Donna Stern CPA - Accounting Services

Tax Facts

IRA and 401K contributions have not increased for 2010. IRA contributions are allowed up to $5,000 plus another $500 if age 50+ per person and 401K contributions are allowed up to $16,500 plus another $5,500 if age 50+.
Capital gains tax rates are expected to increase next year, so consider selling some stocks or other assets with large gains. FEEL FREE TO CALL ME WITH ANY QUESTIONS.

AUDIT TRIGGERS

Deducting net loss from business on schedule C for more than 3 years.
Any unreported income—The IRS matches all taxable income reported on a taxpayer’s return with the information it receives from employers and from 1099 forms issued by banks and brokerage firms.
Improperly classifying independent contractors
Check out Independent Contractor or Employee?
at the IRS website to learn more.
In-home office deductions—Any area in your home designated as office space must be used exclusively for business.
Bartering—If you do any bartering, you must report the fair market value of the items or services for which you’ve traded.
Taking abnormally large itemized deductions—If your itemized deductions exceed 35% of your adjusted gross income, that’s a red flag. Also, if, for example, you were to report $50,000 in income and show $20,000 in mortgage interest, the IRS might scrutinize your return more closely.
Claiming mortgage interest expenses larger than your income.
Claiming dependents with no social security number or the wrong number.
Claiming losses from “tax shelters”—Any investment that generates losses can be a red flag.

Donna Stern is a highly skilled provider of accountancy and tax services and teaches bookkeeping for businesses.

Offering new way to communicate. Donna Stern is now setup to receive your questions through Skype using video calls. Contact info is: donna_stern.

Prepaid Tax Advice

In these times of new technology and user friendly software, many people are deciding to prepare their own tax returns by using an online company or turbo tax. Unfortunately, these tax programs are unable to do tax planning or answer questions. I am offering you an opportunity to pay a subscription fee that would allow you access to a tax expert for an annual fee of $100.

After you subscribe you will be emailed a client # for you to use when emailing in your question. For the monthly/annual fee, you will be entitled to 20 tax questions. You will get a response within 24 hours. Once signed up your subscription will automatically renew and the fee is non-refundable. To cancel the subscription, just email your cancellation request to me.

Any request for tax projections or work to be performed by me, you will be charged a fee based on my hourly rate of $200 per hour. A quote for my service will be given at the time of the request.