As I have mentioned on this blog in the past the federal government has been trying to limit the availability for schools to get loan funding. The rules were complex and most likely hard to meet. This would have meant less schools and therefore less graduates. But there is good news.
On February 18th members of the U.S. House of Representatives on a vote 289 - 136 - 1to adopt the Kline/Hastings "Gainful Employment" Amendment to H.R. 1 -- The Full-Year Continuing Appropriations for Fiscal Year 2011 Act.
This is a hard fought validation of over two years of concentrated focus on attempts by the American Association of Cosmotology Schools (AACS) to prevent the Department of Education from implementing the overly complex, unfair, and possibly unconstitutional attempts to define "gainful employment in a recognized occupation" as defined in the HEA. As prescribed in the House passed amendment, the U.S. Department of Education would be prohibited from implementing, administering, or enforcing the interim final regulations published on October 29, 2010 AND any issuance or further development pending final regulations until the end of fiscal year 2011 (September 30, 2011).
We will be keeping an eye on this and will keep you posted.
Larry Kopsa CPA
Saturday, February 19, 2011
Friday, February 18, 2011
THE WORST PLACE TO DIE
(MarketWatch) -- MarketWatch.com reports that even "with the new $5 million federal estate tax exemption for 2011 and 2012," there are still 20 states and D.C. that "impose estate or inheritance taxes that kick in below the $5 million mark, and some kick in below $1 million."
Ohio, New Jersey and Rhode Island have estate tax exemptions of less than $1 million (Ohio at $338,333; New Jersey at $675,000; and Rhode Island at $850,000).
MarketWatch reports, "The worst place to die is New Jersey with a combined effective estate and inheritance tax rate of 54.1%. ... In second place is Maryland at 50.9%." Meanwhile, "six states impose only inheritance taxes, which are assessed on the value of specific inherited assets in excess of the applicable exemption."
The inheritance tax rates "are 9.5% in Tennessee, 15% in Iowa and Pennsylvania, 16% in Kentucky, 18% in Nebraska, and 20% in Indiana." The story notes 28 states have no estate or inheritance taxes, and that "they are better places to die."
http://www.marketwatch.com/story/story/print?guid=6367c4fc-393f-11e0-ac3a-072128040cf6
Ohio, New Jersey and Rhode Island have estate tax exemptions of less than $1 million (Ohio at $338,333; New Jersey at $675,000; and Rhode Island at $850,000).
MarketWatch reports, "The worst place to die is New Jersey with a combined effective estate and inheritance tax rate of 54.1%. ... In second place is Maryland at 50.9%." Meanwhile, "six states impose only inheritance taxes, which are assessed on the value of specific inherited assets in excess of the applicable exemption."
The inheritance tax rates "are 9.5% in Tennessee, 15% in Iowa and Pennsylvania, 16% in Kentucky, 18% in Nebraska, and 20% in Indiana." The story notes 28 states have no estate or inheritance taxes, and that "they are better places to die."
http://www.marketwatch.com/story/story/print?guid=6367c4fc-393f-11e0-ac3a-072128040cf6
Thursday, February 17, 2011
Obama plan could bring employers higher taxes to pay for unemployment aid
The AP reports that U.S. employers "could face higher taxes in 2014 under an Obama administration budget proposal designed to help states hard hit by the recession and the weak recovery to refill their unemployment insurance funds and repay money borrowed from the federal government."
According to the story, "the proposal would give states the choice of increasing tax payments from businesses, altering their benefits or a combination of both." The AP notes that "the administration plan would increase the income level that is subject to unemployment insurance taxes from $7,000 to $15,000," and that the "states would be allowed to use the new income level to raise more money from employers." The story reports that 30 of the states owe the federal government $42 billion that was borrowed to make payments to individuals claiming unemployment.
http://app.expressemailmarketing.com/get.link?linkid=2651297&subscriberid=143772548&campaignid=706727&linkurl=http%3a%2f%2fwww.action3news.com%2fGlobal%2fstory.asp%3fS%3d13988815
Larry Kopsa CPA
According to the story, "the proposal would give states the choice of increasing tax payments from businesses, altering their benefits or a combination of both." The AP notes that "the administration plan would increase the income level that is subject to unemployment insurance taxes from $7,000 to $15,000," and that the "states would be allowed to use the new income level to raise more money from employers." The story reports that 30 of the states owe the federal government $42 billion that was borrowed to make payments to individuals claiming unemployment.
http://app.expressemailmarketing.com/get.link?linkid=2651297&subscriberid=143772548&campaignid=706727&linkurl=http%3a%2f%2fwww.action3news.com%2fGlobal%2fstory.asp%3fS%3d13988815
Larry Kopsa CPA
Wednesday, February 16, 2011
WHAT IS YOUR EXCUSE?
I am reading Brian Tracy's new book called No Excuses! The Power of Self Discipline. In the book he says that we make excuses for one reason or another but if we looked around someone with that same problem that is stopping us is doing what we say we can't do.
After reading that I ran into the video below. I shared with my family and my staff. So I thought "why not share it with you."
http://www.youtube.com/watch?v=obdd31Q9PqA&feature=player_embedded
After reading that I ran into the video below. I shared with my family and my staff. So I thought "why not share it with you."
http://www.youtube.com/watch?v=obdd31Q9PqA&feature=player_embedded
Tuesday, February 15, 2011
WE CAN FINALLY START FILING TAX RETURNS
Below is the announcement from the IRS that on February 14th they have started accepting returns. The problem is that there have been so many people waiting to file their returns that there is going to be a flood of returns filed and the IRS does not know if they can handle them all. Don't blame the IRS for this problem. Congress is to blame for waiting until late December to change the laws.
