New and Interesting Info

A Little Advice From a CPA About Getting Married

Scribbled love and marriage symbols on metal cans

I know it’s not even Halloween just yet, there are a couple more weeks to go, but there are some of you who may be thinking about getting married next year. Perhaps even considering purchasing that engagement ring in time for Christmas or New Years? There is lots of advice about how much you should spend on the engagement ring, and on your wedding. Let me be the first to say that I understand how things can get carried away in the heat of the moment, but if there is anyway to plan ahead without creating undue stress, I would strongly advise it. Continue reading

News From the IRS

Advice on Moving an IRA, CPA vero beach, tax advice, financial adviceAs a CPA firm, it is our obligation to keep up with new rules and laws which affect the taxes of our community. We regularly study and learn about these new laws, not all of which we enjoy learning about, but this one is a ruling that will help some people a great deal. Taken from the IRS.GOV website:

“New Procedure Helps People Making IRA and Retirement Plan Rollovers

IR-2016-113, Aug. 24, 2016

WASHINGTON — The Internal Revenue Service today provided a self-certification procedure designed to help recipients of retirement plan distributions who inadvertently miss the 60-day time limit for properly rolling these amounts into another retirement plan or individual retirement arrangement (IRA).

In Revenue Procedure 2016-47, posted today on IRS.gov, the IRS explained how eligible taxpayers, encountering a variety of mitigating circumstances, can qualify for a waiver of the 60-day time limit and avoid possible early distribution taxes. In addition, the revenue procedure includes a sample self-certification letter that a taxpayer can use to notify the administrator or trustee of the retirement plan or IRA receiving the rollover that they qualify for the waiver.

Normally, an eligible distribution from an IRA or workplace retirement plan can only qualify for tax-free rollover treatment if it is contributed to another IRA or workplace plan by the 60th day after it was received. In most cases, taxpayers who fail to meet the time limit could only obtain a waiver by requesting a private letter ruling from the IRS.

A taxpayer who missed the time limit will now ordinarily qualify for a waiver if one or more of 11 circumstances, listed in the revenue procedure, apply to them. They include a distribution check that was misplaced and never cashed, the taxpayer’s home was severely damaged, a family member died, the taxpayer or a family member was seriously ill, the taxpayer was incarcerated or restrictions were imposed by a foreign country.

Ordinarily, the IRS and plan administrators and trustees will honor a taxpayer’s truthful self-certification that they qualify for a waiver under these circumstances. Moreover, even if a taxpayer does not self-certify, the IRS now has the authority to grant a waiver during a subsequent examination. Other requirements, along with a copy of a sample self-certification letter, can be found in the revenue procedure.

The IRS encourages eligible taxpayers wishing to transfer retirement plan or IRA distributions to another retirement plan or IRA to consider requesting that the administrator or trustee make a direct trustee-to-trustee transfer, rather than doing a rollover. Doing so can avoid some of the delays and restrictions that often arise during the rollover process. For more information about rollovers and transfers, check out the Can You Move Retirement Plan Assets? section in Publication 590-A or theRollovers of Retirement Plan and IRA Distributions page on IRS.gov.”

IF you have any questions about this information, please don’t hesitate to call myself or one of my associates. Moving IRA’s can seem like a daunting task, but if it’s done properly by a firm that knows what they are doing, it can be a smooth process.

 

Pete DiSalvo, CPA

Vero Beach Certified Public Accountant

CPA – DiSalvo Logo

Financial News About In-Home Care for Seniors

 

tax ramifications of in home care for seniors

Some of us have parents who are now in their mid 80’s, and taking care of a home, and themselves, is becoming more difficult. There are medications to manage, physical limitations that weren’t an issue before have cropped up, and the memory may be slipping a little as well.

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Planning for Home Purchase

DiSalvo CPA, Melbourne, Vero Beach, Sebastian

Real Estate is once again an appreciating asset. If the stock market is not your thing, then investing in Real Estate could be a good avenue for investing your money. In a market like the one we are currently in, Real Estate Values are rising.

I say that, but I will also say that if you don’t invest in the right ways, you could lose everything. I am not advising you to invest in Real Estate, but if you think you would like to, please come see me first.

