Monday, January 30, 2012

TIPS FOR RECENTLY MARRIED OR DIVORCED TAXPAYERS WITH A NAME CHANGE

The IRS just issued a reminder to people with name changes.  Processing of your return will be slowed down if you do not properly follow their steps. 

Five Tips for Recently Married or Divorced Taxpayers with a Name Change

If you changed your name after a recent marriage or divorce, the IRS reminds you to take the necessary steps to ensure the name on your tax return matches the name registered with the Social Security Administration. A mismatch between the name shown on your tax return and the SSA records can cause problems in the processing of your return and may even delay your refund.

Here are five tips from the IRS for recently married or divorced taxpayers who have a name change.

1. f you took your spouse’s last name -- or if you hyphenated your last names, you may run into complications if you don’t notify the SSA. When newlyweds file a tax return using their new last names, IRS computers can’t match the new name with their Social Security number.

2. If you recently divorced and changed back to your previous last name, you’ll also need to notify the SSA of this name change.

3. Informing the SSA of a name change is easy. Simply file a Form SS-5, Application for a Social Security Card, at your local SSA office or by mail and provide a recently issued document as proof of your legal name change.

4. Form SS-5 is available on SSA’s website at http://www.socialsecurity.gov/, by calling 800-772-1213 or at local offices. Your new card will have the same number as your previous card, but will show your new name.

5. If you adopted your spouse’s children after getting married and their names changed, you'll need to update their names with SSA too. For adopted children without SSNs, the parents can apply for an Adoption Taxpayer Identification Number – or ATIN – by filing Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions with the IRS. The ATIN is a temporary number used in place of an SSN on the tax return. Form W-7A is available on the IRS.gov website or by calling 800-TAX-FORM (800-829-3676).

Thursday, January 26, 2012

FARM LENDING COMPETITION IS FEROCIOUS

(Bloomberg News/JournalStar.com) -- Bloomberg reports, "Farmers are taking advantage of a resurgence in government-chartered credit providers and Federal Reserve efforts to stoke the economy by holding the Fed funds rate near zero."According to Jason Henderson, vice president and Omaha branch executive at the Federal Reserve Bank of Kansas City, "We're seeing very aggressive activity by the Farm Credit System and commercial banks. ... Everyone is battling for market share."In Nebraska, farm real estate loans went for an average rate of 5.72% in the third quarter last year, according to the article -- "about half what they were 25 years ago."
To read more on this article: READ MORE

NEW FARM BILL

'New Farm Bill Not Likely Until Spring Of 2013, Insiders Say'

(Nebraska Radio Network) -- NebraskaRadioNetwork.com reports that Barry Flinchbaugh, a noted ageconomist at Kansas State University, "says Nebraska farmers and ranchers who are hoping to see a new farm bill come out of Congress this year will likely be disappointed." Flinchbaugh "doesn't expect a lot of work to be done on the farm bill until next year," after the election. He also predicts "ag income will likely increase this year, following the approval of the trade agreements last fall."

To read more on the article: READ MORE

Wednesday, January 25, 2012

HERE’S SOME GOOD NEWS

Law School Applications Fall 15%

The total number of applications and applicants for the Class of 2015 at ABA-approved law schools as of January 13, 2012 were:

· Applicants: 31,815, down 16.7% from last year
· Applications: 233,361, down 15.3% from last year

Tuesday, January 24, 2012

NEW BUILDING - WRITE OFF

Q. I put a deposit on a building in August of 2011 thinking that it would completed by the end of the year. The builder has not started the building yet and says it will most likely be completed mid February, depending on the weather. I paid for it in 2011 thinking I can write the building off. Now in reading your blog I understand that I can’t write it off in 2011?

A. In order for a farmer to construct a new farm building in 2011 and be able to take 100% bonus depreciation on the building your must meet two tests. First, you must have paid for, or have a financial obligation to pay for and secondly it must be available to place in service. In your case you meet test one but not test two so you do not qualify for the deduction in 2011.

In your case, since the construction was not finished by year-end, then 50% bonus depreciation will apply in 2012, not the 100% bonus depreciation of 2011.

Sorry.

Thursday, January 19, 2012

TAX PLANNING OPPORTUNITY - 2% PAYROLL TAX WAIVER

Throughout 2011, as a method of stimulating consumer spending, Congress had reduced the employee share of the Social Security tax, as well as the self-employment tax rate, by 2%. But when it came time to extend this cut for 2012, Congress could not agree on how to pay for a full one-year extension. As a result, the 2% cut is only officially in the law at this point through February 29, 2012.

If Congress does not agree on an extension for the full year, there is a small planning point for those who are employees of their own corporation, or who issue occasional salary checks to family members for their services in the business.