Here is what the IRS has to say.
WASHINGTON — The Internal Revenue Service announced today it has started processing individual tax returns affected by legislation enacted in December and reminded taxpayers that they can begin filing electronically immediately.
On Monday, IRS systems began to accept and process both e-file and paper tax returns claiming itemized deductions on Form 1040, Schedule A, as well as deductions for state and local sales tax, higher education tuition and fees and educator expenses.
“The IRS is now accepting all the 1040 forms,” IRS Commissioner Doug Shulman said. “We worked hard to update our systems and get the changes in place as quickly as possible. We appreciate the patience of those impacted by the delay. We urge taxpayers to use e-file with direct deposit, and they can get their refunds within days.”
In late December 2010, the IRS announced it would delay processing of some tax returns in order to update processing systems to accommodate the late tax law changes. These tax law provisions were extended by the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, which became law on Dec. 17.
For the vast majority of taxpayers, the filing season this year began on time in January. Most taxpayers claiming itemized deductions and the other delayed forms file later in the year.
Here is what the IRS has to say.
WASHINGTON — The Internal Revenue Service announced today it has started processing individual tax returns affected by legislation enacted in December and reminded taxpayers that they can begin filing electronically immediately.
On Monday, IRS systems began to accept and process both e-file and paper tax returns claiming itemized deductions on Form 1040, Schedule A, as well as deductions for state and local sales tax, higher education tuition and fees and educator expenses.
“The IRS is now accepting all the 1040 forms,” IRS Commissioner Doug Shulman said. “We worked hard to update our systems and get the changes in place as quickly as possible. We appreciate the patience of those impacted by the delay. We urge taxpayers to use e-file with direct deposit, and they can get their refunds within days.”
In late December 2010, the IRS announced it would delay processing of some tax returns in order to update processing systems to accommodate the late tax law changes. These tax law provisions were extended by the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, which became law on Dec. 17.
For the vast majority of taxpayers, the filing season this year began on time in January. Most taxpayers claiming itemized deductions and the other delayed forms file later in the year.
QUESTION ON 1099 FOR PAINTING HOUSE
Q. Help settle a bet with my wife. We had in individual come in and paint our house this last year. We paid him $3150. I say that since he is not a corporation and since the amount is over $600 I have to give him a 1099. My wife says I am wrong. Please say that I am right... movie selection over the next 3 months depends on your answer.
Walt
A. Walt, best disconnect your computer so your wife does not see my answer or get ready for three months of romantic comedies and tear jerkers.
Assuming that your house is not your business property you do not need to do a 1099. 1099's are for business expenses only. That may change some day, but for now your wife is right.
Larry Kopsa CPA
Walt
A. Walt, best disconnect your computer so your wife does not see my answer or get ready for three months of romantic comedies and tear jerkers.
Assuming that your house is not your business property you do not need to do a 1099. 1099's are for business expenses only. That may change some day, but for now your wife is right.
Larry Kopsa CPA
Thursday, February 10, 2011
2011 ENERGY TAX CREDIT QUESTION
Q. Are there any new rules on the purchase of energy saving items for my home?
A. The rules are stricter. You can claim a tax credit for energy saving home improvements you make this year, but the rules for 2011 are crazy.
• You can only claim a 10% credit for qualified energy property placed in service in 2011 up to a $500 lifetime limit (with no more than $200 from windows and skylights).
That’s not all…
• The credit you claim for any year can't exceed $500 less the total of the credits you claimed for 2006 through 2010.
• The amount you claim for windows and skylights in a year can't exceed $200 less the total of the credits you claimed for these items in 2006 through 2010.
• The credit is equal to the sum of: (1) 10% of the amount you pay for qualified energy efficient improvements (such as insulation, exterior windows or doors that meet certain energy efficient standards) installed during the year; and (2) the amount of the residential energy property expenses you paid during the year.
But that’s not all…
• There is a limit on the amount of “residential energy property expenses.”
• The credit for residential energy property expenses can't exceed: (A) $50 for an advanced main circulating fan; (B) $150 for any qualified natural gas, propane, or hot water boiler; and (C) $300 for any item of energy efficient property (advanced types of energy saving equipment, such as electric heat pumps, meeting specific energy efficient standards).
Final step: Then you divide the resulting number by your grandmothers age times you license plate.
Hey, just kidding about that final step. Who says accountants can’t make a joke.
Larry Kopsa CPA
A. The rules are stricter. You can claim a tax credit for energy saving home improvements you make this year, but the rules for 2011 are crazy.
• You can only claim a 10% credit for qualified energy property placed in service in 2011 up to a $500 lifetime limit (with no more than $200 from windows and skylights).
That’s not all…
• The credit you claim for any year can't exceed $500 less the total of the credits you claimed for 2006 through 2010.
• The amount you claim for windows and skylights in a year can't exceed $200 less the total of the credits you claimed for these items in 2006 through 2010.
• The credit is equal to the sum of: (1) 10% of the amount you pay for qualified energy efficient improvements (such as insulation, exterior windows or doors that meet certain energy efficient standards) installed during the year; and (2) the amount of the residential energy property expenses you paid during the year.
But that’s not all…
• There is a limit on the amount of “residential energy property expenses.”
• The credit for residential energy property expenses can't exceed: (A) $50 for an advanced main circulating fan; (B) $150 for any qualified natural gas, propane, or hot water boiler; and (C) $300 for any item of energy efficient property (advanced types of energy saving equipment, such as electric heat pumps, meeting specific energy efficient standards).
Final step: Then you divide the resulting number by your grandmothers age times you license plate.
Hey, just kidding about that final step. Who says accountants can’t make a joke.
Larry Kopsa CPA
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