CPA

Support Expires for QuickBooks 2013 and Enterprise Solutions 13.0

Beginning June 1, 2016, QuickBooks will no longer support QuickBooks 2013 or Enterprise Solutions 13.0.  If you are using either of these outdated programs (or older), we strongly encourage you to upgrade to the current version of QuickBooks.  This means that if you have file corruption or need assistance with anything in that older version, QuickBooks will not be able to help unless you upgrade.  Furthermore, if you use QuickBooks for payroll, Intuit will no longer provide payroll tax table updates, you will no longer be able to process payroll, and payroll subscriptions will be deactivated. For more information, check the links below or call your Linkenheimer CPA with any questions. Thanks.

https://community.intuit.com/articles/1020742-quickbooks-service-discontinuation-disco-policy-and-upgrade-information

http://payroll.intuit.com/support/kb/2000308.html

By |May 31st, 2016|CPA|0 Comments

Year-end tax planning with checklists and tips

Year-end tax planning could be especially productive this year because timely action could nail down a host of tax breaks that won’t be around next year unless Congress acts to extend them, which, at the present time, looks doubtful. These include, for individuals: the option to deduct state and local sales and use taxes instead of state and local income taxes; the above-the-line deduction for qualified higher education expenses; and tax-free distributions by those age 70-1/2 or older from IRAs for charitable purposes. For businesses, tax breaks that are available through the end of this year but won’t be around next year unless Congress acts include: 50% bonus first-year depreciation for most new machinery, equipment and software; an extraordinarily high $500,000 expensing limitation; the research tax credit; and the 15-year write-off for qualified leasehold improvements, qualified restaurant buildings and improvements and qualified retail improvements.

High-income-earners have other factors to keep in mind when mapping out year-end plans. For the first time, they have to take into account the 3.8% tax surtax on unearned income and the additional 0.9% Medicare (hospital insurance, or HI) tax that applies to individuals receiving wages with respect to employment in excess of $200,000 ($250,000 for […]

Financial Reporting Framework (FRF) for Small to Medium Sized Entities (SMEs)

All financial statements are prepared in accordance with a FRF e.g. Generally Accepted Accounting Principles (GAAP) in the United States of America, and International Financial Reporting Standards (IFRS).

The FRF for SMEs framework is a new accounting option for preparing streamlined, relevant financial statements for privately held, owner-managed, and smaller- to medium-sized for-profit private entities, that need reliable, financial statements, when GAAP financial statements are not required.

The FRF for SMEs framework is constructed of accounting principles that are especially suited and relevant to a typical SME. Examples include the following:

The FRF for SMEs framework uses historical cost as its measurement basis and steers away from complicated fair value measurements. 

The framework does not require complicated accounting for derivatives, hedging activities, or stock compensation. Moreover, the FRF for SMEs framework disclosure requirements are targeted, providing users of financial statements with the relevant information they need while recognizing that those users can obtain additional information from management if they desire.

The FRF for SMEs framework consists of traditional accounting principles and accrual income tax accounting methods which are very familiar to lenders. The FRF for SMEs framework is intended to be utilized by entities whose lenders base their decisions principally on reliable […]

Fly Fishing & Accounting

Recently Linkenheimer LLP took all of its employees to the beautiful Clearwater Lodge in Fall River Mills, CA for two days of fly fishing. When it was announced to the staff that we would be taking this trip, the overall response was “Fly fishing??” (Yes) and, “How many hours does it take to drive there?” (5+). To say there was skepticism would be an accurate statement, but the lodge looked beautiful, the menu appetizing, and no agenda other than learning to fly fish, all made for an intriguing idea for a trip. So we met up early one Thursday morning, had previously been assigned drivers and riders and off we went. 

One of the hall marks of Linkenheimer and its partners and staff is the longevity of everyone who works here, and the close relationships developed over this extended time, so it goes without saying that we know each other pretty well. When placed in a new environment, doing something completely new, you find new-found interests, commonalities and life experiences; not to mention the hilarity of seeing a circle of accountants practicing fly fishing techniques on the lawn of the lodge. The next morning we were up, suited with waders, boots […]

By |September 12th, 2013|accounting, CPA, cpa firm, firm, fly fishing, Santa Rosa, santa rosa cpa|0 Comments

Linkenheimer Named Best Place to Work in the North Bay



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Planning for the new Medicare taxes in 2013

As summer quickly passes and we head into the last half of 2013, it is a good time to evaluate your income and deductions for the year and begin working with your CPA on planning strategies to reduce your overall tax burden.

