Acclux accounting: Unleash your creativity with accounting software built for web designers

As a web designer, you are the only player in your business; you are totally responsible for your customers starting from the first meeting all the way to the delivery of your project. As well as you are responsible for your all finances expenses, income and taxes. We all know how tax time can be hard time for you as a web designer.

No one wants to deal with all these challenges, especially when you have the passion of creativity and innovation. You need to find the solution that carries out what’s worrying you and let you focus on your creative work.

Of course the primary demand for web designers is to create invoices, track payment, manage expenses and follow you projects and tasks progress.

So how acclux accounting can be your beloved hero!

Work in the environment you are familiar with
acclux accounting is a cloud solution and its operating in your favorite space “the web”, You will always have the easy access to your data from anywhere using any device.

Project and task management
For each project you will have, you can immediately define it with important information like customer name, project deadline and expected cost.

Create tasks for your projects and arrange those tasks in sections (or milestone) for easy tracking of those tasks.

If you are invoicing your customers by hourly bases, acclux accounting provides you with a creative app to track precisely the time you spent for each task, acclux timer is a free app for acclux accounting users, it’s available in iOS, android and windows phone devices. Once your task is completed, you will be able to invoice it to your customers.

Quick Invoicing
One of the biggest challenges of web designers is to create professional invoices in minimal time and efforts. With acclux accounting smart and easy to use interface you will be able to create your invoice very quickly. You won’t have better fun other than create your invoices with no worries about any financial side everything is carried out for you.

Once your invoice is saved you can email it to your customers directly from your acclux. Your email will include your own message, your contact information you want to show, PDF attachment and also your invoice will be included in your email for fast customer review.  All these options made through a simple form that designed in a smart way to spare your time. Also, you can print your invoice or export it to PDF.

Easy Payment
acclux accounting provides you with a great tool to get paid online faster than ever with PayPal integration. All you have to do is add your PayPal account and send your invoice. Your customer will be able to view your invoice online and pay it right away. Besides that you can get paid directly using your smart phone.

You can still pay your invoices manually using the acclux accounting payment form.

You can easily track your invoices and know how many invoices get paid and how many are overdue with the help of built-in interactive dashboards and reports.

Expenses
acclux accounting is a huge time saver when it comes to your expenses, you can easily record your expenses if you are at work or even on the go. Also acclux accounting comes with various reports and analytics tools that help you to track your expenses and export it to beautifully designed sheets in excel or PDF format.

Also, you can add your expenses to a project so you will be able to track your project actual fees and eventually project revenue.

Managing your expenses can be very helpful to get the best tax benefit and be better prepared at tax time.

Tax returns benefit
acclux accounting helps  you to get ready at tax time and get  the best benefit of your tax returns. acclux accounting provides you with all the documents you will need in your tax submission.

Easy generated financial documents
All the accounting documents that make your nerves will be automatically generated for you with one click. You will be able to export them in beautifully designed sheet to excel or PDF so you can send them to your accountant to check on them and let know how good you are doing this far.

Sign up today and enjoy 14-day free trial of the best in class accounting software for made for web designers. Sign up for acclux accounting for free.

Could heterosexual couples use domestic partnerships to avoid marriage tax penalty?

Howard Gleckman for the Christian Science Monitor writes: Some states may have created a way for heterosexual couples to avoid the marriage tax penalty, writes Howard Gleckman. How can domestic partnerships lead toward the federal marriage tax penalty?

In their zeal to provide a legal alternative to banned marriage for same-sex couples, some states may have created a new tax shelter for heterosexual couples. By choosing domestic partnership or civil union over marriage, opposite-sex couples are able to avoid paying a federal income tax marriage penalty, just as same-sex couples can.

Over the past decade, domestic partnerships and civil unions became a popular alternative in many states. Same-sex marriages were broadly prohibited until last year, when the Supreme Court declared key provisions of the Defense of Marriage Act unconstitutional. As of May 22, according to Governing magazine, gay marriage was legal in 19 states and the District of Columbia. But the domestic partnership and civil union laws enacted over the past decade remain on the books in at least a dozen states.

