Blog from Anthony Giannette, CB

Due to massive misunderstanding with company owners about how to expense meals, this article has been pulled from the IRS website to assist. There are two occasions when expensing food and beverages are acceptable:

1. As meals, entertainment, and gifts. This is effective when a future profit is implied. Customers, clients, and colleagues meet for common endulgence. Deduct 50%.
2. As meals, entertainment and gifts as a party for all employees of a department or company. Deduct 100%.

Meals and lodging. You can usually deduct the cost of furnishing meals and lodging to your employees. Deduct the cost in whatever category the expense falls. For example, if you operate a restaurant, deduct the cost of the meals you furnish to employees as part of the cost of goods sold. If you operate a nursing home, motel, or rental property, deduct the cost of furnishing lodging to an employee as expenses for utilities, linen service, salaries, depreciation, etc. Deduction limit on meals. You can generally deduct only 50% of the cost of furnishing meals to your employees.

However, you can deduct the full cost of the following meals.

Meals whose value you include in an employee’s wages. “–not the best use of company funds“–Tony.

Meals that qualify as a de minimis fringe benefit as discussed in section 2 of Publication 15-B. This generally includes meals you furnish to employees at your place of business if more than half of these employees are provided the meals for your convenience. “Basically, pocket change used to provide for an employee’s well-being.”-Tony

Meals you furnish to your employees at the work site when you operate a restaurant or catering service.

Meals you furnish to your employees as part of the expense of providing recreational or social activities, such as a company picnic. “General rule here is ALL employees must be invited. My clients have found increased morale when engaged thusly.“–Tony

Meals you are required by federal law to furnish to crew members of certain commercial vessels (or would be required to furnish if the vessels were operated at sea). This does not include meals you furnish on vessels primarily providing luxury water transportation.

Meals you furnish on an oil or gas platform or drilling rig located offshore or in Alaska. This includes meals you furnish at a support camp that is near and integral to an oil or gas drilling rig located in Alaska.

———————————————————————————————————————–Employee benefit programs. Employee benefit programs include the following.

Accident and health plans.
Adoption assistance.
Cafeteria plans.
Dependent care assistance.
Educational assistance.
Life insurance coverage.
Welfare benefit funds.

You can generally deduct amounts you spend on employee benefit programs on the applicable line of your tax return. For example, if you provide dependent care by operating a dependent care facility for your employees, deduct your costs in whatever categories they fall (utilities, salaries, etc.). Taken from http://www.irs.gov/publications/p535/ch02.html#en_US_2011_publink1000208677

Are you one of the millions of Americans who own rental property? Do you enjoy filling out lots of extra tax forms? If so, you’re in luck!As reported by the Examiner’s Susan Ferrechio, a provision of the Small Business Jobs Act passed by Congress last fall mandates that rental income be subject to the same tax reporting requirements as a business or trade.Thus, rental income recipients making payments of $600 or more to a service provider in the course of earning rental income are required to provide an information return (typically, Form 1099-MISC, Miscellaneous Income) to the IRS and to the service provider.

Pasted from <http://askmikebutler.com/new-tax-law-creates-big-headaches-for-rental-property-owners/>

As an astute bookkeeper and student of Accounting, I have been saying for years that business owners should embrace the information reporting requirement and apply it across all vendors regardless of whether their services are provided as an employee replacement contractor or not. Now rental property must report to the IRS and to the vendors. Do you know how tough it is to convince big stores to provide 1099 information? Oh boy is this going to be a busy year!

I was looking around the internet at my hobby stuff. Stock investments, realty investments and ran across a quote worthy of sharing with my readers:

” I found that when you start thinking and saying what you really want then your mind automatically
shifts and pulls you in that direction. And sometimes it can be that simple, just a little twist in
vocabulary that illustrates your attitude and philosophy.”

“Formal education will earn you a living. Self education will earn you a [friggin] fortune.”

–Jim Rohn

Yes! I am available to the highest bidder!

Actually this is not an auction, but since becoming independent, I have discovered the need to continually plug myself in order to attract new clients and employers. If you found this article, it is likely you have come from my linked in account. Below is a snapshot of what I offer to all my clients, employers and friends. If you are thinking about hiring a bookkeeper, give me a call. I won’t charge you for asking a couple simple questions. I’m not a lawyer after all…

Contacting me is pretty easy as I monitor the blog daily to clear out the pesky spam this site keeps getting.

