Accountant Forums

Net Income

jmafte — Sat, 19 May 2012 02:31:08 GMT

So of the review I'm doing before my final next week, the one question I'm stuck on is this one. Once again, I'm really just looking for help on how to get to the solution. This particular problem is making me feel like a fool for not knowing it, but either way, I can still at least ask.

A summary of selected ledger accounts appear below for Alberto�s Plumbing Services for the current calendar year end.

Alberto, Capital
12/31 8,500 1/1 6,500
12/31 18,500

Alberto, Drawing
6/30 3,500 12/31 8,500
11/30 5,000

Income Summary
12/31 15,000 12/31 33,500
12/31 18,500

What is Net Income for the period?

401k

room7 — Fri, 18 May 2012 20:34:17 GMT

I have 2 LLCs, each with a restaurant chain, both have employees. What type of retirement plan should I setup for myself and some of the employees(I would ideally like to only offer to managers who have been there for 2+years)? I want the biggest tax benefit for the companies at the lowest cost.
From my research I think I would do a i401k for myself(as a consultant paid with through a 1099) and set up a safe harbor 401k for the employees (salary employees).

Anyone have any suggestions on a better plan or why this wouldnt work? I just want as much info before seeing the financial adviser and lawyer

health monthly billing reconciling

joecjr — Fri, 18 May 2012 18:45:26 GMT

Hi.

Does anyone in corporate or business settings have a good method for reconciling monthly health billing for at least 150 employees to capture current changes to your health plan billing as well as retroactive changes potentially 3 months prior?

I have a method I use that works but it is not user friendly and can get messy at times.

thanks for any suggestions!!

Reconciling monthly health billing

joecjr — Fri, 18 May 2012 16:34:02 GMT

Hi.

I am trying to figure out how to reconcile our monthly billing to our health insurer's statement including the retroactive adjustments they include on their statement.

Does anyone have a spreadsheet or information that can help me some? I have reconciled it but I think there is a more efficient method.

When the statement comes I have to reconcile back to sometimes 1 2 or 3 months depending on when the health insurer applied the term or new hire or change to our policy.

Any suggestions would be very appreciated!!!!!!!!!!!!

Citizen Married to Non-resident Alien

Larry Israel — Fri, 18 May 2012 14:47:44 GMT

"Larry Israel" <> wrote in message
news:...

>A US citizen living overseas, with two citizen children and a non-resident
> alien husband. The husband supplies over half the household expenses. Is a
> tax status of Married Filing Separately the only tax filing status
> allowed?

He should give her the money and she pay the bills, and he doesn't even have
to abide the 13k limit as he is not a citizen, although she would have to
merely report gifts received from a foreign person in excess of 100k or some
amount like that, and she can do HoH.

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Reconciliation for Health Billing

joecjr — Fri, 18 May 2012 14:25:00 GMT

Hi.

Can anyone help with this:

I need a user friendly spreadsheet for reconciling our company health expenses to the insurance company changes each month.

These changes can be sometimes:

retroactive 1 2 or 3 months back due to timing when they get the bill and we posted the change, term, or new hire to our schedule.

I've spent a considerable amount of time trying to find the way to do it. How does your company reconcile it each month?

We have 175 Employees on average in our plan each month.

THANKS!!!!!!!!!!!!!!!

400+ Stock Forecasts (ZIP file)

Dane Moir — Fri, 18 May 2012 12:35:17 GMT

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Take all my unrealized capital gains this year?

Confused — Thu, 17 May 2012 21:50:23 GMT

On Thursday, May 17, 2012 5:50:23 PM UTC-4, Confused wrote:
> I have no income other than investment income.
> In bad years I generally pay no tax.
> In good years I fall into AMT and pay horrible taxes because I lose my considerable deductions.
>
> This year will be a good year. (unless the market continues to crash). I used up all my capital loss carryforward last year, and have considerable realized capital gains.
>
> I am thinking that as long as I am deep into AMT, I might as well take all the unrealized capital gains this year. I can't lose my deductions more than once, and doing this will reduce the likelihood of it happening again in future years.
>
> I know I can do a simulation on TaxCut, but I wonder if the idea makes sense.
> I also am thinking about converting my trad IRA to a Roth, and it seems opportune to do it all at once and avoid multiple AMTs.
>
> Wouldn't it be nice to have a tax system that didn't make you do dumb things just to minimize your taxes?

