Special Delivery E-Newsletter: December 2010

This month's Special Delivery E-Newsletter includes the following articles:

Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010

The recently enacted "Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010" is a sweeping tax package that includes, among many other items, an extension of the Bush-era tax cuts for two years, estate tax relief, a two-year "patch" of the alternative minimum tax (AMT), a two-percentage-point cut in employee-paid payroll taxes and in self-employment tax for 2011, new incentives to invest in machinery and equipment, and a host of retroactively resuscitated and extended tax breaks for individuals and businesses. Here's a look at the key elements of the package:

Year-End Tax Planning Letter for Individuals

Tax-saving strategies and items that individuals should consider in an effort to reduce or defer their annual tax obligation.

• 2010 Year-End Tax Planning for Individuals - Part 1
• 2010 Year-End Tax Planning for Individuals - Part 2

Year-End Tax Planning Letter for Businesses

Tax-saving strategies for all businesses, partnerships, limited liability corporations, S corporations and regular corporations.

• Year-End Tax Planning for Businesses
• Tax Saving Opportunities for All Businesses
• Tax Saving Opportunities for Partnerships, Limited Liability Companies and S-Corporations
• Tax Saving Opportunities for C-Corporations

What Are the Benefits of Buy-sell Agreements?

If you are a small-business owner, you don't have to sell your business to benefit from a buy-sell agreement. In fact, having a buy-sell agreement may be required under state law for certain companies.

Don't Miss Out on Above-the-line Deductions

Not all tax deductions are created equal. In contrast to deductions claimed by itemizers after adjusted gross income (AGI) has been calculated-such as deductions for charitable donations and mortgage interest-other deductions are available prior to the AGI calculation (i.e., "above the line" on Form 1040). Therefore, they can help you reduce your tax liability on your return in other ways.

Keeping Records for Your Business Car

The rules for claiming business car deductions are tough. In lieu of keeping all the required records, you might simplify matters somewhat by using the standard mileage rate.

Aurum Capital Markets Summary

Please click here for a summary from Aurum Wealth Management Group on the performance of the major market indices through the end of November as well as a recap of the significant events influencing the markets.

R&D Tax Credit Extended for 2010 and 2011 Calendar-year Expenses

The Internal Revenue Code Section 41's Credit for Increasing Research Activities ("R&D Tax Credit") has been extended for expenses paid or incurred during the period January 1, 2010, through December 31, 2011. No other changes to the R&D Tax Credit were passed as part of this legislation.

IRS Increases Business Mileage Rate to 51 Cents for 2011

The IRS has announced that the business standard mileage rate for transportation expenses paid or incurred beginning January 1, 2011, will be 51 cents per mile, up from the 50 cents-per-mile rate in effect during 2010.

Tax Season Starts on Time for Most Taxpayers; Those Affected by Late Tax Breaks Can File in Mid- to Late February

People claiming any of the following three items will need to wait to file their tax returns this year:

State and local sales tax deduction
Higher education tuition and fees deduction and educator expenses deduction
Taxpayers who itemize deductions on Form 1040 Schedule A

If claiming any of these items, taxpayers will need to wait to file their tax returns until tax processing systems are ready, which the IRS estimates will be in mid- to late February.

College Planning One-on-One Advisory

In case you have not had an opportunity to attend one of our recent college planning seminars, we'd like to extend the opportunity to attend a no-cost, one-on-one college planning advisory session to discuss your specific college planning needs.
For more information on these one-on-one advisory sessions, please contact Lou Trivisonno or Michael Van Himbergen at 440-449-6800. Or, you can visit our web site to learn more about ourCollege Planning Services.

Skoda Minotti Expands Professional Staffing Group

Skoda Minotti is pleased to announce that it has expanded its Professional Staffing Services Group with the addition of Andrew Devore. Andrew joins our team with more than 10 years of staffing experience.

Our Professional Staffing Group specializes in finding the right individual who is the right fit for your organization. The group's extensive pre-qualification process includes phone screening, face-to-face interviews, direct report reference checks, peer reference checks and where necessary, testing of applicable skills.

Our Professional Staffing Group can fill your staffing needs on a contract, permanent, direct hire or contract-to-hire basis. Our staffing professionals can provide skilled professionals to fill a variety of positions including:

Accountant (staff and senior)
Accounting Manager
Bookkeeper
Controller
CEO
CFO
CTO
Engineering (Civil, Electrical, Mechanical, Software)
Financial Analyst
Human Resources
IT Security
Internal Audit
IT Audit
Project Managers
Sales & Marketing
Tax
Treasury

For more information on our professional staffing services, please contact Andrew Devore at 440-449-6800.

Accounting & Business Advisory Blog