There are vast differences in these state laws. Some make alternatives to marriage available to same-sex couples only. Others permit them for heterosexual couples as well, while others grant the options only to opposite-sex couples who are 62 or over (Social Security has its own marriage penalties for some people who are divorced or married couples getting SSI).

And some states, such as California, require domestic partners to file jointly for state tax purposes even if they file separately on their federal 1040s.

Since the High Court opened the door to gay marriage, my colleague Bob Williams and others have written about the tax consequences for same-sex couples. In general, married couples (of whatever gender) pay a marriage penalty if the spouses make similar incomes. If one spouse earns substantially more than the other, the couple may enjoy a marriage bonus. To see how it works, take a look at TPC’s marriage penalty calculator.

Civil unions and domestic partnerships often make it possible for same-sex couples to enjoy state-level legal benefits of marriage without getting hit by the federal marriage tax penalty. For instance, in most states one partner can inherit property from the other without a will or make medical decisions on a partner’s behalf.

Now, it turns out that opposite-sex domestic partners may be able to enjoy all the same benefits—including the ability to dodge the federal marriage penalty.

There is a flip side, of course. Couples that choose domestic partnership or civil union are barred from filing jointly on their federal return, thus cannot benefit from the marriage bonus. However, unlike same-sex couples, opposite-sex couples can always choose to marry in any state if their financial situation changes.

A number of states have long had domestic partnership laws that covered couples in common-law marriages. But the relatively new statutes that expanded alternatives to traditional marriage made the option much more attractive—and probably more acceptable in some social circles.

In March, the National Conference of State Legislatures did a nice job summarizing the status of those state laws. Here are a few examples:

California: Domestic partnerships are permitted for all same-sex couples and for opposite-sex couples who are 62 and older. Domestic partners have same state rights and responsibilities as married couples.

Colorado: All couples, regardless of gender, may enter into civil unions, which carry the same rights and responsibilities as marriage. Colorado also recognizes civil unions from other states.

Oregon: Domestic partnerships are available for same-sex couples only (though all long-term unmarried couples may enter into private domestic partnership agreements to divide assets in the event of a breakup).

New Jersey: Allows both domestic partnerships and civil unions. Domestic partnerships are available to opposite-sex couples who are age 62 and older.

New Hampshire: Once New Hampshire permitted same-sex marriages, civil unions were automatically converted to marriages.

We’ve known for a while that same-sex couples could choose a self-help solution to the marriage penalty that still allowed them most legal rights of marriage. But in at least some states opposite-sex couples can do the same. I don’t know if enough people will take advantage of this opportunity to create a revenue problem, but it bears watching.

TaxJar plans e-filing service for online sales taxes / Fueled by $600,000 in seed funding, the startup automates collection of local taxes related to e-commerce transaction.

Heather Clancy for ZDNet writes: Refueled with $600,000 in funding from several seed investors, startup TaxJar solves an annoying but very real problem for Internet entrepreneurs: how to automate collection of sales taxes related to online transactions, especially on platforms that weren't necessarily set up to accommodate this originally.

That includes both sellers using both widely used e-commerce platforms – Amazon, eBay, Shopify, PayPal, Big Commerce and Etsy --  as well as publishing sites using WordPress where the ability to collect tax isn't native (for selling things such as white papers or reports or such).

Given all the activity related to state sales taxes and possible federal legislation, TaxJar is using its new funds to add new features quickly, including both better ways of automating collection and features for e-filing, said Mark Faggiano, founder of the San Diego-based company. [snip]  The article continues @ ZD Net, click here to continue reading...

IRS Says No Bitcoin FBAR Reporting This Tax Season Required

Eric Calouro for NewsBTC writes: The Internal Revenue Service has said that taxpayers need not report bitcoin holdings on FinCEN Form 114 (Report of Foreign Bank and Financial Accounts – also known as FBAR) this tax season.

