Greene Publishing, Inc.

By Jacob Bembry

I have ideas that are trying to burst my brain apart in an attempt to get out and find the freedom to walk on their own. They want legs. Each time that I sit at my computer at home, partially written book manuscripts scream for my attention and promise me relief if I will just complete them. Other ideas pop into my brain; fresh ideas for new manuscripts. Usually, though, I am too tired from writing, typing and editing all day at work to do anything about it.

My ideas are not the only thing that take a backseat when it comes to time dedicated to them. My relationship with Jesus Christ, unfortunately, many times finds itself lagging. I do not spend enough time in prayer or Bible reading and study as I should. I know that if I focus on this, then I will probably find time to complete those books crying out for my attention.

When I need God, He is always there for me, so I should make an effort to spend a lot more time with Him than I do.

By Mark Buescher, C.P.A.

Guest Columnist

As 2011 winds down here in Madison, there’s less uncertainty about the short-term outlook for tax law than we had at the end of last year.  With this temporary clarity comes the opportunity to create a sound tax-saving plan – and the time to put your plan into action.  Here are several strategies to consider.

Reap tax benefits with retirements savings

When it comes to retirement saving, I always stress to our clients to contribute the maximum amount allowed every year.

For 2011, the IRA contribution limit is $5,000, and those 50 and older can contribute $6,000.  Participants in a 401(k) plan can contribute as much as $16,500 ($22,000 if 50 or older).

Did you know you can make IRA contributions for your spouse when you’re working and your spouse is not?  For 2011, the maximum spousal IRA contribution is the lesser of $5,000 or your combined earned income.  You can add an additional $1,000 when your spouse is over age 50.

If you’re self-employed, establishing a retirement plan such as a SEP or a SIMPLE means a current-year tax deduction in addition to tax-deferred growth.  For 2011, you can contribute 25% of your salary to a SEP plan, up to a maximum contribution of $49,000.  The maximum SIMPLE contribution is $11,500, plus an additional $2,500 as a catch-up contribution if you’re over age 50.  A federal tax credit may also be available – up to $500 for each of the first three years of your new plan.  Remember, credits reduce your tax bill dollar for dollar.

Reduce AGI to qualify for tax breaks

Reducing your adjusted gross income could increase eligibility for income-limited deductions and credits.

The standard deduction for 2011 is $11,600 when you’re married filing jointly ($5,800 when you’re single).  When your itemized deductions; that is, expenses you pay for medical care, mortgage interest, taxes , charitable contributions, casualty losses, and miscellaneous deductions, are close to that amount, advance payments could save you tax dollars.  For example, you can choose to make your property tax payment here in Madison County in December instead of January.  Since itemized deductions are no longer limited by your income, timing the payment of expenses might be more beneficial than you expect.

There’s another reason to double-check deductions: your alternative minimum tax (AMT) exposure.  Certain expenses, including state taxes and medical costs, are reduced or eliminated under AMT rules.  The AMT calculation also eliminates the standard deduction.  In some cases, you may save money if you claim itemized deductions even if they total less than your standard deduction.

Review support provided for relatives

While planning to maximize deductions, remember to take into account the financial support you provide for relatives.  Potential tax breaks include dependency exemptions, head-of-household filing status, medical deductions, and the dependent care tax credit.  Generally, you’ll need to provide over half of your relative’s living expenses.

What if you don’t provide more than 50% of support for you family relative?  You could enter into an arrangement with other family members who provide help, or you could shift assets you would dispose of anyway to pay for the support.  You would then be shifting the related income and tax to your relative.

Here’s an illustration of assets and income shifting.  Instead of selling stock at a gain and using the proceeds to pay for a parent’s living expenses, gift the stock to your parent and let him or her make the sale.  Long-term gains could qualify for a zero-percent tax rate if your parent is in the lower tax brackets.

Assess equipment needs for your business

For business owners here in Madison, this year offers what may be a last-chance opportunity for an enhanced deduction:  100% bonus depreciation is scheduled to expire December 31.  The increased Section 179 expensing of up to $500,000 is also slated to shrink after the end of the year.

Synchronize these two tax benefits with your asset purchase plan before year-end to make the most of 2011 deductions.  For instance, you can apply the Section 179 deduction to used property, while bonus depreciation is available only for new assets you buy and place in service in 2011.

Choose strategies that fit your situation

Other strategies for reducing your 2011 federal income tax bill include maximizing losses by increasing your participation in passive activities, taking steps to write off worthless securities and bad debts, and harvesting capital losses.

Be aware that Congress might pass legislation before year-end that would require adjustments to your tax plan.

Mark Buescher, CPA is owner and principal of Buescher and Ruff, LLC, a local full service accounting firm in Madison, specializing in tax preparation, business consulting and tax planning.  Tax laws contain varying effective dates and numerous limitations and exemptions that cannot be summarized easily.  For details and guidance for your specific situation, contact your tax advisor.

By Diann Douglas

Guest Columnist

One thing we do well in the U.S. is celebrate holidays with food.  Now, we are about to celebrate an exclusive American holiday, Thanksgiving, which involved a big menu at most households. And, it is only the beginning of a long stretch of eating which starts with Thanksgiving and extends into New Year’s Day.  In other words, we are looking at six weeks of eating more than you normally eat and that can mean a weight gain.

A traditional holiday meal can be as much as 3,000 calories.  That is more calories from a single meal than most people eat in an entire day.  In addition to holiday meals, there are always baked goods and desserts at every gathering.  The challenge is to enjoy the foods of the season, but not put on extra pounds.

It is possible to eat some of everything during the holidays and not take in too many calories.  The key is to eat sensibly, enjoy high calorie foods, but eat smaller portions. If you are going to attend a gathering where there will be a lot of food, eat smaller amounts of food during the day to keep the total calorie intake reasonable.

Here are a few ideas from Extension Nutrition Specialists to help you avoid consuming excessive calories over the holiday stretch:

Eat moderate portions of food and keep extra servings to a minimum.  Consider using a luncheon plate when eating a meal at home to help you keep servings smaller.  When it’s time for your Thanksgiving meal, you can use a regular dinner plate and not feel guilty about eating extra food.

When preparing dishes, substitute low-calorie ingredients for foods high in fat or sugar.  For example, low-fat sour cream can replace the traditional high fat version.  Another idea is to reduce the amount of sugar in your sweet potatoes and use vanilla extract for added flavor.

If  you serve appetizers while guests are waiting for the main meal, consider a fresh vegetable tray with a low fat dip instead of potato chips.

Look at your recipes and substitute reduced-fat or fat free versions of the cheeses and  cream cheese.

Steam, bake or microwave vegetables rather than frying and season with herbs and spices instead of salt.

Replace whole milk and cream with low-fat or skim milk in puddings, soups and baked products.

Lighten up your holiday baked goods by cutting the amount of sugar in your recipes by one quarter.

To help reduce cholesterol, substitute egg whites in recipes calling for whole eggs.  Use two egg whites in place of each whole egg in baked products.

Something else you need to schedule in is time for physical activity to help burn off extra calories you consume.  Take a 15 minute walk during your lunch hour.  Every step counts, so park further out in the parking lot when you go to the store.  Household chores and yard work will also burn extra calories.

Sensible eating and staying physically active during the holiday season will keep your weight in check and the extra pounds off.   For more information on food and nutrition contact the Madison County Extension Service.

The University of Florida Extension – Madison County is an Equal Employment Opportunity Affirmative Action Employer authorized to provide research, educational information and other services only to individuals and institutions that function without regard to race, color, sex, age, handicap or national origin.