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Miami CPA, David L. Wrubel CPA., PA, Florida Certified Public Accountant, Miami Beach, Miami Beach CPA, FIRPTA, SBA, Loans, Financing, Taxes, Tax, Accounting, Litigation Support, Forensic Accounting, International Tax Matters, relocation, state tax, incorporations, LLC, S Corp, entity formation, choice of entity, corp vs LLC, state income tax reduction, beachcpa, miamibeachcpa, miamicpa, cpamiami, sobecpa, cpasobe

Energy Tax Credit – Save Energy, the Planet & Money!

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The economy is getting a real ‘shot in the arm’ with some of the government stimulus programs that actually seem to be working.

In addition to the Federal Stimulus Energy Tax credit of a maximum $1500 per year,  Florida Residents are enjoying many state rebate programs as well as rebates form various utility companies such as FPL & Teco gas.

As an example, say a new home central air conditioning system might cost someone around $6300.  With the combination of the rebate from Florida Power & Light, the manufacturer (RUUD), and the Federal Energy Tax Credit of $1500 – that air conditioner might end up only costing about $3500!  In addition, a more efficient air conditioner that replaces a 10, 15 or 20 year old one might save on the monthly air conditioning bill by approx $100 to $200 per month!

The Federal Energy Tax Credit enacted by the 2009 Stimulus Legislation allows homeowners to get a tax credit of up to 30% of the cost of new energy efficient window, doors, water heaters, air conditioners.  Once you reach $1500 in one year, you cannot get an additional energy tax credit for that same calendar year. 

There is also a separate additional tax credit to get up to 30% of the cost of solar energy systems, such as solar water heating and solar power, small wind systems, and geothermal heat pumps if they are installed by Dec 31, 2016.   This tax credit is separate from the credit for windows & doors, so homeowners can use both.

There is also no cap on this second tax credit for solar energy.  So even though solar panel systems are expensive and can cost even $50,000 to install.   After about $20,000 in Florida State energy rebates and the tax credit for solar power, that $50,000 installation might really end up costing about $24,000 – as an example!

Tankless water heating systems for a home that can cost around $2000, might end up being around $800 after a rebate form the TECO gas company and the federal energy tax credit – as another example!

It is important to be careful of manufacturer and vendor claims of energy efficiency to make sure that the product will actually qualify the purchase and cost for the tax credits and rebates.

If there are any questions about the energy tax credits or Florida State incentive programs, please call our office at (305) 672-4272  or e-mail: david@cpa-fl.com.

 

The full story may be found in the Miami Herald:

http://www.miamiherald.com/business/story/1193987.html

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IRS Reduces the Size and Complexity of the Offer In Compromise Form!

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The IRS has released the new Form 656-B, Offer in Compromise Booklet and the revised Form 656.  The new Form 656 is now about 4 pages!

The IRS has the authority to compromise a civil or criminal tax liability before the case has been referred to the Justice Department for prosecution.  For taxpayers who are experiencing financial difficulty and financial hardship, the Offer in Compromise Form (OIC) is submitted during the IRS collections process.  The IRS has unlimited decision making power to settle a tax liability with the IRS. 

It is important to refer to the Offer in Compromise Summary Checklist to make sure that all the necessary information has been reviewed and the appropriate forms have been completed. 

It is also very important for a taxpayer to make sure that they are eligible for an Offer in Compromise.  Generally, the IRS requires a certain period of tax compliance from the taxpayer before even accepting an Offer in Compromise application. 

For help with the Offer In Compromise Application and process, please call our office at     305-672-4272   or e-mail us at david@cpa-fl.com – for IRS help!

Offshore Tax Havens and Tax Cheats Targeted by the IRS – Voluntary Disclosure Deadline Approaches!

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President Obama promised in his campaign to target wealthy Americans who “do not pay their fair share”  of taxes on the backs of the middle class and working poor.  With the swiftness of Robin Hood, the Obama administration has set out to curb what costs the US Government an estimated $100 Billion in revenue annually. 

There is an upcoming deadline of September 23, 2009 which marks the end of a type of amnesty program on the part of the Internal Revenue Service to have US Taxpayers voluntarily disclose their offshore assets and back taxes owed to avoid criminal prosecution. 

The motivation for this voluntary disclosure is the pending case against Swiss Bank UBS which has admitted to targeting wealthy Americans  to aid them in hiding otherwise taxable income offshore.  Part of the settlement to avoid criminal indictment of the bank in the United States calls for UBS to disclose the names of the Americans hiding assets in Switzerland!

Aside from this recent development with UBS, due to the state of the global economy and its effect on the national treasuries of various industrialized nations in the US and Europe, there has been increased cooperation between any worldwide tax treaty countries.  This effort to replenish eachs’ Treasuries by the “you scratch my back and I’ll scratch yours”  joint effort is essentially an effort to help police each others’ tax evaders.

So, while this latest effort might not stamp out tax evaders…it is definately making the world a lot “smaller” since “big brother is watching” a lot more easily with modern technology these days!

For any assistance with the US Tax Amnesty program, please contact our office at (305) 672-4272.

