1 Income Taxes Description Income in the U.S. is taxed by the Federal government to provide revenue to run the government and provide services to the citizens. Each year businesses and individuals must file a set of forms outlining income and expenses and compute the tax owed. Many turn this task over to accountants who are specialists. In the simplest situations, the IRS will calculate the tax for a filled-in form or by telephone. It is not difficult to file your own tax forms if you have some understanding of the principles, can read IRS instructions, and are willing to ask questions when confused. In most cases the forms and figures for each year are very similar to the previous year. As discussed in the labor section, income taxes actually are paid throughout the year through tax withholding or quarterly estimated payments for both businesses and individuals, except for farms. Therefore, the tax forms often just verify the final official computation and show whether the citizen is entitled to a refund or owes more money in taxes. The most important forms are described below. All are supporting forms, making calculations for the main form Schedule F (Profit or Loss from Farming) lists farm receipts and expenses, including total depreciation for the year. That net farm income then appears in the income section of the Main Federal Tax Forms 1040 Main individual return Sched A Itemized deductions Sched B Interest and Dividends Sched F Farm Profit/Loss Sched C Business Profit/Loss 4562 Depreciation 4797 Sales of Business Property Sched SE Self Employment Tax Sched D Capital Gains/Losses Sched J Farm Income Averaging IRS forms can be obtained on the web ( ) in PDF format for laser printing. Fill-in forms are also available.
2 1040 Form - Individual Income Tax Return Gross Income (Salary, wages, tips, net farm, net business, interest, dividends) +/- Adjustments (Half SE tax, alimony, retirement plans) Adjusted Gross Income - Deductions (subtractions for qualifying "family expenses") - Exemptions (subtractions for family size or disabilities) Taxable Income (pay tax on this amount) Tax (lookup/computed) - Tax Credits (child care, elderly, foreign, special programs) Tax Liability (what is actually owed) - Withheld/Prepaid Owed/Refund (net from previously paid tax) 1040 Example Married Single Salaries, Wages 40,000 Farm Profit/Loss 40,000 40,000 Adjusted Gross Income 80,000 40,000 Deductions (standard) 7,850 4,700 Exemptions (2 and 1) 6,000 3,000 Taxable Income 66,150 32,300 Tax 11,658 5,068 Tax Credit 1,000 1,000 Tax Liability 10,658 4,068 Computation of Income Taxes Income tax is calculated on the taxable income. Up to roughly $27,000 per person ($45,000 if married), the tax is 15% of taxable income. For approximately the next $39,000 per person, 28% is owed in taxes, and so on. The key concept is that as more money is earned, a larger percentage of it is paid in taxes. If the taxable income is about $60,000 per person, the total percentage would be an average of 15% and 27.5%, or about 21% owed in tax. The common term for discussing taxes, however, is the marginal tax rate (MTR or tax bracket). The MTR is the rate at which the next dollar earned will be taxed. This is the important rate for making decisions. For $40,000 of taxable income this would be a MTR of 27.5%. The next $100 earned would cost $27.5 in Federal income tax. This rate will increase as larger amounts are earned. It will go up to 30.5% if $136,750 or more is earned. The tax calculation can be taken from a tax table or calculated from a formula as described below. The Federal Internal Revenue Service publishes the rates by income category as determined by Congress.
3 Standard Deductions: Married = 7,850 Single = 4,700 Everyone gets at least the standard deduction. If itemized deductions exceed the standard deduction, then the itemized deduction is used. Deductions reduce taxable income. Exemptions: 3,000 each An exemption is deducted for each person supported by the family. This reduces taxable income. Marginal Tax Rate Formulas Married Example for $66,150 taxable income: 6, *(66,150 46,700) 6, *(19,150) = $11,658 Single Example for $32,550 taxable income: 3, *(32,300-27,950) 3, *(4,350) = $5,068 Other Taxes State Income Tax Adjusted Gross Income - Deductions ($1,640 single; $3,280 married) - Exemptions (145 each) Taxable Income Tax [ *(Taxable Income 12,500)] (OR) Self Employment Tax - Social Security (FICA and Medicare) for people with no employer to deduct it or pay half of it. The income tax system is the most logical and easiest place to collect it. o Rate: 8.2% up to Taxable Income of $84,900 plus 2.9% Medicare over $84,900 (no ceiling on Medicare portion) o Half is tax deductible on Form 1040 (about line 29) as adjustment to income. Summary At 27% marginal tax rate, this should prove that the effects of income taxes on management decisions are significant. Legal minimization of tax liabilities is a critical issue for businesses. 27% Federal 9% State 18.2% Self Employment 54.2% Total (up to 2.5% less due to deduction for SE).
