What is the purpose for your life insurance policy?

Some purposes for which people buy life insurance are:

▪️To replace their income that would be lost upon their death.

▪️To hire others to replace their contributions to the family that would be lost upon their death (daycare, transportation, cleaning services, lawn services, etc)

▪️To give a business time and resources to replace an employee when a key employee dies.

▪️To pass their estate to their heirs in a tax-friendly fashion.

▪️To pay taxes, administrative fees, and debts upon their death.

▪️To pay for chronic, critical or terminal illness expenses (when the policy has living benefits)

▪️To pay off a mortgage, school loans, business loans, and other debts.

▪️To pay for all final expenses, including funeral, memorial service, burial, transportation, etc.

▪️To leave a gift to charity.

▪️To provide cash value for retirement.

If you would like more information on Life Insurance please visit http://www.chrysalisfinancialcare.com

Tax Free Weekends 2019

BACK TO SCHOOL

It’s that time of year again to start that back-to-school shopping spree.

Back-to-school shopping is one of the biggest shopping seasons for most retail stores. Some states like Maryland and South Carolina just to name a few like to help their fellow residents out by giving them what they call a tax-free holiday weekend.  16 states are participating in this tax-free holiday weekend, which means you won’t have to pay sales tax on certain items purchased. For the other states that choose not to participate, I would assume that their thought on this tax-free holiday weekend didn’t sound to economically appealing.

Having 16 states that are participating in this tax-free holiday gives you the option to cross your state borders and go shoppingso there is no need to worry.

Do you know when your state’s 2019 tax-free weekend starts? Well, below you’ll find the information needed to prepare your day for shopping.  There are links to the “Deal News” page for each state to give you more info if needed.  Do your research on lay-a-ways, online shopping and using discount coupons in combination with this tax-free holiday weekend.

Happy Shopping!

Alabama July 19 – 21
Arkansas August 3 – 4
Connecticut August 18 – 24
Florida August 2 – 6
Iowa August 2 – 3
Maryland August 11 – 17
Massachusetts August 17 – 18
Mississippi July 26 – 27
Missouri August 2 – 4
New Mexico August 2 – 4
Ohio August 2 – 4
Oklahoma August 2 – 4
South Carolina August 2 – 4
Tennessee July 26 – 28
Texas August 9 – 11
Virginia August 2 – 4
Wisconsin No tax holiday in 2019

Visit our website at www.dmtbookkeeping.com

Can’t get hired?

So, I’m watching this movie titled “Second Act” which stars Jennifer Lopez as the character Maya Vargas, a supermarket assistant manager who wants a promotion after 15 years of using her skills which led the company into having increased sales and rising revenue with her amazing marketing strategies.    After losing the promotion to a “college-educated” candidate, Mya becomes upset and frustrated and decided to quit her job leaving the company in a bind.  She went on to further prove that “street smarts” are just as valuable as “book smarts.”

What’s the moral of the story?  Well, what I got from it while having a somewhat similar experience minus the horrible boss and wanting a promotion. It was more at trying to find an employer who would accept my experience and certifications and licenses that most college graduates had not obtained. But because they got their book experience from a reputable college/university, it was much easier for them to get their foot in the door.

“I wish we lived in a world where street smart equals book smart.”

At the end of the movie, Maya Vargas ends up proving that you don’t need someone else to acknowledge your skills if you believe in yourself.  So what did she do?  She started her own company in which she partners with other supermarkets, yes including the one who didn’t believe in her ideas.

As I mentioned previously, there are similarities in Maya’s and my story, and it’s that we both started businesses that cater to our expertise.

So remember this, believe in yourself and have the courage to create your own space.

The US Supreme Court’s Sales Tax Ruling

Online shopping may become more expensive after the U.S. Supreme court ruled on June 21, 2018 that states can require internet retailers to collect sales taxes.

The 5-4 decision broke with 50 years’ worth of legal rulings that barred states from imposing sales taxes on most purchases their residents make from out-of-state retailers.

**Online retailers were previously protected from paying sales tax if they had no physical presence in a state.**

“State and local governments have really been dealing with a nightmare scenario for several years now,” said Carl Davis, research director at the Institute on Taxation and Economic Policy, a Washington think tank. “This is going to allow state and local governments to improve their tax enforcement and to put local business on a more level playing field.”

This will mostly impact the other half of products sold online by third-party merchants on certain marketplaces like Wayfair, eBay, Etsy and Overstock just to name a few. They potentially face the added burden of collecting sales tax in states that begin taxing online sales.

The ruling would present a “compliance challenge” for internet start-ups. Independent merchants who simply post their inventory on online stores are responsible for calculating and paying the various state taxes if they are owed. In the past year, Washington State and Pennsylvania have enacted laws requiring internet retailers to collect taxes on third-party sales. More states are expected to follow suit.

Follow us on Facebook for updates!

sad_amazon.0

You’re Invited!! Can You Deduct your Wedding Expenses?

