Advice for the Year Ahead
I was looking for some inspiration for my second set of blogs in this New Year. In a which is charged with so much fighting and negativity, I thought it might be nice to find something positive to share with you. Today I am choosing words which are not necessarily just about sound financial adivce, rather they cover so many areas of our lives. I often am inspired by the words of Dave Ramsey, and this post from him seems to have just the right tone:
“With a new year comes new opportunities. Second chances. Do-overs. You get to leave the past behind and start with a clean slate! You can make this year better than the last.
As this new year begins, try out these proven principles that will set you up for success.
Related: Take advantage of this year’s clean slate and take Financial Peace University.
1. Let mistakes stay where they belong.
There’s a reason the rearview mirror is smaller than the windshield. Looking at what’s ahead is more important than looking at what’s behind you. Yes, you need to take responsibility for your past, but that doesn’t mean you have to stay there. You can’t be excited about the future if you’re living in the land of regret!
2. Let experience teach you.
Whether it’s those mistakes you’ve made or the unexpected trials that knocked you off your feet, learning from them can be fuel for future success. When asked about his many failed inventions, Thomas Edison once said, “I have not failed 10,000 times—I’ve successfully found 10,000 ways that will not work.” Failure deepens your compassion, forgiveness and empathy. It can give you more self-awareness, improve your skills, and motivate you to work harder.
Related: 4 Secrets for Staying Focused
3. Let gratitude decide your outlook.
When you choose gratitude, you enjoy better relationships, feel better physically and emotionally, improve your self-esteem, and even sleep better at night. There are no downsides to seeing through the lens of gratefulness, but the benefits can radically improve your life!
There are no downsides to seeing through the lens of gratefulness.
We want to come alongside you to help you win. Whether you’re trying to get out of debt, start a new business, or plan for retirement, we hope you’ll turn to us as your trusted source for great content and life-changing truths. We believe in you and your future!
What are you waiting for? Let these principles make 2017 a great year for you! Write down those goals and resolutions. And then start working on them, one day at a time. A successful year is waiting. Go after it!”
At DiSalvo and Company, we are always on the look out for new ways to help our fellow business owners, and the people in the communities where we live and work. Remember, having a good plan will help your business stay on track. Finding ways to cut waste will also help you keep more money in your pocket, both in business and in you personal life.
Pete DiSalvo, CPA
Estimated Taxes
It’s not just self-employed individuals who are required by the IRS to pay estimated taxes.
There are numerous advantages to being self-employed. The top benefit that most full-time, must-report-to-the-office employees most envy the most is your ability to establish your own work schedule. You don’t have the commuting expenses, nor the hassle. No endless meetings with co-workers, and no dealing with office politics.
Self-employment has one major disadvantage, though: the self-employment tax. One of the benefits of being a W-2 employee of a company is, well, the W-2, which documents how much you paid into Social Security, as well as the big chunk your employer kicked in.
Others Owe, Too
But estimated taxes are not just for the self-employed. They’re owed by anyone who has at least some income that isn’t subject to withholding by an employer. For example, if you receive interest or dividends, rent, or income from selling an asset, you are required to pay estimated taxes.
Figure 1: The IRS establishes a payment schedule for your estimated tax payments.
In addition, if you’re not deducting enough income tax deducted from your salary, pension, or other income, you’re obligated to send the IRS a payment four times a year.
This is why it’s so important that you enter the correct number of allowances on your W-4 (and even add an additional amount if necessary), and that you track all income.
Failure to submit enough income tax dollars prior to filing your 1040 – and by the IRS’ scheduled deadlines — will result in penalties, even if the IRS owes you a refund.
How to Pay
The form you use to submit your estimated tax payments depends on what type of business entity you are. If you are a sole proprietor, partner, S corporation shareholder, and/or a self-employed individual, you’ll need to make quarterly estimated payments if you think you will owe $1,000 or more (after you subtract withholding and refundable credits) or more come filing time. You would use the Form 1040-ES (Estimated Tax for Individuals) to calculate and pay. Corporations should use the Form 1120-W (Estimated Tax for Corporations) if they expect to owe $500 or more when they file.
If you are sending a check or money order, you can fill out and print the vouchers included at the end of Form 1040-ES on the IRS site.
Figure 2: If you are sending a check or money order to make estimated payments, you can use these.
There are multiple ways to pay estimated taxes electronically, either by credit or debit card, or by withdrawal from a bank account. They’re listed here, and they include EFTPS (the Electronic Federal Tax Payment System), a free service provided by the U.S. Department of the Treasury.
