The straight line

Based on questions that we have received lately, it appears that leasing is a favorable way of acquiring assets for some of our clients. The decision to lease is based on specifics such as: better financial terms, necessity, the lack of available financing, or just the desire to keep assets off the balance sheet. In any case, whether the lease is treated as an operating lease, the decision should be dependent upon the terms of each individual lease agreement.

Concerned about global warming and other environmental challenges, many businesses are going “green.” Besides being socially responsible, employers may derive some tax benefits.

In general, you must keep records that support items shown on your individual tax return until the statute of limitations runs out -- generally three years from the due date of the return, or the date you filed, whichever is later. In most cases, the IRS can audit your return for three years. You can also file an amended return on Form 1040X during this time period if you missed a deduction, overlooked a credit or misreported income.

Gardiner Thomsen is a member of several associations that help us provide our clients with the highest quality of service.

The IRS says that a retiree who had been provided medical benefits by his prior employer owes FICA taxes on any cash payments received in lieu of continuing medical benefits. The payment is considered to be salary – and thus subject to payroll taxes because it relates to a benefit from a prior employment relationship.

Encourage your clients and customers to ‘feed’ their piggy banks! ’Feed the Pig™‘ is a national multi-media public-service announcement campaign with a dedicated Web site, www.FeedthePig.org, that provides free financial information and tools to help people take control of their finances and build long-term financial security.