Michael Gray, CPA's Tax and Business Insight

February 4, 2013

© 2013 by Michael C. Gray

ISSN 1539-395X

A monthly report to help you prepare for your financial future, keep more of what you earn by minimizing your taxes, and build an extraordinary business!

Route to _______   _______   _______   _______   _______

(If you find this information valuable, please pass it on to a friend!)

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Clive Baker playing pirate.
Captain Clive Baker will be age 5 this month.

Remember to express your appreciation to your sweetheart!

Valentine’s Day is February 14. If you haven’t already made your reservation for your favorite restaurant, do it now! Chef Dan Baker at Marché Aux Fleurs Restaurant in Ross, California tells me they are fully booked.

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Happy birthday, Clive!

My grandson, Clive Baker, will celebrate his fifth birthday this month. Isn’t five grand?

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Tax season is here! Make your tax preparation appointment now.

If you would like to schedule an appointment for a tax preparation interview, also please call Dawn Siemer on a Monday, Wednesday or Friday at 408-918-3162. (Appointments are generally scheduled on Tuesdays and Thursdays.)

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IRS is experiencing processing delays.

With Congress’s late adoption of tax legislation on January 1, the IRS is scrambling to update forms and its efiling programming. Since we haven’t adopted a federal budget this year, refund checks could be delayed. (Meanwhile, please don’t delay getting the information to prepare your income tax returns to your tax return preparer.)

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W-2s, 1099s and DE 542 reminder.

Remember that most 2012 annual information returns, such as W-2s and 1099s, should have already been issued to payees and should be sent to the tax authorities by February 28.

Amounts paid using a credit card should not be included on Form 1099. Those amounts are being reported by the merchant companies.

Although requirements for real estate operators to issue Forms 1099 were repealed, real estate operators that are real estate professionals should prepare them anyway. Some taxpayers who weren’t concerned about qualifying as real estate professionals will want to for 2013 to avoid the Medicare tax for investment income. See your tax advisor for details.

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Michael Gray interviewed on the Financial Survival Network

Michael Gray was interviewed on January 29 about the Fiscal Cliff tax legislation for a radio show on the Financial Survival Network. You can listen to the interview here:


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Limited time offer! Jay Abraham givaway!

Marketing guru Jay Abraham is making some of his business-building resources available for free. The resources aren’t sales pitches, but valuable information. In addition to Jay, interviews with Tony Robbins, Fran Tarkenton and Stephen Covey are included.

You can find the resources at http://www.abraham.com

Jay will discontinue the site after February 15, so download these resources now.

1) The Strategy of Preeminence; 2) Jay’s top-rated books, Getting Everything You Can Out of All You’ve Got and The Sticking Point Solution; 3) The League of Extraordinary Minds Interview Transcripts (57 interviews!) 4) How to Find Influencers and Win Friends, The Right Way; 5) Interviews with Tony Robbins, Fran Tarkenton, Steven R. Covey and Steven M.R. Covey (Jr.); and 6) How to Get From Where You Are to Where You Want to Be. And more!

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IRS updates guidelines for disclosure and use of taxpayer information by tax return preparers.

The IRS has issued final regulations (T.D. 9608) and consent language (Rev. Proc. 2013-14) for tax return preparers to disclose client tax return information or to use client information for any purpose other than to provide educational information or to solicit tax return preparation services. Any other use requires the written consent of the taxpayer. The consent language is required for consents obtained on or after January 1, 2013. Tax return preparers should study these new rules carefully, because the penalties for failure to comply are severe.

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Please share your good experiences with Michael Gray, CPA.

As you know, more and more people are going to the internet to find information about service providers. We hope you will share some good words about experiences that you have had with our firm. Some of the sites where you can share your experiences include yelp.com, siliconvalley.citysearch.com, and Google+.

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Remember to update payroll tax rates

The IRS has released updated 2013 tax rate tables. Software providers should have issued or will soon issue updates incorporating those tables. Be sure to download them if you process payroll internally.

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Community public access television needs our help.