As Always, Exceptions
There are some individuals and businesses to whom these mandates don’t apply.
Farmers and fishermen, as well as some household employers and higher-income taxpayers have different rules that are explained in the Form 1040-ES instructions.
Also, you’re not required to pay estimated taxes if:
- You were a U.S. citizen or resident alien for all of the previous year, and
- You had zero tax liability for the full 12 months of the previous year.
How to Estimate Your Estimated Taxes
That’s the tricky part, especially if you are self-employed or for some other reason don’t know for a fact how much you’ll owe in income tax for the current year. You can use the previous year’s return as a guide, but there have, of course, been tax code changes since then. And your income and deductions may well be different this year.voucher forms found on the 1040-ES page.
This is really an area where you should sit down with us and make a plan. This might involve running monthly or quarterly reports, creating projections, etc. These are good habits, especially if your income is unpredictable. Year-round tax planning will not only help you make those quarterly payments – it will provide a clearer view of your company’s overall financial health.
Any Tax Tips posted here are for informational purposes only. They are not a substitute for legal, accounting, tax, investment or other professional advice. Always consult with your trusted accounting advisor before acting upon any Tax Tip.
Juggling the Demands of a CPA & Family
Who among us does not know of a CPA or Tax Accountant whom you never see from December to April 16th? In our firm many of us have families and during Tax Season it is extremely difficult to carve out the kind of family time we would normally have the remainder of the year. From Accounting Today, a post written by CARL ALLEGRETTI hit a nerve with me. Not all of you reading this will be accountants, but man or woman, Mom or Dad, we all have those times when work gets busy and it is difficult to balance the demands of work and the time we need with our families and children.
“1. Set thoughtful priorities: As busy season comes around, your time becomes more and more precious as client work increases and deadlines need to be met. With all the demands on your time, something has to give. Focus on setting thoughtful priorities—both at work and in your personal life.
To find the right balance, I look closely at what my top priorities are in and out of the office. For me, family comes first. In order to find the time to coach and attend my sons’ sporting events, I stopped playing golf because I couldn’t justify the amount of time on the course.
2. Plan ahead: Many of us are great at planning when it comes to work. We have a laid out plan for all the things we want to get done. This approach becomes all the more important during busy season.
Don’t forget to also plan for personal time, which isn’t always easy given your professional demands. With careful planning, anything is possible—and that includes using your vacation time before and after peak periods of work. Like an elite athlete, we all must rest, recuperate and reenergize during the year.
I found that when I acknowledged that my personal life was as big a priority to me as my career, it became much easier to effectively plan my life outside the office. I now schedule my calendar up to a year in advance to make sure my personal and professional priorities are locked in.
3. Personal health: Taking care of yourself should be a big priority. If you are not healthy, juggling multiple tasks can become difficult. Getting enough sleep, eating right and keeping active are important in managing stress. The number one way to train the brain is physical exercise, and studies have repeatedly shown that physical activity keeps your brain healthier and stronger.”
Take the time to make a plan for your busy time. Don’t forget to carve out some time for your family and yourself no matter how busy things get.
Pete DiSalvo
CPA
June 16th Tax Deadline.
June 15th is ordinarily the date that second quarterly estimated tax payments are due, if you are self employed. This year June 15th falls on a Sunday so this year, Monday the 16th takes on added significance. If you are not sure whether, or how much you should be posting for quarterly estimated payments, last week would have been a great time to Give Pete DiSalvo a call.
If you 
are still not sure at this point, we invite you to call Pete right now! The sooner you answer this question the more Pete can do to help you minimize your taxes along with any penalty for underpayment.
Pete DiSalvo specializes in working with small businesses to help maximize profits and minimize taxes.
For those of you who like to plan ahead, September 15th is the 3rd tax deadline… Is your business ready?
Usually during the rush of tax season you have to decide upon what to base your 2014 estimates. You would have considered the safe harbors and chosen the one that best fits your circumstances at the time.
Click & let us answer all your tax questions!
Self employed taxpayers pay estimated taxes to avoid a penalty for underpayment of tax liability. The Internal Revenue Service requires taxpayers to pay the lesser of 110% of the prior year tax or 90% of the current year tax. Generally it is easier to calculate 110% of your 2013 than to estimate 2014 income.