The news comes from Rod Lunquist, who’s a senior program analyst for the Small Business/Self-Employed Division at the Service, but added that the exception might end in the future as the authority monitors developments in the space.

“At this time, FinCEN has said Bitcoin is not reportable on the FBAR, at least for this filing season,” said Lundquist during a webinar, as first reported by Bloomberg BNA.

In order to remain compliant with tax laws, individuals who hold $10,000 or more in foreign financial accounts are required to use Form 114 and submit that information to FinCEN — the Treasury’s Financial Crimes Enforcement Network.

The Internal Revenue Service continues to monitor the spectacular growth of digital currencies, and earlier this year issued a controversial guidance on the reporting of digital currency for federal tax purposes.

In that guidance, the Service made the following points:

• Virtual Currency not treated as currency that can generate foreign currency gains/losses
• Taxpayers are liable for determining the fair market value of their virtual currency
• Taxpayers must report gains/losses upon exchange from virtual currency to fiat currency, for example
• Miners must report mined coins at fair market value upon receipt
• A miner’s income is subject to self-employment tax
• Virtual currency paid as wages is subject to federal income tax withholding
• Payments made using virtual currency are subject to information reporting
• Payments made using virtual currency are subject to backup withholding
• Taxpayers not in compliance with the notice are subject to penalties

The taxation landscape that surrounds bitcoin and digital currency is ever-changing, and the possibility things will change by next season seems likely.

Advisors: 3 Advantages of a 1040 Review

Roger Ochs for Financial-Planning writes: The biggest issue that (our firm) HD Vest advisors hear about today is how to factor taxes into the financial services discussion process. While political debates on fiscal policy will doubtless continue, spending cuts and tax hikes have gone from the discussion stages into reality, extending across income groups, and impacting workers, retirees and families across America.

With mass affluent households facing greater tax burdens and complexities than ever before, tax mitigation strategies have become at least as important as any other element of a comprehensive financial plan.

But for both tax professionals and financial advisors, it can be challenging to begin the process of gathering, synthesizing and analyzing client data to deliver a truly holistic financial solution that incorporates tax and wealth management. This can be as much a risk as an opportunity for both tax and financial advisors: Offering a greater level of holistic guidance to a client, and then failing to fully deliver, could compromise the broader relationship.

The key is to commence this process with IRS Form 1040. Form 1040, which is typically filled out by tax professionals for their clients once a year during the height of the tax season, is used by the IRS to collect information about the taxpayer or taxpayers in each household. The information it contains is extensive, including dependents, income items, adjustments to income and much more.

Frequently overlooked as a wealth management planning tool, IRS Form 1040 is in fact the best potential vehicle for advisors seeking to deliver integrated tax and wealth management solutions. Among the reasons:

1. Form 1040 review provides one of the clearest views into a client’s entire financial picture.

It’s nearly impossible for any single professional discipline to have mastery over a client’s entire financial profile. And while it’s become the norm to have separate professionals handle tax and investment discussions, this approach is not serving clients effectively. There are 70 lines on IRS Form 1040, and each one tells a different story.

Line 13, for instance, shows capital gains or losses. This not only reveals whether a client has any non-qualified assets but potentially could provide a line of sight into their trading history and the overall tax efficiency of their portfolio.

For many investors, this line alone can be an indicator that they need help exploring tax mitigation strategies. But without specialized tax expertise, many financial advisors find it challenging to place their clients in vehicles that will potentially both lower their tax bill and address their investment objectives.

Similarly, for tax professionals, knowing the implications of line 13 is one thing -- but having the knowledge to execute the appropriate investment solutions is another.

This is just one example. Nearly every other line of form 1040 is a demonstration of how a more integrated, holistic approach to financial discussions would potentially reap huge dividends for advisors and their end clients.

