Local CPAs Have National Roles

Recently, the President and CEO of the American Institute of Certified Public Accountants (AICPA) recognized the contributions to our profession by several partners of DiSanto, Priest & Co.

 Our very own Bill Pirolli, has been involved on various boards and committees with the Rhode Island Society of Certified Public Accountants (RISCPA) (including past President of the RISCPA) and the AICPA for most of his professional career.  Bill has helped shape many great initiatives to advance the certified public accounting profession which we get to see first-hand on a daily basis.

More recently, Bill was recognized for his outstanding service as Chair of Private Companies Practice Section (PCPS) Executive Committee for the past three years.  PCPS is a firm membership section of the AICPA.  Its governing body and Executive Committee, is comprised of professionals throughout the country who represent views of local and regional firms on professional issues and oversee development of programs to help improve the quality of services  and operating success of PCPS member firms.  It also enables and facilitates communication to and from PCPS firms on professional and technical issues and PCPS and AICPA matters. 

Other members of the firm holding leadership roles on a national basis include John J. Brough Jr. and Leah J. Szlatenyi.

 John J Brough, Jr. is a member of the AICPA's Forensics & Litigation Services (FLS) Committee.  John is one of only fourteen forensic and litigation experts across the country serving as a member of the Committee.  The FLS Committee provides professional guidance to CPA practitioners who perform forensic accounting investigations and determine economic damages.  The Forensic and Valuation Services Center is designed to provide CPAs with a vast array of resources, tools and information on Business Valuation and Forensic and Litigation Services (BV / FLS).  The FLS Committee develops, promotes and creates demand for developing emerging forensic accounting services by raising the level of awareness of a CPA's role in this area for lawyers and other service professionals.  

 Leah J. Szlatenyi is one of only twelve valuation experts across the country serving as a member of the AICPA's Business Valuation Committee.  Her appointment affords her the opportunity to represent all CPAs and business valuation practitioners located in the New England and Mid-Atlantic states.  Leah also serves on the RISCPA Business Valuation Committee.

  

Click the link below to read the Article from the RISCPA

RISCPA: Local CPAs Have National Roles
 

Estate & Gift Planning - The Time to Act is Now!

As you are aware from our previous communications, we are currently in what might be considered a unique, opportunistic and perhaps finite time period where married individuals can effectively shield $10 million in assets from estate tax.  However, the time to act is now before this provision expires at year-end!

Click here for a hypothetical example illustrating the potential impact of the expiration of such provisions as well as here for an exhibit setting forth some of the significant tax rate changes scheduled for 2013.

Whether Congress ultimately adopts an exemption amount of $1 million, $3.5 million, or $5 million-or even permanently repeals the estate tax, it is essential to have a plan in place that is fluid and flexible.  A carefully designed estate plan requires a comprehensive team of professionals.  Our dedicated team employs a multi-disciplinary approach to help clients achieve greater financial security for themselves and their families.  Through our affiliates and alliances, we work together to put personal goals into action, and ensure clients have the appropriate tax, estate, financial planning and legal professionals necessary to set plans in motion.  We would be pleased to meet with you to discuss your personal tax and estate plan.  Call us today!

Frank Sciuto at Brown University

As part of Brown University’s Academic and Professional Group, our very own Frank T. Sciuto, CPA/PFS, CFP, MST, MS/MBA will be teaching several weekly seminars for the Smart Woman Securities (SWS) , a new not-for-profit chapter on campus, focused on investment education for undergraduate women.
 
The organization’s primary goal is to educate undergraduate women about equities and investing with practical experience and exposure to the financial markets.
 
The comprehensive investment series is designed and based on prudent financial management and investing for women.

At the culmination of the series, all participants will have the opportunity to meet pioneering financial guru and  the 20 th century’s most successful investor, Warren Buffett!

Click here for a Forbes article on Warren Buffett and some members of  the Forbes 400

Estate & Gift Planning - The Time to Act is Now!

