Tuesday, December 16, 2014

Double Irish Was Good While it Lasted.

Check out this story I was quoted in:

Joe Garza: Double Irish Elimination, Easier Said Than Done

I was recently interviewed by Tax Trends Weekly, an online news source for all things tax. The IRS is working hard to get as much money as possible from the mega corps. We will continue to innovate and save our clients on their returns no matter what.

Wednesday, July 23, 2014

A Few Tips for Making Taxes Work for You

We're more than half way through 2014: Where exactly does your business enterprise land regards to taxes?



Earlier this month, a client of mine received an ill-favored surprise when I wrapped up his federal tax return and disclosed he owed a ton of dollars to the Internal Revenue Service. His early retort was to get angry at the runner. Nevertheless, upon mindful consideration, he stated," I guess, I should have come to visit your firm recently when my all new product or service soared the way it did. I got the idea I was generally getting a great deal more revenue".

He's correct. Any time there is a serious change to your work's income (in either red or black), it's time for a visit to your tax advisor. In reality, anyone who runs a small company needs to take advantage of the mid-year off season to take a seat with a tax advisor to discuss their fiscal statements and probable tax liabilities.

It's definitely a lot easier to devise and put a plan ready right now than to run around at year end upending jugs of water on all the little flames that have been festering all year.

Here are some ideas to go over with your tax planner to boost your tax situation and with some luck keep functioning cash in your bank account rather than in Uncle Sam's pocket:.

Start a retirement system.

In case you're ultimately a few bucks ahead and really don't have a retirement account, right now's the time to begin one. Here's the reward: it's deductible!

Speak with an actual financial advisor or a rep from your banking company to establish what kind of plan best suits your demands.

There are a large range of vehicles from Individual 401(k) plans to SEP IRAs to SIMPLE plans that may or may not require you to include workers in the plan.

In the event that a strategy needs employee involvement, do not quickly suspend it.

Starting an individual retirement account for your workers may be a purposeful method to award raises that really don't entail the additional expense of company paid pay-roll tax obligations. Look at Internal Revenue Service Issue 560 for more information.

Examine your legal structure.

Make the effort to evaluate if your firm is running optimally in its existing business design. Your business might have taken off as a sole proprietorship and have actually outgrown it. It is specifically crucial to assess company framework if your business enterprise is now pulling in greater than $100,000 annually.

Remember that if your company incorporate, you are going to now be mandated to get funds out of the company by means of payroll as opposed to basic draws.

There is a whole lot more records included under this status, but the tax advantages and security that a corporation provides may well prove even more valuable. Regularly talk about these choices with your lawyer or attorney and tax expert before deciding.

Provide employee benefits.

Staff members are our most valuable company resource and must be dealt with properly. There are plenty of employee benefits which are not taxable to both the employee or your business. Take a look at Internal Revenue Service Periodical 15-B, Overview of Fringe Advantages for more information concerning this particular topic. You will likely save capital in payroll taxes whilst you develop a happier functioning surrounding for your people.

Purchase furnishings and equipment.

The Internal Revenue Service has often awarded outlays for capital assets by giving the 179 Write-off. This specific deduction enables the instant expensing of capital assets as opposed to diminishing them over their useful lives. Be informed nonetheless. This year, the limit for purchases decreased from $500,000 to $25,000. Nevertheless, Congress will be considering extending that threshold very likely at some point during 4th quarter. You may begin setting money aside for the purchases now.

Perform calculations.

Take a very good look at your financial reports. Run a profit and loss and compare it to the previous year earnings and decrease through June 30. Are there significant alterations? Are you foreseing an increase or decline in profits and/or expenses by the end of the year? It's a pretty easy thing to export your information from QuickBooks to Excel where you can easily play with the quantities to figure out precisely what your yearend profit will likely be. Hand-off that content with your tax planner to identify if you will need to improve your supposed tax payments as necessary.

Tuesday, July 15, 2014

New Bitcoin ETF Will Be Traded as 'COIN'

Last week Silicon Valley VIP's, The Winklevoss brothers revealed the trading symbol for their new bitcoin ETF (exchange traded fund). The bitcoin mutual fund will be launched under the mark 'COIN'.