2. A 1040 review can help advisors implement holistic solutions -- immediately.

An integrated review of the IRS Form 1040 can help create a plan for instant action. When a tax preparer advises a client to set up a retirement account or to switch to more tax-efficient investments, all too often their advice goes unheeded -- despite its importance -- due to a very normal human tendency to procrastinate.

I believe that clients are less likely to put off action when they work with advisors who are offering tax and investing services on an integrated basis. By showing, through one document, exactly how the different moving pieces of one’s tax and wealth management profile should be better coordinated, advisors can drive decisions in either sphere.

In fact, advisors may find that starting with Form 1040 almost compels clients to take immediate action -- with, for example, an advisor setting up a qualified retirement account or transitioning investments into more tax-friendly vehicles right away, which will save clients time and possibly considerable money off their next tax bill.

3. Such reviews essentially force clients to begin tax planning early.

The majority of mass affluent investors see their accountants only once a year, in the run up to Tax Day. Because of this, many investors inevitably miss out on a range of advantages to tax-efficient investment strategies that are customized to their tax circumstances -- but must be implemented well before April 15 in order to have full efficacy.

When an advisor delivering integrated tax and wealth management support to clients starts with a Form 1040 review well in advance of tax season, the client benefits by being able to put money to work, as early as possible, in the tax-advantaged vehicles and structures that mesh best with their individual circumstances.

It has never made more sense for professionals to integrate sound tax and investment advice into one wealth management solution. Providing holistic guidance provides the advisor with an enormous business advantage, and gives clients a much better shot at pursuing all of their financial goals.

As with all major new endeavors, the key is to begin things the right way. By working in concert, tax and wealth management professionals will find that starting with a review of IRS Form 1040 paves the way for considerable further success for their businesses and their clients.

Roger Ochs is president and chief executive officer of HD Vest Investment Services, an independent broker-dealer.

10 Things People Hate About the New QuickBooks Online (And How to Fix Them)

Sara Angeles for BusinessNewsDaily writes:   If your business uses QuickBooks Online (QBO), you're in for a huge change. That is, if your account hasn't been upgraded already.

Recently, Intuit has been rolling out a new version of QBO featuring a massive redesign that's meant to make the accounting platform more intuitive and easier to use. However, like all software, overhauling an entire interface will always have its drawbacks. The biggest gripe users have with QBO's new look and feel boils down to one issue: They can't find anything. After being so used to the classic QBO, navigating the latest version has proven to be a headache for many users. But don't panic just yet. Below are 10 major issues users have reported in the QBO community forums and hacks to fix them.

1. Some users can't find recurring transactions

Automation is key to making accounting systems as easy as possible. Now, imagine all your recurring billing and payments vanishing into thin air — stressful would be an understatement. With the new QBO, this just may be the case.

The solution: Your old data is still there, if you know where to look. Formerly called Memorized Transactions, your list of repeated billing and payments is now called Recurring Transactions. To access this section, click on the gear icon on the upper right-hand corner and select Recurring Transactions.  

2. Others can't find employee information…

Did your employee information disappear after the upgrade? You're not the only one. But don't waste time stressing or re-entering employee data just yet. The problem may just be a browser glitch.

The solution: Restore employee data by clearing your browser history, then logging back into QBO.

3. ...Or their products and services

Can't find your list of products and services? Relax — it's still there.

The solution: Missing products and services is just another casualty of revamped navigation menus. Intuit's customer service explained that all lists are now located under the company menu. First, click on the gear icon, where you'll find a Lists section. Select All Lists, then Products and Services.

4. By the way, customers might not be able to pay you just yet…

Customers can only pay by credit card. There's no bank transfer option. And the Pay Now button on invoices is inactive. These are just some of the billing problems you'll come across after the upgrade.

The solution: Be patient. Granted, that's not really a solution, but it is your only recourse. Why? This, this and this say that it takes 24 to 48 hours to enable ACH transfers after the QBO upgrade. Moreover, if you've already sent invoices during this time, but customers wish to pay by bank transfer, you'll have to delete and resend those invoices once ACH transfers are active again.