Accounting 7 yrs Experience

As a professional bookkeeping and accounting systems advisor, I provide strategies that allow clients/employers more time to market, sell, and operate their benefit revenue stream. My goal is to assist your identification of additional revenue streams, streamline your accounting procedures and develop variance budgeting. Experience with personal budgets & real estate development accounting has proven that a 4 year budget is the slimmest of cash flow forecasts. I believe in targeting a 12 year forecast including lean and robust years of growth.

I have developed methods any small business can implement. My clients enjoy access to information security, near paperless operations, email on a localized computer, online video conferencing, an online mailing solution, and an advisor who does not charge by the minute when contracting.

My network of professionals and affiliations with local Chambers of Commerce, Business Networking International, the American Institute of Professional Bookkeepers, and Biznik online presents access to hundreds of professionals in many fields.

George Orwell made an astounding tale in the 1050's this image is a possible rendition of his vision.

As we approach the end of 2010, tax time and changes in reporting will begin to hound all business owners from the Pacific Ocean to the Atlantic seaboard. A major change in the way we report vendor expenses to the IRS is both a simplification and a complication all in one major swoop. In effect, beginning January 1, 2011, we must report every penny spent for vendor expenses above $600.00 whether it be product purchases or services rendered.

Your bookkeeper likely has already changed processes and contacted all of your vendors to ensure this 1099 law change goes into effect without a hitch. However, if you are like several of the vendors I contacted during 2010, you might be wondering what I am talking about. The 1099 reporting requirements have changed. There are no longer any exceptions to reporting. They were all swept away!

All dollars spent for business purposes must now be reported. What was not said by the law or by the IRS is this might actually be one way to assist in auditing our expenditures and income for future reporting periods.

Do all of your 1099′s match your income?

Do all of your out-going 1099′s match your vendor’s record for what they report receiving from you?

As we all read from the novel, 1984, George Orwell was concerned that the government would become socialist enough to track our every move. This change with 1099′s might just be what the good writer predicted. Is “Big Brother”watching over us or just making us tattle on each other?

Windstream Communications

For anyone in my circle who has been paying attention, Windstream is upward trending above 13.10 per share today and expected to continue rising. I bought this stock in the Spring of 2010 and was expecting to sell before December. I think I will buy a few more shares to put my growth over the 20% mark for the year.

“Windstream [Communications] (NASDAQ:WIN) traded in a range yesterday that spanned from a low of $13.10 to a high of $13.36. Yesterday’s high of the day pierced the 3-day high of $13.16 on volume of 4 million shares.” –Comtex SmarTrend(R)

The news is all good for Windstream. Fundamentals are sound. Not being a licensed broker I am not telling anyone what to do with their decisions on this stock. But as you can see, I placed an order to purchase a few more shares today.

Found on Bloomberg BusinessWeek bloomberg.com

Small companies are desperate for growth capital, but banks and investors remain cautious, says Pepperdine Private Capital Markets Project’s John Paglia.

By Karen E. Klein

Associate finance professor John Paglia is senior researcher for the Pepperdine Private Capital Markets Project, a twice-yearly survey of privately owned businesses and the lenders and investors who fund them. Its latest report shows that multiple efforts to shake loose capital over the past 18 months are not working, Paglia says, and Main Street continues to suffer. He spoke recently with Smart Answers columnist Karen E. Klein; edited excerpts of their conversation follow.

Karen E. Klein: What groups are surveyed in your study?

John Paglia: We survey banks, asset-based lenders, mezzanine funds, private equity groups, venture capital organizations, angel investors, business owners, business appraisers, and factors. We started the survey in 2009, and it’s semi-annual. It’s available complimentary to the public.

You surveyed 559 private companies, nearly half of which reported $3 million or less in annual revenue. What are their top concerns?

The No. 1 concern for private companies is access to capital. Nearly 31 percent cited that, even more than the 27 percent that said the economy is their top concern.

What’s interesting is that more than half—53 percent—reported that their revenue had increased in the past six months, and 70 percent said their expenses had either declined or stayed the same as a percentage of revenue.

The companies also reported, by 71 percent, that if they had additional growth capital they believed they would see an increase in revenue growth. And 63 percent said they believe opportunities for growth have increased in the past six months.

Your survey shows that banks are more risk-averse than they used to be and they’re relying more on collateral and personal guarantees.

It seems that bankers are spending more time reviewing applications than they did in the past. Two or three years ago things were quite frothy, and everyone was a little bit lazy. But now they are really scrutinizing those applications, probably in the manner they should have been doing all along.

