Sign Materials - How to understand them all



You opening a new company or changing your current business?

You need a sign.  Be ready before you meet with a sign company.  Let’s break it down and make some sense of some of the most popular sign materials. Materials can be segmented into three categories: standard, medium & high end. A standard sign can be made from coroplast or aluminuim.  Both are inexpensive, weatherproof, lightweight and can be combined with a vinyl - www.unitedsignsga.com/printed-graphics/

Coroplast comes in several thicknesses and does have lines and ridges.  Aluminum is available in different thicknesses and can be made reflective.
Simply a stronger version of the coroplast. Standard Aluminum Sign – Direct-mounted to Brick ,

A Medium-Level sign is made from PVC or MDO (Medium Density Overlay).  MDO can be printed on, painted or used with vinyl.  It does have a wood center so it needs to be maintained to prevent rot.
PVC is a solid, thick plastic that can stand the test of time.  It to can be printed on, painted or used with cut vinyl.  Flat MDO Hanging Sign Or are you looking for a custom made, one of a kind sign?

HDU, High Density Urethane – High End.  Very dense, hard foam that can be routed or carved and custom painted and can be made to look like real wood. This sign will stand the test of time and can be 100% custom as far as the look and color. There really are no limits here. Another high end option is making your sign out of mahogany or cedar.  Both can be custom painted and routed. A high end Sign Made Out of HDU So now you’re ready to go have a sign made.  Your business can’t live without one and you’ll love these tips as you begin your journey into the sign making process.  Visit www.UnitedSignsGA.com for more details.

What Types of sign lettering is popular in Georgia?

With their low price tag and versatility PVC letters are a popular alternative for management companies, business owners, and property managers - http://www.unitedsignsga.com/custom-signs/. You can choose from a wide selection of sizes, colors, materials, and typefaces. Also, they can be custom fabricated right here in Atlanta at www.unitedsignsga.com to provide you with brand consistency. One of the premier providers of PVC letters for Atlanta, GA is United Signs in Peachtree Corners.

Campaign Signs - Do they really work?

http://patch.com/georgia/peachtreecorners/campaign-signs-do-they-really-work

Visit www.UnitedSignsGA.com for more details.

Fourth Quarter Tax Planning

For many individuals, the ordinary federal income tax rates for 2013 will be the same as last year: 10%, 15%, 25%, 28%, 33%, and 35%. However, the so-called fiscal cliff legislation passed early this year increased the maximum rate for higher-income individuals to 39.6% (up from 35%). This change only affects taxpayers with taxable income above $400,000 for singles, $450,000 for married joint-filing couples, $425,000 for heads of households, and $225,000 for married individuals who file separate returns. Higher-income individuals can also get hit by the new additional 0.9% Medicare tax and the 3.8% net investment income tax (3.8% NIIT), which can result in a higher-than-advertised federal tax rate for 2013.

Despite these tax increases, the current federal income tax environment remains relatively favorable by historical standards. This article presents some tax planning ideas to consider this fall that may apply to you and/or your family. Note that it is critical to evaluate all tax planning strategies in light of the alternative minimum tax (AMT).

James Lowe

www.hicksclark.com

jlowe@hicksclark.com

FAQs Regarding Your Social Security Statement

Q. Are my benefits figured on my last five years of earnings?
A. No. Retirement benefit calculations are based on your average earnings during a lifetime of work under the Social Security system. For most current and future retirees, we will average your 35 highest years of earnings. Years in which you have low earnings or no earnings may be counted to bring the total years of earnings up to 35.

Q. I stopped work at the end of last year at age 52. I don't expect to work again before I start my Social Security benefits when I turn 62. Will I still get the same benefit amount the SSA shown for age 62 on the Social Security Statement that they recently sent me?
A. Probably not. When they averaged out your 35 highest years of earnings to estimate your benefits on your Statement, they assumed you would continue to work up to age 62, making the same earnings you made last year. If, instead, you have $0 earnings each year over the next 10 years, your average earnings will probably be less and so will your benefit. You can use our Retirement Calculator or Benefit Calculators on our Financial Tools page to see how this will affect your monthly benefit amount.

Q. Will my retirement pension from my job reduce the amount of my Social Security benefit?

A. If your pension is from work where you also paid Social Security taxes, it will not affect your Social Security benefit. However, pensions based on work that is not covered by Social Security (for example, the federal civil service and some state, local, or foreign government systems) probably will reduce the amount of your Social Security benefit. For more information, read the following fact sheets:

• "Windfall Elimination Provision" and
• "Government Pension Offset."