5. ...And you may not be able to pay your bills, either

Paying your bills should be simple. But with the new QBO interface, one mystery is figuring out how to write and print checks.

The solution: There are several ways to write a check:

• From the Home screen, click on + and select Check
• Go to Transactions and click on Expenses. Choose Create New, then Check
• Also from Transactions, go to Registers and choose abank account. There will be a drop-down option to write a check.

To print a check, go to Transactions, then Expenses, where you'll find a Print Checks option. [snip].  The article continues @ BusinessNewsDaily, click here to continue reading...

Top 10 Accounting Software For Small Business In 2014

Roger KK writes: Whether you a Accounting Software and want to update your knowledge of best accounting software in market, or you run a small business and want to stay ahead from your competitors by investing in an accounting system that offers best features at affordable cost, you are at right place. 

Here i will go over the top softwares that are both popular in market and softwares that are new, which offers some of the best feature and you may find them a more suitable option for your business accounting needs.

These software systems are built for business that generates sales from $2 million to $100 million; some would say $250 million. There are separate ERP's for mid-market to high market companies, we will talk about them later, lets first go over small business needs.

Top Accounting Software:

• Fresh Books - Only thing missing is you cannot print checks directly through software, otherwise at only $20 you get all services track expenses, manage bills; generate reports, multi- platform access.

• QuickBooks(online version) - This is the best accounting software if you do not care about a widows mobile app of QuickBooks, it cost $12 but for a limited number of users, unlike Fresh Books which come with unlimited number of uses.

• Sage one - It has all the features that you will find in above mentioned software, besides that at only $9 it is available for unlimited number of uses, the only downside is that you do not get Android support with it, so basically it can only be gained access through desktop.

• Zoho - This comes with android support with full accounting services, but cost a little high $24.

• Xero - You get full accounting services at only $9 for unlimited number of uses but invoicing is limited to five, although with some additional pay, you can have unlimited invoicing.

• AccountEdge - Comes at affordable cost $10, but you get limited number of uses up-to 50 only, could be a better choice if you know your monthly requirement will not go over 50.

• Less Accounting - This is highest costing software in the list, it cost $36 monthly, you get unlimited uses, unlimited invoicing, features missing from it like Sales force integration, Google app integration may not be necessary for many companies, otherwise it makes a good choice for mid-market companies.

• Working Point - This one do not support multi-currency billing, and uses are limited, otherwise at only $9 it could be a choice for businessmen who just want to try for first time.

• Free Agent - Do not be confused by the name, it cost $24 monthly. Providing basic to additional accounting services like advanced inventory management, lead management, but the reason it ranks so low in list because there is no support for payroll processing, time-sheet.

• Yendo - This one makes to the list, because Yendo give some competition to its competitors where other software fails. Cost $19 comes with standard features for a limited number of use. Still a good option for many.

5 Cheap Apps That Can Run Your Small Business

Donna Fuscaldo for FoxBusiness writes: Small business owners are used to operating on a shoestring budget and wearing multiple hats. And today there are a slew of free and low-cost mobile apps that can help. From apps that can handle your accounting to ones that will answer the phone for you, here’s a look at five apps that can replace your office workers and potentially save you a bunch of money.

LocalVox

Every small business owner knows they should be on social media, but for many there simply aren’t enough hours in the day to run a business and market online. One service that’s aiming to solve that problem is LocalVox www.localvox.com. This apps helps small business owners by publishing news, promotions and events with the click of a button. The information will show up on social media, in local online directories and on your website. Pricing for this service varies, depending on the small business owner’s needs, but for many not having to market on their own or hire a professional can be invaluable.

InDinero

Hiring a finance person to take care of your books can be costly, especially if you are paying for health care and other benefits. Even using a consultant can get costly, and that’s where InDinerowww.indinero.com comes in.  Not only will this service handle your accounting, taxes and payroll, but it gives the business owner graphs and analytics so they can understand what’s going on with their finances. As like most services, the pricing varies based on the size of the business.  Business owners are given a flat monthly rate.

