Now that summer has arrived, you may find opportunities to combine business activities with pleasure, which could result in tax breaks. Here are five of those potential breaks.

1. Organize a company outing. Normally, deductions for business entertainment and meals are limited to 50 percent of the expenses. However, you can write off 100 percent of the cost of a company picnic or other get-together. Note that you can't restrict the outing to only a select few employees.

2. Take a mini-vacation. If you're traveling on business, you might extend the trip a few days to get in some sightseeing. Generally, you can deduct your travel expenses — including airfare and 50 percent of your meals — if the primary purpose of the travel is business related. But you can't deduct expenses for your side trips.

3. Send the kids to camp. When you send your children who are under age 13 to day camp so you and your spouse can work in the summer, you may claim the dependent care credit for the expense. Usually, the maximum credit is $600 for one child and $1,200 for two or more children. The cost of overnight camp doesn't qualify.

4. Lease your vacation home. If you rent out your vacation home when you're not using it, you often can deduct your rental expenses in full. Deductions are limited to rental income if your personal use for the year exceeds the greater of 14 days or 10 percent of the rental time. Note: There are no tax consequences for a rental of two weeks or less.

5. Fish for deductions. Although you can't claim deductions for an entertainment facility, like a boat, you may still write off 50 percent of entertainment expenses relating to the facility. For instance, if you take a client deep sea fishing after a substantial business meeting, you can deduct the fuel, food, and drinks — even the fish bait.

These are just five possibilities, but it's important to be aware of exclusions and limitations that may apply to your situation.

Burzenski and Company, P.C. 

Is your child thinking about taking on a job for extra money this summer? If so, both of you may have questions about taxes. The following are a few tax tips to help you prepare.

For 2017, your child can earn as much as $6,350 and not pay a dime in federal income tax. If your child's earnings won't exceed this amount, consider having the child claim "student–exempt" when completing the "Federal Withholding Allowance Certificate" (Form W-4). As long as your child's total income doesn't exceed the $6,350 limit, he or she may not need to file a 2017 tax return.

Don't overlook the fact Social Security and Medicare taxes will be withheld from your child's paycheck. While these payments are not income taxes, let your new worker know they will be withheld from his or her paycheck.

Keep in mind that self-employment income, tips, interest, dividends, and stock sales may impact your child's tax return filing requirement.

As long as you provide more than half of your child's support, you can continue to claim the child as an exemption on your tax return. Your child will lose his or her exemption, but that exemption deduction is typically more valuable to you than to your child.

If you need more details about the tax implications of your child's summer job, please call us at 203-468-8133.

 

Summertime usually makes us think of vacations, backyard barbecues, and general relaxation. Tax planning may not be on the top of your summertime to do list, but this year you may want to consider making time for it.

Major tax reform is being considered in Washington for the first time in thirty years. Current proposals include changes to the tax bracket structure, personal deductions, exemptions, and childcare credits. Potential changes could create pitfalls or opportunities that can make a difference in the taxes you pay. You can't control what happens in Washington, but you can prepare for what's ahead by considering moves that could minimize your tax bill for 2017.

This year tax planning is more important than ever. Call today at 203-468-8133 to schedule a midyear tax review. We'll discuss your situation and find the strategies that are most beneficial to you.

 

Each year the IRS produces its "Dirty Dozen" list of tax scams. As criminals become savvier at stealing personal information and scamming people out of their money, taxpayers must be more vigilant than ever. Here are some of the more common scams you may encounter.

Identity theft: The IRS continues to receive fraudulent returns filed with someone else's social security number each year. While the agency is making progress in finding and prosecuting these criminals, taxpayers must be extremely cautious with their personal information to avoid becoming a victim.

Phishing: Phishing is a scam where criminals try to steal your financial information through the use of legitimate-looking emails or websites. Knowing that the IRS does not initiate contact with taxpayers via email regarding bills or refunds should help you avoid this scam. If you receive a suspicious email, don't click on it; forward it to phishing@IRS.gov.

Phone scams: This ongoing scam involves criminals who call taxpayers and impersonate IRS agents. Their attempts to get taxpayer information often include threats of police arrest, deportation, and license revocation. The IRS reminds taxpayers that they never demand immediate payment, require a specific form of payment, request card payment over the phone or threaten to involve law enforcement.

Charities: Taxpayers should be aware of a scam where groups pose as charitable organizations to attract donations from contributors. These groups sometimes choose names similar to nationally known organizations so contributors are more apt to open their pocketbooks. Before you donate, check Exempt Organizations Select Check, a tool offered by the IRS that allows you to verify the legitimacy of organizations to which you are considering donating funds.

