Richard A. Lindsey, CPA

Lindsey & Waldo, LLC – Certified Public Accountants

  • Dec 22

    Did you know that the average student loan balance is $24,803? Student debt is taking a heavy toll on borrowers, according to an American Institute of CPAs survey, which found that 75% of respondents or their children had made personal or financial sacrifices because of monthly student loan payments. Sacrifices included putting off saving for retirement (41%); delaying car purchases (40%); postponing a home purchase (29%); and even waiting on marriage (15%).

    Among the most troubling findings were that only 39% fully understood the burden that student loan debt places on their future and 60% had at least some regrets about the decisions on financing their education. That’s why it’s always critical to understand the full potential impact of your financial choices. The good news is that we can help. Contact us with all of your financial questions and we’ll provide the knowledge and insight you need to make the best decisions for you.

  • Dec 12

    At this time of year, some small business owners begin to worry about whether they’ve taken care of their taxes for the year. Sometimes this is a result of an unexpected windfall late in the year, not making quarterly estimated tax payments, or just poor planning.

    But, there’s a little bit of time left to do something about it. Well, barely. By the time you get this, I estimate that there will be roughly 22 days left in 2014. With 6 of those days being weekends and another couple of days off to prepare for Christmas, Christmas parties, or the after Christmas ski trip, you may actually have as little as 9 working days left in the year. (And that’s assuming you read this as soon as you got it.)

    Here are the top 5 last minute deductions you may have overlooked that can cut your company’s tax bill.

     

    • Claim every “ordinary and necessary” business expense. The Internal Revenue Code doesn’t list every type of expense that may be deductible for you. An “ordinary” expense is one that is common in your industry and for your size company. It may be “ordinary and necessary” for Trump Enterprises to spend money on a helicopter for The Donald, but not likely for you and me.
    • Write off all your bad debts. Be realistic – do you really expect to collect money from that delinquent customer? If, for some reason, you do collect it in the future, then you can claim it as income at that later date.
    • Record out-of-pocket expenses. If you’ve paid company expenses with cash out of your pocket, or your personal credit card, then make sure those expenses get recorded for the business. You can either reimburse yourself for those expenses or treat the money spent as a loan to the company.
    • Claim credit card and other interest. All that troublesome interest is tax deductible as a business expense.
    • Claim your tax credits. Your small business may be eligible for a health care tax credit, depreciation write-offs and retirement plan contributions.

    Of course, tax planning shouldn’t come down to last minute stuff in December. We can be of a lot more help throughout the year.