Tripit

Whether you have a receptionist handle it, or do it on your own, managing your travel can be time consuming and expensive. TripIt aims to save you time -- which is money -- by organizing all your travel plans into easy to read itineraries. All business owners have to do is forward trip confirmation emails to plans@tripit.com, and the service will automatically build an itinerary that can be accessed online or via your mobile device. The best part: the basic service is free. Want more bells and whistles such as mobile alerts, itinerary sharing and alternative flight information? It will cost you $49 a year.

TextUs.Biz – Receptionist

In a perfect world all of your business calls would get answered and you wouldn’t have to hire a full time receptionist to make that happen. Well, that may just be a possibility with The Receptionist app fromTextUs.Biz, which turns your iPad into a virtual receptionist. Basically when a visitor walked into your office it would be greeted by an iPad with your business logo and touchscreen prompts, depending on who the person is visiting. Small business owners can receive visitor arrival notifications via text or email, or both. When you respond back the message will show up on the iPad screen, allowing a two way conversation. You can even create visitor badges with this app. A basic package will cost you $49 a month, while the pro version will be $149. There’s also a premium package which costs $99 a month.

iXpenseIt

Cash flow can be a big problem for small business owners, especially if they don’t know where they stand. An app that makes it easier for small business owner’s to stay on top of their cash flow and eliminate the need for a bookkeeper is iXpenseIt. For $4.99, this mobile app gives business owners a complete snapshot of their monthly budget and expenses and also includes a visual indicator to show at a quick glance how much money is left in the budget. But the app doesn’t stop there.  It makes it easy to add and delete records and even has a built in currency exchange translator.

Does Tax Loss Harvesting Matter?

Crestwood Advisors writes: The recent Memorial Day weekend kicked off the “unofficial” start of summer.  Contrary to the old adage “sell in May then go away” the team at Crestwood does not have a summer sabbatical planned for the next few months.

Through the summer we will continue to actively manage your accounts with the important goal of maximizing your net of fee and after tax returns.   As you may have noticed while filing your 2013 tax return, an important aspect of our ongoing portfolio management is tax loss harvesting in your taxable accounts.

Tax loss harvesting is defined as selling securities at a loss to offset a capital gains tax liability.  Capital losses generated can be used to offset other gains and reduce taxes.   Given a top Federal marginal tax rate on income of 39.6% and a top Federal tax rate on capital gains of 20%, or 23.8% for couples earning more that $250,000, these savings are increasingly important.

The opportunity that arises from reducing taxes and resulting in additional money in client accounts is significant and meaningful over time.  It becomes even more significant when the tax losses provide an opportunity to shift the recognition of gains into lower tax years. For example, you may be in a relatively lower tax bracket during early retirement years before you are subject to minimum distributions from your retirement portfolios.  In these years, depending upon your adjusted income, you may be able to reduce your tax rate on capital gains from 20% to 15% or potentially 0% and avoid the 3.8% Medicare Contribution tax.

Tax loss harvesting isn’t always as simple as it seems.  There are a number of important considerations that we need to pay attention to:

• Wash sales: if we sell a security or fund with losses and buy it back (or a substantially identical one) within 30 days before or after the sale, this is a wash sale.  Any losses generated can not be claimed for tax purposes.
• Death of taxpayer: capital losses cannot be carried over after a taxpayer’s death. These losses are deductible only on the final income tax return filed on the decedent’s behalf.
• Additional technical tax nuances with regards to short term capital losses on tax-exempt interest and qualified dividends, issues that are best left to your accountant.

As long term investors, each year we look to accrue benefits from tax loss harvesting.  Beyond offsetting gains, losses that exceed realized gains can be deducted against ordinary income up to $3,000 annually. These losses can then be carried forward indefinitely, first offsetting gains going forward and reducing your income annually until the loss is fully extinguished.