4 Profit or Loss from Farming (Schedule F) This form looks very similar to a Profit-Loss Statement. It is used to report cash receipts and expenses, and non-cash depreciation. It does not include debt or loan principal paid, nor change in capital items (except through depreciation), nor change in inventory unless reporting on an accrual basis (what has been used). All figures must be documentable. Schedule F - Profit or Loss from Farming Farm Income - Cash Sale of Milk 270,000 Sale of Culls & Calves 34,000 Gross Income 304,000 Farm Expenses Operating Expenses 238,200 Depreciation ,000 Interest 19,800 Total Expenses 284,000 Net Farm Profit (Loss) 20,000 Depreciation Depreciation for tax purposes is a scheduled loss in value of an item for each year. We have used the concept in calculating annual cost. It also has appeared on the Profit- Loss or Income Statement. The government gives a business tax deduction for depreciation of qualified capital assets. To receive this tax benefit, however, specific rules must be followed. There is some choice of depreciation method, but the rate of depreciation for each method is fixed by law. If it turns out that the official depreciation schedule depreciates the item too quickly or too slowly as indicated by actual or sale value, the taxes will be adjusted at the time of sale. Ultimately, then, the appropriate amount of depreciation is given tax credit, achieving a measure of fairness. Rules for defining Depreciable Property: 1. Used in a business to produce income 2. Useful life exceeding one year 3. Wears out, becomes obsolete, or loses value from natural causes Buildings? Land? Machinery? Purchased Cattle? Raised Cattle? Milk Base? Silos? Parlors? Trucks? Feeder Cattle? MACRS - Modified Accelerated Cost Recovery System 1. GDS General Depreciation - 1.5X Declining Balance 2. ADS Alternative Depreciation - Straight Line
5 MACRS Classes Class Property 3 Yr, 1.5/3 Breeding Hogs, breeding horses > 12 yrs old 5 Yr, 1.5/5 Cattle, Goats, Sheep, Autos, Trucks, Computers 7 Yr, 1.5/7 Machinery, Fences, Grain Bins, Horses<12, Furniture 10 Yr, 1.5/10 Single Purpose Structures, Silos, Fruit Trees 20 Yr, 1.5/20 Farm Buildings (Multipurpose) 27.5 Yr, SL Residential Rental Property 39 Yr, SL Non-Residential Real Property First Year Depreciation (special handling required for year 1) 1. Mid-Year Convention - 1/2 deprec. 1st year (finish it in year n+1) 2. Mid-Quarter Convention - varies (invoked if >40% of new items purchased in 4th quarter) Section Expensing Each year, $24,000 immediately deductible, but then not depreciated. This was originally intended for smaller depreciable items for which depreciation schedules would be a nuisance. Schedule: 24,000 (2001-2), and 25,000 (2003). MACRS Depreciation - Percent of Original Price 150% Declining Balance switching to Straight Line when Beneficial Depreciation Class Year 3-YR 5-YR 7-YR 20-YR MACRS Depreciation Example $30,000 Tractor 7-Year Class 1.5/7 per year Mid-Year convention Switch to straight-line in year 4
6 6% MARR 28% MTR Notes Depreciation each year is (1.5/7)=21.4% of the prior-year balance. Depreciation in year 1 is only half. In year 4 it can be switched to straight line because (1/4.5) is more than (1.5/7). Straight line is figured on the remaining 4.5 years and is a constant dollars yrs 4-8. The switch to straight line yields about $1,400 more depreciation ($1,000 pv). In year 8 the half year lost in year 1 is claimed, but at the straight line amount. Depreciation benefits = 6,656/30,000 = 22.2% of purchase price Must own the item on midnight December 31 to claim the year's depreciation. Year Depreciation Balance MTR Tax Saved 6% PV 1 3,214 26, ,740 21, ,607 1, ,510 16, ,263 1, ,675 12, , ,675 9, , ,675 5, , ,675 1, , ,837 (0) Totals 30,000 8,400 6,656 Selling an Asset Depreciation gives a tax deduction for the declining value of an asset. When that asset is sold then the selling price is the actual value. If its depreciated book value does not match the sale value, then too much or too little depreciation has been taken and a tax adjustment must be made. Basically you give back the extra depreciation deductions which, in retrospect, you did not deserve, or you are allowed to take more deduction. The following table shows the value of the $30,000 tractor after 3 years of depreciation to be $16,536. Original Basis 30,000 (Price) - Depreciation - 13,464 (Sum 3 yrs) + Cost of Selling 0 Adjusted Basis 16,536 (End of 3 yrs)
