Common passive activity losses (which are shown on IRS form 8582) include equipment leasing, rental real estate and some passive losses from certain pass through corporations and partnerships in which the taxpayer does not materially participate.

In most cases high-income individuals with adjusted gross income over $150,000 cannot deduct losses in rental real estate until such time that they generate passive income and/or dispose of the property.

Interest and dividend income and capital gains income from sale of stocks cannot be used to offset passive activity losses.

We can help you understand this complex issue related to passive activity losses and discuss in general, possible alternatives to possibly utilize those losses.

We would be glad to schedule an appointment to further discuss your tax situation and planning.

Do You Have Passive Activity Losses? is a post from: Apollo Beach and Tampa CPA Firm & Accounting Services

We are currently preparing analysis for many of our clients to determine if they qualify which is the first step in possibly pursuing a claim. Many businesses in the Tampa Bay area are probably eligible and not realize it.
If you have financial information available for your business we can probably prepare the necessary paperwork to determine if
your business meets the conditions that qualifies for the class-action settlement.

In most cases we can prepare the necessary financial data FREE OF CHARGE to determine eligibility regardless whether your business qualifies or not for the settlement.

Even though the West Coast of Florida is not eligible for as large multipliers for its losses as Alabama, Louisiana and Mississippi many business (including small businesses) still qualify and can receive awards.

We will be glad to further discuss the possibility of us helping claim any monies that you may be entitled to. The class action suit began receiving claims in June 2012 and is set to conclude in April 2014.

We will be glad to set up an appointment with you to discuss the possibilities for your business or any other accounting, tax and consulting work you may need.

BP Oil Spill Court Supervised Settlement Program is a post from: Apollo Beach and Tampa CPA Firm & Accounting Services

He was captain of the 1993 soccer team and led the Sunshine State Conference in assists that year with 13. Graduated as career assist leader (currently second) with 34, third all-time leading scorer in points (66), and tied for first (69) in games played. Set school season record for assists 1991, 1992 and, 1993. He still holds the school record for most assists in a game (5).

A four-year starter he was two-time Honorable Mention All-Sunshine State Conference 1991 and 1992 as well as Commissioner’s Honor Roll for 1991, 1992 and 1993. He was also named First Team All-Tournament in Kickoff Classics in 1992 and 1993.

Fran Reidy current Athletic Director at the University and Steven’s soccer coach referred to him as a “cornerstone player in the transition of the program to a perennial winner”.

A Presidential Academic Scholarship winner from Jesuit High School, he was selected to the Honors program for three years and was St. Leo Student of the Month for February 1994. Was a member of Delta Epsilon Sigma National Honor Society and graduated with a degree in accounting in 1994.

In addition to being a director at Alvarez Company PA CPA Firm, Steven also serves as a volunteer on the Board of Directors of local organizations including the SouthShore Chamber of Commerce.

Steven Alvarez, Apollo Beach Accountant, Elected Into St. Leo University Atheltic Hall Of Fame is a post from: Apollo Beach and Tampa CPA Firm & Accounting Services

Apollo Beach, FL (01/28/2013) – José A. Alvarez, Managing Director of the Apollo Beach firm Alvarez Company PA CPA Firm, has been awarded the Chartered Global Management Accountant (CGMA) designation from the American Institute of CPAs and the Chartered Institute of Management Accountants. The CGMA designation recognizes professionals who have deep understanding of finance and have expanded their business skills through experience as management accountants to help drive better business decisions.

“I am honored to receive the CGMA designation, and I am delighted that the accounting profession recognizes the value that management accountants bring to organizations,” Alvarez said. “This designation represents a commitment to advanced education, ethics and professional development that are critical to career success.”

Alvarez originally established a CPA firm in 1975 and qualified for the certification based on his experience of managing his firm that had branches in Brandon, Tampa (Ybor City), and Plant City. Alvarez also served in executive positions such as CEO, Executive VP, COO and CFO and as a Board Member of various entrepreneurial and public companies including a Company employing over 100 employees with subsidiaries in various locations throughout the United States. The current office is based in Apollo Beach. Alvarez has helped thousands of Tampa Bay business owners and residents with their accounting, business consulting and tax return needs.

