It's time to get down to business

Now that Thanksgiving is over, it's time to get down to business in Washington. We will see if the members of Congress decide to actually resolve the tax situation and extend the Bush tax cuts for everyone or if they decide to take another approach such as the one recommended by the Sen. from Illinois which would only extend the tax cuts to those who make less than $1 million per year. I cannot believe that anyone would even consider raising taxes in the current economic climate we find ourselves in, but leave it to the knuckleheads in Washington to further make the economy suffer. As I've stated before, my clients are looking for relief from the tax code, not more taxes! As I've said before, it's time to take a few moments an e-mail call or write to your congressional representatives and let them know how you feel. Let them know that taxes are too high already and we don't need to be burdened with even greater taxes in the coming year. Remind them that the economy doesn't need a double dip recession and that our small business folks need to have some surety in their tax structure so that they may make plans accordingly. Right now, employers are unwilling to hire new employees because they simply don't know the impact of their taxes or the debacle which is the Obama health care plan.

We shall see just how much this lame-duck Congress gets accomplished. It will be amazing to me just what they are able to get through, but I bet we will all be shocked by the results. If you're concerned about how these potential tax increases will affect you, call Saggio management group and set up an appointment so we can review your tax situation and plan accordingly.

Happy Thanksgiving!

On this day let's all be thankful for the many blessings we have from our father in heaven. As we take time today to share moments with family and friends let us not forget to also take time to thank our creator for the bounty he has given us all. May God Bless you and your family today and throughout the holiday season.

Watch Out for Fraud

Beware of a New Fraud Risk!

There is a fraud risk related to the Electronic Federal Tax Payment System (EFTPS) that you need to be aware of.

Always remember that the IRS does not initiate taxpayer contact by e-mail. Therefore, if you receive an e-mail that appears to be from a tax agency telling you that your federal electronic funds transfer (EFT) payment did not go through, it is part of a phishing scheme and you should not respond to it. The perpetrators of this scheme have duplicated the IRS’s EFTPS logo and other characteristics of that system in an attempt to convince taxpayers that it is an official e-mail from the IRS. It is not!

If you receive a message claiming to be from the IRS or EFTPS, take the following steps:

1. Do not reply to the sender, access links on the site, or submit any information to them.

2. Forward the message as-is immediately to IRS at phishing@irs.gov.

3. Visit the IRS website to find out how to report and identify [http://www.irs.gov/privacy/article/0,,id=179820,00.html] phishing, e-mail scams and bogus IRS websites.

4. If you receive a suspicious e-mail or discover a website posing as the IRS, please forward the e-mail or URL information to the IRS at phishing@irs.gov.

5. EFTPS [http://www.irs.gov/efile/article/0,,id=98005,00.html]is a tax payment system provided free by the U.S. Department of Treasury.

Whenever you receive a communication from the IRS, it is generally good practice to contact Saggio Management Group, Inc., for assistance.

Tax Rumors

Tax Rumors Abound

There are two false tax rumors that have been circulating around and troubling clients. To set the record straight, a brief explanation of both rumors is provided below.

False Rumor #1 – “Employer-paid health insurance benefits will be taxable in 2011.”

Not true! Starting in 2011, the amount of employer-paid healthcare benefits was to be included on the W-2 as an information entry, but is not included in the taxable wages on the W-2. Many sources failed to properly analyze this requirement and reported that the benefits would become taxable in 2011.

False Rumor #2 – “Home sales will be subject to a sales tax.”

Not true! This rumor came about because of a 3.8% surtax, beginning in 2013, on net investment income of higher-income taxpayers - generally those with an AGI in excess of $200,000 ($250,000 for married taxpayers filing jointly).

Generally, investment income is, as the name implies, income from investments (such as interest, dividends and capital gains). Net investment income is investment income less certain deductible investment expenses.

Gain from the sale of a home is a capital gain and included in net investment income and, as a result, could be subject to the 3.8% surtax on the profit but not the sales price. In addition, for a home used by a taxpayer for 2 of the prior 5 years preceding the sale, the taxpayer can exclude up to $250,000 ($500,000 for a qualifying married couple) of the gain from the sale. Thus, only the excess above the home gain exclusion would be subject to the surtax.

Bottom line, you could get hit by this surtax if your home sale profits exceed the exclusion and you are a higher-income taxpayer - but it is not a sales tax based on the sales price of the home.

