Tuesday, March 31, 2009
EDITORIAL - WHAT WOULD IT BE LIKE IF THE GOVERNMENT RAN EVERYTHING?
I did have a problem though; it was ‘off season’ so everything closed exactly at 5:00 p.m. Independence Hall, the Liberty Bell exhibit; Franklin’s court; the grave yards; Betsy Ross’s house; all of the historic locations. I was not the only tourist that was disappointed by this. I talked to at least 20 to 30 visitors that, like me, were left disappointed standing at the door.
As I thought about the ‘business practice’ of closing early, I could only think about my my talk to small business owners at the conference where I had pointed out that many of our clients are expanding hours in reaction to the economy.
Then it hit me- all of these great historical exhibits were managed by the US Park Service – a branch of the Federal Government. The workers, managers, and those making the decisions were all government workers... bureaucrats. Realizing that the government was running the show it made sense that they didn’t care, they just followed the bureaucratic rules.
Then it really hit me! “Would I want the Federal Government running my health care and the banks?” That seems to be the way we are going.
Scary- really scary… I hope that if they do take over our financial institutions and our health care system that they do a better job taking care of their customers.
Larry Kopsa CPA
Monday, March 30, 2009
A MESSAGE FROM ABRAHAM LINCOLN
—Abraham Lincoln
Saturday, March 28, 2009
FYI - HOW IMPORTANT IS THE INTERNET
But that is nothing compared to the Germans. A new study found that 84% of Germans in their 20’s would do without their significant other before they gave up the Internet. They explain that they could always find another partner to love, but life without the Internet was unthinkable. WOW!
Larry Kopsa CPA
Friday, March 27, 2009
SBA OFFERS ONLINE RESOURCES ON SURVIVING IN A DOWN ECONOMY
Available Free Courses:
1. Strategic Marketing: How toWin Customers in a Slowing Economy
2. Down-Shifting in a Slowing Economy:Business Planning Guide
3. How to Prepare a Loan Package
Larry Kopsa CPA
Sunday, March 22, 2009
COMMENTARY FROM EDITORS ON PRESIDENT OBAMA'S PLAN TO HELP SMALL BUSINESS
The plan is mainly centered around easing SBA loans. The plan calls for the government to buy up SBA loan securities to free up the secondary markets so banks can sell their SBA loans; it cuts SBA loan fees; and it increases the Federal guarantee on SBA loans to 90%. It also calls for the 21 largest banks getting Federal funding to report on their volume of small business loans each month. The rest of the announced provisions for the most part were already included in the Stimulus package and not new.
So: thumbs up or thumbs down?
I’d say the plan is mildly positive, but mostly it’s just not relevant to the majority of small businesses. Here’s why:
To the extent small businesses actually want SBA loans, this could help. However, not every small business wants or needs a loan. Demand for small business loans is down significantly, according to the U.S. Treasury. As Dawn Rivers Baker noted, lack of loans is not what ails many small businesses. In times when the economy is down, going into debt doesn’t necessarily look all that attractive. Battening down the hatches to get through to better times in the economy, does.
The Small Business and Entrepreneurship Council makes a similar point — saying the President’s focus on SBA lending merely helps on the margins: “While these may help some small businesses that are in a position to borrow money, many small firms are not in sound financial shape or don’t feel it is prudent to increase their debt during the rough economic period.”
Consider, also, how few small businesses actually get SBA loans. For instance, as this Washington Post article reports, SBA loans counted for just 4% of loan volume for small businesses in 2006.
More SBA loans are not a cure-all for every small business — although you would hardly know that based on some reports. For instance, this article on Forbes.com is bizarrely titled “Small Business Loves Obama’s Plan.” However, there are no small business owners interviewed in the article. The title makes it sound as if small business owners spontaneously erupted in applause in favor of the plan. Wishful thinking perhaps … but not what the article says … nor the real-world reaction.
Tuesday, March 17, 2009
HAPPY SAINT PATRICKS DAY
--Irish proverb
Thursday, March 12, 2009
COMMON QUESTIONS ON THE STIMULUS TAX PROVISIONS
Wednesday, March 11, 2009
WHAT HAPPENS IF I HAVE MORTGAGE DEBT FORGIVEN
Eagle
Depends. If a mortgage debt is partly or entirely forgiven during tax years 2007 – 2012, you may be able to claim special tax relief and exclude the debt forgiveness income. You are correct in that normally, debt forgiveness results in taxable income. However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million of debt forgiven on your principal residence.
You may exclude debt reduced through mortgage restructuring, as well as mortgage debt forgiven in a foreclosure.
Here is the catch. To qualify, the debt must have been used to buy, build or substantially improve your principal residence and be secured by that residence. Refinanced debt proceeds used for the purpose of substantially improving your principal residence also qualify for the exclusion. However, proceeds of refinanced debt used for other purposes (for example, to pay off credit card debt) do not qualify for the exclusion.
Also, debt forgiven on second homes, rental property, business property, credit cards or car loans does not qualify for the new tax-relief provision.
Thursday, March 5, 2009
FOUR CREDITS THAT CAN REDUCE YOUR TAX BILL
1. The Earned Income Tax Credit is a refundable credit for low-income working individuals and families. Income and family size determine the amount of the credit.
2. The Child and Dependent Care Credit is for expenses paid for the care of your qualifying children under age 13, or for a disabled spouse or dependent, to enable you to work or look for work.
3. The Child Tax Credit is for people who have a qualifying child. The maximum amount of the credit is $1,000 for each qualifying child (under age 17). This credit can be claimed in addition to the credit for child and dependent care expenses.
4. The Retirement Savings Contributions Credit, also known as the Saver’s Credit, is designed to help low- and moderate-income workers save for retirement. You may qualify if your income is below a certain limit and you contribute to an IRA or workplace retirement plan, such as a 401(k) plan. The Saver’s Credit is available in addition to any other tax savings that apply.
If you need more information let me know.