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Starting a New Business – Choice of Entity Type is Important

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The current recession has caused many to lose their jobs.  In turn, many individuals who might be recently freed from the constraints of working for someone else now have the opportunity to become entrepreneurs and start their own company to support themselves.

For these new entrepreneurs, how to choose between an entity type LLC, Corporation, S-Corporation, LLP, Partnership or Sole-Proprietorship Self Employment is not always clear.  The tax treatment of entity type chosen can have a substantial impact on an entrepreneur’s finances for the lifetime of the company.  Therefore, it is often important to get the right guidance from the right professional – instead of the best price on a company formation online.

Setting up a new company with a qualified professional such a a certified public accountant may be available for almost the same cost (or less) than the online services once all the associated fees are added up such as rush processing, obtaining an EIN, S-election, etc.   The benefit of using a CPA to form a new company is that you may get pointed in the right direction from the very beginning – instead of being stuck with a tax on the company operations that might have been otherwise legally avoidable!

Some states have state income taxes on company income while others like the State of Florida do not currently have a state income tax on most types of entities – with the exception being C-corporations.   That leaves other entity types such as LLC’s and S-Corporations generally without any State of Florida Income Tax on the operating income!

Therefore, if a LLC or S-Corporation has operations which could be done exactly the same in the State of Florida vs. New York – the owners of that company would generally put more money in their pocket – after taxes – by operating the company and living in Florida vs. New York – simply by being in Florida since Florida has no state income tax for individuals nor for LLC or S-Corporation entity types !   It might be enough reason for a business owner to consider to literally move a company to the State of Florida from another state to eliminate state income tax on company profits legally!  Relocation of a Company to the State of Florida from another state is one way to legally reduce or eliminate State Income Tax on profits.

See our Firm Video on Choice of Business Entity: 

https://www.youtube.com/watch?v=vu4PYu5Jkws

To Incorporate a New Business as well as for assistance with the tax considerations of Forming a New Company in the State of Florida or the Reorganization of a Company to the State of Florida from another state, please contact the accounting firm of David L Wrubel CPA PA:

Should you have questions or need Business or Individual Tax Advice, our firm may be contacted at: 

PHONE:  (305) 672-4272  [4CPA]

E-MAIL:  DAVID@CPA-FL.COM   

WEBSITE:  WWW.CPA-FL.COM

FOLLOW US ON TWITTER: @MiamiBeachCPA

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http://www.sunbiz.org/       sunbiz.org            http://www.myflorida.com/dbpr

Loan Modification Help Contact Info – Highlighted on CNN Money Segment

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Over this past weekend, on the CNN Money Segment, they mentioned a Non-Profit Organization which is working together with the Federal Government to help keep people in their homes and possibly modify the mortgage on the primary home.  This service is provided at no charge by this organization.  Since they are offering free loan modification services, CNN suggested that you contact this organization frst before paying another service or law firm for loan modification services.  also, the public should beware of the many loan modification scams out there.  

The phone number to contact is 888-995-HOPE and the website is www.995hope.org

GET PROPER IRS TAX AUDIT HELP & STATE TAX AUDIT HELP

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It is often said to lawyer while they are in law school that if they represent themselves in court, then “they have a fool for a client!”   The same concept can apply to one who considers representing themselves for an IRS or State tax Audit. 

It can be important to have  proper and qualified help for an audit examination.  While it is difficult to predict the outcome of a tax examination, there may be a benefit to having a qualified person such as a Certified Public Accountant represent you on your behalf – whether it is a business or individual – or both.  Aside from any inherent advantage the education, background, knowledge of the tax laws, and experience of the representative might bring to the table – there can also be a benefit to having that individual act as a “buffer” between you and the examiner.  

So, carefully consider the options when you receive the notice of audit.  As they used to say on TV when most of us were younger: “Kids, don’t try this yourself at home…you may get hurt!”

For more questions, assistance and to discuss your options, please feel free to visit us on our firm website at www.cpa-fl.com or call (305) 672-4272.

The Small Business Administration (SBA) helps growing businesses refinance loans

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The SBA can help small businesses refinance existing real estate loans via the 504 loan program.   This program became available for small businesses on June 23, 2009 – which makes use of a provision in the economic stimulus legislation.  This can help small businesses that have heavy leverage or are coming up on a balloon payment deadline.  However, this is only available if the business is growing.   These government guarantees loans are available from non-profit organizations known as “certified development companies (CDC’s), which affiliate or partner themselves with commercial lenders.  This program provides fixed-rate financing to small businesses for fixed assets such as building, land & equipment.  Under the recent changes to the program, small businesses can refinance existing debt related to fixed assets if they also borrow money to finance more real estate or equipment.  The amount of debt being refinanced must be 50 percent or less of the total cost of the expansion.  The refinanced debt must be collateralized by fixed assets.

Estate Tax – A Ticking Timebomb for Some after 2010 – Michael Jackson’s Case is an Example

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The recent passing of Michael Jackson highlights that failure to plan ahead for one’s untimely passing can result in a huge erosion of the principal of what will pass to one’s heirs due to Estate Taxes.  While not everyone has the kind of assets and wealth Michael Jackson  had, it is important to realize that after the year 2010, the estate tax limits may revert back from their current pre-change limits.