TAX TIPS AND FACTS
Issue Volume 14, No. 8 As written by Roger A. Kahan, CPA November, 2000
 

Roger RAK-1
ROGER A. KAHAN
Certified Public Accountant, Business Advisor and Financial Services Provider

Serving the tax and financial needs of individuals and small to medium sized businesses
Randolph, MA 02368-1865
VOICE: 781.963.RAK-1 (963-7251)
E-mail: kahan@rak-1.com

Registered Representative with and Securities offered through InterSecurities, Inc., Member NASD, SIPC
100 Grandview Road, Suite 300, Braintree, MA 02184, (781)849-9200
Copyright © 2000 Roger A. Kahan, CPA
ALL RIGHTS RESERVED


LD10525-10/00
 
 
Back issues on-line
A Little About Roger A. Kahan
TOPICS COVERED IN THIS ISSUE
 
MARKET UPDATE
  No one likes the pounding that we have taken on our technology holdings. Fortunately, some of our defensive holdings in financials, drugs, or utilities have kept portfolios from a total freefall. As for the internet based techs taking the worst beatings, we are waiting out this last ride down to the NASDAQ 3000 level, and expect a rebound before the end of the year. It may make some sense to take some tax losses and re-position the money in the same security 31 days later or a similar security immediately. Talk to me about any specific accounts anytime you want. We are also working on a client communication that will go out with the quarterly performance reports and on an as-needed basis due to market conditions or changes in our philosophy.

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REGAL FABRICS WINS QUALITY AWARD
  The National Association of Decorative Fabric Distributors presented the Award for Quality to Regal Fabrics Inc. during their recent annual convention. Based upon NADFD member voting, this award is given each year to the top textile supplier in the area of product and service quality. The NADFD is composed of decorative fabric jobbers and distributors from locations throughout the United States and Canada.

"We're competing with the best mills in the business, so it's very gratifying to received this award," noted Herb Kahan, President of Regal Fabrics.

Our employees are thrilled that their efforts were recognized by the members of NADFD," stated Regal Fabrics vice president, Steve Kahan.

Headquartered in Middleton, Massachusetts, Regal Fabrics has developed a reputation as a mill direct resource for upholstery fabrics that it sells to furniture and accessory manufacturers and others.

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AWARD FROM SMART COMPUTING
  Smart Computing in Plain English "The Editors of Smart Computing selected your site as a "Top Site" for our directory based on the overall usefulness of the site. We ask ourselves whether the site provides the kind of content Web users would consider when looking for information in a particular category. We look for breadth and depth of content first, but also take into account the organization and presentation of the information. Is it current? Is the site easy to use? All of these factors contributed to your inclusion as a 'Top Site'. Congratulations!"

We share this award with the following recipients: Deloitte & Touche, Ernst & Young, H&R Block, IRS, Jackson Hewitt, Microsoft, National Tax Association, Smart Money, and The Tax Foundation.

This is a link to Smart Computing's list "Where to Find Income Tax Information."

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WHAT IS LONG-TERM CARE INSURANCE?
  Private, long-term care insurance helps pay for the high cost of nursing home care or of home health care. The average cost for a year's stay in a nursing home is $40,000; the cost is considerably higher in many areas of the country. Long-term care insurance premiums and other costs associated with receiving long-term care are tax deductible as a medical expense (subject to limitations). Call us.

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THE HOMESTEADER
  You can now find additional tax tips concerning home ownership in THE HOMESTEADER, the South Shore's new homeowner newspaper. Tax Tips are now featured in the monthly edition. For a copy, write to The Homesteader, 99 Court St., Plymouth, MA 02360. Mention my name in your request.

By the way, our participation began with the September edition of The Homesteader. This edition was distributed at the annual NEW ENGLAND HOME SHOW held September 22 to 24. Back issues of The Homesteader can be obtained from the same address in Plymouth.

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SELF-EMPLOYED BORROWERS
 
TOWN MODERATOR
  I HAVE ANNOUNCED MY CANDIDACY FOR RANDOLPH'S TOWN MODERATOR, AN ELECTED POSITION WITHIN TOWN GOVERNMENT, AND I NEED YOUR HELP.

The Town Moderator conducts the business of Town Meeting, offering fair and impartial performance to your elected Town Meeting members. The Town Moderator is the facilitator of business at our Town Meeting. The Town Moderator appoints and supervises the membership of our town's Finance Committee.

