Q: How will the new hire retention credit be claimed?
A: The new hire retention credit will be claimed on the employer’s 2011 income tax return.

For more information call us or send us an Email: margo@torocpa.com
Toro Accounting & Consulting Services LLC
140 N. Westmonte Dr. Suite 205
Altamonte Springs, FL 32714
Tel: (407) 389-0260
Fax: (321) 248-0150

WASHINGTON — Two new tax benefits are now available to employers hiring workers who were previously unemployed or only working part time. These provisions are part of the Hiring Incentives to Restore Employment (HIRE) Act enacted into law today.

Employers who hire unemployed workers this year (after Feb. 3, 2010 and before Jan. 1, 2011) may qualify for a 6.2-percent payroll tax incentive, in effect exempting them from their share of Social Security taxes on wages paid to these workers after the date of enactment. This reduced tax withholding will have no effect on the employee’s future Social Security benefits, and employers would still need to withhold the employee’s 6.2-percent share of Social Security taxes, as well as income taxes. The employer and employee’s shares of Medicare taxes would also still apply to these wages.

In addition, for each worker retained for at least a year, businesses may claim an additional general business tax credit, up to $1,000 per worker, when they file their 2011 income tax returns.

“These tax breaks offer a much-needed boost to employers willing to expand their payrolls, and businesses and nonprofits should keep these benefits in mind as they plan for the year ahead,” said IRS Commissioner Doug Shulman.

The two tax benefits are especially helpful to employers who are adding positions to their payrolls. New hires filling existing positions also qualify but only if the workers they are replacing left voluntarily or for cause. Family members and other relatives do not qualify.

In addition, the new law requires that the employer get a statement from each eligible new hire certifying that he or she was unemployed during the 60 days before beginning work or, alternatively, worked fewer than a total of 40 hours for someone else during the 60-day period. The IRS is currently developing a form employees can use to make the required statement.

Businesses, agricultural employers, tax-exempt organizations and public colleges and universities all qualify to claim the payroll tax benefit for eligible newly-hired employees. Household employers cannot claim this new tax benefit.

Employers claim the payroll tax benefit on the federal employment tax return they file, usually quarterly, with the IRS. Eligible employers will be able to claim the new tax incentive on their revised employment tax form for the second quarter of 2010.

Toro Accounting & Consulting Services LLC
Certified Public Accountant
140 N. Westmonte Dr. Suite 205
Altamonte Springs, FL 32714
Tel: (407) 389-0260
Fax: 1-(321) 248-0150

Contact Us for more information on our accounting and consulting services

IR-2009-111, Dec. 3, 2009

WASHINGTON — The Internal Revenue Service today issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

50 cents per mile for business miles driven
16.5 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations
The new rates for business, medical and moving purposes are slightly lower than last year’s. The mileage rates for 2010 reflect generally lower transportation costs compared to a year ago.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

For more details on the credit, Email us today or visit our CONTACT page.

We will gladly answer all your questions.

Toro Accounting & Consulting Services LLC
Certified Public Accountant
140 N. Westmonte Dr. Suite 205
Altamonte Springs, FL 32714
Tel: (407) 389-0260
Fax: 1-(321) 248-0150

1. It’s fast Your tax return will get processed more quickly if you use e-file. If there is an error on your return, it will typically be identified and can be corrected right away. If you file electronically and choose to have your tax refund deposited directly into your bank account, you will have your money in as few as 10 days.
2. It’s safe When you file a tax return electronically, the IRS is fully committed to protecting your information on our tax processing systems.
3. It’s time Don’t miss out on the benefits of e-file, 2 out of 3 taxpayers, 95 million, already get the benefits of e-file.

E-file software reduces the chance of making errors when you prepare your return. However, some people still print the computer generated return and mail it to the IRS instead of hitting the “Send” button. By mailing the return, taxpayers miss out on some important benefits of IRS e-file.

