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what's new WH AT’S NEW…
INTERESTING DEVELOPMENTS!!!
FREQUENTLY ASKED QUESTIONS???
The following comments, summaries and analysis are related to general accounting, tax and business “hot” topics. Please contact our office for more information relating to this information or if you feel there are other topics you would like to see here.
December 2011
Social Security taxes for 2011 were lowered by 2 percentage points for both the employee and employer. This gives employees up to $2,100 of additional breaks. Currently this befit is set to expire at the end of 2011 but an extension and an increase for small businesses is on the table as part of the President's Jobs Act and there is fairly wide-spread support for continuing this reduction income form.
- Individual taxpayers should keep the following records supporting items on their returns for at least three years.
- Bills
- Credit card and other receipts
- Invoices
- Mileage logs
- Canceled, imaged or substitute checks or any other proof of payment
- Any other records to support deductions or credits you claim on your return.
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- Substantiation for charitable donations such as a cancelled check, bank record or a receipt are now required for your files for all charitable donations.
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- We are seeing a trend with individual tax audits being on the rise. More specifically individuals with "Schedule C's".
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- Leasing versus buying an automobile: If you make note payments totaling $30,000 to purchase a vehicle and you make lease payments of $31,000 to lease a vehicle it is obviously less expensive to purchase the vehicle! Don’t get trapped into leasing by hearing the words “But you can write the whole lease payment off” If a vehicle is used exclusively for business, you can deduct the cost of the vehicle regardless.
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