Happy New Year-Tips

Written by bookkeepingservices  |  03. January 2002

Now is the time to get your record keeping needs in place for 2002. If your CPA has frequently asked you for information, that you can not provide, you need HELP. There are many alternatives available to you and the costs of not acting can be devastating, such as: * High bank fees * Increased CPA costs * Loss of productivity * Improper information when trying to obtain funding * Unknown cash balances * Potential for employee theft * Bad information leads to bad financial decisions. * Many more direct and indirect costs. * To help with some tax planning, here are a few ideas from a CPA that I interact with * Join your employer's 401-K or 403-b plan, or help them adopt a plan if they don't have one. * Contribute to a ROTH IRA, if you are eligible. Determine which benefits you qualify for. * Make charitable contributions with appreciated stocks, rather than in cash. ** Do not automatically "rollover" a "lump sum distribution," received at retirement. Consider 5 or 10 year "lump sum averaging," if eligible. * Shift income to lower bracket taxpayers, such as children or to parents. * Accelerate any type of income, if you are subject to the alternative minimum tax. * "Bunch" medical deductions, and/or miscellaneous itemized deductions, into the same tax year, so the threshold can be exceeded. * Prepay any state or local income taxes owed, before December 31st, if you are not subject to the alternative minimum tax. * Provide your CPA with full DOCUMENTATION of your deductions, as it really helps! ACT NOW and SAVE LATER.

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