Next Level Technology Continues to Grow Allan Cohen, CPA, wears two hats at Naden/Lean. In addition to his role as the managing partner of the firm, he also the head of Next Level Technology, an out-sourced computer network maintenance and monitoring company. Recognized as a visionary in the use of technolgy within an accounting firm, it was only natural that other companies would see the value in using those same standards to minimize down time. With over 60 clients, it is easy to see why they continue to attract attention.  For more information about their services, click here.	Dear Friend, you are receiving this newsletter because you are a friend of our firm and/or have requested it. If you would like to unsubscribe, please click on the opt-out link below.                                                                                         Opportunities Abound for 2007 Year-End Small Business Tax Planning. As 2007 draws to a close, now is an ideal time to evaluate a business's financial and tax situation. Proper and timely planning can ensure that your business minimizes its federal income tax liability not only this year, but into 2008 and beyond. Tax planning for year-end 2007 presents new opportunities and new challenges for small businesses to reduce or defer federal income tax liability. While traditional planning techniques remain fundamentally important considerations this year for small business, new opportunities born from recent legislation and changes in the tax laws can help defer or minimize federal income tax liability not only for 2007, but 2008 as well. While the Small Business and Work Opportunity Tax Act of 2007 (2007 Small Business Tax Act) targeted nearly $5 billion in tax incentives principally to small businesses. Business Planning Basics Tax planning strategies do not come in a one-business-fits-all package. Tax planning is as unique and varied as today's businesses and, while certain traditional planning approaches can help businesses across the board minimize or defer taxes, every plan must account for the particular needs and circumstances of the company. However, three factors will affect year end planning for every business, including: business structure, accounting method and anticipated profits and losses for 2007 and 2008 of the company. Business structure The structure of your business determines how business income will be taxed. While C corporations are subject to two levels of tax, the income, losses, deductions, and credits of passthrough entities like S-corps, partnerships and limited liability companies (LLCs) are passed through to the owners and reported on their individual income tax returns. Therefore, not only is the structure of the business itself important with respect to taxation, but with passthrough entities, an owner's individual tax situation is a particularly significant factor in year end tax planning. For the rest of article, click here.
Naden/Lean Launches Dental CPAs For the last 51 years, dentists have turned to Naden/Lean for expert guidance. Given the overwhelming demand for CPAs that understand the dental accounting world, Naden/Lean has created www.dentalcpas.com. This presents the dental community with an amazing resource focused on their specific needs. Practice purchase and start-up assistance and guidance Income tax planning and tax minimization strategies Retirement and wealth accumulation planning Practice benchmark analysis Practice valuations Practice transition strategies including: associate buy-in strategies and partner buy-out strategies Assistance in selling a practice To learn more about dental accounting services, click here.	Client Spotlight   Scott Finlay, D.D.S and Associates P.A.   Dr. Scott Finlay began his journey as a cosmetic dentist at University of Maryland, Baltimore College of Dental Surgery. He received a dental degree there in 1986 and was selected for membership in the Gamma Pi Delta Prosthodontic Honor Society. He then completed an additional year of optional intensive postgraduate training in a Graduate Practice Residency Program at a Washington, D.C. Area Trauma Hospital. His guiding philosophy has been defined by a commitment to quality and customized care in the esthetic and restorative enhancements in his patients’ smiles.   Dr. Scott Finlay has since fulfilled multiple postgraduate training programs focusing on restorative and dental esthetics from coast to coast. He has completed continuums at NYU Dental School in Manhattan and the prestigious UCLA Dental School in Beverly Hills, California and the internationally recognized Las Vegas Institute. He has studied with some of the nation’s leading gurus in restorative dentistry, including Dr. Frank Spears in Seattle, Washington and Dr. Pete Dawson in St. Petersburg, Florida.   Dr. Finlay has been recognized as one of the premiere cosmetic and restorative dentists in the country. He is one of only 260 dentists Accredited by the American Academy of Cosmetic Dentistry. This accreditation is the gold standard for excellence in cosmetic dentistry. There are only 8 other dental practices in Maryland that have been recognized at this level and Dr. Finlay is the only Accredited Dentist in the greater Annapolis area.   He is also a Fellow in the Academy of General Dentistry and past President of the Anne Arundel County Dental Society. Dr. Finlay is a member of the International College of Oral Implantologists and a founding member of the local Pankey/Dawson Study Group.   Dr. Finlay has been repeatedly recognized for his excellence in restorative and cosmetic dentistry. In a recent poll of over 220 dentists in the Annapolis area, Dr. Finlay was selected as the area’s Best Cosmetic Dentist for 2006 and featured in What’s Up Magazine. Exclusively Annapolis Magazine has named Dr. Finlay as having achieved the highest standards in restorative and cosmetic dentistry and having reached a level of excellence as one of Greater Annapolis’ best dentist in 2004, 2005 and 2006. Dr. Finlay was also selected as one of America’s Top Dentists by the Consumers Research Council of America in 2003 - 2006.   Dr. Finlay was recently featured on television on Baltimore FOX 45 Morning News as an expert in cosmetic and restorative dentistry. He also appeared on a health television show in the Spring 2006, hosted by Meredith Baxter called "A Better Life" and was headlined on a similar show in the Fall 2006 "A Bride 2 Be". To learn more about cosmetic dentist Scott Finlay, DDS in Maryland, please visit their website.