7 30,000 Profit Capital Gain (long term > 12 mo) Depreciation Ordinary Tax 16,536 (Recoup Depreciation) Value Capital Loss 0 (adjusted basis) (long term capital loss > 12 mo) Note: If sell for depreciated value, no tax is owed. If sell for less than depreciated value, did not depreciate enough, hence a loss, and a deduction. If sell for more than depreciated value, depreciated too much, must give back in tax. If sell for more than purchase price, must give back all depreciation, and pay tax on Capital Gain, but only 10% and 20% on Long Term Gain, instead of 15% and 27% as for ordinary income and Short Term Capital Gain. Rules for Depreciating Cattle Raised Cattle: Basis is zero. Deducted the cost of raising as cash expenses. Price received is taxable. If over 2 yrs old, the whole price is a long term capital gain. Purchased Cattle: Begin depreciating when placed in service. Depreciate in 5-year class. Long term capital gain requires holding > 2 yrs from purchase. (Other assets > 1 yrs) Capital Gain: Capital Loss: Reduced tax rate for long term. Tax rate on long term capital gain is 10% for the 15% MTR and 20% for the 28% MTR. Implication: Keep a profitable animal for 2 years or more if possible. Why? Losses must be used first to offset gains. Long term capital gains are offset by short term capital losses. Same rules, except losses are deductions. Therefore, get rid of a loss before 2 years. Why?
8 Purchasing and Selling a Cow Purchase her as a heifer for $2,000 on 6/98 She calves on 9/00 Sell her for $1,500 on 7/02 0 (1-99) 1 (1-00) 2 (1-01) 3 (1-02) 4 (1-03) 5 (1-04) 2,000 1,500?? Buy In Service Sell Depreciate (1/2) Depreciate Year Depreciation Balance , , Tax Work on Purchased Cow Original Basis 2,000 (Price) - Depreciation (Sum 2 yrs) Adjusted Basis 1,190 (End of 2 yrs) Scenarios Sell Price Capital Gain/Loss Ordinary Gain $2, x (2,500 2,000) 0.27 x (2,000 1,190) $1, x (1,500 1,190) $1,190 $ x (1, ) Tax Liability = (1,500-1,190)*0.27 = 310*0.27 = 83.70
9 Major Effects of Income Taxes 1. Additional expenses Reduce tax by (MTR x Expense) 2. Additional receipts Increase tax by (MTR x Receipt) 3. Interest on loans Reduce tax by (MTR x Interest) 4. Depreciation of purchased assets Reduce tax by (MTR x Depreciation) 5. Tax on sale of capital assets Reduce tax if depreciation has been too little Increase tax if depreciation has been excessive 6. Long Term Capital Gains/Losses Reduced tax on "profits" (would apply to all raised cattle, including culls) Year-End Tax Planning Assume a tax will be owed, otherwise reverse the suggested plan. 1. Look for additional deductions to reduce tax Pre-purchase supplies, feed, fertilizer by Dec. 31 Take care of needed repairs and maintenance Make new capital purchases (begin depreciating) 2. Look for opportunities to defer income Postpone sale of crops and raised cattle to January 1 3. Examine potential capital gains and losses Hold capital items for gains (1 yr machinery, 2 yrs cattle), but cut losses early Capital losses can be used to offset capital gains 4. Contribute to tax-deferred IRA's or Roths up to April 15 (tax deductible (deferred)) The Big Tax Myths 1. All income is taxed. 2. All taxable income is taxed at the MTR. 3. The Federal MTR is the whole story. 4. It's always better to depreciate as fast as possible. 5. If I work, it will put us into a higher tax bracket, and the additional taxes will exceed 6. my take-home pay. 7. It's better to buy something (anything?) than to pay taxes. 8. It won't cost you anything to take the trip, it's tax deductible.