I believe I will be the best choice to perform these duties. I am a 30-year resident of Randolph, an active Town Meeting member, presently Chairman of the Randolph Business and Industrial Commission and Vice President of Governmental Affairs of the Randolph Chamber of Commerce. I am a Certified Public Accountant with an office in Randolph for the past 25 years. I have experience and knowledge of parliamentary procedure. My business background, education and experience set me on top of the list to be most qualified.

If you can help, please call, write, fax or email and indicate your name, address and phone number. Thanks.

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BUSINESS REAL ESTATE
  It is better for business property to be owned directly by its shareholders/owners (or in a trust on behalf of the shareholders/owners). There are several tax reasons for this. Reasonable rental income paid by the business to the "lessor" should be payable without assessment of Social Security or Medicare taxes, and the income is not "earned" income in the definition of the annual maximum earnings under Social Security (you know, when you have to give back some Social Security benefits if your earnings exceeds a certain amount). The income may also be sheltered through the use of depreciation.

Another reason to put real estate into a personal name or a grantor trust instead of a corporation is capital gains. While current law limits your long- term capital gains rate to 20% or 25% (or to a lower rate), there is no such limit for corporate capital gains. Corporate capital gains are taxed just like any other corporate income, at a graduated scale reaching up to as much as 39%.

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Remember, "It's not what you make that counts, it's what you keep."
 
 
Planning for the future is a lot like planting a tree. You've got to do it today if you want your family to enjoy it tomorrow.
CERTIFIED?
  Your doctor is certified.
Your lawyer is certified.
Is your accountant certified?

If your accountant isn't a Certified Public Accountant, think twice about where you are getting your advice.   Who do you want handling your financial and business matters?

If your accountant isn't a CPA, it's time to seek professional help.

Mass CPA online

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FEATURES WANTED
  We want to feature clients in future editions of TAX TIPS AND FACTS.    If you would like a FREE spot to tell us about your company, its products or services, send a brief story about your company, an overview of company products and future plans.    We may edit the information and include it in a future edition.   Send the information to Roger A. Kahan, CPA via mail, E-mail or FAX it.

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INTERNET ACCESS
  We are kahan@RAK-1.com (that is a "one" and not a small "L") and an active user of the INTERNET.   You can E-mail us from any service connected to the NET.   Our Internet provider is The Xensei Corporation of Quincy.   For more information about Xensei and high quality web hosting solutions, call me at (781) 963-RAK-1 or Xensei at (888) 740-7007, e-mail info@xensei.com.

TAX TIPS AND FACTS will appear on our World Wide Web page, at http://www.rak-1.com making it available to the rest of the WORLD.

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CUSTOMER ACCOUNT INFORMATION
  There appears to be some confusion regarding the Risk Tolerance section of the Customer Account Information form used by our broker/dealer, InterSecurities, Inc. This part of the form speaks to your risk tolerance for the particular account that you are opening. Low risk means that the client has little or no tolerance for risk. Generally, the only suitable investments for that profile are a money market, short term US Bonds, or AAA fixed annuities. Moderate risk includes bonds. Even a 30 year US Treasury has moderate risk because you and I know what happens to the value of that bond if the long-term interest rates go up by a point or two.

High-risk investments are stocks or equity based mutual funds. Yes, even what we all may consider low risk stocks are, in fact, high-risk investments. Ask yourself this question; can the stock I own go down by 50% or more? If you answer no to that question, take a look at AT&T, Gillette, and Raytheon. Speculative is just that, investments where there is a chance to make huge profits or lose it all.

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INSURERS LABEL ACCOUNTANTS SAFE DRIVERS
  As if it weren't bad enough that the green eyeshades stereotype still lingers, now comes word that insurance companies have singled out accountants as safe drivers.

Although practitioners will probably welcome the lower premiums that come with such notoriety, it's gotta hurt a little to realize that even insurers think it's a safe bet that CPAs will never end up in a drag race. Ah, the price of respectability...

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  Roger A. Kahan is a Certified Public Accountant, Business Advisor and Financial Services Provider with an office in Randolph, serving the tax and financial needs of individuals and small to medium sized businesses almost anywhere in the United States.  And with the advent of the Internet, professional consultation extends to several other countries.  Roger is always seeking additional clients and professionals wishing to save money and better manage their own, a friend, a relative or a client's personal or business life.   Please let us know if we can use your name in an introductory letter to the prospective client.  Thank you.
 