AICPA and CIMA, two of the world’s most prestigious accounting bodies, established the Chartered Global Management Accountant designation in January 2012 to elevate the profession of management accounting. The designation recognizes the most talented and committed management accountants with the discipline and skill to drive sustainable business success.

To qualify for the CGMA in the U.S., finance professionals must have trained as a CPA, passing the Uniform CPA Examination and meeting educational requirements in their states and management experience.

Tampa Bay Area CPA José A. Alvarez Awarded CGMA Designation is a post from: Apollo Beach and Tampa CPA Firm & Accounting Services

For example, imagine the following:

• You realize that you are spending more time dealing with bookkeeping instead of with customers and vendors.
• You find yourself questioning whether or not you’re entering items in the right expense account…a very common error.
• You end the year thinking you made a profit only to find out you have less in your bank then when you started and do not understand why.
• You want advanced reports that you are unsure of how to produce/may not be available by your default from your off-the-shelf bookkeeping program.
• You overstate your profits, and as a result pay in higher taxes on incorrect numbers.

If you can relate to any of the above situations, it may be a good time to begin considering the short term and long term benefits of having a bookkeeping professional take this time consuming task off of your plate. It’s very easy for most small business owners to fall in the trap of trying to do everything themselves in an attempt to keep costs down. In our 37 years of business, we have learned that most business owners dread bookkeeping and would prefer focusing on the aspect of their business in which they are most passionate about – and it’s never the bookkeeping. It’s important to maintain the vision that inspired them to start their own business to begin with and bookkeeping can definitely distract from this.

Is it better to hire a bookkeeper or an accountant. What’s the difference?

Ideally, you would like to hire a firm or professional with both bookkeeping and accounting capabilities. What’s the difference exactly? An accountant can identify the big picture of your financial situation and ensure you legally comply with the IRS by filing your required documents and payments on time. In addition, a good professional accountant will also be able to work with you well beyond tax season. For example, a CPA can notify you of newly implemented or impending tax laws (State and/or Federal) that will effect your business. Also, a CPA can advise you with your business and financial strategies. For example, is securing a line of credit against your receivables a good idea before launching a new product?

On the other hand, a bookkeeper handles more of the day to day accounting tasks including paying bills, tracking expenses and making sure they are entered correctly, payroll services, etc. Bookkeeping may sound boring and tedious but it is the accumulation of these details that paint the big picture so that business owner (with the accountant’s help) can make sound business decisions.

Bookkeeping = Knowledge. Knowledge = Power

Many businesses view bookkeeping as a necessary evil and something that only needs to be done in order to meet IRS requirements. However, the need for up to date and accurate bookkeeping extends well beyond tax filing purposes. Before being issued any line of credit from a financial institution, expect them to request up to date accounting records. The same will apply for any any merger, sale or acquisition. The real value of good, up to date bookkeeping is having the ability to make clear business decisions based on accurate data presented in your bookkeeping reports. By having all of the transactions of your business neatly organized into your chart of accounts, you have a better chance to make clear, educated business decisions. The reports your accountant provide you with will give you a quick snapshot of where you are making money and where you may be spending too much.

When hiring a bookkeeping service, consider these points

When making the decision to use a professional bookkeeping service or to bring in a bookkeeping consultant, it is recommended that you consider their past experience as well as their qualifications. Of course it helps if the firm or person is experienced with any possible bookkeeping software you have already been using. For example, if you currently use Quickbooks, it would be to your benefit to hire a QuickBooks ProAdvisor.

There are actually a couple of way in which you can choose to hire a professional bookkeeper. You can choose to outsource the whole kit and caboodle and allow them to do all of your data entry and filing. This allows you to allocate your time and resources to the aspects of your business that you are strongest in. Many times your accountant will prefer the fact that your records are being kept by a professional and therefore more confident that all items have been properly entered.