Capital Budgeting With this program, the user can evaluate capital budgeting problems and perform comprehensive investment analysis comparisons on up to 4 separate projects or investments. Fast Tools &
4D Income Taxes there are 5 different categories Single You must be unmarried at the end of the year. Married filing jointly this is how most married people will file. Married filing separately occasionally,
2015 YEAR-END GUIDE Your promotional imprint here and/or back cover. ABC Company 123 Main Street Anywhere, USA 12345 www.sampleabccompany.com 800.123.4567 2015 2 10 Your PersonalTaxes Your BusinessTaxes
E-475 RM5-16.0 10-08 Risk Management Financial Management: Cash vs. Accounting Danny Klinefelter, Dean McCorkle and Steven Klose* Selecting a record-keeping system is an important decision for agricultural
Basics of accounting Documentation basics Choosing an accounting system Common tax issues Get an advisor!!! Money TRANSACTIONS CHART OF ACCTS GENERAL LEDGER BALANCE SHEET INCOME STATEMENT FINANCIAL STATEMENTS
Twelve Steps to Ag Decision Maker Cash Flow Budgeting File C3-15 How much financing will your farm business require this year? When will money be needed and from where will it come? A little advance planning
Proposed Washington Capital Gains Tax HB 1484/SB 5699 Governor Inslee is proposing a capital gains tax on the sale of stocks, bonds and other assets to increase the share of state taxes paid by Washington
Your Farm Ag Decision Maker Income Statement File C3-25 How much did your farm business earn last year? Was it profitabile? There are many ways to answer these questions. A farm income statement (sometimes
FARM FUNDS WORKSHEETS Setting up your Chart of Accounts Supplies Supplies are any inputs that will be used on a field, group of livestock, or equipment. Setting up a supply will set up the related expense
Yearend Farm Tax Planning Considerations Gary J. Hoff, E.A.* Issue 07-07, November 15, Synopsis: As the end of 2007 nears, farmers may be able to save thousands of dollars of federal income tax or self
Cash to Accrual Income Approximation With this program, the user can estimate accrual income using the Schedule F from his/her federal income tax return. Fast Tools & Resources Farmers typically report
CHAPTER 6: BRIEF OVERVIEW OF PENNSYLVANIA PERSONAL INCOME TAX TABLE OF CONTENTS I. OVERVIEW 2 II. TAX RATE...3 III. EIGHT CLASSES OF INCOME 3 A. Gross Compensation... 3 B. Interest... 4 C. Dividends...
Income Tax Organizer This organizer will help you organize your tax information (and make sure that you don't miss important deductions). We hope you find it useful and informative! (This form was prepared
Tax Considerations of Farm Transfers (Revised 9 January 2013) Introduction There are alternative methods of transferring farm assets from one generation to the next. The most common methods are by sale,
Farm Tax Record Book TABLE OF CONTENTS Farm Receipts... Milk Sales and Deductions Worksheet... Government Payments Worksheet... Commodity Certificates... Sale of Livestock Worksheet... Farm Expenses...0
Depreciation and Section 179 Deduction Agriculture Handbook 718, pages 29-38 1 2 What Is Depreciation Depreciation is the annual deduction to recover the cost (or other basis) of business or income-producing
Depreciation and Depletion For Prefeasibility Studies Depreciation and Depletion Prefeasibility Studies often are completed prior to having all the information needed or engineering completed. Depreciation
RON GRAHAM AND ASSOCIATES LTD. 10585 111 Street NW, Edmonton, Alberta, T5M 0L7 Telephone (780) 429-6775 Facsimile (780) 424-0004 Email firstname.lastname@example.org How Can You Reduce Your Taxes? Tax Brackets.
Presented by Walter Copeland, CPA Heather Kovalsky, CPA Brimmer, Burek & Keelan LLP 1. Cost Segregation Study What is a cost segregation study and how is it done? What is the IRS position on cost segregation?