Now that five months of the year have passed you may have a clearer picture of your income for the year. If there has been a significant change from what you used for the first quarter estimate a re-calculation now could either save you cash flow (if you will owe less) or give you an opportunity to start paying that April 15, 2015 liability now if income is higher.
If you think there is a change in your income and would like to explore with us the possibility of a change in your estimates, please click to take advantage of our Free Consultation. Don’t forget, Pete DiSalvo is the Dave Ramsey endorsed tax expert for small business.
Northrup Grumman Set to Bring Jobs to Brevard CO.
Brevard County, Florida (May 8, 2014) – The Economic Development Commission of Florida’s Space Coast has announced that Northrop Grumman Corporation has selected Brevard County for a sizeable expansion that could add up to 1,800 jobs at full program capacity with an average salary of $100,000 per year.
The effort, known as Project Magellan , is the largest economic development project in the country in terms of job creation numbers and average wage associated with employment. Northrop Grumman plans to invest approximately $500 million in new capital investments at the Melbourne International Airport.
This is a huge victory for families on the Space Coast, “We are excited that Northrop Grumman has decided to expand here in Florida, which could bring up to 1,800 new jobs to Brevard County. We’ve worked to grow jobs and opportunities for Florida families by cutting taxes, paying down debt and cutting government waste – and this announcement is a testament to our success in creating an opportunity economy. This is a huge win, and we’ll continue to build on this success with our recently completed legislative session where we cut $500 million in taxes and fees and made higher education more affordable for every family. These victories will attract more-and-more businesses to the Sunshine State. We must continue to grow our opportunity economy so that companies like Northrop Grumman can continue to create jobs for Florida families.”
~ Rick Scott, ” Governor of Florida
The project will roll out in two phases. Phase One will consist of the construction of an approximately 220,000 square foot building and the addition of 300 jobs by the end of 2015. If phase one business objectives are achieved, the company will move on to Phase Two with the construction of an additional approximately 500,000 square foot facility and 1,500 more jobs.
Large scale projects like this one often bring much more positive economic impact to an area like Brevard County than just the direct employment alone. Each high salary job brings with it a ripple effect because employees have the resources to buy homes, and consume products and services offered by local merchants of all types and sizes.
We at Di Salvo, and Company CPA firm are very happy to hear this news. DiSalvo and Company CPA, with offices in Melbourne, and Titusville Florida, specializes in providing book keeping, accounting, and tax preparation services for local merchants so we are pleased to hear any news that may help to make our clients more profitable. If you own a business in Melbourne, or Titusville, and you would like a free consultation with DiSalvo and Company about your business needs, please contact us at 321-269-0450, or 772-770-6008.
Recipe: March Madness Mini Burgers
March Madness Mini-burgers.
Ingredients: Basketball Cheese Slices: 6 slices cheddar or American cheese black food coloring
or a knife 2″ round cookie cutter, and a 1″ or 1 1/2″ round cutter– See more at: http://www.hungryhappenings.com/2011/03/march-madness-mini-cheeseburger-recipe.html#sthash.QfLjB1xZ.dpuf
Instructions
- Dry out your mixing bowl.
- Combine the vegetable oil and 1/2 teaspoon salt in the mixing bowl.
- Line a heavy duty baking sheet with non-stick aluminum foil.
- Pour 3 tablespoons of the oil onto the foil lined pan.
- Use your hand to swirl the oil around to get an even coating all over the pan. Be sure the get the salt evenly distributed.
- Place potatoes in mixing bowl and toss to coat evenly with the remaining tablespoon of oil.
- Lay potatoes in a single layer on the baking sheet. Sprinkle a pinch of salt over potatoes. Cover pan tightly with aluminum foil. Bake for 10 minutes.
- Remove foil and bake for 8 minutes. Rotate pan 180 degrees and continue to bake for 8 minutes.
- Remove pan and flip potatoes over. Bake for 8-14 more minutes until golden brown.
- Remove from oven and place potato rounds on paper towels to remove excess oil.
To see complete illustrated instructions here.
– See more at: http://www.hungryhappenings.com/2011/03/march-madness-mini-cheeseburger-recipe.html#sthash.QfLjB1xZ.dpuf
Riverside Theatre – A Vero Beach Gem
Have you taken in a performance at Vero Beach’s own Riverside Theatre. You might be pleasantly surprised. The theatre complex, built in 1973, cost about $1,5 million which was raised entirely from private donations. The inaugural season for the Riverside Thatre Acting Company began in 1985, and the theatre has since grown to be one of the largest producing professional thatres in the State of Florida.
