New Tax Laws for 2019!

New Tax Laws for 2019!

This week I attended a two-day seminar on the new tax laws taking effect for 2019. The sheer number of changes is a little overwhelming. There are new reporting requirements for anyone who files Head of Household status. There is also an expanded due diligence checklist for any taxpayer that claims college expenses, the child… Continue Reading

Experience is the Best Teacher!

Experience is the Best Teacher!

I just returned from a three-day retreat for CPA firm owners. It was at the Hotel Hershey in Hershey, PA.  At this retreat, small accounting firm owners mentor each other, share with each other and sympathize with each other over the trials of running a small accounting and tax practice in today’s economy. It is by… Continue Reading

Recording Donated Assets on your Books

Recording Donated Assets on your Books

Business owners record the cost of their physical assets on their books for a variety of reasons. The cost is important for income tax reasons since it is depreciated or deducted over a period of years. In Maryland, the assets of a business, and their costs or values, are reported annually on a Personal Property… Continue Reading

The Business Expo Is Here!

The Business Expo Is Here!

The Brunswick Chamber of Commerce annual Business Expo is this evening. It will be held at the new Brunswick firehall. Our firm has been an exhibitor for the last three years and each year it has been a great experience. This is a great venue to market a small local business like ours. For me,… Continue Reading

A Lack of Documentation can Cost You!

A Lack of Documentation can Cost You!

I met with a number of clients in the last couple of months who are very tech savvy and utilize a lot of the current technology available in running their businesses. Some deposit their customer checks by taking pictures of them with their phones. Others track their auto mileage by using the GPS app on… Continue Reading

The IRS does not care what your Divorce Decree says!

The IRS does not care what your Divorce Decree says!

Every year at tax time, we encounter a variety of situations relating to divorced spouses claiming their children. In prior years, there were various ways used to justify who claimed which child. Sometimes the spouses agreed who claimed who and sometimes they didn’t. For years, the state court systems would approve divorce agreements that specified… Continue Reading

Ethics in Tax Practice

Ethics in Tax Practice

In the course of operating a tax practice, we sometimes find ourselves dealing with issues and situations that seem harmless or insignificant, but that are really landmines waiting to explode. As practice owners, we must set the standards of performance and adherence to policies that our clients and staff members are expected to follow. No… Continue Reading

Employing your child could be a win-win strategy

Employing your child could be a win-win strategy

I met with one of my higher income clients this morning to discuss tax saving ideas. She operates a business out of her home to keep the overhead low. This year her income has increased about 20 percent and it looks like the growth will continue for the foreseeable future. We discussed a number of… Continue Reading

The Balance Sheet: The Unappreciated Statement

The Balance Sheet: The Unappreciated Statement

I have prepared financial statements for business owners throughout my entire career. A standard set of financial statements can be a wealth of information when it comes to operating a successful business. Too often the value of these tools is unappreciated by the business owner. Many times, their attention goes straight to the bottom line… Continue Reading

Don’t be Afraid to Raise your Prices!

Don’t be Afraid to Raise your Prices!

This morning I met with a small contractor to review his year to date results of operations and compute the income tax he should submit by Sept. 15th. During the meeting he mentioned how busy he has been and that he is turning down offers to look at more work because he is already scheduled… Continue Reading