Volume 5 December 1999

Another Good Year for Ladolcetta CPA, P.A.

This is the year our firm grew large enough to merit incorporating and so we are venturing into a new millennium with a new outlook. Thanks to our friends and clients, our office continued to experience good growth this year. For the 4th tax year in a row our revenue and client base showed strong increases. An analysis of our new clients continues to reveal that the #1 source of new business comes via referrals from our friends and existing clients. THANK YOU!! We couldn’t do it without you. We can only be secure if we continue to grow. So, we are asking you to help us again. Please tell your friends and relatives about our good service. Tell them we do:

1. Income taxes-Personal and Business

2. Payroll taxes-State and Federal

3. Incorporation Service-New Business Start UD

4. Accounting-Bookkeeping

5. Financial Consulting

6. Business Consulting

INSIDE THIS Issue

Firm News

Early Filing requirements.

What’s new for 1999 taxes & Year End Tax Planning

Thought for the day

Y2K planning

You need to prepare early this year to get your tax work in to us.

Because of our growth we expect a real busy year here during tax season. If you want your work to be filed timely, you need to get your materials out to us as soon as possible. Remember, if you are a corporation or business you may need to issue 1099s or W2s by January 31 as well as file any quarterly payroll work. You also need to get your partnership/corporate returns completed by March 15. Have mercy on us and get your materials in to us early. If we receive these items late, we may need to put you on extension.

What’s New for 1999!

1. The Child Tax Credit In 1999, the IRS now gives a $500 direct credit per child for children under 17. The credit begins to be phased out when joint income exceeds $110,000. Families with 3 or more children may receive a credit in excess of tax liability.

2. College Tuition & Expenses Credits are now in full swing for all expenses paid in 1999.

3. Interest on Student Loans. These expenses are now deductible up to $1,500

4. Tax on Recapture of Education credits. If you took an education credit in 1998 but later received tuition refund or tax free education assistance you may owe tax.

5. Education Individual Retirement Account. Are still available for $500/year.

6. Individual Retirement Accounts- IRAs. You can deduct IRA contributions even if you or your spouse is covered by a retirement plan provided you meet the income requirements.

7. Standard Mileage Rate for Business Use of Vehicle. The rate is $.325/mile before 4/1/99 and $.31/mile after 4/1/99.

8. self-Employed Health Insurance. 60 % of premiums are now deductible.

9. A stop smoking program is now a deductible medical expense. These will be added to your other medical costs.

Year End Tax Planning

There is still time left to reduce your tax bill Here are some ideas:

1. If 1999 is expected to be an expensive tax year pay year 2000 deductible expenses before 12/31 and defer 1999 income till next year. Conversely if you expect a windfall in year 2000 reverse to actions described above.

2. Consider selling in 1999 stocks with losses to offset other gains already taken on 1999 sales of assets.

3. Pay Next years college tuition now.

4. Give to charity before year-end. Some charities will accept your used car and you can take a deduction for market value today.

5. Consider establishing a retirement plan if you are self-employed. Different plans have different rules so you should give us a call to discuss your particular situation.

Y2K is here

Most people have been hearing a lot of press lately about Y2K. Here in the US we should not experience more than a few annoyances but prudence suggests nothing tops good preparation. The US Congress has come forward and recommends that all Americans should prepare for Y2K as if they were preparing for am oncoming hurricane. Money magazine provided the following preparation checklist:

1. Stash away 3 days to 2 weeks worth of water and food.

2. Refill prescriptions before 12/31

3. Buy flashlights and batteries

4. Fill your auto with gas and get fuel for your grill

5. Write down emergency numbers in case you can’t reach 911

6. Save paper copies of mortgage balances, bank statements and investment records.

7. Hang on to Credit Card receipts

8. Withdraw a weeks worth of cash from your ATM

A great Website on Y2K is with MSNBC. This is the web address:

www.msnbc.com/news/TECHY2K Front.asp

A recent discussion with a member of the Red Cross Disaster Department reveals that they are preparing for Y2K on the basis of information they received from the FBI. The FBI has warned that radical terrorist groups have threatened divisive action against Americans both home and abroad to occur on 111/00. The Red Cross is acting to provide shelter for victims of the action. Perhaps staying home that day would be a prudent action.

Finally Y2K is expected to have impact on PCs in the form of computer viruses created by hackers to become active on 1/1/00. This might be a good time to have a virus protection program added to your Holiday Gift Wish List

Thought for the Day

Let us be grateful to people who make us happy, they are the charming gardeners who make our souls blossom.

Marcel Proust (1871-1922), French novelist.

Excellence encourages one about life generally; it shows the spiritual wealth of the world.

George Eliot (1819-80), English novelist

Date this page was last updated: April 26, 2010

Email us at don@ladcpa.com

Patty & Don