Getting married soon?  I bet you wish you could deduct your Wedding Expenses.  Well, you kind of can, if you follow some important rules.  But, as always, discuss it with your tax professional.

Let me give you the run down of how you may be able to deduct those wedding expenses.  First, if you do not itemize on your tax return, then there’s no need to read any further.  But, if you do then proceed.

wedding beach

1. DONATE EVERYTHING AFTER YOUR EVENT IS OVER!  

  • Flower and Food
  • Gowns
  • Wedding Favors
  • Gift Registry – process of charitable gift-giving for guests and make gifts trackable the way they are in a regular registry for couples – Here are some examples  the Good Beginning,  Blueprint RegistrySimpleRegistry and JustGive, allow charities to be added to wedding registries.

2. THE VENUE.   If you are having your reception or getting married at a historical garden, museum or homestead, or even a state or national park, the fee you pay may be deductible as a donation.  Check with the venue for more details.  If you’re having your wedding at  A CHURCH and you are paying a ceremony fee, it may be tax deductible.   If not, ask whether the church waives ceremony fees for members who donate at a certain level.   It may be worth upping your donations for the year to get a triple benefit: a fee waiver, a tax write off, and a warm glow from donating to a good cause.

Again if you have any questions you can contact me or contact your tax professional for more information on deducting your wedding expenses.

Meals and Entertainment Changes Under the Tax Cuts and Jobs Act

office holiday party

OH NO! Are the HOLIDAY PARTIES still DEDUCTIBLE?
In general, the new Tax Act provides for stricter limits on the deductibility of business meals and entertainment expenses. Under the Act entertainment expenses incurred or paid after December 31, 2017 are nondeductible unless they fall under the specific exceptions in Code Section 274(e).  One of those exceptions is for “expenses for recreation, social, or similar activities primarily for the benefit of the taxpayer’s employees, other than highly compensated employees”  (i.e. office holiday parties are still deductible).

Business meals provided for the convenience of the employer are now only 50% deductible whereas before the Act they were fully deductible. Barring further action by Congress those meals will be nondeductible after 2025.


Businesses should keep the new rules in mind as they plan their 2018 meals and entertainment budgets. 

2018 Expenses – New Rules

  • Office Holiday Parties – 100% deductible
  • Entertaining Clients – Meals 50% deductible / No deduction for entertainment expenses
  • Employee Travel Meals – 50% deductible
  • Meals Provided for Convenience of Employer – 50% deductible (nondeductible after 2025)

Follow my blog with Bloglovin

Will Trump Sign the Newly Passed Tax Bill before Christmas as Promised?

Will this still be an early Christmas Gift for the Taxpayers?

new years at white house

Trump may wait until January to sign the tax bill into law.   The reason this may happen is because once this tax bill goes into law it will add to the deficit and when that happens it will trigger a 2010 law known as “PAYGO,” or “pay-as-you-go.”   Once this happens the budget law will require spending cuts to Medicare and other programs.  The reductions would cut spending on Medicare by $25 billion in 2018, according to the Congressional Budget Office.

If Trump signs the tax bill into law in January it would likely defer those spending cuts until 2019,  giving Congress almost a year to come up with a solution.

So what will the Taxpayers get out of the tax saving plan.  Well, let’s see!

In 2018, taxpayers earning less than $25,000 would receive an average tax cut of $60, the nonpartisan Tax Policy Center found.  Those earning between $49,000 and $86,000 would get an average cut of about $900; those earning between $308,000 and $733,000 would receive an average cut of $13,500; and those earning more than $733,000 would receive an average cut of $51,000.

And in 2025 these tax cuts will expire for individuals but the corporations tax cuts will remain permanent.

Happy Holidays Everyone!!!!

 

The Christmas Tax Bill

 

Senate Republicans passed President Donald Trump’s tax plan on December 2, 2017. Republicans still have a lot of differences between the House and Senate tax bills to compromise on.   The House and the Senate have to pass the “same” tax bill.   So which one would be “better.”   Better for whom, would be the question to ask.

I’m going to keep this simple for now.   After this bill is put into law that’s when things will get complicated.    But for now I will go over just a few things that make the House tax bill and the Senate tax bill different.

Family and Child Tax Credit
The House bill expands the credit to $1,600 per child and begins to phase it out for married couples making more than $230,000.   The Senate bill expands the credit to $2,000 per child, with a phaseout beginning at $500,000 of a couple’s income.

Mortgage interest deduction
The Senate bill keeps the limit for the mortgage interest deduction in place for homeowners  for  the first $1 million of home debt.   While the House bill caps it at the first $500,000 of debt.

Medical and Student Loan Deductions 
The House bill eliminates deductions for high medical expenses and student loan interest.  The Senate bill would leave the aforementioned deductions, intact.

