On January 8th, the IRS announced that it was delaying tax filing your 2012 tax return until January 30th. However, certain forms won’t be available until late February or early March. This means that most taxpayers can begin to file their 2012 tax returns on January 30th. However, if you own a business or rental property, you probably won’t be able to file either business or personal returns until March.
How to determine when you can file:
- Did you start a business or buy rental property in 2012? If yes, you can’t file until March;
- Did you own a business or rental property in 2012? If yes, you can’t file until March;
- Are you a partner or S Corp shareholder in 2012? If yes, you can’t file until March.
- If you answered no to all three questions, you can probably start filing on January 30th.
Forms 4562 Depreciation and 8582 Passive Activity Losses won’t be ready until late February or early March. Just about every business and rental property owner uses Form 4562. If your rental property generates losses, you also use Form 8582. There are some other delayed forms like Residential Energy Credits ans Qualified Adoption Credits that might keep you from filing until late February.
Leave a comment or email me with any questions if you are unsure as to when you can file. My clients will also receive a letter with their estimated filing date.
As I’ve written before, I’m a big fan of Crowdfunding. It became “legal” almost a year ago but we’re still waiting for the SEC to write the rules for it. Here’s a link to a long winded New York Times piece about the opportunities and frustrations.
DISCLOSURE: Once the rules are written, my firm plans to facilitate investing in Crowdfunding.
www.russjaegercpa.com has become the new online home for my accounting firm. I’ll keep posting here but I’ll be adding more resources on the new site. I’ll be posting webinars and other presentations that I’ve given to my clients.
During tax season, I may not post as often to insipidbanality or just use it for my anti-IRS rants.
Thanks for following.
I say this slowly for the Jets fans out there:
THE IRS NEVER USES EMAIL!!!!!!!!!!!!!!!!!!!!!!!!!!
Any email that you receive from the IRS is a scam. Don’t open it or read it. Delete it immediately. See this announcement from the IRS.
If it makes you feel better, you can forward the email to the IRS at email@example.com.
Besides food, water and oxygen, do you really need anything?
Here’s a great column from the WSJ about how Big Business has sold you out.
I’ll have an update soon about how you can properly prepare your business for the fiscal cliff.
Or cost so much.
- You never bring the information that I request. Yes I need your W-2, 1099 and every other damned form you get;
- You want me to save to save you the most money. Sometimes it takes meditation or a stroke of genius or a bottle of Jim Beam to find the deductions or planning that ordinary accountants miss;
- The price is already set and I’m a craftsman. Do you think the Pope bugged Michelangelo while he painted?
- There’s a lot at stake. Mess with the IRS? Are you insane?
- I am really @#$?&! busy. Working 16 hour days can wear a guy out.
My advice to any client, even if you are not enlightened enough to have me prepare your books and tax returns, is be prepared. If you’ve been working with your accountant for more than one season, you should know what information is needed. Ask questions in August not February. Bring cookies or booze or Rolos when you come to see me. And, realize that I’ve saved people and companies millions of dollars (seriously) in my career. Sometimes it just takes a little longer to get it right.
Make better use of outsourcing. Outsourcing and off-shoring have bad reputations perpetuated by folks who have no factual idea about either concept. Outsourcing is simply delegating necessary tasks to people or companies outside of your business. Off-shoring is buying goods or services from lower cost regions. Yes, both concepts can cost people their jobs but your job/business should always be your priority.
Does it make sense for you to manage your books, build your website, create your own logo, etc? You may need to perform a cost/benefit analysis to answer the question but generally speaking the answer is no. Isn’t your time better spent with your customers or growing your business or innovating.
Here’s an example. There’s a one person business in my building. He is a craftsman who works 10+ hours a day building things with his hands. Then he spends a few more hours at night and on weekends managing his books, filing tax returns and dealing with other paperwork. Maybe he needs a break from actually being productive. I’d like to think that his time would be better served making things that he can sell. He can find a decent bookkeeper for $12/hour. His tax returns would cost him less than $1,000 a year and he could probably get by at about $400 a year. I’m discouraged to think that he couldn’t find the extra business or cost savings to pay for these services.
Look to outsource any activity that does not serve your customers or grow your business. A short list includes:
- accounting, taxes, and payroll
- web design and maintenance
- social media and blog maintenance
- personal assistants
- lead generation (maybe)
- cleaning and maintenance, and
- IT services
Some businesses have also begun to off-shore these tasks. I watched a brilliant webinar where one business owner off-shored his personal assistant duties to the Philippines. I don’t have personal experience with these services so I don’t want to endorse them just yet. I get inundated with proposals to have firms in India prepare tax returns for me. They aren’t cost effective yet for me but the idea is tempting.
The whole idea of outsourcing is based on old economic principles of scale and specialization. If you find the right partners, you’ll definitely save time and money.