Estate planning today is more complex than ever before. The environment is dynamic, rife with unprecedented changes, uncertainty, and substantial opportunities. As Congress passes new laws each year, it has become essential to have a plan in place that is fluid and flexible.

We are currently in what might be considered a unique, opportunistic and perhaps finite time period where married individuals can effectively shield $10 million in assets from estate tax, but the time to act is now before this provision expires at year-end!  Click here for The Benefits of Making Gifts Before 2013

The Estate and Trust Group, together with our affiliates and professional relationships, have the ability to coordinate the following services:

• full asset inventory and estate tax plan studies
• investment planning
• insurance planning
• engagement of the appropriate probate, estate and trust attorneys
• wealth advisory services

A carefully designed estate plan requires a comprehensive team of professionals. Our dedicated team employs a multi-disciplinary approach to help clients achieve greater financial security for themselves and their families. Through our affiliates and alliances, we work together to put personal goals into action, and ensure clients have the appropriate, tax, estate, financial planning and legal professionals necessary to set plans in motion. We would be pleased to meet with you to dicuss your personal tax and estate plan.  Call us today! 

 

As always, should you have any questions, please feel free to contact your trusted advisor at DiSanto Priest & Co., a member of the Bentley Group entities.  

 401.921.2000 

Renting Out a Vacation Home

Tax rules on rental income from second homes can be complicated, particularly if you rent the home out for several months of the year, but also use the home yourself.
 
There is however, one provision that is not complicated. Homeowners who rent out their property for 14 or fewer days a year can receive the rental income, tax-free.
 
It is k nown as the "Master's exemption", because it is used by homeowners, near the Augusta National Golf Club in Augusta, GA who rent out their homes during the Master's Tournament (for as much as $20,000!). It is also used by homeowners who rent out their homes for movie productions or those whose residences are located near Super Bowl sites or national political conventions.
 
Tip: If you live close to a vacation destination such as the beach or mountains, you may be able to make some extra cash by renting out your home (principal residence) when you go on vacation-- provided i t's two weeks or less. And, although you can't take depreciation or deduct for maintenance, you can deduct mortgage interest and property taxes on Schedule A.
 
In general, income from rental of a vacation home for 15 days or longer must be reported on your tax return on Schedule E, Supplemental Income and Loss. You should also keep in mind that the definition of a "vacation home" is not limited to a house. Apartments, condominiums, mobile homes, and boats are also considered vacation homes in the eyes of the IR S .
 
Further, the IRS states that a vacation home is considered a residence if personal use exceeds 14 days or more than 10% of the total days it is rented to others (if that figure is greater). When you use a vacation home as your residence and also rent it to others, you must divide the expenses between rental use and personal use, and you may not deduct the rental portion of the expenses in excess of the rental income.
 
Example: Let's say you own a house in the mountains and rent it out during ski season, typically between mid-December and mid-April. You and your family also vacation at the house for one week in October and two weeks in August. The rest of the time the house is unused.
 
The family uses the house for 21 days and it is rented out to others for 121 days for a total of 142 days of use during the year. In this scenario 85% of expenses such as mortgage interest, property taxes, maintenance, utilities, and depreciation can be written off against the rental income on Schedule E. As for the remaining 15% of expenses, only the owner's mortgage interest and property taxes are deductible on Schedule A.
 
Questions about vacation home rental income? Please call us .

Rhode Island Division of Taxation Announces Tax Amnesty Program * September 2, 2012 through November 15, 2012

The Rhode Island Division of Taxation is offering a Tax Amnesty program which will allow certain taxpayers to pay the full amount of overdue taxes plus seventy-five percent of any interest due, without having to pay the remaining interest and any penalty amounts due and without being subject to any other civil or criminal penalties.

Rhode Island's Tax Amnesty Program will run from September 2, 2012 through November 15, 2012 and applies to taxes due for taxable periods ending on or before December 31, 2011. The amnesty includes 2011 Rhode Island personal income tax returns, which were due April 17, 2012.