The digital currency caught the brothers' eyes more than a year previously when the worth of the coins skyrocketed. They announced plans to buy the highly profitable web-based currency July 1, 2013. Since that news, extra details has been released concerning exactly what the investment approach was turning into. In May, the brothers, announced that they were taking the Winklevoss Bitcoin trust (their Bitcoin ETF) to NASDAQ. They consider the value of Bitcoin can increase by a factor of ten with a legitimate exposure on the exchange. On July 15, 1 Bitcoin cost $621.45, a substantial investment opportunity if what the twins say is correct. This figure has been gradually expanding since the statement of the fund.

'COIN' is still delayed in government regulation and there is no clear or official publicized date for the IPO, despite the fact that many professionals are guessing that (based on government approval) the fund may be trading prior to the end of the year.

It is an interesting period for the digital industry, but perhaps what is most interesting about bitcoin specifically is the way in which it is expanding into the real world.

Read more about this story at the New York Times and at coindesk.

Tuesday, July 8, 2014

Joe Garza Brings His Expertise to Light in this Inside Look into Tax Planning and Preparation

It's never ever too early to start tax preparing.

For lots of, tax day is hopefully a far-off memory. However, for business manager, it's never ever prematurely to start planning for following year. And while many businesses try to take advantage of every allowable reduction, several don't know that an excellent chunk of their advertising and marketing expenses are tax deductible.

As a matter of fact, baseding on a current survey of entrepreneur at Inside99Designs. com, greater than a quarter (27 percent) aren't also conscious that the IRS allows them to subtract (" cross out ") specific marketing expenditures on their tax returns. And out of the 73 percent who do find out about the reductions, just 57 percent indicated that they'll be capitalizing on them in the close to future.

And the questionnaire states ...

The survey, carried out amongst 211 U.S.-based local business owners, showed that 64 percent of entreprenuers state they are writing off approximately the exact same quantity this year as on their previous return, while only 22 percent are taking off a lot more.

And when asked just what single advertising and marketing stations they 'd apply money towards if they were to receive a tax refund, the questionnaire claimed:

33 percent would certainly invest it on their internet site.
17 percent on internet advertising and marketing.
17 percent on a mobile app.
10 percent on a print ad campaign.
8 percent on social networking sites marketing.

Finally, when asked if they thought about the cash they spent in 2013 on advertising and marketing activities were a great investment or not, 70 percent said yes, 23 percent stated they just weren't sure, and 7 percent stated no.

Simply to clarify, I'm by no indicates a tax expert. Nevertheless, based upon the lookings for from this questionnaire, I could produce a basic conclusion that numerous local business owners need to be seeing their tax experts and assessing feasible tax deductible advertising and marketing costs. Yet as a small company proprietor, I find I'm in great company with those which are investing bucks back into their advertising methods in an effort to expand and retain a healthy client base.

Wednesday, July 2, 2014

Joe Garza Explains the Difference Between Tax Shelters and Tax Planning

While the expression "tax planning" is frequently employed to describe the process, it is not necessarily well understood. Below is what tax planning really involves. Remember, these methodologies aren’t just tax shelters, they’re legitimate planning and preparation methods to secure wealth.

Tax planning is the art of arranging your transactions in ways that postpone or avoid taxes. By engaging reliable tax planning techniques, you can have more resources to save and invest or more income to spend. Or both.Your choice.

Put alternatively, tax planning means postponing and flat out avoiding taxes by utilizing advantageous tax-law regulations, improving and spurring tax deductions and tax credits, and generally making best use of all pertinent breaks offered under our beloved Internal Revenue Code.

While the federal income tax policies are now more challenging than ever, the rewards of strong tax planning are arguably more valuable than ever before.

Certainly, you should not change your financial habits just to eliminate taxes. Genuinely effective tax planning solutions are those that let you to undertake what you want while minimizing tax bills along the way.

How are tax and financial planning related?

Financial planning is the art of applying tactics that help you meet your monetary requirements, be they short-term or long-term. That sounds very very easy. However, if the actual implementation was simple, there would be a lot more rich folks.