Tax Return Transcript Sample SSN Provided: 123-45-6789 Tax Period Ending: Dec. 31, 2011 This Product Contains Sensitive Taxpayer Data The following items reflect the amount as shown on the return (PR),
2013 Year-End Tax Planning Advice To Our Clients and Friends, As we approach year-end, it s again time to focus on last-minute moves you can make to save taxes both on your 2013 return and in future years.
Schedule F (Form 1040), Profit or Loss From Farming Note. Schedule F has numerous changes for 2011. In addition, there are a number of lines that the IRS has decided not to use in 2011, but appear on the
Computerized Farm Records Peg Brune ~ Dodge, NE 402-693-2801 Email: email@example.com Agricultural Bookkeeping: Quickbooks or Quicken???? Accounting: Accountants prefer Quickbooks, mostly because a lot of
AGRICULTURE FINANCIAL STATEMENT Borrower # AND LOAN APPLICATION Telephone # For the purpose of obtaining credit from Ramsey National Bank (RNB) and any future credit granted by the RNB, or to support an
September 2014 Computation of Deferred Liabilities Michael Langemeier, Associate Director, Center for Commercial Agriculture This article is one of a series of financial management articles that will examine
BY SCOTT HENSLEY SHENSLEY@STANCILCPA.COM DECEMBER 4, 2014 STANCIL & COMPANY CERTIFIED PUBLIC ACCOUNTANTS 4909 WINDY HILL DRIVE RALEIGH, NC 27609 919-872-1260 TOPICS TO BE COVERED TODAY WHAT IS TAX PLANNING
THE LOAN RENEWAL SEASON: YOUR LENDER S CONCERNS Michael Boehlje Department of Agricultural Economics Purdue University Now that harvest is over, farmers are planning for next year s planting season. Lining
Financial Planning Introduction Financial Planning Learning Objectives Lesson 1 Budgeting: How to Live on Your Own and Not Move Home in a Week Prepare a budget and determine disposable income. Identify
Illinois Department of Revenue Schedule NR IL-1040 Instructions What is the purpose of Schedule NR? Schedule NR, Nonresident and Part-Year Resident Computation of Illinois Tax, allows you, a nonresident
Business Planning for Livestock Producers James McWhorter UF/IFAS Highlands County Livestock Agent Introduction Why create a business plan Components of a business plan Financial statements Five C s of
Tax Update Rod Mauszycki, CliftonLarsonAllen Government s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subside
Leasing vs. Buying Farm Machinery Department of Agricultural Economics MF-2953 www.agmanager.info Machinery and equipment expense typically represents a major cost in agricultural production. Purchasing
tax planning strategies In addition to saving income taxes for the current and future years, tax planning can reduce eventual estate taxes, maximize the amount of funds you will have available for retirement,
Retirement Planning- Providing Financial Security for Farmers in Transition Don Breece Farm Management Specialist OSU Extension Ohio Farm Example to Avoid 70 year old couple still milking cows, but need
ANNUAL FARMING QUESTIONNAIRE For the year ended 31 March 2015 Please complete these checklists and provide the information requested to help us prepare your Financial Statements and Tax Returns 1 Please
Estimation of Deferred Taxes With this program, the user can estimate current and noncurrent deferred taxes. Deferred Taxes Deferred taxes represent the federal income, state income, and Social Security
Broker Chapter 14 Federal Income Tax Laws Affecting Real Estate Copyright Gold Coast Schools 1 Learning Objectives List the 2 principal tax deductions available to homeowners List the 2 types of home loans
tax planning strategies In addition to saving income taxes for the current and future years, effective tax planning can reduce eventual estate taxes, maximize the amount of funds you will have available
A Account A record of a business transaction. A contract arrangement, written or unwritten, to purchase and take delivery with payment to be made later as arranged. Accounts payable Money which you owe
Personal Retirement Analysis for Jim Sample Prepared By Neal Frankle Sample Financial Plan IMPORTANT: The illustrations or other information generated by this report regarding the likelihood of various
The BASICS of FINANCIAL STATEMENTS For Agricultural Producers Authors: James McGrann Francisco Abelló Doug Richardson Christy Waggoner Department of Agricultural Economics Texas Cooperative Extension Texas