Rhode Island's Tax Amnesty program includes, but is not limited to, the following types of taxes:

• Corporate income tax
• Estate tax
• Fiduciary income tax
• Personal income tax
• Sales tax
• Use tax
• Cigarette and tobacco products taxes
• Employer taxes - unemployment, temporary disability insurance

Some exclusions to the Tax Amnesty program are: 

• Taxpayers facing criminal investigation are not eligible for tax amnesty.
• Taxpayers party to any civil or criminal proceedings pending in any court of the United States or the State of Rhode Island, for fraud in relation to any State tax imposed by the laws of the State and collected by the Tax Administrator.

For further information, including an amnesty application, click on the RI Division of Taxation Tax Amnesty web site:

http://www.taxamnesty.ri.gov/

Paying Off Debt the Smart Way

Being in debt isn't necessarily a terrible thing. Between mortgages, car loans, credit cards, and student loans, most people are in debt. Being debt-free is a worthwhile goal, but most people need to focus on managing their debt first since it's likely to be there for most of your life.
 
Handled wisely, that debt won't be an albatross around your neck. You don't need to shell out your hard-earned money because of exorbitant interest rates or always feel like you're on the verge of bankruptcy. You can pay off debt the smart way, while at the same time saving money to pay it off faster.
 
Assess the Situation 
First, assess the depth of your debt. Write it down, using pencil and paper, a spreadsheet like Microsoft Excel, or a bookkeeping program like Quicken. Include every financial situation where a company has given you something in advance of payment, including your mortgage, car payment(s), credit cards, tax liens, student loans, and payments on electronics or other household items through a store.
 
Record the day the debt began and when it will end (if possible), the interest rate you're paying, and what your payments typically are. Add it all up, painful as that might be. Try not to be discouraged! Remember, you're going to break this down into manageable chunks while finding extra money to help pay it down.
 
Identify High-Cost Debt 
Yes, some debts are more expensive than others. Unless you're getting payday loans (which you shouldn't be), the worst offenders are probably your credit cards. Here's how to deal with them. Don't use them. Don't cut them up, but put them in a drawer and only access them in an emergency.
 
Identify the card with the highest interest and pay off as much as you can every month. Pay minimums on the others. When that one's paid off, work on the card with the next highest rate. Don't close existing cards or open any new ones. It won't help your credit rating.
 
Pay on time, absolutely every time. One late payment these days can lower your FICO score. Go over your credit-card statements with a fine-tooth comb. Are you still being charged for that travel club you've never used? Look for line items you don't need. Call your credit card companies and ask them nicely if they would lower your interest rates. It does work sometimes!
 
Save, Save, Save
Do whatever you can to retire debt. Consider taking a second job and using that income only for higher payments on your financial obligations. Substitute free family activities for high-cost ones. Sell high-value items that you can live without.
 
Do Away with Unnecessary Items to Reduce Debt Load
Do you really need the 800-channel cable option or that dish on your roof? You'll be surprised at what you don't miss. How about magazine subscriptions? They're not terribly expensive, but every penny counts. It's nice to have a library of books, but consider visiting the public library or half-price bookstores until your debt is under control.
 
Never, Ever Miss a Payment 
Not only are you retiring debt, but you're also building a stellar credit rating. If you ever move or buy another car, you'll want to get the lowest rate possible. A blemish-free payment record will help with that. Besides, credit card companies can be quick to raise interest rates because of one late payment. A completely missed one is even more serious.
 
Pay With Cash 
To avoid increasing debt load, make it a habit to pay with cash. If you don't have the cash for it, you probably don't need it. You'll feel better about what you do have if you know it's owned free and clear.
 
Shop Wisely, and Use the Savings to Pay Down Your Debt 
If your family is large enough to warrant it, invest $30 or $40 and join a store like Sam's or Costco. And use it. Shop there first, then at the grocery store. Change brands if you have to and swallow your pride. Use coupons religiously. Calculate the money you're saving and slap it on your debt.
 
Each of these steps, taken alone, probably doesn't seem like much. But if you adopt as many as you can, you'll watch your debt decrease every month. If you need help managing debt give us a call. We can help.