Abacus CPAs August 2016
Newsletter
Retirement Planning
by Christina Cooper
 
More often than not small business owners, such as self-employed owner/operator and lease/operator transportation drivers, look for ways to lower their overall tax burden. Many believe that spending money on business deductions is the best way to accomplish this goal. However, going this route is just like spending a dollar to save a penny, which doesn't make sense.
 
Instead of spending money on business deductions, why not invest into a retirement plan? As a self-employed tax payer there are many retirement options available, all of which allow you to receive a deduction. To learn more about these options, please review the following resources: IRS publication 560 - Retirement Plans for Small Business and IRS Publication 3998 - Choosing a Retirement Solution for Your Small Business.
 
Similarly to the traditional tax payer, self-employed tax payers can opt to put money into a traditional individual retirement account (IRA) and/or a ROTH individual retirement account. For most individuals, especially those who are younger and just starting their career, a ROTH IRA is the best option.  Although a ROTH doesn't allow you to receive a current year tax benefit, the funds in the account grow tax free, and the retirement distributions are also tax free. It is also important to note that you should always fund your ROTH IRA first. The maximum annual contribution for an IRA or ROTH is $5000 (or $6000 if you are over the age of 50).
 
Outside of the common retirement plans listed above, self-employed individuals can opt to fund simplified employee pension plan (SEP), and SIMPLE plans such as a SIMPLE IRA and SIMPLE 401(k). These plans can be a little more complicated to setup, when compared to the traditional IRA or ROTH, however these plans allow for higher contribution limits. With this in mind, if your preference is to contribute more than $5000 a year (the IRA and ROTH limit), then you should strongly consider one of these plans.
 
Are you interested in saving for retirement and possibly getting a current deduction for that savings? If you answered yes, I would encourage you to contact one of our tax specialists at Abacus CPAs.   
  
On The Road Recipes!
by Cindy Abner 

Italian Beef 
Here is a recipe you can start at the beginning of your 10 hour break and it will be done with an hour to spare (if you have a bigger, sturdy crockpot that won't tip while driving, you can cook it on low for 8-12 hours).

Ingredients: 
3-4 pound arm roast, lean
5 Tablespoons Lemon Juice
1/2 cup water
3 Bay Leaves
3 Tablespoons Oregano
2 Teaspoons Garlic Salt
2 Teaspoons Black Pepper
Onion to taste

Directions:  Put all of the ingredients in the crockpot and cook for 8-12 hours on low or medium. Cook until you can shred the meat with 2 forks for sandwiches. Remove bay leaves before you shred. Fyi, crockpot liners make clean up a breeze!
DID YOU KNOW?
by Shawn Koder
 
When it comes down to it, you can file for three different classifications of integration: S-Corp, C-Corp, or LLC (sole proprietorship). Each has different advantages and tax breaks. Before you choose one of these three options, consult a tax or legal advisor to ensure that it is the best move for you.

LLC (sole proprietorship)
An LLC is a great option because it provides you liability protection. You also avoid the taxation that corporations are subject to. An LLC is a great option for sole proprietorship, as it saves money, offers protection, and leaves open the opportunity to form future partnerships.
If you are a sole proprietorship LLC, you avoid double taxation. However, there are limits to your benefits and your potential for expansion. For this reason, many owner operators file for either C-Corp or S-Corp status.

C-Corp
Choosing the C-Corp option means that you have to pay an income tax (that corporations are subject to). Any shareholders you have pay individual income taxes, but are not subject to what is referred to as self-employment taxes when payouts are distributed.
The C-Corp route is usually the best option for owner-operators who do not want or do not qualify for sole proprietorship status.

S-Corp
S-Corp status may provide tax savings. Your taxable wages and SE/FICA taxes may be lowered. The downside is that there is additional cost integrated into S-Corp status (think of it as a large process and handling fee) that negates some of the tax savings.
Be sure to counsel with you financial or legal advisor before filing for an S-Corp.



Services Include

Tax Return Preparation
Quarterly Estimates
Strategic Growth Plans
Debt Structuring
LLC Formation
Registered Agent Services
Tax Problem-Resolution
Business Consulting
Audit Assurance
Financial Statements
 Thank you for being a valued client!!!

5 years!
Barbin, Richard P.
Bowman, Roy L
Carpenter, Chris E.
Castellano, Teodore
Darden, Stephanie L.
Dobosi, Joseph S.
Farley, Michael D.
Hughes, Eric D.
Hunter, Scott B.
Kidwell, Robert A.
Lighty, Jesse L.
Martinez, Abel
McIlvain, Martin D
Pye, Tony L.
Smith, Mark R.
Smith, Ronald C
Stroud, Robert O.
Westergren, Christopher E.
Wilson, Sean A.


10 years!
Edwards, Anita L.
Novalis, James J.
Walker, Byron
 




Call us at

417-380-5000

(Please note that you will be placed on a short hold in order of caller and the first available representative will be able to help you!  Our offices are open Monday - Friday 8am-5pm CST)

 
 You can also find helpful information at

Cindy's Corner 
Tips from a former driver!
 
Make a plan now to NOT take Cash Advances and to live within your means.  Even if your FM approves a cash advance, taking these will get you behind and make you discouraged in the long run.  If your FM allows you to charge tools, equipment, etc; to the truck ( and be taken out in payments, remember your settlements will not be as big in the beginning.  It is also important to remember that there are a lot of things you can purchase cheaper so be sure to shop around!
If you call us this month, be sure to wish a special Happy Birthday to some of our hardworking staff!

8/9 - Michelle J.
8/25 - Shawn K.


Have you seen the new Tesla Semi?!