news & noteworthy
Alerts, Updates and Other Tax
and Accounting Tidbits for Business and Home
Presented electronically by Norman, Johnson & Co., PA Certified Public Accountants
Jed Clampetts Everywhere –
The number of millionaires in the
Ammo in the “who pays the taxes?” war –
This information is from the IRS regarding tax year 2004 individual income tax
returns:
Top
1% of filers ($295,500+ adjusted gross income) paid 34.3% of total taxes.
Top 5% of filers ($130,000 + AGI) paid 54.4% of total taxes.
Top 10% ($94,900 + AGI) paid 65.8% of total taxes.
Bottom 50% ($29,000 or less AGI) paid 3.5% of total taxes.
Worthy Quote: “Management is doing things right; leadership is
doing the right things.” – Peter F.
Drucker, noted writer, management consultant and university professor.
Eduflation –
College costs continue to rise at a rate higher than inflation. The College
Board released its annual “Trends in College Pricing” recently, and it
indicates that tuition at four-year private schools rose an average of 5.9%
this year and at four-year public colleges and universities it rose 7.1%.
Non-cash Compensation – Don’t forget, non-cash compensation often is
a reportable item on the end of the year W-2 forms for employees. If you
haven’t received our recent letter regarding auto valuations or insurance
valuation for S corporations, give us a call for a copy. For a discussion of
the auto valuation issues see our web article at www.normanjohnsoncpa.com/fft/personaluse.htm.
Benchmarking for Businesses – We have
recently begun to provide benchmarking services for our business clients
whereby we compare their recently completed financial statements to other
businesses in their size range and industry. Want to crunch the numbers for
your business? Give us a call.
New guy on the block – We welcome our newest employ, Joshua Hunt. Josh joins
us as a staff accountant working in the tax and audit areas. He is a graduate
of the
Points out a playful client – If you combine the words “The” and “IRS” you get
their outlook on your money: “THEIRS”.
SIMPLE Limits –
The employee contribution limit for the SIMPLE IRA retirement plan increased to
$10,000 in 2005. Employees age 50 or older can make an additional “catch up”
contribution of $2,000, bringing their maximum contribution amount to $12,000.
Limits for 2006 will be $10,000 and $2,500.
Fun Facts: Snowmen fall from Heaven unassembled. ~ The use of a Christmas
wreath as a decoration on your front door, mantel or bay window symbolizes a
sign of welcome and long life to all who enter. ~Today poinsettias are the most
popular Christmas plant and are the number one flowering potted plant in the
Planning: Be it lowering your taxes, enhancement of your
financial statements, or improvement of your cash flow – planning helps. Now
that we are in the fourth quarter heading for year end in a hurry, its time to
consider that often delayed need for planning. A review of your last year’s tax
return or current financial statement could be an investment that pays in lower
taxes or enhanced financial position. Give us a call today to schedule a
planning review.
Watching the Calendar: Now that Thanksgiving is over shoppers have just 24 more
days until Christmas! Then, the dreaded deadline (April 15th) – but
we will worry you about that after the holidays.
Got a friend or associate that needs help
with accounting, taxes, or financial planning? We appreciate
your referrals. Invite your referral to call for a complimentary conference to
review their situation.
The best to you and yours – On behalf of
our entire firm we wish you and your family the best of the holidays and a
prosperous and healthy new year. We appreciate your business and the
opportunity to serve you in the upcoming year.
Norman, Johnson & Co., PA is a
Spartanburg, SC based CPA firm which was founded in 1990. The firm offers a wide range of audit,
accounting, tax, business consulting, and financial planning services for
individuals, businesses, governmental entities, and not-for-profit clients.
This newsletter is published
monthly on the first of each month and alerts and special topics as they are
deemed informative. Information contained in this newsletter is derived from
sources believed to be accurate. You should
discuss any legal, tax, or financial matters with the appropriate professional
before applying them to your specific situation.
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