Print this form out, take some time to fill it out, and bring it with you when you come to the office. This will save you time and money, and help us help you more effectively. Tax Return Questionnaire
Print this form out, take some time to fill it out, and bring it with you when you come to the office. This will save you time and money, and help us help you more effectively. Tax Return Questionnaire
August 2010 RTE/2010-11 Introduction Sale of Business Property Guido van der Hoeven, Extension Specialist/Senior Lecturer Department of Agricultural and Resource Economics, NC State University During the
Tax Incentives For Farm Businesses Parman R. Green UM Extension Ag Business Mgmt. Specialist 111 N. Mason Carrollton, MO 64633 (660) 542-1792 firstname.lastname@example.org http://agebb.missouri.edu/agtax/index.htm
EB1904 FARM BUSINESS RECORDS: An Introduction Richard W. Carkner, Extension Economist TABLE OF CONTENTS I. INTRODUCTION... 2 II. IMPORTANCE OF KEEPING RECORDS... 2 III. CHARACTERISTICS OF GOOD RECORD KEEPING
Preparing Agricultural Financial Statements Thoroughly understanding your business financial performance is critical for success in today s increasingly competitive agricultural environment. Accurate records
Agricultural Tax Issues Update 2015 Farm Business Management Northland Community & Technical College By: Greg Dvergsten & Greg Kalinoski Standard Deduction & Exemptions Standard Deduction Single $6,300
2015 Individual Tax Planning Letter Just as the daylight hours are getting shorter, so is the time for fine tuning any last-minute strategies to lower your 2015 tax bill. While year-end legislation extending
Solutions to Chapter 9 Using Discounted Cash-Flow Analysis to Make Investment Decisions 1. Net income = ($74 $42 $10) [0.35 ($74 $42 $10)] = $22 $7.7 = $14.3 million Revenues cash expenses taxes paid =
Slide 1 Taxes Income taxes have been a part of American life since 1909 when the 16 th Amendment to the Constitution was ratified. You can t avoid taxes, so you might as well understand how taxes are structured
INVESTMENT STRATEGIES 10 Tax-Wise Strategies That May Reduce Your Taxes in the Future 10 TAX-WISE STRATEGIES 1. Make tax-deferred investments Take full advantage of tax-deferred investment opportunities,
CHAPTER 9 FIXED ASSETS AND INTANGIBLE ASSETS CLASS DISCUSSION QUESTIONS 1. a. Tangible b. Capable of repeated use in the operations of the business e. Long-lived 2. a. Property, plant, and equipment b.
Income, Gift, and Estate Tax Update Individual Income Tax Rates p. 1 Phil Harris Department of Agricultural and Applied Economics University of Wisconsin-Madison Marriage Penalty Relief p. 1 Capital Gains
Agricultural Balance Sheet (Financial Statement) This form can be used as a guide to collect information for an annual financial statement or for an application for credit. If you are using the Adobe PDF
The Planner s Guide to the 1040 Form! Unlocking the annuity and life insurance planning opportunities that other financial advisors are out of position to pursue. PLAN Noun - \plan\ Definition - A program
NetActuary.com.au Retirement Solutions Actuaries TECHNICAL NOTE TRANSFERRING US 401K AND IRA ACCOUNTS TO AUSTRALIA ITEM 1. Introduction and Overview 2. US Fund Withdrawals 3. Types of US Retirement Funds
Solutions for Questions and Problems Chapter 7 159 CHAPTER 7 ACCOUNTING PERIODS AND METHODS AND DEPRECIATION Group 1 - Multiple Choice Questions 1. C (1/12 of $150,000) x 2 8. C (20% x $35,000) 16. D (Section
Topic 9 Preparing a Successful Financial Plan LEARNING OUTCOMES By the end of this topic, you should be able to: 1. Describe the overview of accounting methods; 2. Prepare the three major financial statements
CORPORATE ACCRUAL TO TAX CONVERSION WORKSHEET Taxable entities who have filed tax returns with Canada Revenue Agency (CRA) on a cash basis and have their financial statements prepared on an accrual basis
Hedge Accounting FBS 2013 USER CONFERENCE Purpose of a Hedge Provide a change in value of the hedging instrument in the oppositedirection of the hedged item. For taxpurposes, the gains or losses on from
NEW MEDICARE TAX ON UNEARNED NET INVESTMENT INCOME Q-1: Who will be subject to the new taxes imposed in the health legislation? A: A new 3.8% tax will apply to the unearned income of High Income taxpayers.
