Richard A. Lindsey, CPA

Lindsey & Waldo, LLC – Certified Public Accountants

  • Sep 29

    Claiming Your Homestead Exemption Can Save You Thousands

    Sometimes you rock along from year-to-year doing the same ole thing because it’s what worked in the past… or someone once told you that’s the way things were. Well, things change. Every day. If you’re over 65, or disabled, and are still paying the property taxes you were paying before that milestone, you may be paying too much.

    According to information obtained from the Mobile County (AL) Revenue Commissioner’s office, all property owners 65 or older are eligible for an exemption from all State property taxes. County, School, and Municipal taxes still apply. The exemptions apply even if only one of the owners of a jointly owned property meet the qualifications.

    To apply for this exemption:

    • You must be 65 years old,
    • Own and occupy the property as your primary residence, and
    • You must visit one of the Revenue Commissioner’s offices to present proof of age and sign an assessment sheet.

    Low income property owners 65 and older may also be eligible
    to claim exemption from a certain portion of the County, School,
    and Municipal property taxes. To qualify you must be 65 years
    old, own and occupy the property as your primary residence,
    and your taxable income must not exceed $12,000 – bring your
    tax return as proof.

    If either you or your spouse is totally and permanently disabled or legally blind, you may be eligible for a complete exemption from all property taxes on your residence regardless of your age or income.

    Homestead exemptions granted on the basis of income or disability must be renewed each year and it is the responsibility of the property owner to claim the renewal. If you do not receive an exemption renewal form by mail, you will need to contact the County Revenue Commissioner to have a duplicate form sent to you, or you may visit an office in person.

    Exemptions cannot be granted retroactively or after the December 31 deadline.

    For more information, contact our office or your local County Revenue Commissioner.

  • Sep 15

    In his book: How Rich People Think, Steve Siebold (http://www.amazon.com/Rich-People-Think-Steve-Siebold/dp/1608102793), explores the thoughts, habits, and philosophies among the rich, as opposed to the middle class, when it comes to wealth:

    • Rich people focus on earning, not saving;
    • They understand that leverage creates wealth, not hard work;
    • See that they are in control of their wealth, not luck or fate;
    • Know that money is earned from focused thought, not hard labor;
    • Don’t see money with emotion, but with logic;
    • Are Action-Takers (as opposed to having a lottery mindset).

    So why do I emphasize that last one? Simple — I’m suggesting you take an action now, which could make a big difference on your 2017 bottom line...

    You know how good coaches are usually famous for making adjustments during the halftime of big games? Well, here I am — acting as your financial coach in matters tax-related, and we’ve hit the halftime mark for 2017.

    You have six months of financial info to use for some quick math about your year as a whole, and to prepare for a pleasant upcoming tax season.

    To begin, all you have to do is take your cash flow for the first half of the year, and multiply by two. Add up your wages, dividends, interest, and any other income, and then–if this represents approximately what you’re expecting for the second half of the year — double the sum.

    Once you have your estimated 2017 income, you can give us a call: 251-633-4070 (or send me an email), and we’ll help you determine the appropriate tax rate and deductions to apply. Because once you’re armed with this info, we can help you determine the amount of taxes you might expect to owe for 2017.

    By then comparing this against your projected withholding, you can adjust the withholding on your paycheck in advance as needed, and ensure a happy visit to our office in the winter.

    This can also be a good time to organize your financial papers and/or get started with some financial software. Getting organized now can make gathering a report of all those deductions a breeze, come tax time.

    We’ve been promised tax changes by the Trump administration. That makes it all the more important to review Uncle Sam’s highest-impact tax breaks, such as donations of appreciated assets, tax-free exchanges and capital-loss harvesting.

    Unlike obvious moves, such as contributing to an Individual Retirement Account or a 401(k) plan, these strategies require a higher degree of awareness and active planning.

    Not all high-impact breaks are for the wealthy. Any homeowner can benefit from a provision allowing taxpayers to pocket tax-free income from renting a residence for as long as two weeks, and low-bracket taxpayers can pay zero tax on long-term capital gains.

    Other important moves can help minimize estate, gift, and inheritance taxes. Really, there are a variety of moves we can make to help you with your planning for the year … but you have to let us help you. It is, after all, why we are here.

    “My favorite things in life don’t cost any money. It’s really clear that the most precious resource we all have is time.” – Steve Jobs

  • Sep 1

    What is a champion? By definition, it’s someone who excels above all others. Generally, it refers to a world class athlete, but it could just as easily apply to a top businessperson. Nancy Holland Morgan, a two time Olympic skier, has identified seven traits that can help us understand how we too can get to the top of our game and become champions.

    You have to really like what you are doing. If you don’t have a love of the activity, an enthusiasm that turns into a burning, white-hot desire, then it may be time to sit down and reassess your life’s interest. Without it, you will not have the passion necessary to sustain the drive. Without passion, none of the other traits will even matter.

    Achieving success invariably means having to learn new techniques, master new skills, develop new strengths, or obtain new knowledge. But more often than not, as we learn new skills and techniques, we don’t get it right the first time. We have to practice. Repetition, practice, review, effort, feedback, all go into learning the fundamentals. Commitment to learning is an absolute necessity for improvement in any activity.

    Combine your desire with commitment to training, and you begin to formulate a thoughtful plan to improve your performance. But, all the desire and commitment in the world won’t do you any good unless you have a goal. Champions set goals based on their strengths and weaknesses. Their plans revolve around reaching new thresholds based on increasing their strengths and overcoming their weaknesses. Champions know that to compete seriously for their personal best, they must surrender themselves to the goal.

    The first three traits prepare us for the fourth: tenacity. Life is a series of tests; we have to pass each one to go on to the next. As we move higher up the mastery scale, we take the chance of falling harder and longer. The falls are always painful. But, we must learn to get up after each fall and continue onward.

    No one today makes it to the top alone. All champions surround themselves with a support team. The strength of others is crucial to achieving the goal of championship status. Your support team may be only your closest family members, it may be a friendship circle, or it may consist of a paid staff of advisors. Your team’s job is to keep you in the right attitude as you gain altitude.

    Do something every day that scares you just a little — not something life threatening, but something that causes you enough discomfort that you will become accustomed to pushing the envelope of your performance. Get to love your zone of discomfort. It means that we are in an awkward phase of learning a new skill or strategy to help us achieve a higher level of performance. Some people seem to move in and out of the discomfort zone more easily. This is generally either because they have more experience living in the zone of discomfort or they have learned to fake it better than others!

    People like to be around those who have an aura of self-confidence and positive self-esteem. Self-confidence means you believe in the potential of achieving your goals. High self-esteem means you are satisfied with your talents and are able to recognize and appreciate the talents of others. This is not about being arrogant, but rather a more humble expression that you are comfortable with yourself, your accomplishments, and your talents.

    Being a champion starts and ends from within. To achieve success, you must start with a strong desire and end with the courage to maintain positive self-esteem and confidence in your ability. But in between is where the real work takes place. Championship status takes every bit of inner strength and external leveraging you can muster. With hard work, the rewards will be those of a champion.