In-Depth Articles Just click on the article titles below to view the complete text. Tax Tips for Charitable Deductions: The Internal Revenue Service has compiled nine tips that you should keep in mind when contributing to charity.   New IRS Program to Address Employee Classification Issues: The Internal Revenue Service announced on September 21, 2011, that it has launched a new program designed to allow employers to resolve past worker classification issues and qualify for substantial relief from overdue federal payroll taxes by voluntarily reclassifying their workers. Portability of the Estate Tax Exemption and Individuals Dying in 2011 - Important Information: A reminder that for individuals who died in 2011 with a surviving spouse and a gross estate less than $5million, you should still consider filing a  Federal Estate Tax Return (Form 706) if you wish to preserve the “portability” of the decedent’s unused estate tax exemption. The first returns are due by October 1, 2011 for a death on January 1, 2011. “Portability” is the carryover of any of the decedents unused estate tax exemption (currently $5mill) to the surviving spouse. Starting a Small Business: Whether you are starting your first small business from an idea or have decided to purchase an existing business and are wondering what to do next, we at Hughes Snell & Co PA are here to help. Our professional and courteous staff has a wealth of knowledge and experience in all aspect of starting your own business. You’ve taken the first step but you’re not done yet. We have compiled a checklist of things to consider as you embark on this exciting journey. Financial Ratios Allow Insight for Business Owners:  In recent economic times it is difficult to find time to deal with the many challenges faced by business owners. It is difficult to find enough time and cash to run your business, manage your employees effectively, and keep and attract customers. Financial ratios can help you gain insight into the strength of your company. They offer a quick shortcut on what your financial statements are saying. Financial ratios help business owners gain insight as to where your business has been, where it is, and where it is going. Updating Beneficiary Designations:  With all the change that takes place in life - from marriages to divorce, births to death, financial windfalls to financial setbacks - it is not surprising that financial details sometimes get overlooked.  One such detail that can have a potentially devastating result is failing to keep beneficiary designations up-to-date. Present Tax Law Is a Gift:  It is said that to give is better than to receive and under the current tax law, gifting is the way to go! For tax years 2011 and 2012 individuals have a $5 million lifetime gift exemption. This means you can currently gift up to $5 million during your lifetime without any gift tax implications. In addition, there are annual exclusions and gifting exceptions that allow you to transfer funds without filing gift tax returns. IRS Issues New Passive Activity Disclosure Requirements - Failing to Report May Jeopardize Your Loss Deductions: On January 6, 2010 the IRS issued new guidance requiring taxpayers to report their grouping and regrouping of activities for purposes of applying passive activity loss rules. The Service first introduced these measures back in 2008 requesting public comment on the proposed reporting requirements. As a result of comments received, the final guidance implements a disclosure regime that is much more taxpayer-friendly than that which was originally proposed. Most significantly, in contrast to its 2008 proposal, the final guidance provides for a slightly more limited scope of reporting and contains a relief provision for taxpayers failing to make proper disclosure.         Commonly Overlooked Deductions, Credits, and Strategies: Review this list of commonly overlooked deductions, credits, and strategies to ensure you are not missing any potential tax-saving opportunities this year.   2010 Jobs Act:  Information Reporting for Rental Expense: The Small Business Jobs Acts of 2010 (2010 Jobs Act) requires information reporting for rental property expense payments of $600 or more that are made after December 31, 2010. This reporting requirement is one of several revenue raising provisions that are included to offset the $12 billion cost of tax relief provided by the legislation. Tax Breaks for the Self-Employed:  How to Make the Most of Your 2010 Health Insurance Premiums: On September 27, 2010, the Small Business Jobs Act was signed into law in an attempt to stimulate the creation of jobs in the small business sector.  Among a variety of provisions aimed at assisting small businesses, the legislation includes a one-time tax break specifically designed to provide relief for the self-employed. 2010 HIRE Act:  Incentives to Hire and Retain the Unemployed: In an effort to confront high unemployment, Congress passed Hiring Incentives to Restore Employment (HIRE) Act on March 18, 2010 to provide incentives for hiring and retaining unemployed workers.  Under the HIRE Act, a qualified employer's 6.2 percent share of the FICA-Social Security tax liability is forgiven for new hires, and a general business credit is allowed for each retained worker that satisfies a minimum employment period.  Foreign Investments:  IRS Crackdown on Non-Disclosure - Are you in compliance?: During the past year the Internal Revenue Service has been targeting taxpayers with control over any financial holdings outside the U.S. for failure to properly disclose these interests and/or include related income in their U.S. tax filings.  With initiatives at an all time high, it is imperative that you have an understanding of what these foreign reporting requirements are and how they may impact you and your business. Charitable Giving In a Turbulent Economy:  In today's economy many people are being forced to prioritize their cash flow and minimize their expenditures.  For some, this may mean reducing their charitable giving.  With fewer funds to spare, making non-cash property donations to qualified charities may be a viable alternative to cash giving.  A non-cash contribution provides an opportunity to support your favorite charities despite cash flow constraints. Is the Poor Economy Clouding Your Vision?  Consider using strategic planning tools to revive your business plan and provide clarity necessary to move forward. The Worker, Homeownership, and Business Assistance Act of 2009:  On November 6, 2009, President Obama signed H.R. 3548, the Worker, Homeownership, and Business Assistance Act of 2009 (WHBAA) into law.  The following highlights the tax implications of the act and explains how this new legislation may impact you or your business. Should you convert your Traditional IRA to a ROTH IRA?  There are several factors to consider when making this decision.  We’ll explore some of those factors as well as discuss some ROTH IRA conversion rules and limitations. Debt Forgiveness - Tax Implications for You and Your Business:  Are you currently negotiating a loan modification with your lender?  Have you experienced a short-sale or foreclosure?  The full article discusses the tax consequences and available tax relief on forgiveness of debt income. Federal Stimulus Includes Changes to COBRA Health Coverage:  Eligible former employees who have opted for COBRA coverage and their respective employers can both benefit from this change. Saving Green by Going Green:  By purchasing certain energy efficient products or renewable energy systems for your home, not only will you conserve energy and lower your monthly energy bill, you may be eligible for a federal tax credit. The American Recovery and Reinvestment Act of 2009 extended and expanded energy credits available to individuals.    Independent Member:   Facebook                      LinkedIn                  Twitter   Telephone:  (239)939-2233                       Email:  accting@hughessnell.com FAX:  (239)939-0554 1470 Royal Palm Square Boulevard Fort Myers, FL 33919  IRS Circular 230 Disclosure:  In order to ensure compliance with IRS Circular 230, we must inform you that any U.S. tax advice contained in this transmission and any attachments hereto is not intended or written to be used and may not be used by any person for the purpose of (i) avoiding any penalty that may be imposed by the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matter(s) addressed herein. 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