• With e-file, you get the peace of mind that comes with the electronic receipt you’ll receive notifying you that the IRS received your tax return.
• Virtually everyone can prepare a return and file it for free. For the second year, the IRS and its partners are offering the option of Free File Fillable Forms. Another option is Traditional Free File. About 98 million taxpayers – 70% of all taxpayers – are eligible for the IRS Traditional Free File. Traditional Free File is a service offered by software companies and the IRS in partnership to provide free tax preparation software and free filing.
• E-file is available 24 hours a day, seven days a week, from the convenience of your own home.
• If you owe money to the IRS, e-file also allows you to file your tax return early and delay payment up until the due date.
• In 37 states and the District of Columbia, you can simultaneously e-file your federal and state tax

For more details on the credit, Email us today or visit our CONTACT page.

We will gladly answer all your questions.

Toro Accounting & Consulting Services LLC
Certified Public Accountant
140 N. Westmonte Dr. Suite 205
Altamonte Springs, FL 32714
Tel: (407) 389-0260
Fax: 1-(321) 248-0150

The Worker, Homeownership, and Business Assistance Act of 2009 extends the deadline for qualifying home purchases from Nov. 30, 2009, to April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase.

The maximum credit amount remains at $8,000 for a first-time homebuyer –– that is, a buyer who has not owned a primary residence during the three years up to the date of purchase.

But the new law also provides a “long-time resident” credit of up to $6,500 to others who do not qualify as “first-time homebuyers.” To qualify this way, a buyer must have owned and used the same home as a principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence.

For all qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 tax returns.

A new version of Form 5405, First-Time Homebuyer Credit, will be available in the next few weeks. A taxpayer who purchases a home after Nov. 6 must use this new version of the form to claim the credit. Likewise, taxpayers claiming the credit on their 2009 returns, no matter when the house was purchased, must also use the new version of Form 5405. Taxpayers who claim the credit on their 2009 tax return will not be able to file electronically but instead will need to file a paper return.

A taxpayer who purchased a home on or before Nov. 6 and chooses to claim the credit on an original or amended 2008 return may continue to use the current version of Form 5405.

Income Limits Rise

The new law raises the income limits for people who purchase homes after Nov. 6. The full credit will be available to taxpayers with modified adjusted gross incomes (MAGI) up to $125,000, or $225,000 for joint filers. Those with MAGI between $125,000 and $145,000, or $225,000 and $245,000 for joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify.

For homes purchased prior to Nov. 7, 2009, existing MAGI limits remain in place. The full credit is available to taxpayers with MAGI up to $75,000, or $150,000 for joint filers. Those with MAGI between $75,000 and $95,000, or $150,000 and $170,000 for joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify.

New Requirements

Several new restrictions on purchases that occur after Nov. 6 go into effect with the new law:

• Dependents are not eligible to claim the credit.
• No credit is available if the purchase price of a home is more than $800,000.
• A purchaser must be at least 18 years of age on the date of purchase.

For Members of the Military

Members of the Armed Forces and certain federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and still qualify for the credit. An eligible taxpayer must buy or enter into a binding contract to buy a home by April 30, 2011, and settle on the purchase by June 30, 2011.

For more details on the credit, Email us today or  visit our CONTACT page.

We will gladly answer all your questions.

Toro Accounting & Consulting Services LLC
Certified Public Accountant
140 N. Westmonte Dr. Suite 205
Altamonte Springs, FL 32714
Tel: (407) 389-0260
Fax: 1-(321) 248-0150

Our CERTIFIED QUICKBOOKS ® PROADVISOR will provide your business with all the tools to answer the number one question for any business owner: WHERE IS THE CASH?

Since most small businesses in Central Florida use QuickBooks ®, at our accounting firm we have selected QuickBooks to account for our client’s financial transactions. Our accounting firm’s CPA, Cesar A. Toro, is a “QuickBooks ProAdvisor” which means he can solve all your QuickBooks problems as well as help you maximize this powerful tool.