If one does a Google search for the Riverside Theatre, one might be struck by the glowing reviews placed in third party travel and entertainment sites such as Travel Advisor, and others.
As a new visitor to Vero Beach I had no idea of the caliber of theatre here. We managed to get tickets for the Opening Night of South Pacific and were treated to a superb performance! The venue is beautiful, located in the Riverside Park with an art museum nearby. If you are visiting Vero Beach and are interested in attending a theatre event worthy of Broadway consider Riverside!”
~anon
Reviews like this one can’t help but cause you to feel some hometown pride in our local Vero Beach gem. In addition to the main theatre, the Riverside Theatre complex added the Agnes Whalstrom Youth Playhouse, which provides a venue for a the Riverside Children’s Theatre, along with The Anne Morton theatre, a second stage to host the Actor’s Cabaret.
As if a year round calendar of quality theatrical fare is not benefit enough, the Riverside Theatre also offers other programs throughout the year like Luncheons, the Festival of Trees, Breakfast with Santa, Distinguished Lecturer Series featuring nationally know speakers such as President George W. Bush earlier this year.
If you are still under the impression that you must travel to New York City to enjoy a first class Theatre experience, we encourage you to check out the local fare and support the tremendous efforts put forth to bring excellent entertainment right here in Vero Beach, at the Riverside Theatre. Even if you must drive down from Titusville, or Melbourne, we believe you will be glad you did.
DiSalvo And Company, P.A. is a Treasure Coast CPA firm, with offices in Vero Beach, Titusville, and Melbourne, providing comprehensive accounting and tax services for businesses in the Treasure Coast and Space Coast area of Central Florida. We are the Dave Ramsey endorsed local provider of Tax Services in your area.
Is My Sinkhole Deductible?
If you are a Corvette fan, prepare to shed a tear. A forty foot wide sinkhole opened up in the floor at the National Corvette Museum in Bowling Green Kentucky this week. The gaping hole swallowed eight vehicles including the one millionth Corvette to leave the assembly line at the Corvette factory next door. Also swallowed up, were several other irreplaceable vehicles from Corvette lore. Here is the list of vehicles that went under according to the museum:
- 1962 “Black Corvette”
- 1984 PPG pace car
- 2009 ZR1 “Blue Devil”
- 1992 white “1 Millionth Corvette”
- 1993 ruby red “40th Anniversary Corvette”
- 2001 Mallett Hammer Z06 Corvette
- 2009 white “1.5 Millionth Corvette”
- 1993 ZR-1 Spyder
Some of these vehicles are rare, or one of a kind, so establishing the value of the loss is difficult. The museum estimates that the damage will be in the millions.
So what if you are not a Corvette person? Why should you even care about this? Well, because sinkholes are not exactly an unknown phenomenon here in Florida. As recently as January of this year, a sinkhole took out a portion of a major roadway in Ft. Pierce, Florida, just south of Vero Beach, Titusville, and Melbourne. Not long before that, sinkholes claimed boats, swimming pools, and parts of home in communities not very far from us.
Is My Sinkhole Deductible?
The bottom line is that sinkholes are a part of life in this part of our nation. We need to be aware of the ever present risk, and take prudent steps to mitigate that risk as much as we can. Perhaps a call to your insurance carrier might be a good start. Ask about any options to limit your loss. If you are unfortunate enough to sustain a loss due to a sinkhole, and you live in Vero Beach, Titusville, or Melbourne, we recommend a call to DiSalvo & Co. CPA to find out if your sinkhole related casualty loss might be tax deductible.
DiSalvo & Company, P.A. is a Vero Beach based CPA firm with offices in Vero Beach, Melbourne and Titusville. We are dedicated to meeting the accounting and tax planning needs of small business and individuals throughout the Space Coast and Treasure Coast, with clients from Titusville to West Palm Beach. Call DiSalvo & Company CPA today to schedule your free consultation at (772) 770-6008.
Do You Remember Vinyl?
I may be about to give away my age here, but I noticed a small shop in Vero Beach that buys and sells vinyl records. Seeing this shop brought back memories of all the time I spent saving for, and shopping for, my favorite music on vinyl record albums. There was something almost ceremonial about listening to a new album for the first time. First you would remove the cellophane wrapper, and then carefully slip the shiny black disc out of the protective paper sleeve before placing it carefully on the platter of your turntable. Then I would wipe the 
surface with a special brush before lowering the tonearm into the outer grove for the first time. Once the music began to fill the room, I would of course study the wealth of information, art, and images on the album cover.
