Every year people spend hours searching madly for those few missing receipts that will substantiate a tax deduction. An IRS audit is a real fear in the United States, one that is portrayed in television shows as a horrific experience. But did you know that receipts aren’t always a requirement when proving your deductible expenses? Thanks to past Broadway pioneer George M. Cohan, who paid in cash and fought the system when they denied his claims, we have the Cohan Rule. Not the easiest rule to use, you might wind up in court, but good to know in case you ever end up in this situation. Still, probably better to just keep saving your receipts.
Join The Crowd
Ever seen the internet ad for ThingCharger? A current, large-scale crowd-funding campaign that promises a space saving, re-charge station for all kinds of electronic devices. These offers appear in your inbox and all over the internet, urging you to share your wealth for inventive ideas and charitable causes. On the opposite side of the spectrum from funds seeking venture capital, are sites such as YouCaring, an online compassionate crowd-funding community. Check it out today and see all the ways you can make a difference in the world!
Want to start your own crowd funding site? Try this article.
19 Psychological Tactics for Successful Crowdfunding Campaigns
These Shoes Were Made For Walking
You may remember this post from July, Bureaucracy, Autocracy, Holacracy? Online shoe retailer Zappos was ditching a traditional business plan for the more free-form governance known as holacracy. In theory, the plan offered each employee an equal say in various parts of the business. Flash forward to January 2016 where employees have left the company in droves due to this new found “freedom.” The Zappos Exodus Continues After a Radical Management Experiment.
The New Slang
Are you up-to-date and in-the-know? John Brandon for INC.com advises that the words you’re using may reveal more about your generational age than you thought. 8 Words That Totally Reveal You Are Not a Millennial For those working in offices full of millennials, you may want to watch your language, JK. Guess it’s time to learn the new slang, 15 Words and Phrases Millennials Use but No One Else Understands and be right on, no wait, on fleek.
How Do You Worship?
When was the last time you asked a new friend where they attend church? Or even offered your place of worship as an option to a colleague? As America has become increasingly secular, church is not the common ground it once was, but religiosity and the need for community and personal transformation remain.
Mark Oppenheimer for the New York Times shares a look into the world of CrossFit, the popular workout program and the ways in which it compares to the ritual of church, citing a study by Harvard Divinity School Students, How We Gather. CrossFit As Church?!
When Some Turn to Church, Others Go to CrossFit
Read the full article and then consider, are you still a regular church attender or have you found other ways in your community to join with others, serve and find personal fulfillment?
Important Tax Extenders And Other Provisions
As the 2015 tax season draws to a close, we wanted to share an article from Maxwell, Locke and Ritter, LLC about the Tax extenders and provisions that have been made permanent by the passing into law of the Protecting Americans From Tax Hikes (PATH) Act of 2015.
Never hurts to know all the ways you are eligible to save on your taxes! If you need more personalized service or have questions, give me a call. Debra Newby Watkins, CPA, 512 484 8016.
Property Taxes Best Practices
Should I pay my property taxes by the end of the year? That all depends…
The general rule is to always take a deduction (pay your property taxes) every year. However, if the total of your itemized deductions is below the standard deduction available to you, “Doubling-up” on your property taxes can afford you a way to keep your standard deduction. Doubling up means paying two years of property taxes at once and then skipping a year.
For example: Suzii is a single taxpayer whose actual property taxes are $6000. She does not donate to charity. As a single person, her standard deduction for 2015 is $6,300. This means, if she has no itemized deductions, she can still reduce her taxable income by $6,300. If she pays her taxes in December, she loses that deduction because her property taxes are less than the standard deduction.
However, if she pays her 2015 taxes in January 2016 and her 2016 taxes by December 2016, her itemized deductions on her 2016 return will exceed the standard deduction and she will get the benefit of an additional reduction of $5,700.
If funds to pay your taxes are held in escrow by your mortgage company, make sure to instruct the company on when they should be paid. Every year check to see if the equity in your property exceeds 20% of the home’s value. Once you reach this mark, the mortgage company can no longer require you to escrow funds and must release any money held in that account to you. You will also by released from making mortgage insurance premium payments.
When purchasing a new home, do not depend on the title company to file your homestead exemption with the appraisal district. Always verify that you are receiving that exemption, as this will affect your property taxes.
As part of the homestead exemption, any 65 year old home owner who lives in the residence, may have their property taxes frozen, If the qualifying homeowner dies, the surviving spouse may continue to receive the exemption if the surviving spouse is age 55 or older at the time of death and lives in and owns the home. This requires an application for the exemption to continue.
There are other exemptions available to disabled persons and veterans, which may also help as you assess the best way to pay your property taxes. For more on these topics visit:
http://comptroller.texas.gov/taxinfo/proptax/exemptions/disabledvet_faq2.html
Keep in mind, that no matter how you choose to finance your property taxes, they are an important part of home ownership and it pays to know all the facts in order to best utilize your money. Have questions? Contact me, Debra Newby Watkins, CPA at 512 484 8016.
A Mind Is a Terrible Thing To Waste
“Only You Can Prevent Forest Fires.”
“Take a Bite Outta Crime.”
Q: Who said these famous lines and from what ad agency did they originate?
A: The Ad Council.
Since its inception, to encourage the public during WWII, the Ad Council has helped develop thousands of public service announcements. The group maintains 35 to 40 active campaigns at one time and receives funding mainly from corporations and individuals, as well as time donated by top ad agencies and media outlets.
Enter the social media generation and the Ad Council is right there, ready to meet this new audience. One of their latest campaigns, “I Am a Witness” focuses on bullying and digital communications. No doubt it will be fascinating to see what new Ad Council slogans become part of our everyday speech.
The Ad Council Adapts to Stay Relevant in an Age of Social Action
A “Sign” of the Times
The open-carry law (Section 30.07, Penal Code) becomes a reality in the state of Texas, beginning January 1, 2016. After that date, anyone with a licensed weapon will be able to carry it visibly in public. Some locations such as schools, hospitals and sporting events are exempt from this law but any other locations wishing to conscientiously object must install a sign with the following details and size requirements:
— Must appear in contrasting colors with block letters at least one inch in height.
— Must be in both English and Spanish.
— Must be displayed in a “conspicuous manner” at the property’s entrance.
— Must say: “Pursuant to Section 30.07, Penal Code (trespass by license holder with an openly carried handgun), a person licensed under Subchapter H, Chapter 411, Government Code (handgun licensing law), may not enter this property with a handgun that is carried openly.”
Is it any wonder that the current battle in Texas is not over the weapons themselves but over the signage required to keep them out of personal places of business and churches? Quite fitting that the penal code section number is, 30.06.
Read more here: ‘No open carry’ signs are likely to trigger next Texas gun debate
Turkey, Mashed Potatoes, Stuffing and Apps?
Got turkey on your mind? Or how you will deal with thirty guests in your house ranging from ages two to ninety-two? Wondering how you’ll juggle all those people as well as the pots on the stove? Well, Kit Eaton for the New York Times offers solutions in this video feature: Apps to Streamline Thanksgiving at Every Step of the Process. This Thanksgiving, your phone can be the key to celebratory bliss with apps ranging from multiple cooking timers to creative games of charades.