Our personalized range of Accounting & Auditing Services and Quickbooks ® training will enable you as a business owner to complete all your bookeeping and financial records in a timely and efficient manner with the full support of real world experience from our team of Certified Public Accountants. This will enable you to concentrate your time on other aspects of your business that will increase your sales and productivity.

Send us an Email or fill our Contact form for more inforamtion on our Accounting packages and Quickbooks ® Accounting Solutions. We will gladly provide you with a free consultation and estimate.

You must file a return by October 15 to receive a payment prior to year’s end. It can take up to eight weeks for the IRS to process the return and issue the check.

People who have no tax filing requirement but have at least $3,000 in qualifying income should file a simple Form 1040A to claim the minimum payment of $300 ($600 for married couples) plus the $300 payment for each qualifying child younger than 17 as of Dec. 31, 2007. Qualifying income includes any combination of earned income, nontaxable combat pay as well as certain payments from the Social Security Administration, Department of Veterans’ Affairs and the Railroad Retirement Board.

For taxpayers who are required to file an income tax return, the IRS will use their 2007 tax return information to determine eligibility for economic stimulus payments of up to $600 ($1,200 for married couples) plus the $300 payment per each qualifying child.

Social Security benefits considered qualifying income include retirement, disability and survivor payments; Supplemental Security Income, known as SSI, is not qualifying income. Veterans Affairs benefits considered qualifying income include disability compensation, disability pension and survivor payments. Qualifying Railroad Retirement payments include the social security equivalent portion of Tier 1 benefits.

Taxpayers must have a valid Social Security Number to qualify for the payment; this includes both spouses filing a joint return and any dependents. Married members of the military may receive economic stimulus payments this fall, even if their spouses or children don’t have social security numbers, following the newly-enacted Heroes Earnings Assistance and Relief Tax Act of 2008. Also, people cannot be claimed or be eligible to be claimed as a dependent on another person’s tax return.

For more information about the Economic Stimulus payments visit the IRS Web site at IRS.gov.

During summer months, many people sell their home and move to a new location.  Many of those individuals will make a profit on the sale and still will not have to pay a single dime of additional income tax to the IRS. 

Generally, you have made a profit if the selling price of your home is greater than the price you paid to purchase the home.  That profit, considered a capital gain, is usually subject to income tax.  However, under certain circumstances the law allows you to exclude all or part of that gain from your income – that is, you may not have to pay tax on the profit.

Individuals may be able to exclude up to $250,000 of capital gain on the sale of their home, and married taxpayers filing joint returns may be able to exclude up to $500,000. The exclusion may be claimed each time that you sell your main home, but generally no more often than once every two years.

To qualify, you must meet both the ownership and use tests.

• Ownership Test: During the 5-year period ending on the date of the sale, you must have owned the home for at least 2 years.
• Use Test: During the 5-year period ending on the date of the sale, you must have lived in the home as your main home at least 2 years.

If you and your spouse file a joint return and both meet the use test, you normally will be able to claim the exclusion for married couples even if only one of you meets the ownership test.

If you do not meet these tests, you may still be allowed to exclude a reduced amount of the gain realized on the sale of your home.  But you must have sold the home for other specific reasons such as serious health issues, a change in your place of employment, or certain unforeseen circumstances such as a divorce or legal separation, natural or man-made disasters resulting in a casualty to your home, or an involuntary conversion of your home.

For sales after 2007, the maximum exclusion on the sale of a main home by an unmarried surviving spouse is $500,000 if the sale occurs no later than 2 years after the date of the other spouse’s death. However, this rule applies only if the requirements for joint filers relating to ownership and use were met immediately before the date of death, and during the 2-year period ending on the date of death, there was no sale or exchange of a main home by either spouse which qualified for the exclusion.

If you were on qualified official extended duty in the U.S. Armed Services, the Foreign Service, or the intelligence community, you may suspend the five-year test period for up to 10 years. You are on qualified extended duty when, for more than 90 days or for an indefinite period, you are:

• At a duty station that is at least 50 miles from your main home, or
• Residing under government orders in government housing.

