Tip of the week budget emergency fund

The tip of the week this week is on emergency funds. When you are trying to get out of debt one of the first things you should do after creating a written budget is to put some money aside each month for an emergency fund. Your car breaks down your kids have to go to the emergency room you lose your job. If you don’t have money set aside for emergencies you will start to rely on the credit cards again. I have a friend whose father lost his job and was out of work for nine months he had an emergency fund during that time. He did not have to borrow from friends or rely on a credit card. One may ask how much should I save for an emergency fund. Most people say six to eight months.

Have a bright financial future

Regards

Brent

Budget guru

Call 801-651-0523 or email brentkillian29@gmail.com

Depreciation methods

Depreciation Methods

Today’s tip of the week is about depreciation. My friend Dan had a great post about depreciation last week link is below. Depreciation is gradually writing off the expense of an asset you will use for a long period of time. There are different methods one can use to write off depreciation. You can have different methods when it comes to writing off depreciation for tax or for bookkeeping and financial statements. The first method is called the straight line method. It is the easiest method to calculate. You figure how many years you want to depreciate the asset and then depreciate it for those years at the same rate each year. The next method is called accelerated depreciation. This method is used a lot for tax purposes but can be used for bookkeeping as well. The basic concept is that write off more of the cost at the beginning and less toward the end of the asset use period. The last method is called units of production method. The concept is that you buy a piece of machinery that produces a product you figure out how much it can produce in a lifetime and divide the units of production you use that year by the lifetime usage and you then times that by the original cost of the machine and that is what you write off in that year. The IRS and other financial regulators want to make sure information is uniform so one method of depreciation must be used for the life of the asset. You cannot for example use straight line one year and the next used accelerated. One special mention I would like to make for section 179 depreciation. This is specifically for tax. This rule states that one can write off up to an extra specified amount for tax in the first year. The amount for 2010 was 200,000 total. One may or may not want to take this depending on how much gross income they made.

If you would like more information or for bookkeeping, Tax, or Financial services

Contact Taxgurus brentkillian29@gmail.com

801-651-0523

My first video

Click on the link below to see my first video on budgeting

Click here

Tax tip of the week July 7th

The tax tip for today is all about Itemizing. Many people have asked me Brent when should I itemize? A common cause for this question is that some people give me charitable donation paperwork. There are two ways to get a deduction from the IRS one is the standard deduction the other is the itemized deduction. The standard deduction is based on inflation and generally goes up each year a slight amount. Many of these items are based on percentages. Certain items are allowed on your itemized deductions. The major ones are interest on a mortgage, real estate taxes, charitable donations, and medical expenses over 7.5 percent of your adjusted gross income. So how does one decide which one to take? The IRS tells us that we can take either so we simply take whichever one gives us a higher deduction. Usually the Itemized deduction is higher when we own a home and have mortgage interest.

If you have a question for me or if you need my services please contact me at 801-651-0523 or email brentkillian29@gmail.com

Why I should do your books and taxes

Brent Killian 801-651-0523 brentkillian29@gmail.com

Why you should outsource your bookkeeping

· You don’t have to file unemployment insurance, workers compensation or social security

· You don’t have to hire an employee and pay their benefits

· I am fast and efficient

Why you should pick me

· I can provide you with valuable tips to keep your business running smoothly

· I provide weekly tips for improving your business and personal situation

My services include:

· Business and personal budgets

· Help with cash management assistance/guidance

· Legally protecting your business

· Bank reconciliation

· Tax fillings forms 1040, 941, 943, 1099s

· Provide timely financial statements

· Help with business budgeting

· Help in organizing your business for success

· Setting up your Quickbooks file

· Monitoring sales

· Consulting services

· Regular email updates