McGowen Hurst Clark & Smith, Tax, Audit, Consulting, Financial Services, Des Moines, CPA

General Business/Management Strategies

Investigating a Fraud: Verbal – and nonverbal – clues point to guilt
A properly planned interview can yield much more than simply learning about a subject’s background information. Techniques such as behavior analysis can be used to determine whether someone is being truthful or deceitful. By incorporating behavior-provoking questions during the session, the interviewer can observe and analyze verbal, as well as nonverbal, responses.

Wealth Advice/Estate Planning

Facing reality may require some ‘pension pinching’
In recent years, soon-to-be-retirees from all walks of life have been forced to face the reality that their future income stream might not be nearly as bountiful as they once had imagined. Of the 77 million baby boomers now nearing retirement, many are in danger of running out of funds prematurely, according to experts. Surprisingly, even the wealthiest individuals are at risk, particularly as insurance premiums and other healthcare costs continue to escalate beyond past estimates.

Family Business/Succession

Mentoring may deliver the work force you need
If one of your key managers were to suddenly leave the business or become incapacitated, do you have someone qualified to take that manager’s place immediately? Could you prevent your business from suffering while a replacement grows into the role? If not, a mentoring program might be the answer. Mentoring pairs seasoned employees – mentors – with less experienced employees – mentees – to help foster your employees’ career development and professional growth.

Physician Services

New tax write-offs may stimulate practice updates
The centerpiece of the Economic Stimulus Act of 2008 may be the large dose of rebate checks ordered up as a remedy for the economy’s lethargy. But Congress prescribed the new tax law’s real therapeutics for businesses such as your medical practice. Although temporary tax depreciation enhancements have attracted less press coverage than the rebate checks, they may make 2008 the year you decide to significantly update your medical equipment or remodel your practice office. One thing to keep in mind is that you may have to act quickly to take advantage of the new depreciation incentives Congress has approved to stimulate business activity.

Nonprofit Organizations

The SOX effect: Nonprofits are looking more like for-profits
Hold a mirror up to a nonprofit these days and, many times, the reflection you’ll see is a more corporate image than in the past. And that’s a good thing. Because as fiscal pressure mounts, combined with donor demand for increased oversight and heightened enforcement from the IRS, nonprofits need the expertise and the survival instinct that corporate entities have developed in the marketplace.

Business Tips

Planning for Success - Create an “exit” strategy now.

Wealth Tips

Your Investments - Diversify your investments – don’t put all your eggs in one basket.

Announcements

Food Bank Contributions

MHC&S Team Members are collecting non-perishable food items for the Food Bank of Iowa to assist those affected by the recent floods and tornadoes. We invite our clients and colleagues to help us with our collection and bring their food items to either our West Des Moines or Winterset office locations between now and August 14. With the food demand high and the supply low, every donated item will make a big difference. Thanks for your help.

Stimulus Act Boosts Section 179 Expensing

For tax years beginning in 2008, the Stimulus Act will increase the Section 179 deduction from $128,000 to $250,000, boosting the overall investment limit from $510,000 to $800,000. In addition, the Stimulus Act permits a bonus first-year depreciation deduction of 50% of the adjusted basis of qualified property acquired and placed in service after December 31, 2007, and before January 1, 2009.

Congratulations to Deb Perkins

MHC&S Team Member, Deb Perkins has successfully completed the following certifications as a QuickBooks Pro Advisor:

- QuickBooks 2006, 2007 and 2008
- Enterprise Solutions 2007
- Point of Sale 2006 and 2007

If we can assist you with QuickBooks/Enterprise Solutions software, please contact Deb Perkins at 515-462-1882

Business Standard Mileage Rate Increases

The IRS has announced the optional mileage allowance for owned or leased autos (including vans, pickups or panel trucks) will increase 8¢ from 50.5¢ to 58.5¢ per mile for business travel from July 1, 2008, to Dec. 31, 2008, to better reflect the real cost of operating an auto in this period of rapidly rising gas prices. The rate for using a car to get medical care or in connection with a move that qualifies for the moving expense will also increase 8¢ for the last half of 2008 from 19¢ to 27¢ per mile.

Tax Deadlines

July 31 – Employers

If you maintain an employee benefit plan, such as a pension, profit sharing or stock bonus plan, file Form 5500 or 5500-EZ for calendar year 2007. If you use a fiscal year as your plan year, file the form by the last day of the seventh month after the plan year ends.

September 15 – Corporations

File a 2007 calendar-year income tax return (form 1120 or 1120-A) and pay any tax due. This due date applies only if you requested an automatic six-month extension. Deposit the third installment of estimated income tax for 2008.

September 15 – S Corporations

File a 2007 calendar-year income tax return (form 1120-S) and pay any tax due. The due date applies only if you timely requested an automatic six-month extension.

Contact Information

McGowen Hurst Clark & Smith, P.C.
1601 West Lakes Parkway Suite 300
West Des Moines, IA 50266
Phone: (515) 288-3279

106 E. Jefferson, P.O. Box 312
Winterset, IA 50273-0312
Phone: (515) 462-1882

E-mail: info@mhcscpa.com
Web:

Our firm is a network member of CPAmerica International

The technical information in E-ssentials is necessarily brief. No final conclusion on these topics should be drawn without further review and consultation. Please be advised that, based on current IRS rules and standards, the advice contained herein is not intended to be used, nor can it be used, for the avoidance of any tax penalty assessed by the IRS.