Anthony Sykes & Company

    As we approach the end of the year I would like to talk about some tax law changes that may be of benefit to your business. On September 27, 2010 The Small Business Jobs Act of 2010 (SBJA) was enacted. It's purpose is to spur growth and help small businesses in particular. One provision that may help self employed business owners is the Sect 2042: Deduction for health insurance costs in computing self-employment taxes in 2010. Generally small business owners may not deduct the cost of health insurance when computing self-employment tax. Under (SBJA) with specific limitations the business owner may deduct the cost of health insurance for themselves and their families when computing self-employment taxes. Sect.2031: Increase in amount allowed as deduction for start-up expenditures in 2010 for anyone starting a new business they may be able to deduct up to 10,000 in startup expenses. However if the startup cost exceed 60,000 the deduction may be reduced dollar for ...

Th Internal Revenue Service has released for the 2010 tax season form 8941 Credit for Small Employer Health Insurance Premiums along with the instructions.  In general, the credit is for small employers that pay at least half of the premiums for single health insurance coverage for their employees.  It will specifically help employers that employ moderate and lower income workers. A business can claim the credit for 2010 through 2013 and for any two years after that.  Those employers with 10 or fewer full time equivalent (FTE) employees paying an average wage of $25,000 or less can receive the maximum credit.  The credit is phased out at 25 or more employees or average wages of more than $50,000 per year.  Remember the eligibility rules in part consider the number of FTE employees the company has, so if a business uses part-time employees it may still qualify for the credit.  In reading the instructions and filling out the form 8941 I believe that unles...

                                                             Whether you have been in business for less than a year or over 20 years like our company you have to consider 1. Your Competition, 2. How the industry is changing. 3. How your company is changing. Now you should consider the following:   1. The Credit Crunch will be around for a long time. With the passage of financial reform, lenders will have stricter requirements which makes getting loans harder. You should consider keeping higher cash reserves, look at receivables as an option. You should look for banks that truly do want small business customers. Just as banks are becoming stricter on who ...

 It is still difficult for a small business to get a line of credit or loan these days but it can be done. If you go to http://www.sba.gov/ you will see the Small Business Administration website, click on the Recovery Act button and it will take you to the overview of the American Recovery and Reinvestment Act of 2009. There are several programs for small businesses I advise you to take a look to see if you can qualify for one. One of the requirements for any of the loan programs is that you have good credit. While the definition of "good" varies it is generally said that a score of 690 or better is needed. However a change has been occurring in the credit scoring system, you should visit http://www.vantagescore.com/ for more details. The three main credit rating agencies have created a new scoring system using their combined data information. However they will market it separately. The new scores range from 501-990. They will predict the likelihood of future serious deli...

It is the middle of June and this very deep and tough recession has taken a toll on many small businesses and we are seeing many businesses refocusing and adjusting to become stronger and more flexible. However one thing we need to pay more attention to is that governmental entities whether Federal, State or Local are refocusing and gearing up to bring in more revenue. In the Health Care Act there is a provision to hire more Internal Revenue Service Personnel, the State of California Board of Equalization is sending notices to all business that gross over 100,000 inquiring about if they should be paying us tax, and local governments are beginning to step up enforcement of business taxes. In the area where you are located, What is the government climate like?

This Tax season has been like none before. I have a few suggestions on how to make thing go a little smoother for you when filing your 2009 Tax Return. First of all, be very careful of what you put on you returns this year because every State and Federal Goverment needs money therefore audit are up. Refunds may be smaller and you may possibly owe because withholdings have been reduced. However, on a lighter note there are new credits this year that may help you out. There is a work opportunity credit. A credit for buying a New vehicle. The new credit for first time homebuyers. Also, if your going Green there are several credits you can take advantage of such as energy and Solar credit and credits for purchasing any Hybrid vehicle, just to name a few. There has also been an increase in Earned Income Credit. I understand that 2009 was a struggling year for many Americans I hope my information can help some of you out. I will be speaking at several Seminars at the Los Angeles Fair...

We will be holding a seminar entitled "Are You Ready For The Audit". It will be held on February 10,2010 from 5:30-7:00 at Los Angeles Trade Tech College. Price will be $25 must R.S.V.P by February 8, 2010. Should you have any questions you may contact me at (800)921-0829 or go to my webite www.sykesaccounting.com