Many bankers say they aren’t lending, at least in part, because demand for loans is down. But your survey seems to contradict that assertion.

Generally speaking, we found more demand for loans among business owners. And among the banks that responded to our survey, 72 percent indicated that the number of loan applications they received had increased during the last six months. So there’s demand for capital. Something’s not quite sitting right when we hear from the banks that there’s no demand.

What about loan approval rates?

The banks reported that they declined 72 percent of cash flow-based loans, 90 percent of real estate-based loans, and 46.7 percent of collateral-based loans. The quality of cash flow and earnings were cited as the top two reasons that loans were declined, followed by weakening industries and current debt loads.

But your survey shows that the creditworthiness of borrowers has been going up, despite the economy.

Yes. The majority—55 percent—of bankers said the credit quality of potential borrowers has increased in the past six months. That may reflect the fact that the banks are risk-averse, and companies know that they’re really ratcheting up their standards. Almost 39 percent said they had tightened up their loan agreements’ financial covenants.

You also polled venture capital firms and angel investors, who are often a source of early investment for entrepreneurs. What did you find?

Those capital sources are also becoming more risk-averse because of the hits they’ve taken recently. The survey shows that they are investing in later-stage companies and in companies in which they have deployed capital already. More than half—54 percent—of angels said they had funded fewer businesses in the past six months.

More than 80 percent of angel investors predicted that the demand for funding will increase in the next 12 months, but nearly 80 percent also said that investment restrictions will increase or stay the same during that period. And 57 percent said the general appetite for risk has declined.

What does that kind of cautionary attitude mean for the economy at large?

It’s a troubling trend. It means there’s a dearth of capital opportunities for the upstart businesses that potentially—down the road—could lead us to economic prosperity.

Karen E. Klein is a Los Angeles-based writer who covers entrepreneurship and small-business issues

From: http://www.linkedin.com/news?viewArticle=&articleID=183965939&gid=1998299&type=member&item=28525349&articleURL=http%3A%2F%2Fnews.google.com%2Fnews%2Furl%3Fsa%3Dt%26fd%3DR%26usg%3DAFQjCNG7dgPgXtCcWjEIqZVV2G9LAnauVA%26url%3Dhttp%3A%2F%2Fwww.businessweek.com%2Fsmallbiz%2Fcontent%2Faug2010%2Fsb20100830_829624.htm&urlhash=diCq

Military vets get a helping hand this Veteran's Day November 11th

I thought I would pass this along

On Nov. 11, veterans and active duty military personnel are getting more than just recognition for their service.

More than 400 bed and breakfasts and inns in 46 states and Canada are offering current and former military members and their families a free night’s stay on Nov. 10, the day before Veterans Day. According to Kathleen Panek, owner of the Gillum House in Shinnston, W.Va., the promotion first was offered in 2009 by ten members of the West Virginia B&B Association but this year has expanded nationwide.

Participating locations must offer at least one room free of charge, and service members wishing to take advantage of the promotion must present a current military or VA identification. For a list of participating properties, go to BnBsForVets.org .

PLEASE CHECK the Veteran and Family Support Events Calender at: http://www.my.calendars.net/cencapgrevents

Doug Lyvere
SgtMaj, Marine ret
Chairman, Eagles Up
www.eaglesup.us
Assistant State Captain, PGR
www.patriotguard.org
Road Guard, Run For The Wall
www.rftw.org
American Legion Rider
www.americanlegionriders.net/

415-309-2510

I’ve always wanted to do something magnificent. Now I finally have my chance to help others where I did not have help myself. My own military career ended in 1992. Back then, there was only the local employment office where a serviceman could be treated like a human being instead of an uneducated hack.

Today there are several recruiting companies, temp agencies and other professional organizations to assist in finding a living wage employment opportunity. How times have changed! This year I stumbled upon a website that looks to help our military veterans (milvets) while they are still on active duty OR when they happen to be between jobs OR when they simply wish to reach a hand out to the community.

Local residents and small business owners nearby any military base can now post their small one-day job on hirepatriots.com to find a polite, hard-working individual. Have a garage to clean out and wish you had an extra pair of hands to help out? Have you been injured and can’t push the lawn mower and really need to get that grass cut?

Our troops have largely heard of this website and comb it regularly looking for something to do. How about you give them a hand and post a job?

Its Free!