If you need more specific guidance, please contact Saggio Management Group, Inc. at (866) 874-9936

My wife

Today I dedicate my blog to my wife. She has been through a rough week with the loss of her father on November 7th and then the funeral which seemed to last for a week. Through it all she has put others ahead of herself, whether it was being their for her mother, handling the funeral arrangements, taking care of necessary correspondence, answering her mother's telephone and handling messages, or just simply tending to me and my youngest. She is the definition of self-less and her courage, strength, resolve, and stamina have been remarkable. Here's to you Jennifer, take a rest and enjoy some down time. We are heading out this evening for a nice relaxing dinner, she needs it. Love you Jennifer!

A National Sales Tax? Perhaps!

Just a quick note, I hear rumblings of a national sales tax to try to solve the deficit. I have heard that Congress is thinking of a 6.5% sales tax. This is a bone-head move and would only result in significant additional economic woes. When will Congress get it? It's not a function of raising revenue to solve the problem, expenses must be reduced, that is the bottom line. Better call your Congressional reps now to make them aware of your opinion.

In Death...he was a saint

I wonder why anyone who dies is automatically made into a Saint. It amazes me that even the most vile, abusive, and mean spirited people here on earth become Saints once they pass on. I guess it's human nature, the feeling that everyone wants a happy ending and wants a pleasant end to the story of their lives. If they had only lived their lives worthy of a saint, just imagine the high regard that everyone would have for them in the end. So, for today, I suggest we all work to be better here, to guide ourselves with a mantra of respect, knowing that in the end we look forward to meeting our creator and wanting to be able to stand before him with a clear conscience and listening for the words, well done my faithful servant. In the interim let's pray for God's grace for the others.

New Rules Require Rental Property Owners to Issue 1099s

New Rules Require Rental Property Owners to Issue 1099s

Watch out for this provision. Let Saggio Management Group assist you with the creation of these mandatory 1099 forms. Call us today 866-874-9936.

Senators Propose Raising Gasoline Tax Nationally

Senators Propose Raising Gasoline Tax Nationally

Watch out! This could be a Christmas present for all of us. You won't believe it.

It's Not Tax Cuts - It's a Tax Status-Quo

I am sick and tired and hearing the political pundits call it the "Bush Tax Cuts." It's not about tax cuts, it's about keeping the tax rates where they are today. To be intellectually honest, you have to understand that if Congress does not act, we will see a huge tax increase come January 1st. Don't be fooled into thinking that someone is going to get a tax cut or anyone will get their taxes lowered, if anything is done it simply means that your taxes will not be going up.

I still think that everyone should take the time to call or write to your elected representatives and let them know that they need to act now to keep the tax rates lower. If we don't move on this legislation, the effects to the economy will be terrible. I was speaking with a friend at the gym this morning and he asked me how much he should set aside, I told him that I am more concerned about inflation. Keep an eye on the grocery store shelves and be prepared for a ride on the inflation roller coaster. Can't say that I didn't warn you.

Higher Prices on the Way!

Watch out! It is clear to me that higher prices are on the way. I can see that over the next several months the costs of everything is going to increase. The costs of grocery bills is going to skyrocket. We cannot continue to just print money without restraint and expect their to be no inflation. It looks to me like another 1978-1979 financial crisis is on the way. We cannot continue to just throw money at this problem without triggering inflation.

Tax Policy!

Ok, now that the election is over, let's start calling our leaders and have them start working on a tax policy change during the "lame duck" session. We need to have the Bush tax cuts put back into place for 2011. This needs to be done ASAP. Take time today to e-mail, call, or write to your Congressional leaders. Tell them to extend the tax cuts and do it now!

For assistance in looking at your tax situation for 2010 and beyond, call Saggio Management Group, Inc., and takee advantage of our year-end $99 tax check-up. We will look at your particular situation and make some year-end recommendations. Call today!

Amen

It is morning in America again. It starts in the House and many Governor's as well. Let's now set our sights on the White House. Stand firm, stand strong and continue to stand for what is right! The battle has only begun, now it's time to repeal the garbage of the past two years and set a course for success of our nation.

VOTE...VOTE...VOTE...VOTE

If you have not voted, do it now! If you have God Bless You! You have taken the first step in taking back this country and you are a Patriot! Can't wait to see the results, let's hope we have a morning in America tomorrow and let's all pray for our leaders.

Simple....Just Vote

A brief reminder today. Exercise your obligation tomorrow and vote. Send a message to everyone that you want you voice heard and your willing to stand for your core beliefs. Enjoy 24 more hours of political ads too, I don't know what we will do on Wednesday. I guess will all enjoy the recount coverage. Let's prevent the recounts in the first place and make it a landslide.