Tax planning and financial planning are closely linked, considering that taxes are such a large cost item as you experience life. If you become really prosperous, taxes will surely be your single greatest expense over the long haul. So preparing to decrease taxes is a significantly essential component of the long-term financial organizing procedure.

In Conclusion

There are a lot of other ways to commit substantial tax mistakes. Such as offering appreciated securities too soon when holding on for just a bit longer may have resulted in lower-taxed long-term capital gains instead of higher-taxed short-term gains; claiming withdrawals from retirement accounts prior to age 59 1/2 and getting stuck with the 10 % premature withdrawal penalty tax; or failing to make payments to an ex-spouse so that it can qualify as deductible alimony; the list goes on and on.

The cure is to prepare for purchases with taxes in mind as well as avoid making careless changes. Seeking highly qualified tax assistance before pulling the trigger on substantial transactions is in most cases a decent investment. As we near the end of the year, some of blogs will involve tax planning tips that many folks can take advantage of.

For more information about the Government increasing tax liability, check out this blog post.

Friday, April 18, 2014

Everything's Bigger in Texas, Except for the Taxes

Texas Sign

Our State's lack of individual income tax has certainly been a primary draw for many residents. Being one of only 7 states without any a personal income tax, it really outshines states like Oregon, which imposes an enormous income tax burden on its citizens. Plus, with 52 Fortune 500 companies in the state, and 12.9 million people constituting its workforce, Texas is keeping-- and strengthening-- its track record for being one of the most prolific business hubs in the nation.

Forbes Agrees: Can't Beat Texas Tax Law

Certainly there are lots of things that increase Texas' booming overall economy. Two of the most notable ones? Forbes says Texas' tax framework and the many different tax benefits that Texas presents to businesses. Actually, the Lone Star State has one of the smallest tax burdens in the country. Here's a more detailed look at the regulations that make Texas such a business-friendly state:/p>

-As a result of the Texas Tax Reform Commission, Texas changed out its franchise business tax in 2008 with a design that more adequately mirrored the structure of small companies and helps the state continue being a more competitive player in the U.S. economy.

-The revised margins tax replaced an out-of-date franchise business tax that was developed at a time when the state's economic situation was driven by products rather than services. With the latest law, the main franchise tax rate dropped from 4.5 % to around .5 and 1 %. Also, an exemption is provided to companies with a profit below $1 million-- a move that helps 40,000 local business in Texas.

The biggest initiative of this type in the U.S., The Texas Enterprise Fund was formed to catch the attention of out-of-state companies by incentivizing job creation and capital investment. Worth more than $410 million, the fund offers awards ranging anywhere from $194,000 to $50 million to eligible companies. The Texas Enterprise Fund has pulled in such operations as Bank of America, Fidelity Global Brokerage, Lockheed Martin and Frito-Lay. It has also caused a massive technology influx in Austin where companies like Apple, Facebook, Sematech, and Samsung have recently set up shop.

Texas Attorney: "Small Businesses Can't Afford Not to Partner with Texas"

"Texas grants a great number of tax incentives to its own businesses" states Joe Garza - Attorney and Chief Partner at Garza & Harris. "Incentives are given for everything from manufacturing to pollution control to renewable energy - these incentives make Texas a rock-solid partner for business owners operating in-state". For example, privilege from state sales and use tax on natural gas and electricity are provided to manufacturers. Additionally, enterprises that take advantage of renewable energy programs, such as solar and wind power, are eligible for a multitude of tax exemptions. Concessions such as these can really add up for business owners seeking to sustain and become a business in Texas.

Thursday, March 13, 2014

Joe Garza of Dallas: "Millenials Need to Start Saving More than Ever"

Perhaps you've recently graduated and have landed your first real job, you may think it’s quite soon to start being concerned with saving and investing what little money you have. That couldn’t be farther from the actual truth. Regardless of how you look at it, the earlier that begin saving, the more you’ll have later. Also, beginning to properly handle your money early on will surely make things way easier down the road if you, say, want to put a down payment on a place to raise a family or preparing retirement. Beginning great financial habits certainly brings life-long rewards. These initial budgeting methods will hopefully help you secure a bit of financial footing and make an investment toward your future.

