about our practice
We take pride in providing top quality, client oriented accounting and tax services. We look out for your best interests and are highly responsive to your questions and needs
I have been conducting business as a Certified Public Accountant (CPA) for 34 years - the first 12 years with a multi-office firm and thereafter independently. This has provided me with broad based experience with regards to accounting, financial reporting, and taxation. The result is that you get knowledgeable professional service along with focused individual attention - all without the price normally incurred with the larger firms.
The major focus of my practice is in small to medium sized businesses operating as C Corporations, S Corporations, sole proprietorships, partnerships, LLC’s, or non-profits. We also provide financial and tax support for the owners of the businesses, in order to take full advantage of planning opportunities. If you would like to know more about how we can work together, please click on the “services” button.
- Certified Public Accountant in the State of California (License #25173E)
- Member of the American Institute of Certified Public Accountants (AICPA)
- Member of the California Society of Certified Public Accountants
- QuickBooks Pro Advisor
- Participant in the AICPA Peer Review Program
year 2012 tax changes
The following is not a comprehensive list of the tax changes. Be sure to check with your professional advisor about other changes that may affect you.
- The Social Security payroll tax cut for employees has been extended through the end of 2012. This means application of a 4.2% rate to wage earners, and a 10.4% rate for self-employed taxpayers. Both of these rates represent a 2% decrease from the normal rate.
- The Social Security wage base has been increased to $110,100 and the California State Disability wage base has been increased to $95,585, but since the SDI rate has been decreased to 1%, the net affect is a decrease in the maximum possible to be withheld for 2012.
- Estate taxes were re-enacted for the year 2011, but are due to revert back to pre-2010 rules after year 2012 unless new legislation is enacted. See "tax planning" for more discussion.
- The optional standard mileage rates for 2012 have been announced. The business mileage rate continues to be 55.5 cents per mile, while the medical and moving rate has been reduced to 23 cents and the charitable rate has been reduced to 14 cents.
- Maximum contributions to retirement plans remain the same for most types of plans, with the following exceptions: Basic maximum deferred portions of contributions to 401(k), 403(b) and 457 plans have been increased by $500 to $17,000; Defined contribution plans have been increased by $1,000 to $50,000. The additional amounts allowed for taxpayers 50 years and older have not changed ($5,500 for the 401(k), 403(b) and 457 plans, and $1,000 for IRA's).
- Social Security beneficiaries will see a 3.6% cost of living increase in their benefits, but this may be offset by their Medicare Part B premium which will be $99.90 per month for the standard premium, but can go much higher for high income individuals.
- The Section 179 expense election for purchases of equipment by businesses has been reduced significantly for the 2012 tax year. Unless legislation is later enacted to again increase the limits, the maximum expense deduction for 2012 will be $139,000, and this will be phased out after total purchases exceed $560,000. California continues to allow a maximum of $25,000, with the phase out beginning at $200,000.
- The bonus depreciation continues through December, 2012, but has been stepped back down from 100% to 50%.
- Businesses or individuals selling merchandise online will receive a new Form 1099-K if their receipts from credit card or other merchant payments (PayPal, for example) were over certain amounts for the year 2011. Originally, the idea was that beginning with the year 2012 tax returns, you would have been required to report sales figures on two separate lines: one for merchant card and third party payments (the 1099-K type payors), and one for checks and cash payments. This requirement was revoked effective February 14, 2012.
- The CA Secretary of State has discontinued sending blank Statements of Information to LLC's and corporations, other than newly formed LLC's and corporations. Therefore, existing entities are now required to initiate the filing on their own. Corporations file Form SI-100 every year within the month of incorporation (non-profit corporations file Form SI-200 every two years). Forms can be filed online. LLC's must print out and mail Form LLC-12 every two years. The penalty for late filing is $250, so businesses are encouraged to calendar these odd due dates.
pending legislation
- California's Franchise Tax Board has stated that they will require parcel numbers and other information for taxpayers who deduct property taxes. Technically, the property tax deduction is limited to the "true property tax", (the ad valorem tax). But in California, there are often substantial additions to the property tax bills (Mello-Roos, various district fees), and most taxpayers simply deduct the entire amount paid. California would like to correct this problem. As of the beginning of 2012, the change has not yet been enacted. Taxpayers are advised to keep the actual bills for future reference.
- Deductions for sales tax and educator expenses are currently expired as of the end of 2011. Future legislation will likely reinstate these deductions.
- The break for direct IRA payouts to charity also expired at the end of 2011, but is expected to be reinacted, although possibly not until quite late in the year. This tax provision has allowed seniors 70-1/2 years or older to donate up to $100,000 per year directly to charities.
- Alternative minimum tax exemptions and various buiness tax credits expired as of December 31, 2011. Historically, these items have been addressed and extended - although sometimes not in a very timely manner.
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