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Ross
and Ross Accounting
News New Tax Law Changes That May Affect Your Tax Return There have been many new changes in the tax laws that will affect your tax returns this year and next. Please read on to find out what may affect you and your taxes. IRA Contributions - Maximum contribution for 2008 for Roth and Traditional is now $5000 for under age 50 and $6000 for age 50 and older. There are still income restrictions on Roth contributions. Charitable Contributions
Have New Rules - Cash less than $250 must be substantiated with a statement from the charity. - Check or cash exceeding $250 on any single day must be substantiated with a cancelled check and a statement from the charity. This means that a cash donation of $250 or more can never be substantiated properly so write a check instead of giving cash. - Clothing, Furniture, Toys, etc: -Less than $250 per donation per day does not require a receipt. -From $250-$500 per donation requires a receipt. -From $500-$5,000 requires a written acknowledgement and details of purchase date and price. -Over $5,000 requires an appraisal for most items. Kiddie Tax – Tax on
Your Child’s Investments Have New Rules - If your child is 18 or younger and has taxable investment income over $1800, it may be taxed at the parent’s tax rate. Stimulus Payments - Stimulus payments are NOT lost if you do not file your 2007 tax return. This can be an adjustment on your 2008 tax return. Standard Mileage
Rates Per Mile Have Increased - 2008: business is 50.5 cents January-June, 58.5 cents July-December. Expect more audits in the mileage area. You must have a record of mileage if you are audited. Social Security and
Medicare Taxes - For 2008, the maximum social security wages subject to tax was $102,000. All wages are subject to medicare tax. *************************************************************************** Businesses are being audited aggressively by the Florida Department of Revenue. The audits are for Sales and Use Tax and Unemployment Tax. Target areas for Sales Tax audits are the Use Tax that a business should be charging itself for internal use items that were purchased with no tax. Out of state purchases are also subject to these taxes. Unemployment Tax for S-Corporation owners and subcontractors are also getting a close look. IRS is back in the audit business. After a few years of trying to be a “taxpayer service” organization the current management at IRS is pushing for more audits and thereby increasing revenue for Treasury (Congress) and maintaining their annual budget. Congress is funding IRS's budget for more audits. Expect more audits in the future, especially on the business level. Ask us about any areas you feel may be questionable on your tax return. We are not afraid of audits, we just don’t want to lose! **************************************************************************** If you know anyone needing our services, be sure to tell them about us. We don't just work from January to April preparing tax returns. We have a wide array of personal and business services available. Just ask us, if we can't help you, we can probably direct you to one of our many professional colleagues who can. Some of the things that we can help you with are: personal and business planning, setting up that new business that you have always wanted, QuickBooks training, monthly expense reports and a wide range of other services. Whether you are new to the neighborhood or starting a new business, we can help. If you have just moved here and would like some information about banking, financial planning, wills, estates or trusts, or if you need a new stock broker, or need to refinance your house or buy a house, we can help! If you are looking at purchasing a new car or need insurance, we can get you to the right friendly professional. If you are looking to start your own business, we can help you get organized. We can send you to the right people for banking, marketing, advertising, licensing, worker's compensation, incorporation, computer equipment and software. We can train you on the programs necessary to run your business or we can do it all for you. We prepare financial statements and bank reconciliations for you on a monthly basis. We can prepare your payroll reports and sales tax for you also. Whatever your small business needs, we are here to help you. We are looking forward to meeting and working with you. The Staff at Ross & Ross Accounting
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