Q. My wife and I both worked under Social Security. Her Social Security Statement says she can get $850 a month at full retirement age and mine says I would get $1450. Do we each get our own amount? Someone told me we could only get my amount, plus one-half of that amount for my wife.
A. Since your wife's own benefit is more than one-half of your amount, you will each get your own benefit. If your wife's own benefit were less than half of yours (that is, less than $725), she would receive her amount plus enough on your record to bring it up to the $725 amount.

Q. If I work after I start receiving Social Security retirement benefits, will I still need to pay Social Security and Medicare taxes on my earnings?
A. Yes. Any time you work in a job that is covered by Social Security--even if you are already receiving Social Security benefits--you and your employer must pay the Social Security and Medicare taxes on your earnings. The same is true if you are self-employed. You are still subject to the Social Security and Medicare taxes on your net profit.

Q. I have Medicare, but I didn't apply for retirement benefits because I'm under full retirement age and still working. How do I decide when to start receiving retirement benefits?
A. Deciding when to start receiving benefits is an important decision that needs to be made carefully. You can:

• Read the SSA's "Retirement Information For Medicare Beneficiaries" fact sheet,
• Call our office for personalized assistance on helping you decide when best to start receiving benefits,
• Use our Retirement Calculators on our Financial Tools page to see how different retirement dates will affect your benefit amount, and
• Find other information you can use to help you decide when to start your benefits in the SSA's "Near Retirement" section of their website.

James Lowe

jlowe@hicksclark.com

www.hicksclark.com

Local Lodging Expenses and Social Security Statements

New Tax Rule for Local Lodging Expenses

The IRS recently issued long-awaited regulations that permit certain not-away-from-home lodging expenses to be deducted by workers if they are not reimbursed by their employer. Alternatively, if paid for by the employer, the expense can be treated as a tax-free working condition fringe benefit (WCFB) or tax-free accountable-plan reimbursement.

Thanks to prior IRS guidance, the value of an employer-provided WCFB is excluded from the recipient employee's gross income for federal income and employment tax purposes. A WCFB is defined as any property or service provided to an employee to the extent that, if the employee paid for the property or service, it would be deductible by the employee as an unreimbursed employee business expense. Employer-paid lodging for an employee who is out of town on the employer's business counts as a tax-free WCFB.

Prior regulations provide that the cost of an individual's lodging that is not incurred while traveling away from home on business is generally a personal expense and is therefore generally not deductible by the individual. An individual is not considered away from home unless he or she is away from home overnight, or at least long enough to require rest or sleep.

The new regulations stipulate that an individual's local lodging expenses can be deducted by the individual as business expenses if the applicable facts and circumstances dictate that such treatment is appropriate. In turn, expenses that would qualify for deductions if paid for by an employee will qualify as a tax-free WCFB if paid by the employer, or if advanced or reimbursed by the employer under an accountable plan. However, local lodging expenses will not qualify for the aforementioned tax-favored treatment if the lodging is lavish or extravagant, or if it is primarily to provide the individual with a social or personal benefit.

Safe Harbor Rule. Under the new regulations, local lodging expenses are automatically treated as ordinary and necessary business expenses if all of the following conditions are met: (1) the lodging is necessary for the individual to participate fully in or be available for a bona fide business meeting, conference, training activity, or other business function; (2) the lodging is for a period that does not exceed five calendar days and does not occur more frequently than once per calendar quarter; (3) in the case of an employee, the employer requires the employee to remain at the activity or function overnight; and (4) the lodging is not lavish or extravagant under the circumstances and does not provide any significant element of personal pleasure, recreation, or benefit.

Example: Tax-favored treatment allowed for employees.

Distant Corporation puts on periodic employee training sessions at a hotel near its main office. Distant requires all attending employees, including employees from the local area, to remain at the hotel overnight for the bona fide business purpose of maximizing the effectiveness of the training sessions.

If Distant directly pays the lodging costs for attending employees, the costs qualify as tax-free WCFBs for the attending employees, including those who live in the local area, and Distant can deduct the costs as business expenses. If Distant reimburses attending employees for the lodging costs under an accountable plan, the reimbursements are tax-free to the employees, including those who live in the local area, and Distant can deduct the reimbursements as business expenses.

Please contact us if you have questions concerning business travel expenses or any other tax compliance or planning issue.

Social Security Statements

The Social Security Administration (SSA) recently announced that Social Security statements may now be viewed online at www.ssa.gov/mystatement. The statements provide workers with an estimate of benefits under current law and an earnings record with Social Security and Medicare for taxes paid over their working career. A printable version of the Social Security statement is available. To get an online statement, a person must be 18 or older and able to provide information that matches their SSA file. After verification, an account is created with a unique user name and password to access the online statement.

