Personal Financial Tip # 16 - IRS rebate

Normally, I would put information on the upcoming tax rebate on the tax tip page.

However, in the news there has been a reporting of fraud in conjunction with rebate so I would like to address this here.

First, to be eligible for the rebate, you must file a 2007 tax return. The information place on that return will be the information used for the rebate. You do not need to send any additional information to the IRS.

No one from the IRS will contact you or request information from you in an email or phone call.

Second, if you direct deposit an IRS refund check, the rebate check will also be direct deposited. If your refund check was mailed, your rebate check will be mailed.

Third, you are not required to file a return if you owe no taxes. However, you are required to file a return in order to qualify for the rebate.

From the IRS website.

Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million households. To receive a payment, taxpayers must have a valid Social Security number, $3,000 of income and file a 2007 federal tax return. IRS will take care of the rest. Eligible taxpayers will receive between $300 to $600 if single or $600 to $1,200 if married filing jointly. Millions of retires, disabled veterans and low-wage earners who usually are exempt from filing a tax return must do so this year in order to receive a stimulus payment.

But there are more details to know about. Find out more here and visit this page regularly for the latest updates.

So the bottom line is to file a return and the IRS will take care of the rest. Give no personal information to anyone requesting it.

Business Tip #15 - What's your niche?

I've written about this in the past but it's worth reviewing.

As a business, you need to operationally position yourself as one of three operational niches.

1) Low cost provider

2) Product/Service Innovator

3) High quality product/service provider

Too often, small business owners try to straddle the line between low cost provider and high quality provider. But the two are divergent operational goals.

As a small business owner, you typically do not have the economies of scale to offer the cheapest rates for products and services. In addition, many people are willing to pay a premium for personal service.

What if your just getting going and you find you need to low ball the cost of your product and service to get the work?

Resist the temptation and ask yourself this question. Do I really want these people to be beating me up on price all the time? Because trust me... they will.

Personal Financial Tip # 15 - Telemarketers

If you registered on the National Do Not Call Registry, not that the numbers you put into the system only last for five years.

If you were someone that input that information early on, your five years are just about up.

To continue your block on telemarketers click here.

Wednesday's tax tip - Volume 14

As we approach year end, you may want to consider accelerating the payment on things like medical expenses, charitable contributions, state and local tax payments, etc.

These itemized deductions are deductible when paid, not when incurred or due. As a result, if you find that you have a spike in your income this year, you may be able to offset that income by paying your real estate taxes now rather than wait until January of next year.

If you have any questions about the tax deductibility of certain items, feel free to email me at gtvcpa@yahoo.com.

Wednesday's tax tip - Volume 13

Reminder.....

If the 4th quarter, 2007 federal and state of Ohio estimated payments are due before 1/15/08. I recommend that if you itemize, pay your state estimate prior to 12/31/07. By doing so, you'll be able to deduct the estimate for 2007.

If you have any questions about your estimate, email me at gtvcpa@yahoo.com.

Wednesday's tax tip - Volume 12

I've hesitated to post on the following issue because I have been anticipating a change in tax law since it was addressed by the media. But, to date, it does not look like anything will change in the near term.

The issue, the capital gains tax rate.

Next year, if your marginal tax rate is 0%, you will have any capital gains will be taxed at a 0% rate. This is an ideal situation for people with children in college who have little earned income.

A good strategy is to gift your child shares of appreciated stock and sell the stock in their name. Since they may be in the 0% bracket, you may be able to elude any capital gains tax on the transactions.

To date, Congress has not closed this loophole, but look for them to do so in the future.

Business Tip #14 - Record keeping

Every entrepreneur I've ever met has started a business because they either 1) believed they could sell a product or service better than the next guy 2) believed they could produce a product or service better than the next guy or 3) both.

Never have I met an entrepreneur who's primary interest was to administer their business better than the next guy.

Yet the administration is just as important as the selling and producing of your product.

If you are still running your business out of a shoe box, brief case or excel spreadsheet, consider upgrading your accounting skills to an accounting software such as Quickbooks.

I am a Quickbooks Certified ProAdvisor and I can provide you with a free copy of the Quickbooks program Simple Start.

If you have an interest, please email me at gtvcpa@yahoo.com.