The other option is to bring in your accountant or bookkeeping consultant to ensure your bookkeeping systems are properly set up. After the chart of accounts and bookkeeping system is established, the consultant can then train an employee on proper data entry procedures.

Whatever options you choose, the main factor is always to correctly determine the financial health of your business. Bookkeeping may bring what appears to be a small added cost to the business bottom line, but one that can ultimately give you more time to grow the business and ultimately grow the bottom line.

Bookkeeping Software to Bookkeeping Service. When should you make the switch? is a post from: Apollo Beach and Tampa CPA Firm & Accounting Services

Tax Laws and Proposals Effecting Individual Tax Returns

1. Income Tax Rates – The current rate structures could be replaced by higher pre-Bush era tax rates.
2. Capital Gains Dividends – These rates are also set to go higher.
3. 3.8% Medicare Contribution Tax – A tax on net investment income for taxpayers over certain income level. This would take effect on January 1, 2013. (This is a result of the healthcare law).
4. Additional 0.9% Medicare Tax – This additional tax on high wage earners would also take effect on January 1, 2013 and is separate from the Medicare investment tax. This tax is imposed on the combined wages of both spouses. (This is also a result of the healthcare law).
5. End of Payroll Tax Holiday – The lower payroll tax withholdings have been in effect in 2011 and 2012 and are set to expire at the end of 2012. This has been a 2% reduction on the amount of social security taxes withheld from wages for the employee portion.
6. Alternative Minimum Tax – many deductions that are allowed for regular income tax are disallowed for the AMT. The additional exemptions that have been allowed (“patches”) expired in 2011 and will not be available in 2012 or beyond unless extended by Congress.
7. Exemptions and Itemized Deduction Phase-Outs, Education Deductions and Credits, and Certain Itemized Deductions etc. have also expired for 2012 or will be expiring in 2013 unless extended by Congress.
8. Estate and Gift Taxes – $5.2 million exemption and 35% maximum bracket is set to expire at the end of 2012. It is set to revert to $1 million exemption and 55% maximum bracket.

Tax Laws and Proposals Effecting Businesses

1. Bonus Depreciation – Additional special allowances set to expire at the end of 2012.
2. Code Section 179 Expensing – Section 179 is set to go down to a maximum of $25,000 for 2013.
3. Business Credits and Deductions – Many have expired in 2012.
4. Health Care – Many rules and requirements will be going into effect.

Over the next few weeks, especially after the election, we hope to have a clearer of how things will sort and we plan on giving more detailed updates as to how these new laws and regulations may effect you.

Possible Tax Pitfalls and Uncertainties We’re Facing Heading Into 2013 is a post from: Apollo Beach and Tampa CPA Firm & Accounting Services

About the Seminar:
The free seminar is scheduled for Saturday October 27, 2012 at 2 PM at the Courtyard by Marriott right off the I-75 exit at Hwy 60, close to the Brandon Mall. This location should be within 15 or 20 min. of any of you whether you’re in Tampa or the Apollo Beach area (see directions in the attached invitation). Mr. Mackey will be discussing ways to create wealth in a declining economy, retirement planning, economic forecasts etc. José A. Alvarez CPA will be discussing the possible tax pitfalls and uncertainties that we are currently facing,

We cosponsored the seminar in an attempt to bring you up-to-date and give you an opportunity to evaluate alternatives for your retirement, make you aware of different views, and what the future may hold for all of us. Also very importantly bring you up-to-date of the possible tax consequences for the year 2013 and beyond.

Wally Mackey RFC is a respected retirement planner who also hosts a popular radio show on Saturday mornings at nine on WFLA 970 radio. He mentioned our CPA firm’s involvement in the upcoming seminar at his radio show.

It is very important that we get your response if you’re interested in participating as soon as possible for our firm to be involved in this worthwhile educational opportunity that could affect your future retirement, wealth and taxes as it relates to the economy, retirement, investment options, and taxes.