At Crestwood, our goal is to exceed client expectations. Our attention to the after-tax impact of investment decisions highlighted by our opportunistic and proactive approach to harvesting losses to reduce the taxes on your capital gains and/or ordinary income may provide a meaningful difference in your after-tax returns. Please let us know if you have any questions about how these considerations impact you. We are always eager to speak with you. 

S Corporations And Partnerships – The Importance of Basis

Devon McCarthy for Tax Connections writes: Basis is very important when determining gain or loss for certain transactions. It is also one of the limiting factors in determining how much loss can be deducted by partnership and S Corp shareholders.

What is basis?

For tax purposes, basis is the amount invested in a property adjusted for certain items.

Basis is usually equal to the cost, or the amount paid in cash, debt obligations, other property or services.

Basis in property is increased by capital items such as capital improvement and assessments for local improvement. Items that constitute a return of capital (e.g. non-dividend distributions, casualty and theft loss, and depreciation) should be treated as a reduction in basis.

Partnership Basis

A shareholder in a partnership may not be able to deduct the full amount of a partnership loss that is passed through to the shareholder. There are three important limitations to the amount of the loss that can be deducted on the partner’s tax return. The order of the limitations is important and they are:

1. Basis rule
This limits the loss deduction to the adjusted basis of his partnership interest. Losses disallowed by this limitation may be carried forward indefinitely.

2. At-risk limitations
The loss deduction is limited to the amount that the partner could actually lose in the activity.

3. Passive activity limitations
Deduction of passive activity losses may be limited.

The basis of partnership interest is money plus adjusted basis of any property contributed to the partnership.

A partner’s basis is increased by:

• Additional contributions (including assumption of liability)
• Partner’s distributive share of taxable and non-taxable partnership income
• Partner’s distributive share of excess deductions for depletion (excluding oil and gas wells)

A partner’s basis is decreased by:

• Distributions to the partner (including partner liability reduced or assumed by the partnership)
• The partner’s distributive share of partnership losses (including capital loss)
• The partner’s share of non-deductible partnership expenses
• The partner’s deduction for depletion for oil and gas wells (limitations apply)

A partner’s basis cannot be reduced below zero.

S Corporation shareholder stock basis

The stock basis of an S Corp shareholder must be adjusted annually as of the last day of the S Corp’s year. The corporation is not responsible for tracking the shareholder’s stock basis it is the responsibility of the shareholder.

The S Corp shareholder is subject to similar loss deduction limitations like the partnership shareholder as described earlier. It is therefore important to determine the correct amount of the shareholder’s basis to know how much loss can be deducted. The basis is also important when there is an S Corp distribution or to determine gain or loss when a shareholder disposes of his stock.

Non-dividend distribution from an S Corp is tax free up to the amount of the shareholder’s stock basis. Any excess is treated as long-term capital gain on the partner’s personal return.

An S Corp shareholder’s basis is the initial capital contribution increased by:

• Separately stated income items
• Ordinary income
• Tax-exempt income
• Excess depletion

Basis is reduced by:

• Ordinary loss
• Separately stated loss
• Expenses that are non-deductible
• Distributions (non-dividend)
• Depletion for oil and Gas property held by the S Corp.

Stock basis cannot be reduced below zero.

There is a strict ordering rule for the adjustments to basis. Adjustments must be done in the following order:

1. Increased for income items and excess depletion
2. Reduced for distributions
3. Reduced for non-deductible, non-capital expenses and depletion
4. Reduced for items of loss and deduction

S Corporation shareholder debt basis

Debt basis is the amount that has been personally lent to the corporation by the shareholder. A loan guarantee does not create debt basis.

Computation of both Stock and debt basis is a requirement for S Corporation shareholders. The variable nature of the stock basis for S Corp shareholders makes it necessary for the shareholder to keep track of the changes.

Each shareholder will receive a Schedule K-1 from the corporation reflecting the amounts of the corporation’s income, loss and deductions allocated to the shareholder for the year. The K1 does not show the taxable amount of a distribution. The shareholder’s stock basis will be used to determine the amount of a distribution that is taxable.

