Women’s Winter Series

W.E.B.O.N.D.

(women’s empowerment and business owners networking development)

January – Health February – Love March - Happiness

Farmer & First, P.C., CPA's 1/8/13

Our Sponsor for the Series…

Farmer & First, P.C., CPA's 1/8/13

Who are You?

Name and Company only please, we’ll get to

know more about each other as the weeks progress….

Farmer & First, P.C., CPA's 1/8/13

W.E.B.O.N.D.

• • • • • • • Like our Face Book Page Connect with us on Meet Up East Bay Chamber of Commerce Website Suzanne Munroe, Bette Walpole Every Tuesday from noon – 1pm Drawing each week to exclusively feature one vendor at upcoming meetings! Treats and prizes, bringing a unique twist to marketing our local businesses Farmer & First, P.C., CPA's 1/8/13

History and Mission of WEBOND

• • • • Been around a couple of years Evening events at local restaurants Founded by myself and a chiropractic physician

To support, educate and empower women to be their best both physically and financially through uniting and building each other up and providing a platform in which to share resources that encourage personal growth and a prosperous community.

Farmer & First, P.C., CPA's 1/8/13

W.E.B.O.N.D.

• Can you benefit from a collaboration of like-minded women who are taking a new approach to networking and supporting one another in business? • Would it be beneficial to you to learn how others solve problems, make decisions and organize their lives to be full, productive and healthy?

• What’s important to you and how will you choose to shape the future of your career, family, health and business?

Farmer & First, P.C., CPA's 1/8/13

Michelle Hughes, CPA

Farmer & First. P.C.

CERTIFIED PUBLIC ACCOUNTANTS • • • • • What can I offer you?

How could a CPA help you, your business?

What would you like me to share?

How can I help you network?

Who do you want to meet?

Farmer & First, P.C., CPA's 1/8/13

2013

The Great Fiscal Cliff

Have we gone over the edge?

Farmer & First, P.C., CPA's 1/8/13

Senate in Session on New Year’s Eve

• Tax rates stay the same unless you make over $400,000 if single or $450,000 if married filing jointly – We go back up to the rate in effect during 1990 at 39.6% – Up from 35% • • Over those same limits; the capital gains rate increases to 20% Also a 3.8% “surcharge” from the Affordable Care Act – Stock sales – Sales of investment property, rental units Farmer & First, P.C., CPA's 1/8/13

The U.S. has a “spending problem”

• • • Per Mitch McConnell, the new legislation is an imperfect solution We have spending problem, not a revenue problem No signs that President Obama will move to cut entitlements or spending?

3,5 2,5 1,5 0,5 3 2 1 0 Revenue Farmer & First, P.C., CPA's 1/8/13 Spending

Everyone will have a little less

• • • Less money in our weekly paychecks

Social security tax for employees goes back up to 6.2% from 4.2%

New withholding schedules have been released Farmer & First, P.C., CPA's 1/8/13

Phase Outs

• • Phase out of itemized deductions –

Adverse effects on those who ordinarily give large amounts to charities

Phase out of personal exemption – MFJ over $300,000 – Single over $250,000 Farmer & First, P.C., CPA's 1/8/13

Unemployment Benefits

Extending emergency unemployment insurance benefits for another year Affects 2 million people currently on unemployment Farmer & First, P.C., CPA's 1/8/13

• •

How does all this affect small business?

• Depending on what you make and how your entity is organized, you could be someone that has a “flow through” income, where if you make too much; you’ll pay more tax

If your under the $400,000 you’ll see little or no change

• If you’re paying more tax, you're likely to resist hiring new employees Less likely to purchase large items; except that it would reduce your taxable income (IRS code section 179) – This depends on cash flow – Depends on if you can get credit or loans Farmer & First, P.C., CPA's 1/8/13

Any businesses that benefit?

• R&D Tax Credit. The law extends the research and experimentation tax credit (popularly known as the R&D credit), which had officially expired at the end of 2011, through 2013. In addition the law allows businesses to apply the credit retroactively to investments made in 2012.

• • Section 179 Deduction. permits small businesses to deduct the cost of certain new and used property placed in service for the year rather than depreciate those costs over time.

The new law extends the maximum deduction to $500,000 for the 2012 and

2013 tax years for companies with under $2 million in qualifying capital expenditures.

Farmer & First, P.C., CPA's 1/8/13

Small Business Provisions

• Bonus Depreciation. enables small businesses to recover the costs of qualified new equipment faster than the ordinary schedule, by permitting the

depreciation of 50 percent

of the cost in the first year. The provision was set to expire at the end of 2012, but has been extended through the end of 2013 (and 2014 for certain types of property).

•

Work Opportunity Tax

Credit. The new law extends through 2013 the tax credits for employers who hire military veterans or individuals from underserved communities that have faced barriers to employment.

Farmer & First, P.C., CPA's 1/8/13

Other Small Business Incentives

• the new markets tax credit for businesses that invest in certain community development entities and other qualified investments • • a reduction in the recognition period for S corporation built-in gains

tax

reduction in the time from 39 years to 15 over which a business can recover the cost of

certain leasehold improvements and restaurant and retail property

Farmer & First, P.C., CPA's 1/8/13

• • Make great wedding gifts, first time homebuyers, college students Have a small home repair to do?

– – Book a party and we can fix it up together Learn how to use tools – – Save money by doing it yourself What can I teach you about home repair and maintenance?

– Start your own business, complement and existing business Farmer & First, P.C., CPA's 1/8/13

Diversification & Planning

Farmer & First, P.C., CPA's 1/8/13