Roger Rossmeisl, CPA, Author at Roger Rossmeisl, CPA

26 Sep 2019

Tax Implications of Gambling Winnings

If you’re lucky enough to be a winner at gambling or the lottery, congratulations! After you celebrate, be ready to deal with the tax consequences of your good fortune. So, what are the tax implications of gambling winnings? TAX IMPLICATIONS OF GAMBLING WINNINGS: WINNING AT GAMBLING Whether you win at the casino, a bingo hall, or elsewhere, you must report 100% of your winnings as taxable income. They’re reported on the “Other income” line on Schedule 1 of your 1040 tax return. To measure your winnings on a particular wager, use the net gain. For example, if a $30 bet at the race track turns into a $110 win, you’ve won $80, not $110. You must separately keep track of losses. They’re deductible, but only as itemized deductions....

24 Sep 2019

Fight Fraud Actively for Maximum Effect

Roger Rossmeisl, CPA

Fraud Briefs

When it comes to reducing fraud loss and duration, companies should fight fraud actively. Active detection methods (such as surprise audits or data monitoring) are far more effective than passive methods (such as confessions or notification by police). This was a major finding of the latest Association of Certified Fraud Examiners (ACFE) Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse. Yet many companies fail to use active methods to their full potential. Active vs. passive detection The ACFE study found that frauds detected using passive methods tend to last longer and produce larger losses than those detected by such active methods as: IT controls, Data monitoring and analysis, Account reconciliation, Internal audit, Surprise audits, Management review, and Document examination. These active methods of detection...

22 Sep 2019

Plummeting RV Sales Forecast 2020 Recession

Roger Rossmeisl, CPA

Current Events, Economic Concepts

Plummeting RV Sales Forecast 2020 Recession

As posted to the Dent Research affiliated website Economy and Markets on 8/26/19 -- Harry Dent | August 26, 2019 RV sales are crashing at a year-over-year rate of 20% below sales for the same period last year. 2017 was the peak thus far and 2018 sales were 4% lower. Hence, this year's crash is making this look like a clear top. This article seeks to demonstrate that plummeting RV sales forecast a 2020 recession. RVs are one of our mid-life-to-retirement sectors for Boomers. Sales used to peak at age 63, but the most recent updates to the Consumer Expenditure Survey shows them peaking a bit earlier, at age 59-60. That still makes it a strong growth industry into 2020-2021 for aging Boomers. Hence, there’s no demographic reason for...

20 Sep 2019

Smartphones Impair the Brain’s Ability to Focus

Roger Rossmeisl, CPA

Technology

Smartphones Impair Our Brains Ability to Focus

As posted to the Wall Street Journal YouTube Channel on 5/20/19 (Run time: 5 min, 17 sec) Our phones give us instant gratification. But there's a cost: loss of attention and productivity. Attention is a limited resource. At any particulary moment you can only have that much of it. We live in an age of constant distractions. 9-5 is out, and 24/7 is in. With our smartphone in hand, we now bring our work with us everywhere. But do our devices make us less attentive? Wall Street Journal's (WSJ's) Daniela Hernandez goes on a quest to understand the science of distractions and what you can do to stay focused and productive. (This is Blog Post #616) Wall Street Journal is a U.S. business-focused, English-language internationaly daily newspaper based in New...

19 Sep 2019

IRS is Targeting Virtual Currencies Used in Business Transactions

Roger Rossmeisl, CPA

Small Business Tax Briefs

IRS is Targeting Business Transactions in Virtual Currencies

Bitcoin and other forms of virtual currency are gaining popularity. But many businesses, consumers, employees and investors are still confused about how they work and how to report transactions on their federal tax returns. And it has just been announced that the IRS is targeting virtual currencies that are used in business transactions users in a new “educational letter” campaign. The nuts and bolts Unlike cash or credit cards, small businesses generally don’t accept bitcoin payments for routine transactions. However, a growing number of larger retailers — and online businesses — now accept payments. Businesses can also pay employees or independent contractors with virtual currency. The trend is expected to continue, so more small businesses may soon get on board. Bitcoin has an equivalent value in government issued...