Chapter 3 Unit 1 The Accounting Equation Depreciation, Inventory and Ratios IET 35000 Engineering Economics Learning Objectives Chapter 3 Upon completion of this chapter you should understand: Accounting
WHICH TYPE OF IRA MAKES THE MOST SENSE FOR YOU? In 1974, when IRAs were first created, they were rather simple and straightforward. Now, 35 years later, it s challenging to know the best way to save more
Schedule C Line by Line Self-Employment Tax Preparation Training Celebrating 39 years of providing free tax preparation and financial services to low and moderate income taxpayers in the Twin Cities and
FRUSH & ASSOCIATES, INC. OVERVIEW Recap of 2013 ACA Act NII Surtax Medicare Wage Surtax Tax Items For Businesses Ohio Tax Law Changes Circular 230 Disclosure Pursuant to the rules of professional conduct
Form 1065 Department of the Treasury Internal Revenue Service A Principal business activity U.S. Return of Partnership Income For calendar year 2015, or tax year beginning, 2015, ending, 20. Information
Online Advisor October 2015 Major Tax Deadlines For October 2015 * October 1 - Generally the deadline for self-employeds and small businesses to establish a SIMPLE retirement plan for 2015. * October 15
Taxes Read Chapter 4 in the text. Read Chapter 7 of The Financial Checkup. Read this unit including websites. You may want to take your own notes. Are taxes your favorite topic? They are not the favorite
Felix Guillot, EA, ABA, ATA Kendyl Guillot, ABA E-Tax, LLC 318-445-5564 etaxla.com email@example.com Tax Organizer Tax Year 2014 Name: Taxpayer SS No. Birthdate/ Spouse SS No. Birthdate/ Address: Telephone
Personal Retirement Analysis for Susan & David Example Asset Advisors Example, LLC A Registered Investment Advisor 2430 NW Professional Drive Corvallis, OR 97330 877-421-9815 www.moneytree.com IMPORTANT:
Medicare taxes for higher-income taxpayers Many changes from the 2010 Affordable Care Act are now in effect Begin planning now You ll especially want to discuss these tax provisions with your Financial
2015 YEAR-END TAX PLANNING NEWSLETTER Dear Client: As the end of the year approaches, it is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next.
YEAR-END YEAR-ROUND 2015 2 10 Your PersonalTaxes Your BusinessTaxes Are there steps you can take that will lower your federal income-tax liability? Given the tax law s complexity, the answer is probably
DEPRECIATION & Depletion CHAPTER 11 By: Magdy Akladios, PhD, PE, CSP, CPE, CSHM DEPRECIATION Decrease in value of physical properties with passage of time and use Accounting concept establishing annual
#9 F I N A N C I A L P L A N N I N G Tax Laws Can Make You Rich CPA... Imagine the possibilities! Intro Learning Activity Learning Objectives 1. Understand that certain U.S. tax laws assist individuals
Topic Mapping 1 Transaction Analysis Understand the effect of various types of transactions on the accounting equation, accounting journal and accounting ledger. Concepts and Skills Accounting Equation
4. Tax Planning: Paying All You Owe and Not a Penny More Introduction The present tax system in the United States was established in 1913 with the passage of the Sixteenth Amendment to the Constitution.
Choosing the Right Entity for Maximum Tax Benefits for Your Construction Company Timely re-evaluation of choice of entity will enhance the shareholder value of your contractor client By Theran J. Welsh
C TO S TAX CONVERSION By: Philip J. Clements and Cassie Glynn Fundamental Tax Planning Principles: October 2011 General Principles: When everything is done, you should find that income or gains are taxed
Engineering Economy Chapter 11 Depreciation 1. Depreciation *Please note that depreciation is not a cash flow. 2. Depreciation is caused by: 3. From an Accountant s Perspective, Depreciation is: The systematic