Virtually any investment can have some risk associated with it.  The stock market can rise and fall, an increase in interest rates can cause a fluctuation in the bond market.  The basic key to successful investing is to reduce that risk while seeking an attractive return on your investments.  One of the most effective ways to reduce your risk is to diversify your portfolio - “Don’t put all of your eggs in one basket.”  Spreading your capital among a number of different investments may protect you from a significant drop in any one of them.  Likewise, the power of diversification might smooth your returns over time.

Did you know we do more than just prepare, compile and crunch numbers?  We are not “bean-counters.”  We can also advise you on business planning and strategies to meet your goals.  As your CPA, we know you needs better than any other professional.

When was the last time you reviewed your liability and catastrophic insurance coverages?  You know you should review both coverages and premiums at least every three years.  This risk and its related cost is usually the least item looked at by a businessperson.  Since you have not looked at it in quite a while, now is the time to call in your insurance agent to review coverage and to quote the renewal or change of existing coverages.  It would also be wise to ask two other insurance agents or companies to review the same coverages and quote prices.  You may be very pleasantly surprised to see what is wrong with your existing coverage.  Be sure to tell you current insurance agent that you will be soliciting two other quotes so he/she knows where he/she stands.  It just may make that person’s pencil sharper.

Due to a hike in gasoline prices, the standard mileage rates for using a vehicle for business, medical or moving expenses has increased by two cents a mile, according to the Internal Revenue Service.

Starting Jan. 1, 2001, the standard mileage rate for the cost of using a vehicle for business purposes is 34.5 cents a mile, up from 32.5 cents a mile in 2000. The standard mileage rate for operating an automobile for medical reasons or deductible moving expenses has jumped up to 12 cents a mile, compared to 10 cents a mile. The standard mileage rate for using a car when giving services to a charitable organization remains at 14 cents a mile.

The standard mileage rates for business, medical, and moving purposes are based on an annual study of the fixed and variable costs of operating an automobile. An independent contractor conducted the study on behalf of the IRS. The charitable standard mileage rate is provided by law.

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.

Sales of gas, steam, electricity, or heating fuel to any business that has five or fewer employees ARE EXEMPT FROM MASSACHUSETTS SALES TAX ON THOSE ITEMS.

For purposes of this paragraph, employees shall include partners, owners, officers and any other individuals who work for the business but shall not include any employee who normally works for fewer than thirty hours per week or who is hired for a period of less than five months.  For purposes of this paragraph, a business shall include all members of an affiliated group, as defined by section 1504 of the Internal Revenue Code, and any other combination of related parties as the commissioner may define by regulation; provided, however, that the commissioner may by regulation require that such business shall have first obtained a certification from the commissioner stating that it is entitled to such exemption and shall maintain such employment and other records indicating its continuing eligibility for such exemption; that the vendor keep a record of the sales price of each such separate sale, and the number of such certificate; and any other conditions and requirements under which a business may qualify for this exemption; provided, further, that the burden of proving that such business qualifies shall be upon the vendor unless he takes in good faith from the purchaser such certificate to the effect that the business qualifies for this exemption and such certificate is received and made available to the commissioner not later than sixty days from the date of the notice from the commissioner to produce such certificate

If you died tomorrow, would the “taxman” be your biggest beneficiary?  For many entrepreneurs, that question and its answer may be shocking.  That’s because those who postpone the task of estate planning may expose their families and their companies to enormous financial risks.  Estate taxes, which can reach up to 55% (or higher in some states), can kill even the most promising of fast-growing businesses by forcing heirs to sell prematurely to meet tax liabilities.

You say you don’t have time to worry about that now?  Then you may well be missing out on some of the best estate-planning strategies, which often need to be set in place early to work effectively.

When you clarify your estate-planning goals, you protect your family in the event of your death.  You may find ways to reduce the estate-tax bite while allowing the family to retain control of the company.

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.