18 Sep 2019

Two Types of Power of Attorney Used in Estate Planning

Roger Rossmeisl, CPA

Estate Planning Briefs

Two Types of Power of Attorney Used in Estate Planning

When drafting your estate plan, you and your attorney must account for what happens to your children and your assets after you die. But your plan must also spell out your wishes for making financial and medical decisions if you’re unable to make those decisions yourself. A crucial component of this plan are two types of power of attorney (POA). ABCs of a POA A POA appoints a trusted representative to make medical or financial decisions on your behalf in the event an accident or illness renders you unconscious or mentally incapacitated. Without it, your loved ones would have to petition a court for guardianship or conservatorship, a costly process that can delay urgent decisions. Two types of Power of Attorney in action A POA is a document under...

17 Sep 2019

Home Office Deduction Reviewed

Roger Rossmeisl, CPA

Small Business Tax Briefs

Working from home has its perks. Not only can you skip the commute, but you also might be eligible to deduct home office expenses on your tax return. Deductions for these expenses can save you a bundle, if you meet the tax law qualifications. In this Blog Post, the home office deduction is reviewed. Under the Tax Cuts and Jobs Act (TCJA), employees can no longer claim the home office deduction. If, however, you run a business from your home or are otherwise self-employed and use part of your home for business purposes, the home office deduction may still be available to you. If you’re a homeowner and use part of your home for business purposes, you may be entitled to deduct a portion of actual expenses...

16 Sep 2019

Importance of Naming Your Trustee

Roger Rossmeisl, CPA

Estate Planning Briefs

When it comes to estate planning, trusts are appealing for many reasons. They can enable you to hold and transfer assets for beneficiaries, avoid probate and reduce estate tax exposure. But they can be complicated to set up. Don't underestimate the importance of naming your trustee. It may be one of the most important decisions of your life. As the name implies, this individual or financial institution must be above reproach. But that’s just one quality of many that your trustee requires. Both mundane and significant duties Trustees have significant legal responsibilities, primarily related to administering the trust for the benefit of beneficiaries according to the terms of the trust document. But the role can require many different types of tasks. For example, even if a tax expert...

09 Sep 2019

“Nanny Tax” Applies to More Than Nannies

Roger Rossmeisl, CPA

Individual Tax Briefs

You may have heard of the “nanny tax.” But even if you don’t employ a nanny, it may apply to you. You see, the "nanny tax" applies to more than nannies. Hiring a housekeeper, gardener or other household employee (who isn’t an independent contractor) may make you liable for federal income and other taxes. You may also have state tax obligations. If you employ a household worker, you aren’t required to withhold federal income taxes from pay. But you may choose to withhold if the worker requests it. In that case, ask the worker to fill out a Form W-4. However, you may be required to withhold Social Security and Medicare (FICA) taxes and to pay federal unemployment (FUTA) tax. FICA and FUTA tax In 2019, you must...

09 Sep 2019

Your Phone May Be a Fraud Risk

Roger Rossmeisl, CPA

Fraud Briefs

As more people use mobile phones, more fraud perpetrators target these devices. According to Javelin Strategy & Research, between 2017 and 2018 the number of fraudulent mobile-phone accounts opened grew by 78%. Schemes in which thieves open a phone account in your name and use it to access your bank account, sign up for credit cards and gain access to personal information are only some of the recent fraud trends. Fraudsters have plenty of ways to defraud consumers through their phones. It's clear . . . you're phone may be a fraud risk. Your phone may be a fraud risk: Why they’re vulnerable One of the reasons mobile phones are so vulnerable is that phone security hasn’t kept pace with traditional computer security. Mobile devices rarely contain...

Tax Implications of Gambling Winnings

Fight Fraud Actively for Maximum Effect

Plummeting RV Sales Forecast 2020 Recession

Smartphones Impair the Brain’s Ability to Focus

IRS is Targeting Virtual Currencies Used in Business Transactions

Two Types of Power of Attorney Used in Estate Planning

Home Office Deduction Reviewed

Importance of Naming Your Trustee

“Nanny Tax” Applies to More Than Nannies

Your Phone May Be a Fraud Risk

ROGER ROSSMEISL, CPA

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