In order to receive the 2% waiver, payroll must be issued in the first two months of 2012. And to maximize the savings, the worker must receive at least $18,350 of compensation in the first two months of the year ($18,350 is 1/6th of the $110,100 maximum amount subject to Social Security tax in 2012). So for those who only draw an occasional paycheck from their business, such as an S corporation or a C corporation, there is a tax savings (albeit under $400) if roughly $18,000 of that payroll is drawn within the first two months of 2012.

But note: If Congress extends the 2% cut for all of 2012, this becomes a moot point.

Wednesday, January 18, 2012

QUESTION FROM A MISCLASSIFIED WORKER

Q. I am definitely an employee at my job but, my employer did not withhold anything and instead of giving me a W-2 like he should have he gave me a 1099. Last year he gave me a W-2. Now not only do I owe a bunch of tax I also have to pay both halves of the Social Security and Medicare tax. This is not fair. Is there anything I can do?

A. Yes there is something you can do to cut your Social Security and Medicare in half. Since 2007, you are allowed to file a Form 8919M Uncollected Social Security and Medicare Tax on wages instead of filing Schedule SE. The form SE charges you tax at 15.3% versus the 7.65%.

There are some codes on the form that you will need to review and if you meet one of the criteria, walla you qualify.

By the way, this IRS may be visiting your employer. He will at least be getting a bill from the IRS for his 1/2.

Tuesday, January 17, 2012

JUST FOR FUN - MY HIGH SCOOL ENGLISH TEACHER WOULD LOVE THIS


Buffalo buffalo Buffalo buffalo buffalo buffalo Buffalo buffalo

Believe it or not, this sentence is grammatically correct and has meaning: “Buffalo buffalo Buffalo buffalo buffalo buffalo Buffalo buffalo.” First devised by professor William J. Rapaport in 1972, the sentence uses various meanings and parts of speech for the term “buffalo” (and its related proper noun “Buffalo”) to make an extremely hard-to-parse sentence. Although most people know “buffalo” as both a singular and plural term for bison, and “Buffalo” as a city in New York, “buffalo” is also a verb meaning “to bully, confuse, deceive, or intimidate.”

Using these definitions, Wikipedia suggests the sentence can be read: [Those] (Buffalo buffalo) [whom] (Buffalo buffalo buffalo) buffalo (Buffalo buffalo).

Still too hard to follow for those of us who don’t know “buffalo” as a verb. Refine once more: [Those] buffalo(es) from Buffalo [that are intimidated by] buffalo(es) from Buffalo intimidate buffalo(es) from Buffalo.

And once more: Bison from Buffalo, New York who are intimidated by other bison in their community also happen to intimidate other bison in their community.

Wikipedia has further explanation, including the slightly frightening note: Buffalo is not the only word in English for which this kind of sentence can be constructed; any word which is both a plural noun and a plural form of a transitive verb will do.
Other examples include dice, fish, right and smelt.
Beware of Buffalo buffalo, buffalo, for they may buffalo you.

Monday, January 16, 2012

SPENDING

Please take a moment to watch this video about spending: WATCH ME

MARTIN LUTHER KING DAY

Be inspired!

Martin Luther King -
I HAVE A DREAM

Friday, January 13, 2012

2012 NEBRASKA AG CLASSIC

I was honored to speak at the Nebraska Ag Classic this past week in Kearney. The wealth of knowledge by all the speakers and the great information from the sponsors is a true credit to the Committee and sponsors. It is always wonderful to see old friends and meet new ones.

If you would like a copy of the PowerPoint from the conference please email us and we will send it to you.


OR if you would like me to speak at a conference that you go to, please let us know.



Thank you again to the NE Ag Classic Committee!

Tuesday, January 10, 2012

MORE ON CHILD LABOR LAWS

'Farmers would feel impact of proposed child labor law changes'

(Kansas City Star) -- KansasCity.com reports that child labor proposals from the U.S. Department of Labor "have stirred alarm and confusion among family farms, where children have been pitching in since mankind's earliest harvests." According to the story, under the DOL rules, "parents could still employ their sons and daughters under age 16 if the work is done outside school hours," but "paid workers age 15 and younger would be barred from operating tractors, combines, ATVs and almost all power-driven equipment, unless they obtain special certification." And "youths under the age of 18 would not be allowed to work at grain elevators, silos, feed lots, livestock auctions or in the transporting of raw farm materials."


To read more on this article: ARTICLE

FARM EXPORTS

The Federal Reserve Bank of Kansas City tabulated farm exports. These percentages are based upon their estimates for 2011-2020.

