Author: tonynova
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CPAs’ role in the political process
Within the next few weeks I expect to be involved in the filming of a video by the New Jersey Society of CPAs about the importance of CPAs’ legislative involvement. Here is the Illinois version of the same topic: https://www.youtube.com/watch?v=lB_eKQlri-o. While I’m not the filmmaker and am not in any position of charge of the…
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The worst of residential real estate performance
I’ve been negative on residential real estate as a financial asset for at least the past 12 years but that’s perhaps mostly because I’ve personally taken such a beating in suburban Philadelphia and along the bayshore region in south Jersey. Ten years ago in 2006 this historic (c 1901) stone home in Bala Cynwyd on the…
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GEICO auto insurance craziness
Dear GEICO: I’ve been a long time policyholder and yet I plan to cancel my auto insurance coverage soon. But I thought it might be worthwhile to send this note as a final attempt to appeal to some type of business sanity. In theory, I seem to fit the type of customer profile that your company would…
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PA unreimbursed business expense deduction creates an audit risk
For he past few years the Pennsylvania Department of Revenue aggressively audited the tax returns of individuals who took a deduction for unreimbursed employee expenses on Schedule PA-UE. The topic was covered by the Pittsburg Tribune in June 2014. My quick online poll of professional tax preparers last summer indicated that the audit rate was near 100% of…
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Fiduciary rule should raise awareness of more important issues
I have mixed feelings about the new federal push in retail financial market known as the “fiduciary rule”. Depending on the specific facts, there is a strong argument to be made on either side of the issue. One thing that is certain, however, is that the new rule is intended to increase public awareness of the value of…
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Still the Unaffordable Care Act to CPAs
I received this message embedded in an email from a peer CPA this morning: “I am also determined to vote for whoever will work to repeal the unaffordable care act. It has affected everyone on so many levels and no one from the people to the insurance companies to the government knows what they are doing”.…
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CPAs: “from crisis manager to opportunity director”
The theme of this year’s New Jersey CPA convention is changing our primary roles and focus “from crisis manager to opportunity director”. My mantra over the past few years is that CPAs need to be the agents of change for today’s businesses. I’m looking forward to hearing more about what others are doing in this…
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SEP IRA or Solo 401(k)?
If you are self-employed, is it best to use a Simplified Employee Pension Individual Retirement Account (SEP IRA) or a one person 401(k) plan? The answer depends on a range of factors that should become clear in a short discussion of your objectives. Both are easy and inexpensive methods to save on current taxes and…
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What is the value of a financial adviser?
One of the surprise lessons of this tax season was learning how many sophisticated and successful clients are paying more than five figures annually for what essentially amount to picking mutual funds. Many of the cases I saw while preparing tax returns were fees paid through Charles Schwab for funds offered in retirement plan accounts…
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Help for last-minute tax filers
These final 20 day of tax season can be stressful on taxpayers and tax preparers. I will work at least 14 hours a day in order to meet my own work deadlines and contribute to the workload of other tax preparers. Yet it makes sense for a young accounting practice to reserve time for new…