Question: Ralph, I am confused about all the talk in the press about Presidential Candidate Mitt Romney and his admission that he only pays an effective 15% tax rate. I seem to be paying more like 30% federal tax. What does he know that I don't know?
Answer: While I am not going to delve into the political aspects of this question, the tax question is very compelling. In this case, it appears the Mitt Romney has moved his income producing items away from normal compensation (i.e. W-2 income like most of us receive) and into what we call "passive" investments. These investments produce income in the form of interest, dividends, and capital gains which are taxed at a much lower rate. When someone has significant wealth and they are not in need of traditional "compensation" they can shift their income producing assets (investments) into these tax friendly areas. This is perfectly legal and is a great way to shield income from tax. It is not feasable during your working years for most of us because we have to work for compensation to earn wealth, but it's a great strategy once you have attained the wealth. We will see how this plays out in the political arena, but anyone with substantial personal wealth is no doubt taking advantage of this strategy.
To reduce your tax costs, contact Saggio Accounting+PLUS and see how Ralph V. Estep, Jr., in Smyrna, Delaware can assist you in reducing your tax obligation and maximizing your refunds.
Welcome to the Ask Ralph Blog! Feel free to post your question or comment. Ralph Estep, Jr., of Saggio Accounting Services will be posting great items of interest. Feel free to ASK Ralph a question!
Wednesday, January 18, 2012
Tuesday, January 17, 2012
The official start of Tax Season!
Today is the official start of the tax filing season. Starting today we are able to electronically file your tax returns. We are ready to bring you the refunds you deserve. We have many convenient appointment times still available to meet your needs. You may go to our web site at www.saggioaccounting.com or call our office at 302-659-6560 and schedule your appointment.
We are also starting our "Ask Ralph" link today. If you have a tax or accounting question just send an email to ralph@askralph.com and I will provide an answer. I will even publish the answers to non-client specific questions. Here's the first question for today.
Question: I was wondering how long it takes to get my federal refund once my return is filed?
Answer: That is a great question. Once we complete your tax return and we submit it electronically, it generally takes 10-14 days to receive your refund. When you choose direct deposit, it's even quicker. File your return today and have your refund fast.
Here's another question:
Question: I would like to know the average costs associated with tax preparation.
Answer: This is a great question. According to a study I just read from the National Society of Public Accountants, the average price for tax preparation (Federal 1040. Schedule A and 1 State) in the Delaware region is $268. I have some great news regarding this average fee, Saggio Accounting+PLUS fees for the same return starts at only $200, and with our $25 discount for new clients, our fees are almost $100 less than the average. Of course, all returns are different and we cannot quote the exact expected fee, but I will assure you that our tax preparation fees are very reasonable and the results of meeting with a licensed professional accountant for a whole hour, will certainly exceed your expectations. Call today or visit our web site at www.saggioaccounting.com
We are also starting our "Ask Ralph" link today. If you have a tax or accounting question just send an email to ralph@askralph.com and I will provide an answer. I will even publish the answers to non-client specific questions. Here's the first question for today.
Question: I was wondering how long it takes to get my federal refund once my return is filed?
Answer: That is a great question. Once we complete your tax return and we submit it electronically, it generally takes 10-14 days to receive your refund. When you choose direct deposit, it's even quicker. File your return today and have your refund fast.
Here's another question:
Question: I would like to know the average costs associated with tax preparation.
Answer: This is a great question. According to a study I just read from the National Society of Public Accountants, the average price for tax preparation (Federal 1040. Schedule A and 1 State) in the Delaware region is $268. I have some great news regarding this average fee, Saggio Accounting+PLUS fees for the same return starts at only $200, and with our $25 discount for new clients, our fees are almost $100 less than the average. Of course, all returns are different and we cannot quote the exact expected fee, but I will assure you that our tax preparation fees are very reasonable and the results of meeting with a licensed professional accountant for a whole hour, will certainly exceed your expectations. Call today or visit our web site at www.saggioaccounting.com
Friday, January 13, 2012
Ask Ralph!
Tax filing season officially starts on the 17th. We are ready to start filing. Please feel free to e-mail ralph@askralph.com with any tax questions or other accounting questions and watch this blog for the answers. Call today and schedule your appointment with Saggio Accounting+PLUS.
Thursday, January 12, 2012
Fwd: http://www.saggioaccounting.com/19637/Congress-Extends-Tax-Breaks/
This is a great year end recap. We have more great information on our web site. It is almost filing season. It starts on the 17th. Call today or go to our website and book now. $25 discount for all new clients, let's start a lifelong relationship.
Ralph V. Estep, Jr.
Sent from my iPhoneBegin forwarded message:
From: Ralph Estep Jr <ralph@saggioaccounting.com>
Date: January 12, 2012 8:48:51 PM EST
To: Ralph Estep Jr <ralph@saggioaccounting.com>
Subject: http://www.saggioaccounting.com/19637/Congress-Extends-Tax-Breaks/
http://www.saggioaccounting.com/19637/Congress-Extends-Tax-Breaks/
Ralph V. Estep, Jr.
Sent from my iPhone
Wednesday, January 11, 2012
Tax Cut Extension
Payroll Tax Cut Temporarily Extended into 2012
The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the
two percentage point payroll tax cut for employees, continuing the reduction of
their Social Security tax withholding rate from 6.2 percent to 4.2 percent of
wages paid through Feb. 29, 2012. This reduced Social Security withholding will
have no effect on employees’ future Social Security benefits. Employers should
implement the new payroll tax rate as soon as possible in 2012 but not later
than Jan. 31, 2012. For any Social Security tax over-withheld during January,
employers should make an offsetting adjustment in workers’ pay as soon as
possible but not later than March 31, 2012.
The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the
two percentage point payroll tax cut for employees, continuing the reduction of
their Social Security tax withholding rate from 6.2 percent to 4.2 percent of
wages paid through Feb. 29, 2012. This reduced Social Security withholding will
have no effect on employees’ future Social Security benefits. Employers should
implement the new payroll tax rate as soon as possible in 2012 but not later
than Jan. 31, 2012. For any Social Security tax over-withheld during January,
employers should make an offsetting adjustment in workers’ pay as soon as
possible but not later than March 31, 2012.
Monday, January 9, 2012
U.S. Adds 200,000 Jobs—but What Type?
Sometimes the data does not tell you as much as the story under the story.
U.S. Adds 200,000 Jobs—but What Type?
U.S. Adds 200,000 Jobs—but What Type?
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