The share of the US crops that is exported each year:
Wheat – 46%

Corn – 15%

Rice – 53%

Soybeans – 47%

Cotton – 81%


The US share of total world crop exports:

Wheat – 18%

Corn – 53%

Rice – 11%

Soybeans – 39%

Cotton – 35%


The share of livestock that is exported:

Beef 10%

Pork 22%

Poultry 17%


Wednesday, January 4, 2012

NEBRASKA CORN BOARD CELEBRATES

The Nebraska Corn Board celebrated the end of 2011 with a victory when Judge Lawrence J. O’Neill struck down California’s low carbon fuel standard.


To read more: CLICK HERE

Tuesday, January 3, 2012

IRA CONTRIBUTION AND YOUR AGE

Q: For someone 60 what is the maximum IRA contribution? What about if you are 50?

A: If you are 50 years of age or older before the end of 2012, the maximum contribution that can be made to a traditional or Roth IRA is the smaller of $6,000 ($5,000 plus $1,000 catch up) or the amount of your taxable compensation. This limit can be split between a traditional and a Roth IRA but the combined limit is $6,000. The maximum contribution to a Roth IRA and the maximum deductible contribution to a traditional IRA may be reduced depending on your modified adjusted gross income. There can be further limitations for individuals who also participate in an employer provided plan.


If you are age 50 or older and have a SIMPLE IRA, the maximum contribution is different. The base amount is 100% of your compensation up to $11,500 and the catch up amount is $2,500, for a maximum contribution of $14,000. There is no phase out.

Of course to complicate matters there are some exceptions. If you are covered by a retirement plan at work here are the phase outs. CLICK HERE

If your spouse is covered by a pension plan then there are some different phase outs. CLICK HERE

Monday, January 2, 2012

SENATORS TO DOL: WITHDRAW CHILD FARMING REGULATIONS

(The Hill) -- TheHill.com reports that "30 senators are calling on Labor Secretary Hilda Solis to withdraw immediately proposed federal rules that would limit the work that young people can perform on farms." The effort is being led by U.S. Sens. Jerry Moran (R-Kansas) and Ben Nelson (D-Neb.). According to the story, "the new regulations would forbid children younger than 16 years of age from completing 'agricultural work with animals and in pesticide handling, timber operations, manure pits and storage bins,'" while prohibiting them "from handling most 'power-driven equipment' and from contributing to the 'cultivation, harvesting and curing of tobacco.'" Rep. Denny Rehberg (R-Mont.) said "the rules are proof that officials in the Obama administration do not understand rural life. 'You've got a president of the United States ... from Chicago, you've got a director for secretary of Labor who's pushing this from Los Angeles, and you have to think to yourself, do you have any idea what it's like not just to run an agricultural business in a rural state ... but to raise a family in one.'"

To read more about this: CLICK HERE

Sunday, January 1, 2012

HAPPY NEW YEAR

We wish all of our readers a very happy New Year. We started this blog over two years ago and every month without fail we have ever increasing readership. From just having a couple of comments and questions per month to probably having at least 5 a week, we have enjoyed every day of interacting with the readers. We hope the information has been useful and look forward to providing even more in 2012.

We wish everyone a prosperous New Year and we shall see what surprises 2012 bring.

WHAT'S YOUR BUSINESS NEW YEAR'S RESOLUTION?

Here are a few helpful end of year steps to help get your 2012 year off to a good start.

1. Examine your Financials - The first step is you must get your financials in order. In order to set new financial goal you must have real life numbers from 2011. Without these it will be impossible to set 2012 bench marks. By analyzing your Profit & Loss Statement you can review your total net sales (revenues), cost of sales, gross profit, profit margin, controllable expenses, as well as fixed expenses. Understand what your numbers are telling you.

2. Review last year's Goals - Don't just jump and begin creating your 2012 goals. Begin this process by reviewing your 2011 goals and compare your financial successes. A key question to ask yourself is "Did your business accomplish what you set out to do?" "Did it meet your 2011 finical goals?" Even though these questions can be painful, these important questions will assist you in creating a new action plan for 2012. Goal’s are a great ‘road map’ to reflect where you’re planning to go, however, if you throw the map in the glove box & drive by the seat of your pants you may or may not end up at the anticipated destination.

3. Planning for the coming year - Now that you have a clear picture of your successes and perhaps areas of opportunities, you can begin to do some business planning for the New Year. Set clearly defined 2012 year's goals. Implement an action plan for each goal and create deadlines for each action step.

With a little planning and organization, your Business New Year's Resolutions for 2012 will be a huge success.

Do you need help on how to make 2012 goals for your business? Isn't this what you want from your Trusted Business Advisor? Email us today and start your year off on the right foot!