Save for a rainy day.

As you begin thinking of long-term goals, make sure that you have made a plan of action set that addresses your current situation. In particular that includes paying off any private or government, but an important component of planning a fiscally secure future is addressing debt before the rest of your life gets even more complex. You don’t want old debt looming above your head when you'd rather be planning a family or putting a down payment on your first home.

Beyond paying off your student loan debt, it’s necessary to start putting away a fund for emergency savings. It is a fact that in the future, you will probably have unexpected expenses. Things like surgery and major car repairs happen; when they do happen, be happy that you set some money aside to cover it.

Determine your future goals.

Whether or not you have your whole life figured out, you probably you have a notion of what your biggest priorities and interests are. If you'd like to travel the world while you are still young, your saving tendencies will look quite different than if your financial goal is to go into early retirement. Visualizing your professional goals will help decide how much he or she needs to put away every paycheck. Some Others have even advised young people to put aside up to one-third of their monthly income, with others saying that putting aside at minimum 10 percent is a good way to start saving. Whatever amount you decide fits into your budget, be sure to set aside money for every one of your important goals (from retiring early, to traveling the world, to having your dream wedding) on a monthly basis so that none of your goals get overlooked.

The best thing about starting strong saving habits is that you won’t start getting used to a type of living that becomes too expensive. It’s always far easier to start modest and build your way up than it is to pull back on the things you used to enjoy.

Tuesday, January 21, 2014

IRS Initiates New All-Online Tax-Filing Protocol

Capital Press

Every year, tax policy changes, become more complex, and oscillate in order to (ostensibly) benefit (and disappoint) taxpayers. In the new year, you can expect to see many new additions to income tax law, including adjustments for inflation, new rules for same-sex families, and some drawbacks for {not buying health insurance either through the government or with a private insurer. One defining part of the 2014 tax law is its postponement by several weeks, courtesy of the tumultuous government shutdown back in 2013. Still, this filing season will also initiate the birth of a totally different type of federal tax change — not only in terms of how we pay, but the way we file.

2014's New Federal Tax-Filing Guide

Earlier this month, the IRS issued a “newly revised comprehensive tax guide,” or, as some people call it, Publication 17: an initiative that should assist Americans file their taxes more easily this year. Publication 17 boasts its multitude of interactive links and tips for what it refers to as “tax-saving opportunities.” Among the additions made to the new IRS guide is educational material on the American Opportunity Tax Credit which impacts currently-enrolled college students and their guardians, and also Child Tax Credit (CTC) and Earned Income Tax Credit .

Created by the Internal Revenue Service for over 60 years, the new guide still features material on how to report earnings, capital gains and losses, IRA’s (Individual Retirement Accounts) and necessary info. Still, at a whopping 292 pages, it's very unlikely that many taxpayers will have the time to review the publication in its entirety. Also, considering the complexity of Federal income tax, it's not surprising that the IRS posts almost daily updates to instructions and forms on its site.

Fewer Face-to Face Help Resources

The new policy demonstrates a huge shift away from face-to-face help resources, and toward many more digital mechanisms to assist people in getting through their taxes.

Reductions in the IRS budgets — resulting from sequestration — mean there will be less resources available for in-person tax submission assistance. Rather than having a human representative, those filing taxes will be referred to a variety of online tools, including nearly 13k volunteer partner sites, and resources on IRS.gov - like the IRS 'Free File' program. Even simple questions will now be taken care of online or through one of the IRS' many hotlines. With such online assimilation becoming so ubiquitous, it's rational that the federal government would begin to offer more of its resources online.

More Resources Show Up Online

Although less assistance in the form of interaction with a representative will probably be frustrating for some, there will be people will be glad to learn they can handle more tax-related problems on the web than ever before. Tax payers can now see and complete their tax transcripts at their computer. Additionally, the IRS will also continue to give Employee Identification Numbers via its website. To avoid answering taxpayer questions about the whereabouts of tax refunds over the telephone, the IRS will now handle all related questions on its website as well.

More by Joe B. Garza