N/L Outsource Flourishes Under the stewardship of Bruce Caulk, companies of all sizes have begun to simplfy the process of financial record keeping. N/L Outsource provides bookkeeping services for business owners desiring the advantages of accurate, well-organized records but without the complexities or costs involved in employing a full or part time bookkeeper.   To learn more about this service, click here.	Client Spotlight   The Children's Guild   The Children’s Guild, founded in 1953, is a nonprofit, child-serving organization in Maryland that makes the impossible possible every day for more than 300 children having special needs. Services to children include special education day schools, group living residences, treatment foster care, out patient mental health services and other educational and clinical programs.   Unlike other organizations that serve at-risk youth, The Children’s Guild is driven by a unique organizational philosophy called Transformation Education, (TranZed) that tailors environments, staff, curriculum and programs to meet the needs of each student. As a result, The Children’s Guild has less staff turnover, better educational outcomes and more transitions back to public school.   You can help The Children’s Guild succeed in serving this unique population of youth. The Children’s Guild’s next benefit event is Cabaret for Kids, a gala honoring local leaders whose personal mission coincides with the goals of The Children’s Guild.   In 2008, The Children’s Guild is honoring Nicholas and Jeanne Tsakalos of H&S Bakery, on Mar. 29, 2008, at the Valley Mansion in Cockeysville, Md. More information on Cabaret for Kids and how you can support this event and other Children’s Guild programs can be found at here.
Naden/Lean Forensic Expert Presents to MACPA Andrew Runge, CPA, CVA, ABV, MBA, CFE presented to the Maryland Association of Certified Public Accountants on Auditing and Accounting Forensics including an IT perspective earlier this year. Additionally, Mr. Runge presented a class on Electronic Discovery Best Practices to the Maryland Defense Council and presneted a seminar on Business Valuations on behalf of Lorman Educational Services. A passionate duckpin bowler, Mr. Runge and his team took top honors at this year's Baltimore County Bar Association Annual Bowling Championship. Mr. Runge is an accomplished forensic accountant as well an outstanding expert witness.	EBay and other Online Auctioneers Draw Attention of IRS As online auctions have exploded in popularity over the years, so too have questions about the federal tax responsibilities of those in the business of buying and selling online. Traditionally, auction rules affected only a relatively small number of taxpayers. But the internet has changed everything, and millions of individuals participate daily on online auction sites, buying and selling a range of items, from everyday household goods to big ticket items like cars. If you are an online auction seller, you may be subject to income tax, self-employment tax, employment tax, or excise tax. Your sales may also result in capital gains or ordinary business income. In some cases, the income may not be taxable. Taxable income In general, all income from auction (including online) and consignment sales is taxable. Income from an auction or consignment sale (which is generally measured by the amount received less basis cost less any depreciation) is usually considered "business" or "ordinary" income. This income is subject to the same taxes as income from any other retail or service business, including federal income and employment taxes. If you are an individual engaged in a retail or service business, you must include this income in your business income. A non-business person also must generally report gain from an online sale. Likewise, if you sell a product or service online as a hobby, the income you receive is reportable, while your deductible expenses are limited. Your deductions cannot total more than the income reported and may only be taken if deductions are itemized on Form 1040, Schedule A, Itemized Deductions. Deductible expenses All auctions sellers - both traditional and online - in business to make a profit can, in general, deduct ordinary and necessary business expenses under Code Sec. 162. An "ordinary" expense is an expenditure that is common and accepted in a trade or business. Examples of ordinary and necessary business expenses include verifiable auction and consignment fees. In contrast, the IRS has stated that expenses related to personal, living or family matters are generally not deductible. An auction or consignment seller may also be able to deduct expenses for the business use of his or her home. The deduction is computed to the extent of expenses allocable to space in the residence used on a regular basis to store inventory and/or product samples if your residence is the sole (fixed) location of your auction or consignment business. If you have any questions about your federal (or state) tax obligations as an online (or traditional) auction or consignment seller, please contact our office.
Ron Ehman Authors Article for Medical Journal Given his deep understanding of the medical community, it was little wonder that Medchi (the Medical Society of Maryland) asked Ron to author an article on transitional planning for physicians. For years, Ron has been the go-to person within Naden/Lean to address the transitional issues for professionals both in and out of the medical community. For more information on how Ron can offer guidance and advice through the transitional part of your business, click here.	Health Insurance Costs Driving You Crazy? For those of you that own or manage a business and are struggling with rising health insurance costs, we may have a solution for you. Perhaps you’ve heard of Health Savings Accounts (HSAs) or Health Reimbursement Accounts (HRAs).     We have found them to be cost effective programs which in most cases will reduce your insurance premiums without sacrificing benefits. An HSA plan worked for us.   To see if this model would be right for your business situation, contact Darryl Bodnar at (410) 453-5500 or dbodnar@nlgroup.com.                                                                                                                  Naden/Lean Welcomes Several New Team Members   Ron Wolfe, EA has joined the tax department, Sayo Macino has joined the N/L Outsource department, Marie Rogalski and Mandy Hayden have joined the On-going Accounting Services (OAS) department and Taylor Hunt has joined the marketing department as an intern.                                                                                                                     Naden/Lean Wraps Up Another Year of Fascinating Seminars   After a year of well attended, private client seminars, we are planning our 2008 calendar. 2007 saw our alternative investment series (How to Make a Buck on BRAC and How to Invest in Art) as well as a panel discussion on business and social network marketing, SEO white hat techniques and the fiduciary responsibilities of 401(k) plan providers. For 2008 we are looking at continuing the art investment series, and will add seminars on: how to invest in wine, how to invest in Italian automobiles, how to invest in thoroughbred horses, how to invest in wooden boats and a gourmet cooking series. If you are interested in any of these topics, please let us know and we'll add you to the event specific mailing lists. For a list of current events and seminars, click here.