Boomer Alert: Approximately 3 million baby boomers are turning 65 each year. According to the Social Security Administration, social security was the major source of income for most beneficiaries.

James Lowe

www.hicksclark.com

jlowe@hicksclark.com

Filing Status Implications & Retirement Contribution Limitations

Filing Status Implications

For married taxpayers, the implications of filing a joint or separate return extend beyond tax rates and the standard deduction. Like many aspects of income taxation, there is usually more than one approach to finding the optimal solution. We have listed some of the more common implications of filing either a joint or separate return. Although not an exhaustive list, it highlights several issues to consider.

Some of the implications of filing a joint return include (among others):

• The requirement that individuals who file a joint return cannot be claimed as dependents on another return. This can be important when married students are still supported by their parents.
• An individual who files a joint return is not subject to the "kiddie tax" provisions.
• Joint filers are both responsible for the tax on their joint return. Thus, nontax factors should be considered (i.e., questionable business transactions). In addition, divorced taxpayers will each be liable for tax, interest, and penalties due on a joint return filed before the divorce.
• Finally, monthly Medicare premiums can increase substantially for a couple filing jointly versus filing separately, especially for a lower-income spouse.

The implications of filing a separate return include (among others):

• If one spouse itemizes deductions, the other must also, even if total deductions are less than the standard deduction.
• Taxpayers can generally only deduct expenses they actually paid versus those paid by either.
• Credits for child care, adoption, education, and earned income are generally not available.
• If separate filers lived with their spouse during any part of the year, a greater percentage of social security benefits may be taxable because the income threshold for determining the taxable amount is reduced to zero.
• The exclusion of gain on the sale of a principal residence is limited to $250,000 (each) for separate filers versus $500,000 for a joint return.
• The $25,000 passive loss exception for actively managed rental real estate may be totally or partially lost. Also, one spouse's passive income cannot be offset by the other spouse's passive losses.
• The limit on the capital loss deduction on a separate return is $1,500 (each).
• No exclusion is allowed for interest income from Series EE bonds used for higher education expenses.
• The deduction for interest on qualified education loans is not available.
• Taxpayers filing separate federal returns typically must also file separate returns for state income tax purposes.

There you have it: the implications for married taxpayers filing jointly or separately. Please contact us to discuss the most advantageous filing status or any other tax compliance or planning issue.

Retirement Contribution and Other Limitations for 2013

The IRS has announced cost-of-living adjustments affecting the dollar limitations for retirement plans, deductions, and other items. Several of the limitations are higher for 2013 because the increase in the cost-of-living index met the statutory threshold. However, some limitations did not meet that threshold and remain unchanged from 2012.

The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan increased from $17,000 in 2012 to $17,500 in 2013. The catch-up contribution limit for those age 50 and over remains unchanged at $5,500.

The contribution limit for both Roth and traditional IRAs has increased $500 from 2012. You can contribute up to $5,500 ($6,500 if you are age 50 or older by year-end) to your IRA in 2013 if certain conditions are met (i.e., sufficient earned income). For married couples, the combined contribution limits are $11,000 ($5,500 each) and $13,000 ($6,500 each if both are age 50 by year-end) when a joint return is filed, provided one or both spouses had at least that much earned income.

Keep in mind that contributions to traditional IRAs may be tax-deductible, subject to specific limitations that increase for 2013. When you establish and contribute to a Roth IRA, contributions are not deductible, but withdrawals are tax-free when specific requirements are satisfied. In addition, there are no mandatory distribution rules at age 70 1/2 with a Roth IRA, and you can continue to make contri

butions past age 70 1/2 if you meet the earned income requirement.

The 2013 limitation for SIMPLE retirement accounts increased $500 to $12,000. However, the SIMPLE catch-up contribution for those age 50 by year-end is unchanged from 2012 at $2,500.

The 2013 contribution limit for profit-sharing, SEP, and money purchase pension plans is the lesser of (1) 25% of the employee's compensation-limited to $255,000, an increase of $5,000 from 2012 or (2) $51,000, an increase of $1,000 from 2012.

The social security wage base, for computing the social security tax (OASDI), increases to $113,700 in 2013, up from $110,100 for 2012. The additional $3,600 for 2013 represents an increase of 3.3% in the wage base.

Finally, the annual exclusion for gifts increased by $1,000 and is $14,000 in 2013.

James Lowe

www.hicksclark.com

jlowe@hicksclark.com