  Many accountants view their goal as minimizing their clients' taxes. NOT ME! I like to see my clients pay more taxes - because their earnings and profits are increasing dramatically. I can make a major difference in achieving those profits. Talk to me and find out more.
WE NEED YOUR SUPPORT
  If you like our work, recommend us to a friend.
If you are not happy with our work, please call me and let's talk about it.
We will both appreciate it.

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WHY DO I NEED A CPA?
  CPAs do much more than just prepare tax returns and "count beans."   A Certified Public Accountant can assist with all of your personal financial planning needs to help you achieve your goals.

Whether you're saving to buy a house, send your children to college or secure your retirement, you need a member of the Massachusetts Society of CPAs to assist you.   Roger A. Kahan is an active member of the Massachusetts Society of CPAs and maintains the financial planning licenses and experience to help you.

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BANKS WANT TO LEND MONEY!
 
PEACHTREE COMPLETE ACCOUNTING TIP
  "Shortcuts to Entering Dates in Peachtree"

In almost every Peachtree window, you are asked to select or enter a date. Dates define when a transaction takes place, identify certain fields in a record like the Customer Since date, and define time period ranges in reports.

To enter dates manually: If you type the date in one of the following formats: M/D/YY, MM/D/YY, M/DD/YY, MM/DD/YY, or MM/DD/YYYY, Peachtree will convert the date automatically to the Month DD, YYYY format. For example, if you enter 3/15/03, Peachtree will convert the date to Mar 15, 2003.

To quickly enter a date within the current month, just type the day of the month. For example, if the current accounting period is March 2003 and you want to enter March 15, 2003, type 15. Peachtree will automatically enter the date as Mar 15, 2003.

To enter dates using the calendar button: Whenever you see the calendar button next to a date field, click it to display a calendar. After the calendar displays, click on the desired date. The pop-up calendar will also display if you right-click any date field.

To select another month or year from the pop-up calendar, simply select either the left arrow to enter a previous year or month or select the right arrow to enter the next year or month.

You can also press the Page Up key to move back a month, and the Page Down key to move forward a month. To change the year, press the CTRL + Page Up keys to move back a year, and the CTRL + Page Down keys to move forward a year.

To quickly select a range of dates for From and To fields on the Filter tab for reports, click the From calendar button. Click and drag to select a range of dates.

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SMALL BUSINESS AUDITS
  Tax requirements for small business are complex. Reports from the General Accounting Office (GAO) reveal that small businesses are audited at a rate greater than individual taxpayers, and about two-thirds of all small business audits lead to recommendation for additional assessments of taxes, interest, and penalties. Additionally, these taxpaying entities are subject to multiple layers of filing, reporting, and deposit rules, with many tax requirements applicable to these companies.

This is another reason to talk to your CPA or professional tax advisor.

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"REMEMBER: 'A failure to plan is a plan to fail'"
 
  No one is required to pay more in taxes than the law demands.   If you pay too much, you have less resources to meet your other financial goals.   We can help find tax deductions and credits, and help you plan so your taxes will be as low as possible, year after year.   And we can also assist you with business and estate tax planning.

TAX TIPS AND FACTS is published periodically by Roger A. Kahan, CPA.  Subscription is free to clients, prospective clients and friends of Roger A. Kahan, CPA.   If you know of someone interested in a subscription to TAX TIPS AND FACTS allowing him or her to obtain valuable comments on national, Massachusetts or local tax issues, call (781) 963-RAK-1.

The information contained in this publication has been obtained from sources I believe to be reliable at the time of writing, but I do not guarantee its accuracy or completeness.   Neither the information nor any opinion expressed constitutes a solicitation by me of the purchase or sale of any securities or other investment.   This material, or any portions thereof, may not reproduced without prior written permission of Roger A. Kahan, CPA.

 
 
ROGER A. KAHAN
Certified Public Accountant, Business Advisor and Financial Services Provider
Randolph, MA 02368-1865
VOICE: 781.963.RAK-1 (963-7251)
FAX: 781.961.RAK-1
E-mail: kahan@rak-1.com

A member of:
Massachusetts Society of Certified Public Accountants
Massachusetts Association of Public Accountants
Randolph Business and Industrial Commission
South Shore Women's Business Network
Computer Organizations of New England, Inc.
Randolph Chamber of Commerce, Inc.
National Society of Tax Professionals
South Shore Chamber of Commerce
US Financial Advisors, LLC.
National Notary Association
Knights of Pythias

Mass CPA online

 
 
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