Richard A. Lindsey, CPA

Lindsey & Waldo, LLC – Certified Public Accountants

  • Jul 22

    It seems many wealthy Americans don’t consider themselves so. A recent article on reported on a survey by the Spectrum Group in which only 10% of Americans with $5 million to $25 million in investable assets considered themselves as “very wealthy.” Twenty-eight percent considered their wealth as “moderate.”

    Most observers would have little doubt that the survey participants were “very wealthy.” According to the U.S. Census, only 2.1% of households have an annual income greater than $250,000. Respondents to the Spectrum survey had an average pre-tax income of $448,000 while most professionals such as doctors and lawyers (and such) earn an average of $125,000 per year.

    What does this ultra-wealthy group have to be concerned about?  Because of their lack of confidence in this economy they remained concerned about the financial well-being of their children and grandchildren.

    Like other American homeowners, this group expresses that a significant lesson was learned with the bursting of the housing bubble: Don’t rely on your home as a stable financial asset.

    “Millionaires experienced significant losses on the value of their homes and are unlikely to increase the amount invested in their primary residences,” said Catherine McBreen, managing director of Spectrum Group.

    Just how much money does it take to feel secure?

  • Jul 8

    Are you opening a new business this summer? The IRS has many resources available for individuals that are opening a new business. Here are six tax tips the IRS wants new business owners to know.

    1. First, you must decide what type of business entity you are going to establish. The type of business entity will determine which tax form you have to file. The most common types of business are the sole proprietorship, partnership, corporation and S corporation.

    2. The type of business you operate determines what taxes you must pay and how you pay them. The four general types of business taxes are income tax, self-employment tax, employment tax and excise tax.

    3. An Employer Identification Number is used to identify a business entity. Generally, businesses need an EIN. Visit for more information about whether you will need an EIN. You can also apply for an EIN online at

    4. Good records will help you ensure successful operation of your new business. You may choose any recordkeeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes.

    5. Every business taxpayer must figure taxable income on an annual accounting period called a tax year. The calendar year and the fiscal year are the most common tax years used.

    6. Each taxpayer must also use a consistent accounting method, which is a set of rules for determining when to report income and expenses. The most commonly used accounting methods are the cash method and an accrual method. Under the cash method, you generally report income in the tax year you receive it and deduct expenses in the tax year you pay them. Under an accrual method, you generally report income in the tax year you earn it and deduct expenses in the tax year you incur them.

    IRS Publication 583, Starting a Business and Keeping Records, provides basic federal tax information for people who are starting a business. This publication is available on or by calling 800-TAX-FORM (800-829-3676). Visit the Business section of for resources to assist entrepreneurs with staring and operating a new business.

    ***Richard’s Note: Of all the tips I could ever give you, #4 is the most important. If you need help getting that started, contact our office’s QuickBooks advisor, Paula Waldo.***