Intelligence community members must serve on extended duty at a duty station that is located outside the United States.

If you are entitled to exclude the entire gain from the sale of your home, you do not need to report the gain on your federal tax return. However, if you are not entitled to exclude the entire amount of the gain, use Schedule D, Capital Gains and Losses, and Form 1040 to report the total gain, the portion that can be excluded, and the portion that is subject to capital gains tax.

Cesar A. Toro CPA, CBA & CIA has a proven record of satisfied clients in Orlando and surrounding areas in Central Florida. Please send us an Email or Contact Us. One of experienced certified accountants in Orlando will assist you. 

A graduate of Florida International University in Miami, Cesar Toro has earned the CPA, CIA, and CBA certifications and is fluent in Portuguese, Spanish, and English.

Cesar Toro CPA is currently the owner of Toro Accounting & Consulting Services, LLC, a firm specializing in small client services and mid-size client accounting consultations. Services include: incorporations, monthly accounting, reviews and compilations, controller services and tax filings. His firm is associated with Parks, De Filippo & Associates in the performance of audits.

Cesar Toro CPA started his career in the Miami office of Deloitte and Touche where he spent two years as staff auditor working in various industries including banking, real estate and non-profits. He later moved to Puerto Rico where he spent 4 years at the San Juan office of KPMG. While at KPMG, Cesar Toro CPA worked in various industries including banking, manufacturing and governmental. Cesar Toro CPA was also part of the KPMG consulting group and was involved with the evaluation of client needs for a major software implementation.

Upon leaving Public Accounting, Cesar A. Toro CPA gained experience in internal auditing as the Internal Audit Manager for the San Juan Subsidiary of Scotiabank and later the Internal Audit Manager for the Americas for a French Mining conglomerate. His experience in internal auditing included performing operational and financial evaluation of the company’s domestic and international operations and departments, evaluating acquisition targets, and supervising the sale and/or closure of companies.

Cesar Toro CPA subsequently served two years as Financial Director and Controller of one of the Groups mining operation in Brazil with sales exceeding $100 million. As a result Cesar Toro CPA possesses extensive experience in evaluating recommending, and implementing internal controls over financial reporting.

For further information on our accounting and tax related services in Florida, Contact Us  or send us Email. One of our experienced accounting executives will closely work with you – Toro Accounting & Consulting Services LLC, consulting services to maintain your successful business on track.

Toro Accounting & Consulting Services LLC of Orlando, Florida is your best source for accounting advice. Recently one of our new clients using both the mileage the rate of 58.5 cents for 2008 and by collecting the small receipts for the petty cash will save over $21,567.00 this year!

• Vehicle Depreciation Limits
  Vehicle Depreciation Limits for 2008 (used 100% for business) is only $3,060.00, then $4,900.00 for 2008 and then $2,850.00 for 2009?
  Problem: It would take a business over 17 years to depreciate a $35,000 vehicle
  Answer: The mileage amount for 2008 is 58.5 cents a mile, and our average business owner drives about 27,000 miles a year which equals a tax deduction of $15,795
• Petty Cash  
  Most business often forget to get the “little receipts” (for items like soft drinks, newspapers, cleaning supplies and “out of the pocket” traveling expenses).
  Problem: Missing the small receipts for $165.00 weekly totals $8,580.00 a year in additional income & taxes (average small business).
  Answer: Using our simple petty cash envelope will allow a business owner to deduct all “out of pocket” expenses. Which will result in saving $2,402 in taxes (average small business owner)!
• Travel & Entertainment
  Entertainment limit is 50 % deductible, and Travel is 100% as long it is the benefit of the business (purpose) instead of losing half of the expense, there are times that office meals and promotional expense can be deducted at 100% for items like parties and office meetings.

Let us provide the details to max all deductions for your business today! CONTACT US regarding our accounting and tax related services. Call us or  send us an Email for more information. We will gladly provide more detail regarding our area of expertise.