A SMART TAX MOVE | BUY NOW

Put (or keep) some dollars in your pocket this tax year!

There’s still time to purchase the Engrave-A-Crete tools or equipment that will give you the competitive edge you’ve been dreaming of. Simply buy and use them by the end of the year to save big bucks with the tax breaks provided by the Section 179 Tax Deduction.

According to Section 179.org:

“When your business buys certain items of equipment, it typically gets to write them off a little at a time through depreciation. In other words, if your company spends $50,000 on a machine, it gets to write off (say) $10,000 a year for five years (these numbers are only meant to give you an example.)

“Now while it’s true that this is better than no write-off at all, most business owners would really prefer to WRITE OFF THE ENTIRE EQUIPMENT PURCHASE PRICE FOR THE YEAR THEY BUY IT.

“In fact, if a business could write off the entire amount, they might add more equipment this year instead of waiting over the next few years. That’s the whole purpose behind Section 179 – to motivate the American economy (and your business) to move in a positive direction. For most small businesses, the entire cost can be written off on the 2015 tax return (up to 25,000.)”

CAUTION: To take advantage of the current deduction and any retroactive raise (that Congress may approve,) you must buy the equipment and place it into service by 12/31/2015. Use Form 4562 to claim your deduction.

While we aren’t tax preparers, we do know a good deal for small and medium businesses when we see one.

Talk with your tax preparer now for complete details. Here are a couple of links to help you learn more:

www.section179.org

http://www.crestcapital.com/tax_deduction_calculator

Check out our complete line of decorative concrete tools, products, processes and training at EngraveACrete.com. Or, give us a call at 1-800-884-2114. We have same day shipping.

Employee or Independent Contractor | It Matters

cash into capitol bldgSocial Security taxes, Medicare taxes, Federal Unemployment taxes, State Unemployment taxes, Obamacare regulations…keeping it straight is enough to make an employer pull his hair out!

Many people mistakenly think they can avoid some of the hassle and expense of these requirements by hiring “independent contractors.”

Why it matters to you.

As an employer, you are required to withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee.

These requirements are generally waived on payments to an independent contractor.

So, obviously it would save you a lot of time and money to have independent contractors performing services for you.

But not so fast!

The IRS Inspector is urging a crackdown on the mislabeling of independent contractors.

Why does the IRS care? Because even if the “independent contractor” does file a return on his pay (and he may not,) the IRS likely won’t collect as much money and they won’t get it until after the scheduled payroll tax deadlines for employers.

In other words, less money later.

That makes them unhappy, and we all know it’s not good to mess with the IRS!

Classification can be confusing.

The IRS publication “Independent Contractor or Employee” gives three categories of rules to help you determine whether a worker is an employee or an independent contractor. They are:

  • Behavioral –  Does the company control or have the right to control what the worker does and how the worker does his or her job?
  • Financial –  Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
  • Type of Relationship – Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

You’ll find additional information by clicking on each heading.

If either you and/or the worker are still unsure about the classification, file Form SS-8 Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding and the IRS will make the determination for you.

Are there consequences for misclassification?

Yes!

According to the IRS, “If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker.”

You could be responsible for a substantial amount of back taxes and possible penalties.

Consult a professional.

These are just some broad guidelines on a complex topic. Talk with a professional tax preparer or the IRS for guidance as you make determinations.

Taxes aren’t nearly as much fun as transforming ugly concrete into beautiful surfaces, but they are an important part of running a successful decorative concrete business.

Stick it to Uncle Sam with the Deal of the Week | The Blastin’ Betty ProPack

Buy Blastin’ Betty and get $900 worth of accessories ABSOLUTELY FREE! Take control of tough floor prep jobs with Blastin’ Betty, the strong, dependable blast machine that removes even the most stubborn glues, mastics and stains.

Stick it to Uncle Sam! Have Blastin’ Betty up and running by the end of 2011, and you can write off 100% of the purchase price. It’s a win-win situation – with the Blastin’ Betty Propack you get the best floor prep machine money can buy and a tax break too. See Section 179 tax info here.

Includes:

  • Blastin’ Betty – $6995 – Section 179 2011 TAX DEDUCTION QUALIFIED
  • FREE – 5″ Angle Grinder with Dust Shroud ($499.95 value)
  • FREE – 24” Heavy Duty Floor Magnet ($249.95 value)
  • FREE – Collapsible Shot Funnel ($99.95 value)
  • FREE – Premium Blast Shot Media 50 lb. ($69.95 value)
  • FREE – shipping

For even greater savings and additional 2011 TAX DEDUCTIONS you can…

  • UPGRADE – to a 7” Angle Grinder with Dust Shroud for an additional $150
  • ADD – a HEPA certified Pulse-Bac Vacuum for $1995 ($2495.00 value)

Call 1-800-884-2114 or order securely online.

The tax rules change in 2012 and special offers end, so don’t delay – order today!

How Uncle Sam Helps With Your Purchase of Engrave-A-Crete Tools

Below is an article written by Engrave-A-Crete’s CFO, Faron Adamson.

taxes

Year-end tax planning is upon us and the income tax laws are very favorable if you have trade or business income for 2009. Wages are also considered trade or business income for the purchse of this deduction.

You can purchase equipment and instead of taking depreciation over 5-7 years, you can now offset trade or business income with up to $250,000 of Code Section 179 deduction in the current year.

Typically, if property for business has a useful life of more than one year, the cost must be spread across several tax years as depreciation with a portion of the cost deducted each year.

But there is a way to immediately receive these income tax benefits in one tax year. The provisions of Internal Revenue Code Section 179 allow a sole proprietor, partnership or corporation to fully expense tangible property in the year it is purchased.

Section 179 limits. The maximum section 179 expense deduction you can elect for qualified section 179 property you placed in service in tax years that begin in 2009 remains at $250,000.

The government is willing to allow larger deductions in the current year if you help stimulate the economy with purchase of equipment. I would rather purchase equipment and reduce my check for tax estimates and balance due, than to pay money out in taxes. I would still have the equipment, and the tax money is gone.

The above example is for a taxpayer in the 35% tax bracket, but all other tax rates apply accordingly. You may also save state income tax as well depending on the laws in your residence state.

See your accountant for a firm answer of how much an equipment purchase would actually cost you, after the tax effect. You might be amazed at how the government actually helps pay for your tools and equipment purchases.