As you can see below, public access television is a vital part of our educational outreach to various communities. These are usually nonprofit, charitable organizations, like public television stations. Unlike those stations, most of the programming for the public access stations comes from local producers.

This programming includes the local arts, productions by students at local schools, community outreach by churches, independent local producers discussing current social issues, educational programming by local providers like ourselves and much more. In other words, public access television makes a unique, important contribution to the communities it serves.

With the difficult times we are experiencing, many public access stations are facing severe financial challenges, and might not survive without more community financial support. I urge you to consider making a donation to your local public access television station. Here is a link for a list of public access television stations in California: www.communitymedia.se/cat/linksca.htm.

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Financial Insider Weekly broadcast schedule for February and March.

Financial Insider Weekly is broadcast in San Jose and Campbell on Fridays at 8:00 p.m., Pacific Time. You can watch it on Comcast channel 15 for San Jose and Campbell. The show is broadcast as streaming video at the same time at www.creatvsj.org.

Here are the scheduled interviews for February and March:

February 1, 2013, attorney John Hopkins of Hopkins & Carley, “Succession planning for a family business”
February 8, 2013, David Beck, CFP® of Bay Area Planners, “How to prepare for the challenge to families of financing a college education”
February 15, 2013, Professor Patricia Cain of Santa Clara University School of Law, “Tax developments for same sex couples”
February 22, 2013, Professor Patricia Cain of Santa Clara University School of Law, “Estate and gift tax planning for same sex couples”
March 1, 2013, attorney G. Scott Haislet, “Section 1031 Tax-Deferred Exchanges”
March 8, 2013, attorney G. Scott Haislet, “Short sale and foreclosure wars”
March 15, 2013, attorney Bernard Vogel III, Silicon Valley Law Group, “Alternative forms for businesses”
March 22, 2013, attorney Michael W. Malter, Binder & Malter, LLP, “What you should know about bankruptcy for individuals”
March 29, 2013, Tom W. Anderson, President, Retirement Industry Trust Association, “How to invest in real estate using your Roth or IRA account”

Financial Insider Weekly is also broadcast as follows:

Past episodes are available at https://www.youtube.com/user/financialinsiderweek.

Let me know any ideas that you have for topics or guests. Guests will usually have to be located in or near the Silicon Valley in California.

Hope you can watch or record the show. Please tell your friends about it!

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Michael Gray regrets he can no longer personally answer email questions. He will answer selected questions in this newsletter.

For your questions about dependent exemptions, see IRS Publication 501 at www.irs.gov.

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Visit our new article!

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Follow me on Social Media!

Want to see new episodes of Financial Insider Weekly as soon as they're posted on Youtube? Want to see Michael Gray's blog posts as soon as they're live? We post them (and more) on social media!

If you enjoy Twitter, please follow me at www.twitter.com/michaelgraycpa. I would especially appreciate retweets of our messages announcing episodes of Financial Insider Weekly.

I'm also on Facebook, LinkedIn, and Google+.

you can also follow me on other social media sites, Facebook, LinkedIn, and Google+.

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If you have employee stock options, have you subscribed to Michael Gray, CPA's Option Alert at no charge or obligation?

To learn more, visit stockoptionadvisors.com/subscribe.shtml

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Real estate investors, have you subscribed to Michael Gray, CPA’s Real Estate Tax Letter at no charge or obligation?

For details, visit www.realestatetaxletter.com

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Check out my blog.

I have also started a blog at michaelgraycpa.com. Check it out!

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My daughter and her husband, Holly and Dan Baker, have a Southern French Restaurant at 23 Ross Common, Ross, California, about 15 minutes north of the Golden Gate Bridge. The name of the restaurant is Marché Aux Fleurs and their website address is marcheauxfleursrestaurant.com. For the best meal of your life, call 415-925-9200 for a reservation and give them a try! For directions, visit our website at www.taxtrimmers.com/directions.shtml.

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Michael Gray, CPA
2482 Wooding Ct.
San Jose, CA 95128
(408) 918-3162
FAX: (408) 938-0610
Hours: 8am - 5pm PDT Monday - Friday

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