10-Week Countdown
Tax Tip Week #1:
A sole-proprietorship is the easiest, quickest and cheapest way for a taxpayer to get their business off the ground as it basically requires no paperwork to get started. A sole-proprietor reports all of his or her income and expenses on their individual income tax return on Federal Form 1040, Schedule C, unlike other entities which require a separate business income tax return to be filed.
While a sole-proprietorship may be the fastest and easiest way to get your business started it can also be quick to cause unexpected income tax problems for many as the net earnings of a sole-proprietor is subject to both the taxpayer’s ordinary income tax rate and a 15.3% self-employment tax.
The easiest way to eliminate this additional self-employment tax is to switch from a sole-proprietor to an S-Corporation. If you are currently operating as a single-member LLC (for income tax purposes this defaults to a sole-proprietorship) you can elect to convert into a Corporation and simultaneously make a separate election to have the Corporation be taxed as an S-Corporation.
This election can be made retroactive 45-days from the date of the election which means that if you are looking to cut your taxes this year you can make the election no later than February 15th and keep your 2010 earnings free of self-employment taxes.
Tax Season = Less Pictures + More Tax Tips/Talk
It is that dreaded time of the year when most of you unwillingly re-familiarize yourselves with your accountant and tax preparers.
Below are a few basic tips to help you get started:
GET ORGANIZED
If you had a professional tax preparer (H&R Block doesn’t count) prepare your return last year then you should have received an Income Tax Organizer in January. Use this as a guide when you are gathering and compiling your 2009 tax information.
SORT AND SUMMARIZE
The last thing your preparer wants to see during the busiest time of their year is your shoe box of receipts. Since most tax professionals charge by the hour your money would be better spent by having us analyze your financial situation and provide you with tax planning and tax saving strategies.
DON’T PROCRASTINATE
Each year without fail I have the same clients who insist on waiting until the last minute to file their taxes. Coincidentally these are the clients with biggest tax problems.
My first piece of advise is to keep in touch with your accountant throughout the year so that we can guide you through the convoluted US Tax Codes and advise you of potential credits and deductions that may specifically apply to you.
Secondly, if you are like the majority of my clients we talk primarily in February through April, but if you bring your tax information to us early enough there are options available that may allow you to reduce your tax burden.
Finally, if you insist on waiting until the last minute be prepared to have your return put on extension. This extension allows you an automatic 6-months to FILE your return however it does not extended the deadline for your TAXES to be paid. These are always due in full in April.
How the Government Spends Your Money
Ever wonder how our government spends your tax dollars … http://www.usatoday.com/news/washington/tax-rates-spending.htm
Superbowl Prediction
According to a study performed by the Wall Street Journal, the Superbowl’s NFC team won two-thirds of the time when the halftime performer’s average age was greater than 47-years.
This years halftime performers will be Roger Daltrey (65) and Pete Townshed (64) of the English rock band, The Who.
Swimbook, Flash Flood Alert
FLASH FLOOD ALERT!
This morning’s Swimbook photo shoot with Big Island model, Kristina Waiau, was supposed to be our first full day back “in the office”, however Mother Nature had different plans.
A fast-moving cold front that arrived late last night put the island of Oahu on a Flash Flood Alert and forced to cancel and re-schedule Kristina’s photo shoot.
Stay tuned for announcement of our next Swimbook model.
Freelance, Shyla’s Baptism
Photographer: Garran Chun
Congratulations to baby Shyla who received her baptism this afternoon at the St. Peter and Paul Church in Honolulu, Hawaii.
Selected pictures can be viewed here.
Camera-Phone Photography
Relying solely on my eyeball statics it appears that 99.99% of the smartphone consumers are Apple’s iPhone users. I’m one of the few consumers who is still rocking the Blackberry, which can produce decent pictures under the right conditions.
Here are two (2) tips to help you create some quality pictures with your camera-phone:
Lighting: The drawback of most camera-phones are their inability to produce quality results under low-light conditions. If you can avoid this situation you will find that your camera-phone pictures are at their best under natural light.
Following the basic rules of flash photography, your camera’s built-in flash is to be used only as a last resort and the same is true with camera-phone photography.
Composition: Just like all other forms of photography composition is the backbone of a great picture.
All camera-phones have a built-in optical zoom feature that most users do not know about. Your feet. Don’t be lazy. A captivating picture is often created by the photographer’s ability to give the viewer a different perspective and the easiest way to accomplish this is by getting closer to your subject.
I hope these simple tips will help you create quality camera-phone pictures. If you have a tip to share, please do so in the comment section of this post.
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Swimbook — We’re Baaaccckkk!!
After a long hiatus Swimbook and its crew is back to work filming new episodes for you.
Next week we will be shooting with Kristina Waiau, a Big Island model with a mesmerizing gaze and a warm smile, who has agreed to island-hop south to Oahu for our photo and video shoot.
For on-location photo shoot updates follow me on Twitter @sunworksphoto.
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