The Affordable Care Act (ObamaCare)
The Senate bill repeals the Affordable Care Act requirement that individuals buy health insurance coverage.   Currently, the mandate is enforced via a tax penalty for people who fail to purchase coverage.  The House bill does not touch the mandate.

Trump predicts final passage before Christmas…..

MUSICIANS ARE YOU RUINING YOUR TAX RETURN BY FILING YOURSELF?

ladygaga

To all my future musician clients, I know you’ve tried saving money by using TurboTax or some other DIY tax website and you’ve probably made a few mistakes. The problem with these DIY tax programs are that they don’t ask the right questions specific to you as an artist, so you wind up with the wrong answers.

Here’s an example of a mistake that I’ve seen musicians make — YOUR CLOTHES, HAIR, AND MAKEUP AREN’T DEDUCTIONS, unless your “on stage outfit” is a costume, it’s not deductible for tax purposes.

Here are a few other tax items you may be missing or not.

#1 – 1099-MISC INCOME WAS MISSING

You forgot to include the 1099-MISC you received from a venue, artist, record label, or publishing rights organization. The IRS knows you got the money, and they’ll be contacting you soon, because the person who paid you reported the income because it is required for them to report it if it was $600 or more…you are still responsible for reporting ALL income received even if you did not receive form 1099-Misc

#2 – YOU DIDN’T SEND FORM 1099-MISC TO THE APPROPRIATE PARTIES, BUT TOOK A TAX DEDUCTION

Anyone you pay $600 or more should be rewarded with a Form 1099-MISC. If you don’t send them a 1099-MISC by January 31, the penalty is $30-$100 per form! So, ensure you send those out on time. Taking the deduction without sending the proper forms is a red flag.

#3 –  YOU DEDUCTED “FREE” SHOWS TO NON-PROFITS AS A CHARITABLE DEDUCTION

Wrong! Your free show was free; you don’t get to deduct what you would have made if you had charged the charity. The actual deduction you could take would be the mileage deduction for driving to and from the event at the charity mileage rate.

There’s no shame in pinching the pennies to do your own taxes, but make sure you don’t make mistakes and ruin your tax return. If you’d rather play it safe, hire a professional like us so that you can fix it before it’s too late to receive a refund or costlier in interest and penalties!

What Do You Do? I Sell Time…

Follow my blog with Bloglovin

the-two-most-powerful-warriors-are-patience-and-time-quote-patience-quotes-for-you-580x580I Had an “Aha!” Moment.

As always I was watching an “Informational” video, and on this particular day it was a Gary Vaynerchuck video where he was at a college speaking on entrepreneurship.  Now if you don’t know who Gary is you may want to Google him he’s very unintentionally motivational.  Anyway, he had stated that you cannot teach someone how to be an entrepreneur, which I agree 100%.  You either are, or you’re not.  I would like to consider myself an entrepreneur because the thought of only working for someone else drives me insane.  As he was speaking he said something very interesting which was…”The #1 Asset to everybody in the world is TIME.” I had an “AHA” moment, because after he said that he went on to saying, “if you can figure out how to sell it and buy it back that’s a big coo.”  Now if you don’t know already I have a business where I do Bookkeeping, Taxes, Payroll, Business Formation, IRS resolutions and some additional “business related” stuff.  The one thing that I’ve always dreaded about going to conferences and networking events are the people who walk over to me and ask  “What do you do?”  Thinking to myself, should I tell them EVERYTHING that I do or just mention some or one thing that I do.  So I end up just telling them, “I do taxes and bookkeeping.” And their response is usually “Oh, ok that’s great.”

Now, with Gary V saying what he said about time, reminded me of a TED talk that I watched a while back featuring Simon Sinek who spoke on somewhat the same lines.  His thing was people don’t buy What you do they buy Why you do it. This was the one thing I have always struggled with because I didn’t want to sound like everybody else…At first, I had always thought my WHY to WHAT I DO was to make people’s lives a little less complicated, but at that “AHA” moment I tapped into the #1 Asset that everybody in the world was wanting according to Millionaire Gary V and that was TIME.  I sell TIME.  For example, if you run a business and the majority of your TIME is consumed by doing the bookkeeping, the payroll and the monthly, quarterly and  year-end reports or even worse dealing with those annoying letters coming  from the state and federal agencies because of some discrepancy that was made.  Just think about it, aren’t  you losing time?  Now, wouldn’t it be nice if you could get back that time so you could focus on growing your business or your artistry which will in turn result in increasing your revenue.  As they say, TIME IS MONEY.   So, with all that said, doesn’t  it make sense how providing my professional services can ultimately give a business back its TIME?

Now when I get the opportunity to go to a conference, or a networking event, and I am asked the question, “What do you do?” Guess what my response will be…you got it…I SELL TIME! And instead of them saying the usual “Oh, okay that’s great,” and then walking away. They will be more curious and interested in what I do. Because who doesn’t want their TIME back, even if you have to pay for it.

So, What Do You Do?