We will need to go over all of your assets, if you are self employed, we will need to make certain you will be able to qualify for a home purchase. Then we will to discuss the safest way for you to invest. There are costs to consider that you may know nothing about if you have never owned a home.

Not to be discouraging, because owning your own home can be a good investment. Here, in Vero Beach, rents have reached the point where it could actually be less expensive to pay a monthly mortgage than it is to pay rent.

Pete DiSalvo

CPA

Melbourne - Titusville - VeroBeach - Certified Public Accountant

 

Tax Breaks for Military Personnel

veterans and accounting vero beach, melbourne, titusvills

Members of the Armed Forces put their lives on the line to defend our country and the values of freedom all over the world. For that they are offered a few incentives, like the VA hospitals and base housing, the GI Bill.

There are also tax breaks for Military personnel that not all Veterans and Active Duty personnel may know about.

For Example Military personnel who are on active duty in a combat zone are entitles to extensions on their tax returns. There are restrictions to this, so give us a call if you have a friend or family member in a combat zone.

If you have left the military and are entering the civilian work force, you may be able to deduct a portion of your job hunting expenses. Keep your receipts and a log of your various appointments for when it comes time to file your tax return.

When in a combat position, you are entitled to a higher compensation, or combat pay. Your W2 should only reflect your regular pay and deductions, not your combat pay.

In the state of Florida, disabled Veterans are also entitled to certain tax breaks on the real property as well. And many companies who are hiring are giving preference to our men and women who have served in the military.

 

 

Pete DiSalvo

Vero Beach Certified Public Accountant

CPA – DiSalvo Logo

Stick With Your Core Business

forensic accountant vero beach, FloridaRunning a CPA Firm is something I love. Most of my clients only come to me at Tax Time, and that is okay, but another part of my business which is more challenging and rewarding is helping people to build and grow their business.

So often, once these business owners begin to experience some degree of success, they get carried away and move beyond their core business. As someone who sees the financial workings of businesses, I can tell you that while expansion works well in some instances, often what it really does is dilute the core of their businesses.

Sometimes, when I offer advice about this subject, business owners will listen, but sometimes they don’t and it’s sad to watch a business that was once thriving begin to struggle. This article in Inc. magazine speaks to the fact that every so often a business owner gets it. Do what you do better than anyone else, keep service levels high, and stick to your core business:

Alli Webb’s mobile hair-styling business led to an idea for a salon that offers only wash and blow-dry services. Since it opened in 2010, Drybar has become so successful–with 42 salons nationwide and counting–that the copycats are proliferating. Webb explains how she stays ahead of the pack.

–As told to Liz Welch

From the beginning, we’ve stayed very true to what we do–give great blowouts. Many investors have said, “We have this captive audience. That’s a huge opportunity to sell a lot of other things.” I’ve always resisted that–and I think it resonates.

Our clients know they’re not going to be pitched to or bombarded by our stylists to buy products. It’s hard to be really great at a lot of things. I have never entertained the idea of adding on services–but I have seen all of our competitors do that. Let them.

From an outside perspective, the barriers to entry appear very low: Hire stylists, build a space, and you have a blow-dry bar. But we have spent a lot of time and money to make the experience great, which includes everything from the spacing of our chairs to the lighting and the iPhone chargers at each station. We could put up to 10 more chairs in most salons, but we don’t, because the space is built in a special way, so it feels like you are sitting at a bar. “

So remember, working hard and building your business on sound financial underpinnings is a great dream. Just don’t stray too far from the business model that brought you success in the first place.

Pete DiSalvo CPA

Vero Beach Certified Public Accountant

CPA – DiSalvo Logo

 

 

 

Dr. Google and Medicine

Medicine, and the practice of, has not been keeping up with the rest of the evolution in internet applications and technology that we hear so much about each week. Take a look and see what you think of this article from Forbes Magazine:

” How Mayo’s “Dr. Google” Deal Disrupts Medicine

Dr. Google GOOGL +1.27%” has joined the Mayo Clinic, quietly signaling a powerful disruption for all of medicine.0413_companies-google_650x455

Back in 1997 I wrote: “The information age is to medicine as the Protestant Reformation was to the Catholic Church.” The Church didn’t disappear when information once held tightly by the priesthood became widely available, but religion changed forever. Continue reading