BTB Notes & News

December 2009

Dear BTB Friends and Colleagues,

We hope you have an opportunity to reflect upon the soon to be past year and prepare for the new one upcoming.  While all of us have been impacted by the economic downturn these past two plus years, and some of us have been impacted the past seven to eight or more, most of us have had and continue to have more than those less fortunate in both our immediate and extended communities.  As we head into this holiday season, give thanks for what you've been blessed with, and say a prayer (or thought, or give a nod, or do whatever works for you) to those who continue to struggle even more than us.

And not to be so callous as to tie it into taxes, but it’s what we do, and as we’ve mentioned many times there are good reasons for most of the sections and regulations in the tax code.  If you have extra clothing, canned food, appliances, blankets, etc., get them to Goodwill or Salvation Army or some other such charitable organization before Christmas.  It will help someone in need, it will unclutter your home, it will do your heart good, and if you bring in the receipt we will put it on your Schedule A.

There are many important tax changes each year.  One we find particularly interesting for 2010 is the update to the Roth IRA conversion rules.  In 2010 you can convert your Traditional IRA to a Roth IRA without consideration to income limits, and if you choose you can spread the income taxes over two years!  Talk to your BTB Tax Specialist if you think this is a good idea for you.

For year end, as always, consider the following:

1. Take maximum advantage of employer sponsored deferred compensation programs and flexible spending accounts.
2. In most cases, for calendar year end taxpayers (which is most of us), push out constructive receipt of incomes past December 31, and pull in expenses before December 31.  If you are considering capital investments make those before December 31.  Prepay April property tax bills, and make sure your 4th quarter state estimates are postmarked by December 31.
3. Among the usual important things to inform us of when you visit or drop off for your tax appointment, let us know if you purchased a vehicle or if you made energy efficient improvements to your home.  Bring in any and all tax related documents you receive!
4. If we are issuing 1099s for you, have all pertinent information to us (full name, address, ID#, amounts) by Friday January 15, 2010.

This letter and another much more detailed letter will be posted on our web site at www.btbtax.com, we urge you to visit the web site and review at your earliest convenience. 

 If you are facing tax difficulties and are considering calling any of the companies advertising to help you out of your troubles, be wary of the commercials you see on TV or hear on the radio.  They are tempting, but the companies are unregulated, and there are instances of deception and fraud.  Anyone (including BTB!) can find the not so rare examples of saving taxpayers tens and hundreds of thousands of dollars.  Remember that these people are only interested in trying to sell you something.  For an honest, straightforward evaluation of your situation, or anything else for that matter, start with the people you know and trust first.

We wish you a Merry Christmas, Happy Holidays, and a Blessed and Prosperous New Year!
Your BTB Staff

Read our Year End Detailed Letter (PDF)