) To beat an IRS probe, make sure you have the right documentation, even for donations under $250. You must keep a canceled check, a bank record or a receipt with the charity’s name and the amount of the gift. A log isn’t enough. If you’re deducting donations of used clothing or household goods worth over $500, you must attach an appraisal to your return or the IRS will deny the write-off. Source: The Kiplinger Tax Letter, August 8, 2008
If you are selling your stocks, mutual funds, etc. prior to the end of the year in order to capitalize on some of your losses, please be aware of the wash sale rules. Under the wash sale rules, a taxpayer who realizes a loss upon a sale or other disposition of stock or securities may not take a deduction for the loss. The wash sale rules apply if, within a period beginning 30 days before the date of the sale or disposition and ending 30 days after that date, the taxpayer has acquired, or has entered into a contract or option to acquire, substantially identical stock or securities (Code Sec. 1091(a); Reg. §1.1091-1). Similarly, a loss realized on the closing of a short sale of stock or securities is disallowed if within 30 days before or after the closing substantially identical stock or securities are sold or another short sale of substantially identical stock or securities is entered into (Code Sec. 1091(e)). So, before you buy back that stock, because you know it’s going to increase in value, make sure you wait the required number of days, in order for your transaction not to be considered a wash sale. For specific advice as it relates to your own situation, please contact our office.wash sales
Would you like to be informed when our next newsletter is available?
Join ourmailing list
Weekly Tax Tips
September 6, 2010August 30, 2010
August 23, 2010
August 16, 2010
Monthly Tips
Business September 2010Financial September 2010
long term care insurance - do you need it?
Many people have the misconception that Medicare will pay for long-term care costs. It won’t! So let’s take a quick look at Medicare.
What is Medicare?
Basically it is our country’s health insurance program for people age 65 and older. The program helps with the cost of health care, but it does not cover all medical expenses or the cost of most long-term care.
Medicare has four parts:
Part A – Hospital Insurance that helps pay for inpatient care in a hospital or skilled nursing facility (following a hospital stay), some home health care and hospice care.
Part B – Medical insurance that helps pay for doctors’ services
Part C – Medicare Advantage plans. People with Medicare Part A and Part B can choose to receive all of their health care services though a provider organization.
Part D – Prescription drug coverage
Let’s take a closer look at Part A coverage. The skilled nursing facility benefit only covers you if a medical professional says you need daily skilled care after you have been in the hospital for at least 3 days and you are receiving that care in a nursing home that is Medicare certified. The first 20 days of your stay, all approved amounts are paid by Medicare. From the 21st day through the 100th day, there is a coinsurance fee. This coinsurance fee for 2008 is $128 per day. Medicare does not cover the costs of care in an assisted living facility.
According to the Met Life Mature Market Institute, the national average daily rate for 2007 for a private room in a nursing home is $213, or $77,745 annually and $189 daily, or $68,985 annually for a semi-private room. The private pay monthly rate for assisted living is $2,969 or $35,628 annually. Those numbers are staggering!
How do you pay for these long-term care costs?
- Personal savings
- Family support & care giving
- Reverse mortgages
- Life settlement
- Viatical settlement
- Long-term care insurance
While most people understand the importance of health insurance, homeowners insurance, auto insurance and life insurance, many are reluctant to purchase long-term care insurance. Think of long-term care insurance as an asset protection policy.
- You should consider buying long-term care insurance if:
- You have assets and income you want to protect
- You don’t want to burden your family with the caregiving responsibilities
- You want control and choices over your long-term care
- You want peace of mind
As long-term care costs continue to escalate, you must factor these costs into your decision making process for your overall financial and retirement planning. If you took the time and effort to plan to purchase your home or to save for college for your children, you also need to plan for your future long-term care costs. In most cases, your children will not have the financial resources to pay these costs for you, nor will they be able to provide these services for you.
Contact us at 610-967-4711 today to review your retirement and long-term care needs. Don’t wait to make that call – start planning today.
reviewing your aging reports
Your accounts receivable and accounts payable aging reports show outstanding invoices you have not collected on and outstanding bills owed by you. The items on the reports are broken down by aging categories (how many days overdue). Follow the instructions below to learn how to read your reports:
If you are a Peachtree user: (version 2007 or higher)Instructions may vary depending on your specific version
To review what your Customers owe you:
- Go to REPORTS and select ACCOUNTS RECEIVABLE
- Double-click on the “Aged Receivable” report
- When the report opens, it will default to show aging as of the end of the month for the period that you are in (i.e. if you are in October’s period, it will default to October 31, 2008)
- Review your report. Are there customers with balances due over 90 days? Do any of your customers have credit balances? Are they really overpayments, or do you need to adjust your records?
- Analyze your report thoroughly. Try to get in the habit of reviewing this report at least once a month.
- To review your Aged Payables, go to the Accounts Payable area under reports, and repeat the same steps using the Aged Payables report.
- Review your report. Are the balances correct? Are there any unapplied credits?
If you are a QuickBooks user: (version 2007 or higher)Instructions may vary depending on your specific version
To review what your Customers owe you:
- Go to REPORTS and select CUSTOMERS & RECEIVABLES
- Select A/R Aging Detail
- The report will automatically default to report items as of Today’s date.
- Review your report. Are there customers with balances due over 90 days? Do any of your customers have credit balances? Are they really overpayments, or do you need to adjust your records?
- Analyze your report thoroughly. Try to get in the habit of reviewing this report at least once a month.
- To review your Aged Payables, go to the VENDORS & PAYABLES area under reports, and repeat the same steps using the Aged Payables report.
- Review your report. Are the balances correct? Are there any unapplied credits?
If you need any assistance to remove items that should not be on your aging reports, please contact our office.