India : New Accounting App to help Small and Medium Businesses, Start-ups & Self employed Individuals : Bookkeeper

Straight out of New Dehli : Imagine the hassles that SMB’s, start-ups, entrepreneurs and freelancers go through on a day to day basis, when it comes to keeping a track of all the financial transactions they need to make – raise invoices, generate sales orders, issue purchase order, maintain outstanding receivables and payables along with generating various financial reports like Balance Sheet, Profit & Loss A/C, Inventory Summary, Tax Computation… the list goes on and on. While it’s an obvious must, keeping a track of the financial status of the company is a tedious task, and requires professional help from tax consultants and accountants – an expense many start-ups and self employed individuals have secretly wanted to avoid!

Now, tedious accounting procedures are things of the past. BOOKKEEPER, an accounting based app, available on Android, iOS and Windows desktop platforms provides a simple user interface allowing accounting solutions on the move, that too offline.  The app allows an individual or firms to maintain financial records on Smart phones, Tablets or Personal Computers by just entering business transactions – on daily basis. It does all the double-entry accounting and generates various financial reports automatically, which can be exported in various formats like PDF, CSV, HTML; ready to be e-mailed or printed – all in real time.

 

Available on all major platforms, Book Keeper has already recorded 3.5 lakh downloads all over the world with 5000+ paid users from more than 15 countries. It is available as a free download from Google Play Store and App Store with a 30-day trial. After trial period expiry, it can be subscribed at a nominal fee of just Rs. 125/- per month.

 

Book Keeper allows the convenience of having the entire company books on one’s phone or tablet or PC, without the need to hire Accountants. One can manage all their books on their own – even without any prior accounting know-how and keep track of sales, purchases, expenses, receipts, profits, receivable, payable etc., all with just a tap!

Mr. Varun Mendiratta, the founder of Book Keeper App, talks about future plans, “We are planning to make Book Keeper compatible with TallyTM whereby one can sync Book Keeper data with TallyTM. We will also extend inventory management module adding new features like warehousing, alternate unit of measure etc, add new features like reconcile bank statements, cloud accounting - sync wirelessly across all three platforms, conduct webinars/online sessions, and introduce comprehensive video tutorials covering all features of the app.”

“With 60% of the users from India followed by US, UK, Book Keeper provides offline, cross-platform, stand-alone, easy-to-use accounting solution. Once you subscribe for Book Keeper, all updates are free,” Mr. Mendiratta added.

Features of Book Keeper:

·         Easy, double-entry offline accounting

Do all your accounting or book keeping directly from your smartphone or tablet without any internet connection. Keep track of sales, purchases, expenses, receipts, profits, receivable, payable etc., all with a tap!!!

·         Invoicing

Send professional invoices to your customers with ease while you are in the field. You can even add your company logo and signature to these invoices.

·         Outstanding Receivable/Payable Analysis

Real time visibility on outstanding receivables and payables with ageing analysis

·         Comprehensive financial reports

Book Keeper generates various financial reports like Balance Sheet, Profit & Loss A/C, Inventory Summary, Tax Computation etc. All these reports allow you to dig deeper into your company’s financial status. These can be exported in various formats like PDF, CSV, HTML.

·         Operates on multiple devices & platforms

Access your company data on Android or iOS smartphones and tablets while you are in the field. At home or office, access the same data on your Windows laptop or PC.

·         Order generation

Generate sales orders, issue purchase order on the move. Email or print them real time

·         Inventory Management

Create individual inventory items with your own units of measure and record purchase or sale transaction of these items. Book Keeper automatically evaluates closing inventory based on FIFO. Manage your stock efficiently by real time visibility of stock, reduce damages and order optimum quantities.

·         Sync across 3 platforms

You can always move your company data among three platforms i.e. Android, iOS or Windows. Work on Android, Transfer to iPhone and Connect to your Desktop. Enjoy full cross-platform compatibility!