Please respond directly to my e-mail as to your intention to attend the seminar as soon as possible so we can properly plan and make sure there is enough available spaces for you and/or your guests to attend.

Please call our office with any questions you may have regarding the seminar.

Thank you,

FREE SEMINAR: “Your Future, The Economy, And Taxes” is a post from: Apollo Beach and Tampa CPA Firm & Accounting Services

There is a recent scam targeting business owners within Florda that we wanted to make sure you were aware of. Be on the lookout for a an envelope that includes the words “Annual Minutes Requirement Statement” (see above photo) . This particular letter is being sent from a company calling itself Compliance Services and they are based out of Tallahassee (conveniently enough).

The enclosed letter makes it seem that you need to submit your Corporate Minutes along with a payment of $125.00 to “Compliance Services”. There may be other companies conducting a similar scan so be aware.

There is no requirement to file your corporate minutes to the State of Florida and this letter is just an attempt for this so-called company to take your money. If you have a staff member who handles your mail and invoices, make sure you pass this message along to them as well.

If you have any questions relating to this or anything in general to your accounting needs, please give us a call.

Jose A. Alvarez, Certified Public Accountant

jalvarez@alvarezcpa.com

Steven Alvarez, Enrolled Agent

salvarez@alvarezcpa.com
(813) 938-2400

Beware of this Scam Currently Targeting Florida Business Owners is a post from: Apollo Beach and Tampa CPA Firm & Accounting Services

Must be a Hillsborough County resident and also have the capability to work remote if needed. Please provide a cover letter specifying your relevant experience as well as why you will be the best person for the job along with the résumé.

Salary is commensurate with experience.

Please reply only to the following email address: jobs@alvarezcpa.com

Accounting Job Opportunity for Hillsborough County Resident is a post from: Apollo Beach and Tampa CPA Firm & Accounting Services

The AICPA’s (American Institute of Certified Public Accountants) Peer Review Program is dedicated to enhancing the quality of accounting, auditing and attestation services performed by AICPA members in public practice. Of the 5,500 licensed firms in the state of Florida, only 1,450 are in the peer review system; of these 1,450 firms, even fewer perform the more rigorous system review instead of an engagement review.

Daniel Hevia, Chair of the AICPA Peer Review Board, performed the System Peer Review of Alvarez Company PA CPA Firm. This review determined that the firm has in place a system of quality controls within its organizational structure. Accounting firms that participate in a System Peer Review are responsible for designing and complying with a system of quality controls that provide a reasonable assurance of performing and reporting that conforms to the professional standards established by the AICPA.

José A. Alvarez, CPA & Managing Director states, “We take quality control very seriously at Alvarez Company PA CPA Firm and we’re proud of the results from our recent System Peer Review. We strive to continue to deliver the highest quality of service to our clients. The controls and procedures we have in place are integral in providing our clients with the professional service we deliver.”

Alvarez Company PA CPA Firm specializes in business and individual tax planning and preparation; audit; review and/or compilation of financial statements; business advisory services; new business setup; and bookkeeping services, training and assistance, including QuickBooks.

The firm is a member of the AICPA, the FICPA (Florida Institute of CPAs), the South Shore Chamber of Commerce, PCPS (Private Companies Practice Section) and Mr. Alvarez is a certified Quickbooks ProAdvisor.

Alvarez Company PA CPA Firm traces its roots to 1975 and is currently located at 605 Apollo Beach Blvd. Apollo Beach, FL 33572. The firm believes in creating mutually beneficial relationships with clients and business associates. The accounting firm serves clients in the greater Tampa Bay area including: Riverview, Brandon, Ruskin, Sun City Center, St. Pete, Clearwater, Lakeland, and most of Central Florida.

You can reach Alvarez Company PA CPA Firm by calling 813-938-2400 or by emailing jalvarez@alvarezcpa.com.

Tampa Bay Area Firm Passes Accounting and Auditing Peer Review is a post from: Apollo Beach and Tampa CPA Firm & Accounting Services