Bedroom walls of the 60s and 70s were frequently lined with record albums.
I listened to vinyl records long after the compact disc came along promising the world “perfect sound forever.” I stayed with vinyl largely because much of my favorite music was off the beaten path, and did not have a large enough of an audience to warrant re-release on the new digital format. Others however stayed with vinyl because they were convinced vinyl just sounds better. I must confess, I did not miss the pops and ticks that I could never eliminate from my vinyl rig, but I do believe that vinyl records were able to reproduce a degree of warmth and depth that was lacking in the new compact disc.
There is definitely basis in fact for the theory that vinyl sounds better. Real music consists of sound waves that are continuous, and ever changing in frequency. The groove in a vinyl record is able to reproduce those continuous waves. Digital on the other hand samples the continuous waves at a fixed interval and only presents the value of the waveforms at those sample points in time.
Think of it like a connect the dots drawing. If you take a drawing of a beach ball. At every half inch along the round ball you put a dot with the next number. If you replace the curved line of the original beach ball drawing with straight lines from dot to dot, you will end up with a shape that looks a little like a beach ball, but not as much as the original drawing. In our analogy, the music is the original drawing of the beach ball, and the digital recording is the connect the dots representation of the music.
After moving all those albums a few times, I finally decided that digital music was probably good enough for me, but believe it or not, the market for vinyl never died. There are dedicated enthusiast still who keep vinyl alive. Some of the more hip recording artists today are choosing to have their new work released on high quality “180 gram” vinyl albums. Audio manufacturers exist who are dedicating much effort to perfecting playback for the vinyl purist. You might not even recognize some of the more esoteric turntables for what they are.
This state of the art turntable retails for $35,950. The tone arm pictured adds $9,500. A suitable cartridge may add as much as $15,000.
It seems the major focus on music reproduction is now all about convenience rather than fidelity. With each new medium, the music is compressed a little more, and loses some quality in the process. Now that even the compact disc seems dated, I think it is quite cool that the nostalgic record player, and the vinyl record has survived.
DiSalvo And Company, P.A. is a Treasure Coast CPA firm, with offices in Vero Beach, Titusville, and Melbourne, providing comprehensive accounting and tax services for businesses in the Treasure Coast and Space Coast area of Central Florida. We are the Dave Ramsey endorsed local provider of Tax Services in your area.
Have Peace of Mind During Tax Season
As we near our annual “tax season” it is a good time to pause for a moment and examine your plan. A certain percentage of American citizens are selected for a tax audit by the IRS each year no matter what. What if it happens to you? Are you comfortable that the person you are planning to have prepare your tax return is the right person to face off against the IRS with you?
Tax Season: 2014
Are you planning to do your own taxes, maybe with the help of some do it yourself software from a big box store? I don’t think you want “the Geek Squad” helping you navigate a tax audit, do you? Imagine then for a second, staring down the IRS auditor all by yourself.
Here is some words from folks who are glad they did not to do it themselves when they sat across from the IRS not long ago.
“We eventually got the IRS issue settled but it was through Pete’s calm, collected attitude and pragmatism working with the agent that got me through this life event. Pete’s an honest and knowledgeable man with years of experience and with a high degree of integrity. He worked with me to compile all the paperwork and details for justification and explanation of the errors. Pete was a life saver for me and I place my faith and trust in him. I highly recommend Pete for your tax needs!”
- Frank S., Melbourne, FL
I’ll bet Mr. S from Melbourne Florida was glad he was not stuck on hold for someone in customer service over at TaxByte.com
Now is the time to examine your plan for taking care of this unavoidable chore that comes with being an American citizen in 2014. Now is the time to give the tax experts at Peter DiSalvo & Company,CPA a call to see if there is a better plan. Many of Peter’s clients find that for not much more than the cost of the do it yourself software, they can have the security, and peace of mind that comes when DiSalvo & Company takes care of this chore for you.
Call Peter DiSalvo & Company now at 772 770 6008 and arrange a better plan for 2014.
DiSalvo And Company, P.A. is a CPA firm with offices in Vero Beach, Melbourne and Titusville. DiSalvo and Company is committed to meeting the accounting and tax planning needs of small business and individuals throughout the Space Coast and Treasure Coast, with clients in Brevard County, Indian River County, St. Lucie County, and Martin County.
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