How was your long weekend around the Louisville area? Hey — whatever your opinion about labor unions, I think we all appreciate an extra “day off” now and then (though, as with many business owners, my “day off” as your friendly Louisville tax service provider, wasn’t exactly just burgers and the pool…working hard on getting ready for tax season around here).
Because, as you probably heard sometime last weekend, the reason we even HAVE a weekend is because of the labor movement.
As you may have heard, “Labor Day” originated during the time of 7-day workweeks of 12-hour days, in the late 1800’s, as our country was in the throes of the Industrial Revolution. Times have certainly changed since then–and our economy is no longer driven by the manufacturing jobs of the past.
Some would say that the time of the labor movement has passed, but that’s a debate I’d rather not get into today, if that’s ok?
But regardless of all that, our economy is now about *knowledge* … and that’s why I take the time each week to inform YOU about the “real world” steps you should be taking with your family’s finances, and how to be prepared for any circumstance.
Including the upcoming tax season — it’ll be here sooner than you think!
I’ve put together a simple primer on what you should be pulling together, but the BEST way to be prepared is to have a conversation now about proactive strategy to minimize your burden. January through April may be “tax season”, but September-October is “tax planning season”–and to that end, I suggest you call us ((502) 426-0000) and set up a time for a tax planning session.
But regardless, here’s what you need to be making sure you have ready for 2013…
Louisville’s Most Trusted Tax Service Explains What To Make Sure You Have Come Tax Time
Believe it or not, now is the time to start making sure that you’ll be ready for a few months from now, when tax time is upon us!
Generally speaking, you should keep any and all documents that may have an impact on your federal tax return. Individual taxpayers should usually keep the following records supporting items on their tax returns for at least three years:
• Bills, Credit card and other receipts
• Invoices, Mileage logs
• Canceled, imaged or substitute checks or any other proof of payment
• Any other records to support deductions or credits you claim on your return.
You should normally keep records relating to property until at least three years after you sell or otherwise dispose of the property. Examples include…
*A home purchase or improvement
*Stocks and other investments
*IRA transactions
*Rental property records
If you are a small business owner, you must keep all your employment tax records for at least four years after the tax becomes due or is paid, whichever is later. Examples of important documents business owners should keep include:
• Gross receipts: Cash register tapes, bank deposit slips, receipt books, invoices, credit card charge slips and Forms 1099-MISC
• Proof of purchases: Canceled checks, cash register tape receipts, credit card sales slips and invoices
• Expense documents: Canceled checks, cash register tapes, account statements, credit card sales slips, invoices and petty cash slips for small cash payments
• Documents to verify your assets: Purchase and sales invoices, real estate closing statements and canceled checks
Here’s the best part of all of this: By pulling together this information NOW, we can really work our “magic” and ensure that we aren’t simply playing catch-up for you after the fact. That’s what tax planning is all about.
So give us a call this week, and let’s plan out the rest of 2012 and beyond: (502) 426-0000