Thursday, December 8, 2011

Business Entertainment at Home

As many of you know, a business can generally deduct 50% of entertainment and meal expenses that either follow or precede a substantial business discussion with a client. If a client visits from a distant location, the entertainment may take place the day before or after the meeting.

Strategy: Host a house party within the time restraints. The cost of home entertainment attributable to your business guests is deductible even if you never actually discuss business during the get together. For this purpose, business guests may include your client, his or her associates, you and your employees and everyone’s spouses.

Tip: If you throw a holiday bash for all employees, you can deduct 100% of the cost, regardless of the location of the party. You must however include the entire workforce.

Tip on Gold Investing

As a hedge to the stock market volatility, some investors are turning to gold and other precious metals. When you sell gold, you must report the difference between the sales price and your basis as a capital gain or loss. If you held the gold for more than a year, any gain is treated as a long-term gain. The federal income tax rate on long-term gains from precious metals is 28%, not 15%!! By using retirement plan funds instead of personal funds for gold investments, you can dodge a tax disaster. For example, gold coins that are minted by the U.S. government or one of the states, and some other gold coins of sufficient purity, can be held by IRAs. This is an exception to the general rule that prohibits IRA investments in coins and other collectibles.

Here are some ways to invest in gold:

• Gold bars or bullion
• Gold certificates
• Gold coins
• Gold stocks and mutual funds

Tip: You might swap precious metals in a like kind exchange at year-end. There is no current tax on the deal, but a tax loss is allowed for the difference. (The swap is actually a simultaneous sale and purchase.)

Sales Tax Deduction Available for 2011 Tax Returns

Our Buchbinder Tunick & Co. November Online Advisor just came out with some information regarding the "Sales Tax Deduction" now available for 2011 tax returns.


MAKE THE RIGHT PRICING DECISION - In business, making pricing decisions is always tough - and even more so when the economy is slow and sales are slipping.

CHOOSING YOUR EXECUTOR: A CRITICAL ESTATE PLANNING DECISION - An executor is the person or legal entity that you appoint in your will to settle your estate after your death.

To learn more click on link for entire article...