ACT SOON TO CUT YOUR 2012 TAXES

Time is running out to make tax-saving moves for 2012. Here's a sampling of ideas to consider.

HAVE YOU CONSIDERED A SIMPLE PLAN FOR YOUR BUSINESS?

Many sole proprietors and small business owners agree on the following two issues: they pay too much in taxes and they have difficulty attracting and retaining good employees. One way to address both of these issues is to set up a SIMPLE.

HOW TO SUCCEED IN A NEW BUSINESS

If the current job market has you thinking about starting a business of your own, take some steps to increase the odds that your business will succeed.

CHANGES SCHEDULED FOR FLEXIBLE SPENDING ACCOUNTS

Flexible spending accounts (FSAs) are popular with employees because they permit the use of pretax dollars for payment of medical expenses and dependent care costs.

If you use an FSA, be aware that changes are scheduled beginning next year. As part of the health care reform law passed in 2010, there will be a dollar limit on the amount that can be set aside for medical expenses. Effective for plan years starting in 2013, the maximum set-aside for medical expenses will be $2,500.

The limit on what can be set aside for dependent care costs will not change; it remains at $5,000.

Keep an eye on any upcoming legislation that could change these rules again.

IRS EASES REPORTING REQUIREMENT FOR SMALL BUSINESSES

The “Affordable Care Act of 2010” requires employers to report the cost of coverage under an employer-sponsored group health plan on the employee's W-2 for 2012.

The IRS is easing this requirement for small companies. Employers issuing fewer than 250 W-2s will not need to include the cost of health care on W-2s for 2012. For these employers, the 2012 reporting is optional. And such reporting will not apply for future years until the IRS publishes guidance giving at least six months of advance notice of any change in the filing requirement.

INVESTMENT TAX TIP

Consider tax-exempt investments as a means of cutting your income tax. There is an easy way to compare the yield on tax-exempt investments (such as municipal bonds) with the after-tax yield from taxable investments. Subtract your top tax bracket from 100 and divide the tax-exempt interest rate by that number. The result is the equivalent taxable return.

RETIREMENT TAX TIP

Consider a Roth IRA if you qualify for one. The beauty of a Roth is that your investment grows tax-free, and qualified withdrawals from a Roth will be completely tax-free. Contact our office at (518) 798-3330 for more information.

TWO FROM CMJ, LLP ATTEND HUMAN RESOURCES CONFERENCES

Lisa Boucher, SPHR, Senior Associate, with the certified public accounting firm, CMJ, LLP, recently attended the National Conference offered by the Society of Human Resource Management (SHRM) in Atlanta, GA.  Over 200 sessions were offered in the areas of benefits and compensation, business management and strategy, employment law and legislation, international HR, personal and leadership development, and talent management.  Keynote speakers included Tom Brokaw and Condoleezza Rice.

Patricia McCabe, PHR, Controller of CMJ, LLP, attended the annual New York State SHRM Conference in Saratoga Springs, NY.  The state conference is open to HR professionals, executives, small business owners, trainers and business leaders interested in maximizing human capital and personal performance.

The Society for Human Resource Management is the world’s largest association devoted to human resource management. Representing more than 250,000 members in over 140 countries, the Society serves the needs of HR professionals and advances the interests of the HR profession. Founded in 1948, SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China and India.

CMJ, LLP, located in Queensbury, New York, provides tax, accounting, management consulting, and business valuation services to corporations, partnerships, and professionals throughout the region.  They also provide merger and acquisition consulting services to clients both domestically and globally. 

CAPITAL GAINS AND LOSSES: NEW TWISTS FOR 2012

The end of the year is the traditional time for securities investors to "harvest" capital losses for federal income tax purposes. But there's an added wrinkle in 2012: Due to pending tax law changes, you might try to reap more capital gains than losses. Thus, the usual strategy of harvesting losses could be turned upside down.

LINDSELL FROM CMJ, LLP ATTENDS ADVANCED TAX TRAINING

Sarah B. Lindsell, CPA, Tax Supervisor, of the certified public accounting firm, CMJ, LLP, recently attended a week long tax training program offered by the American Institute of Certified Public Accountants (AIPCA) in St. Louis, MO.  As the premier tax training school for tax practitioners, highly-focused, intensive training is provided by nationally renowned tax experts.  Programs focused on complex issues of corporations, buying and selling of corporations, consolidated income tax returns, and other advanced tax topics.

CMJ, LLP, located in Queensbury, New York, provides tax, accounting, management consulting, and business valuation services to corporations, partnerships, and professionals throughout the region.  They also provide merger and acquisition consulting services to clients both domestically and globally.

WHAT'S YOUR COMPANY'S BREAKEVEN POINT?

The figures on an income statement report the sales, expenses, and net profit or loss of a business. But these figures can be helpful in another way. They can be used to compute the breakeven point for the business. Knowing your breakeven point can help you run your operations more efficiently and profitably.