Awareness is often your best defense to protect yourself from these popular scams.

https://henryscheinvet.com/…/partnering-for-better…/articles

Taking Stock of Your Practice's Most Valuable Assets 


Read the expert advice in these articles by Burzenski's own Gary I. Glassman, CPA.

 

This is the a series of articles that discuss the insightful viewpoints of four of the most respected and well-known financial experts in the veterinary business today, including our very own Gary I. Glassman, CPA. These experts came together at the invitation of Henry Schein Animal Health, Ceva, Elanco, Merck, Merial, Purina, and Virbac to share their expertise and informed opinions in the areas of pharmacy, nutrition and data.
The mission of the “Veterinary Pharmacy Diets and Data Solutions Workshop” is to bring expert advice and actionable business solutions to increase the practice success of the veterinary customers we serve while reinforcing the veterinarian to the pet owner as the best source of healthcare and product choices for longer healthier lives of the pet family member.

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Here's everything we know about the Google mobile-first index.

 

http://searchengineland.com/faq-google-mobile-first-index-262751

Tax breaks are attractive. But Gary I. Glassman, CPA counsels that you buy the equipment your veterinary hospital needs, your team will use, and your finances will appreciate with great ROI.

https://www.youtube.com/watch?v=UPJbRtmbdzM

 

Here is a post by Charles Hall.

http://cpa-scribo.com/25-ways-fraud-occurs/

 

To prevent fraud, we must know how it happens.

Common Frauds

Here’s a list of common company thefts:

  1. Collection clerk steals cash prior to recording it
  2. Collection clerk steals cash after recording a customer receipt; he voids the receipt and adjusts (writes down) the customer’s account
  3. Collection clerk places a personal check (for $5,000) in the cash drawer and takes an equivalent amount of cash; the clerk leaves the check in the drawer for months—in effect the clerk has an unauthorized loan
  4. The cash collections supervisor steals cash after receiving funds from collection clerks but before the money is deposited; she adjusts the related bank reconciliation by the amount stolen
  5. The person opening the mail steals checks before they are receipted; these amounts had not previously been recorded as a receivable
  6. Employees steal capital assets (knowing that no one performs periodic inventories)
  7. Employees use company credit cards for personal purchases but code the transactions as company expenses
  8. Accounts payable clerks cut checks to themselves (or to an accomplice) but record the check as company expenses; the check signatures are forged
  9. Accounts payable clerks establish fictitious vendors using their own addresses, a P.O. Box, or that of an accomplice; payments are made to the fictitious vendor and covered up with fictitious invoices; the checks are signed electronically as they are printed
  10. Accounts payable employee intentionally double-pays an invoice, then requests that the vendor refund the extra payment (with the refund going directly to the payable clerk)—check is converted to personal use
  11. Payroll personnel increase the pay rate—in the master pay rate file—for themselves or for friends working in the company
  12. Payroll personnel pay themselves (or friends) twice for each payroll
  13. Payroll personnel purposefully overpay withholding taxes and inflate the withholding amount on their own W-2, resulting a tax refund that includes the excess payments
  14. Purchasing department personnel are bribed by a vendor; the vendor recoups the bribe costs by inflating its subsequent invoices
  15. State, city, county elected officials are bribed; the vendor recoups the bribe costs by inflating its subsequent invoices
  16. Vendors give favors (e.g., free vacations) to those with the power to buy—commonly called a gratuity; vendor recoups the cost of the favors by inflating its subsequent invoices
  17. CEO orders accounts payable staff to make payments to himself (with an implied threat); payments are coded in a manner that hides the payment
  18. Money is wired by the CFO to the CFO but is recorded as a legitimate expense using a journal entry
  19. Money is wired to the CFO who then leaves the country without trying to cover up the theft
  20. The CEO or CFO makes payments to someone who is threatening their life or is blackmailing them; the expense is coded as legitimate
  21. A secret bank account is opened in the name of the business by the CFO but the sole authorized check signer is the CFO; checks are made from a legitimate business bank account to the secret bank account; the CFO writes checks to himself from the secret account
  22. A sales person steals rebate checks that belong to the company; she deposits the checks into her personal bank account by writing “pay to the order of…” on the back of the check
  23. The payables clerk writes a manual check to himself and then records the check with a journal entry that reflects a legitimate vendor
  24. The CFO inflates revenue at year-end with fictitious journal entries; stock prices go up; the CFO sells personally-owned company stock, then the CFO reverses the year-end accruals
  25. The inventory clerk steals stock and covers the theft by altering the inventory records

Fraud Brainstorming for Auditors

In performing your fraud brainstorming, consider printing out this list and seeing if any of these thefts are relevant to your audit.

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