Specifically, upper income individuals should be aware of the additional Medicare Tax which applies to earned income  (wages and self-employment income).  Prior to this new tax provision beginning in 2013, any wages paid to you by your employer were subject to a 2.9% Medicare payroll tax, which was split equally by you and your employer (1.45% each).  Beginning in 2013, wages above $200,000 for individual tax filers, or $250,000 for married taxpayers filing jointly, will be subject to an additional .9% Medicare tax.  
For illustrative purposes, this would mean that if you and your spouse file a joint tax return and have combined wages of $350,000, you will end up paying an additional $900 in Medicare taxes. Employers are required to withhold this additional tax for employees with wages in excess of $200,000, and any underpaid or overpaid Medicare taxes will be adjusted for on your income tax return.  Individuals with both wages and self-employment income aggregate their earned […]

Obama Administration Postpones Large Employer Health Care Mandate Until 2015

The requirement that businesses provide their workers with health insurance or face fines – a key provision contained in President Obama’s sweeping health care law – will be delayed by one year, the Treasury Department said Tuesday.

The postponement came after business owners expressed concerns about the complexity of the law’s reporting requirements and some viewed it to be a potential job killer in an already struggling economy. Under the Affordable Care Act, businesses employing 50 or more full-time workers that don’t provide them health insurance will be penalized. The extra year before the requirements go into effect will allow the government more time to assess ways to simplify the reporting process for businesses.

For Complete Story

Beware of the 3.8% Medicare Surtax for Estates and Trusts

Ever since the United States Supreme Court upheld the Affordable Care Act, most of the focus has been on how this increased tax effects individual taxpayers.  As determined by this decision, individual taxpayers with modified adjusted gross income over $200,000 (or $250,000 for married taxpayers) are subject to an increased 3.8%  Medicare surtax on certain investment income beginning in 2013.


Little focus has been given on how this increased Medicare surtax will increase tax liabilities for trusts and estates.  Income in an irrevocable trust is either taxed to the trust or to the trust beneficiaries.  If income in the trust or estate is accumulated at the trust or estate level, then the trust or estate pays the income tax.  If the income is distributed to the beneficiaries, however, the trust receives an income tax deduction for the amount of the distributable net income (DNI) and the beneficiaries report the taxable income. 


In the case of a trust or estate, the 3.8% Medicare surcharge is imposed on the lesser of either undistributed net investment income or the excess of adjusted gross income over the highest estate or trust income tax bracket.  For 2013, the highest trust income tax bracket begins at $11,950, […]

Increase in the Small Business Tax Credit

Under the Affordable Care Act (ACA), some small businesses may qualify for a small business tax credit. To be eligible, you must cover at least 50 percent of the cost of single (not family) health care coverage for each of your employees. You must also have 24 or fewer full-time equivalent employees and those employees must have average wages of less than $50,000 per year. In 2014, the tax credit goes up to 50 percent and will be available to qualified small businesses that purchase coverage through the new health insurance marketplaces in each state, called the Small Business Health Options Program (SHOP).

The SHOP marketplace will be open in October of 2013 for coverage that takes effect on January 1, 2014, or later.

For more info, click here. 

Written by Mike Musson, CPA, Partner LinkedIn Profile

Tax Time: What You Need to Know



Every year the tax codes change and last year was no different. The real questions, as we close in on April 15th, are: What are the significant changes that will have an effect on how I prepare my returns for 2012; and, what planning should I be doing now for the current calendar year.
The biggest news, which we’re hoping our clients have heard about at this point, is the passage of the American Taxpayer Relief Act at the beginning of this year. In addition to changing how the Alternative Minimum Tax is calculated on 2012 taxes, it retained the status quo for a number of temporary tax breaks, extending some retroactively and others into the 2013 tax year. Marginal tax brackets also rose a bit, so even if you made a couple thousand dollars more last year, you’ll probably owe the same percentage as you did last year.

Deductions for 2012
The standard deduction for those who don’t itemize rose by $150 for single filers and $300 for joint filers — to $5,950 if you’re filing solo and $11,900 if you’re filing with your spouse. And the amount you get to deduct for both you and your dependents […]