On Thursday, May 17, 2012 5:50:23 PM UTC-4, Confused wrote:
> I have no income other than investment income.
> In bad years I generally pay no tax.
> In good years I fall into AMT and pay horrible taxes because I lose my considerable deductions.
>
> This year will be a good year. (unless the market continues to crash). I used up all my capital loss carryforward last year, and have considerable realized capital gains.
>
> I am thinking that as long as I am deep into AMT, I might as well take all the unrealized capital gains this year. I can't lose my deductions more than once, and doing this will reduce the likelihood of it happening again in future years.
>
> I know I can do a simulation on TaxCut, but I wonder if the idea makes sense.
> I also am thinking about converting my trad IRA to a Roth, and it seems opportune to do it all at once and avoid multiple AMTs.
>
I added 5 levels of capital gains from $0 to $400,000 and 5 levels of recharacterization from 0% to 100% to my 2011 tax return to see what would happen; 25 different scenarios.
The results were surprising.
50% recharacterization seemed optimal; any more gave a horrible tax rate.
The amount of long term capital gains didn't matter; it was all taxed at 30% Federal and NY. Since 30% is high and didn't help the IRA at all, it seems prudent to minimize the capital gains.

Too bad, I wanted to get this IRA stuff over with, but it is just too expensive to do it all this year.

It is not what I expected. Maybe I will go back and see how taxes and AMT move around; but it probably doesn't matter much.

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<< The foregoing was not intended or written to be used, >>
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Purchase Order Procedure

slaub — Thu, 17 May 2012 20:40:57 GMT

I am a summer intern at a medium sized manufacturing company in the United States. My current task is to determine whether the company's current PO system is too faulty to continue using or to provide suggestion as to how to improve it. Currently the company has four classifications for Purchase Orders (PO). The four classifications are, Production PO's (called P2's), Non-Production MRO-PO's (called PG's), Outside Process PO's (called PM's), and Capital Investment PO's (called PC's). The largest problem with this is that employees commonly misclassify items purchased. Would it be better to write up some sort of Procedure with an in-depth description of how to classify purchases? Or would it be better to switch to a system with only one type of PO and purchases are classified by account codes? Some sort of Procedure describing the account codes would have to be created.

Pros and Cons of each would be greatly appreciated.

Thank You

Adjustments for prepaid insurance

jmafte — Thu, 17 May 2012 18:10:01 GMT

When making adjustments for prepaid insurance at the end of a fiscal year, if you have $16,000 before adjustments, and an unexpired amount of $6,000-is this adjusted as $10,000 credit to Prepaid Insurance and $10,000 debit to Insurance Expense?

Cost of giving credit?

NYoung — Thu, 17 May 2012 17:32:03 GMT

I've found information in th epast but can't seem to find anything now.

I'd like to find out a rough way of calculating th ecost to my business of giving credit terms? I'm fortunate in that my products are quite unique so I don't strictly compete with others and have managed to insist on and get prepayment or payment on receipt in most cases.

Some customers have insisted on a credit account and also agree to pay a premium for this service but I'm trying to put a rough figure.

The figure I found before was 6-8% of invoice value but can't find where this came from or how it was calculated.

I'd rather have a figure that encouraged prepayment as that is what I do for my suppliers, and my industry has quite a high risk of my customers failing.

Any thoughts appreciated, thanks.

Neil

winding up trust with loss carry forwards

Pico Rico — Thu, 17 May 2012 14:37:32 GMT

"removeps-groups" wrote in message news:jp63a1$gum$...

"D. Stussy" wrote in message
news:jp4nif$5ui$...
> "removeps-groups" wrote in message news:jp37ir$4vs$...

>>> I believe the loss carry forward is allocated to the beneficiaries upon
>>> trust termination. Is this correct?

>> Yes, on line 11D and 11E of 1041 K-1.

>> My understanding is that you report the loss as negative income on Line 21
>> of your 1040. I think you only need to use up as much NOL as will reduce
>> your taxable income to zero -- ie. income minus exemption minus itemized
>> deduction equals zero, but will need to look this up, because even if your
>> taxable income is zero you might have tax because of AMT. The rest is
>> carried forward. Total NOL must be used up in 20 years.

> Careful: As part of the loss may have been generated by sales, such would
> be a capital loss, not an NOL. Capital losses don't carry back.

Wouldn't capital loss carryovers be reported on line 11B and 11C?
================

I don't care what line they're reported on. I care about what they actually
are.

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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>

Roce

Vinay Tatarah — Thu, 17 May 2012 10:36:36 GMT

Hi All

I am having a small problem with ROCE calculation.

My Capital Employed is negative but my PBIT is positive i.e

234,676,474
(67,224,546)

What is the result called - ROCE?? and
Should this be presented as a percentage or a ratio and should it be positive or negative??

Thanks for your help

Account software ideas?

andremichel1 — Thu, 17 May 2012 08:43:18 GMT

Account software is hard to decide on. Has anyone got any suggestions on accounting software that would be suitable for a small, young company?

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