Stephanie McGuire Appointed to National Intuit Accountant and Advisor Customer Council

Select Panel Advises Financial Software Maker on Products and Services That Accountants and Their Clients Want Most

Bozeman, MT – Oct. 14, 2011 – Stephanie McGuire has been named to Intuit Inc.’s National Accountant and Advisor Customer Council. Intuit develops software products and is a leading provider of business and financial management solutions for small and mid-sized businesses; which include QuickBooks®, Quicken® and TurboTax®.

A staff accountant at McGuire & Associates, Ms. McGuire, is one of 18 council members who will share their insights, experience and expertise to help Intuit develop new products and services for accounting professionals and small business owners. She has more than 9 years of experience in the bookkeeping and tax preparation fields.

“Stephanie brings a wealth of experience to our advisory council,” said Kim Amsbaugh, accountant and media relations for Intuit. “We seek the best professionals to help us create the best products and services for the accounting profession and their clients. Leading practitioners, such as Stephanie, bring a combination of imagination and practical counsel that will help us maintain a real advantage in developing and delivering next-generation solutions.”

McGuire said she was excited by the selection, “This is a great opportunity for our firm and our clients. I will share real-world client experiences with the Intuit developers plus come away with insights to help our clients utilize Intuit’s software more effectively.”

The council meets periodically at Intuit’s Silicon Valley headquarters to get an inside look at the company’s strategy and developing products. Members participate for up to two years, sharing their thoughts on critical accountant and small business tools, such as new software offerings and Web-based services.

3.8 Medicare Surtax Email Rumors

The 3.8% Medicare surtax won't apply to all home sale profits after 2012. 

Many readers tell us they've received e-mails or read newspaper articles asserting that gains on all home sales will be hit by a 3.8% tax. That is incorrect.

Most gains on sales of primary residences will be exempt. Only the portion of profits that exceeds the $250,000 or $500,000 exclusion will be subject to the tax. And only higher incomers will owe the surtax... singles with adjusted gross incomes over $200,000 or joint filers with AGls above $250,000. The 3.8% surtax is levied on the smaller of the filer's net investment income (including taxable capital gains) or the excess of the taxpayer's adjusted gross income over the threshold amounts. 

But profits on sales of rental properties and second homes will be hit by the surtax, assuming that the seller's adjusted gross income is large enough. 

-- August 5, 2011 Kiplinger  Tax Letter

IRS Tax Tips Capital Gains

Ten Important Facts About Capital Gains and Losses 

Did you know that almost everything you own and use for personal or investment purposes is a capital asset? Capital assets include a home, household furnishings and stocks and bonds held in a personal account. When a capital asset is sold, the difference between the amount you paid for the asset and the amount you sold it for is a capital gain or capital loss.

Here are ten facts from the IRS about gains and losses and how they can affect your Federal income tax return.

1. Almost everything you own and use for personal purposes, pleasure or investment is a capital asset.
2. When you sell a capital asset, the difference between the amount you sell it for and your basis - which is usually what you paid for it - is a capital gain or a capital loss.
3. You must report all capital gains.
4. You may deduct capital losses only on investment property, not on property held for personal use.
5. Capital gains and losses are classified as long-term or short-term, depending on how long you hold the property before you sell it. If you hold it more than one year, your capital gain or loss is long-term. If you hold it one year or less, your capital gain or loss is short-term.
6. If you have long-term gains in excess of your long-term losses, you have a net capital gain to the extent your net long-term capital gain is more than your net short-term capital loss, if any.
7. The tax rates that apply to net capital gain are generally lower than the tax rates that apply to other income. For 2010, the maximum capital gains rate for most people is 15%. For lower-income individuals, the rate may be 0% on some or all of the net capital gain. Special types of net capital gain can be taxed at 25% or 28%.
8. If your capital losses exceed your capital gains, the excess can be deducted on your tax return and used to reduce other income, such as wages, up to an annual limit of $3,000, or $1,500 if you are married filing separately.
9. If your total net capital loss is more than the yearly limit on capital loss deductions, you can carry over the unused part to the next year and treat it as if you incurred it in that next year.
10. Capital gains and losses are reported on Schedule D, Capital Gains and Losses, and then transferred to line 13 of Form 1040.

Links:

• Publication 17, Your Federal Income Tax (PDF 2015.9K)
• Publication 550, Investment Income and Expenses (PDF 516K)

eBay Sales Can Be Taxable

IRS employee Andrea Orellana failed to report income from sales on eBay from 200-2005.  During those six years Orellana participated in over 7,000 transactions.  From those transactions Orellana had unreported income of over $36,000.  In 2005 alone she had unreported income of $21,062.  Orellana used many different user IDs during the years. 

Orellana’s defense was the transactions were like “online garage sales”, but the US Tax Court ruled that the sales from the designer clothing were taxable. 

Source: www.accountingtoday.com

There are a few items I find significantly important in this court case. 

First of all this woman was involved in over 7,000 transactions during a 6 year period.  That averages out to 3.2 transactions per day, every day, for 6 years.  Immediately my reaction is if you are that involved in eBay transactions it is not a general “online garage sale” and not a hobby. 

Second, when I see that she used multiple user IDs that makes me believe she may have been trying to avoid being noticed in the system. 

Online commerce is challenging when trying to decipher the difference between some “spring cleaning” and money making venture.  Starting for 2011 tax returns, taxpayers who sell more than $20,000 of merchandise or participate in more than 200 electronic transactions annually could receive a 1099. 

Credit Card Security Standards for Your Business

Does your company accept credit cards?

If the answer is yes, read this following information to make sure you are in compliance with the Payment Card Industry security standards. 

When you have any credit card numbers stored in QuickBooks, CRM database or online Web Store you need to comply with the following standards which are made of six principles and twelve requirements:

1.       Build and Maintain a Secure Network

a.       Requirement 1: Install and maintain a firewall configuration to protect cardholder data. 

b.      Requirement 2:  Do not use vendor-supplied defaults for system passwords and other security parameters. 

2.      Protect Cardholder Data

a.       Requirement 3:  Protect stored cardholder data.

b.      Requirement 4:  Encrypt transmission of cardholder data across open, public networks.

3.      Maintain a Vulnerability Management Program

a.       Requirement 5:  Use and regularly update anti-virus software.

b.      Requirement 6:  Develop and maintain secure systems and applications.

4.      Implement Strong Access Control Measures

a.       Requirement 7:  Restrict access to cardholder data by business need-to-know.

b.      Requirement 8:  Assign a unique ID to each person with computer access.

c.       Requirement 9:  Restrict physical access to cardholder data.

5.      Regularly monitor and Test Networks

a.       Requirement 10:  Track and monitor all access to network resources and cardholder data.

b.      Requirement 11:  Regularly test security systems and processes. 

6.      Maintain an Information Security Policy

a.       Requirement 12:  Maintain a policy that addresses information security.