W. Edward Newton Jr., CPA, CFP | 13850 Ballantyne Corporate Place, Suite 500 | Charlotte, NC 28277 | 704-552-8689

 

 

Financial Services by Newton Financial Network

Ed Newton, CPA, CFP

As a Certified Financial Planner I recently attended a financial services workshop in Indianapolis, IN.

It was hosted by Archer Funds, the registered advisor firm we work through to provide financial advice to our clients here in the Charlotte / Mecklenburg County area.

This forum allowed for two days of learning and networking. Speakers included the President of Archer Funds, Troy Patton, who spoke on the state of the market.

Troy is known for understanding how world events and complex factors affect our U.S. Market.

Steve Demas, Portfolio Manager, spoke on client services. Steve has a long history of working with clients on their personal finances and individual investments before dedicating all of his time to researching appropriate investments for the Archer portfolios.

John Rosebrough, Chartered Financial Analyst, provided insight into the technical aspects of portfolio management.

Troy, Steve and John actively manage the Archer Funds and the portfolios that are built around these funds. We offer investment advice through our Newton Financial Network.

For a free review of your investments, give me a call at 704-552-8689 or download one of my 4 FREE reports on investing at my Newton Financial Network website.  Thanks!  Ed

 


 

 

Ed Newton, CPA


If you're a client of mine I would like to hear from you about how you like our tax or accounting services.
 

Call our Testimonial Hotline & give us your feedback at:

 

704-412-8CPA or 704-412-8272

 


 



 

 

 

And The Winner of the iPad Drawing is... + Residency Issues for Retirees & Home Office Deductions + "Like" us on Facebook

 

With tax season behind us we want to say THANK YOU to everyone for making the start of 2013 successful for us!

We greatly appreciate you choosing our firm and especially the new clients many of you referred to us!

 

If you recall depending upon when you brought in your tax return information, we put in one or more tickets for a drawing of an Apple iPad with Retina Display.

 

With over 240 tickets in a big box we drew and our winner is Darryl & Deidra Owens of Charlotte!

Congratulations to Darryl & his family and again thank you for being our client!

 



Residency Issues for Retirees & Home Office Deductions

With 10,000 baby boomers turning 65 each day, some may decide to move to another state for a variety of reasons. These include living in a warmer climate, being closer to children or other relatives, avoiding state income tax, health reasons, or a combination thereof.

 

But, states and municipalities are looking for every available dollar to shore up shrinking budgets. So retirees should use caution to avoid being overtaxed due to a move.

If the retiree's move is intended to be permanent, it is important that legal domicile be established in the new state. If domicile is not established, the retiree may be subject to income tax as a resident of both the old and new states.

 

In addition, since each state has its own rules relating to residence and domicile, both states may try to impose taxes on the retiree even if he or she has established domicile in the new state, but has not adequately relinquished domicile in the previous state.

Furthermore, if the retiree dies without establishing domicile, both the old and the new states may claim jurisdiction over the retiree's estate.

The more time that elapses after the move and the more steps the retiree takes to establish domicile in the new state, the more difficult it will be for the old state to assert that the retiree resides or has domicile there.

The following steps tend to establish domicile in a new state:

- Register to vote in the new location.

- File a change of address form with the post office at the old location and change the address on documents, such as tax returns, wills, contracts, insurance policies, passports, and living trust agreements.

- Obtain a driver's license and register automobiles in the new location.

- Open and use bank accounts in the new location.

- Move items from safe deposit boxes in the old location to the new location.

- Purchase or lease a residence in the new state and sell the residence in the old state.

- If an income tax return is required, file a resident return in the new state and a nonresident return (or no return, if appropriate) in the old state.
 

- File for property tax relief under a homestead exemption (if any) in the new state.
 

For many purposes, the location of property is determined by reference to state law, and legally may be deemed to be somewhere other than where the property is physically located. The state in which the property is deemed to be located may assess income taxes (if any) on income or gains relating to the property.

 

The state may also assess death and succession taxes, and that state will be where probate proceedings will occur when the individual dies. Furthermore, rules of that state will be used to determine whether testamentary instruments are valid and whether the terms of the instruments (such as the powers of a trustee) are legally enforceable.

The retiree's state of domicile generally determines the rules relating to the ownership and tax treatment of intangible personal property. Thus, if the retiree established domicile in a new state, that state's laws generally will apply to his or her intangible assets, such as bank accounts, stocks, bonds, notes, partnership interests, trust income rights, and insurance contracts.

 

Interest income from a savings account, for example, will normally be taxed by the state of domicile, rather than the state in which the account is located.

New Simplified Home Office Deduction


The IRS recently announced a simplified option that many owners of home-based businesses and some home-based workers may use to figure their deductions for the business use of their homes.

 

The new optional deduction, capped at $1,500 per year based on $5 a square foot for up to 300 square feet, will reduce the paperwork and recordkeeping burden on small businesses. The new option is available beginning in 2013.

Though homeowners using the new option cannot depreciate the portion of their home used in a trade or business, they can claim allowable mortgage interest, real estate taxes, and casualty losses on the home as itemized deductions on Schedule A, if they choose to itemize their deductions. These deductions need not be allocated between personal and business use, as is required under the regular method.

Business expenses unrelated to the home, such as advertising, supplies, and wages paid to employees, can still be fully deductible. Current restrictions on the home office deduction, such as the requirement that a home office must be used regularly and exclusively for business and the limit tied to the income derived from the particular business, still apply under the new option.

In tax year 2010, the most recent year for which figures are available, the IRS indicates nearly 3.4 million taxpayers claimed deductions for business use of a home. Please contact us if you would like more information on the home office deduction or any other tax compliance or planning issue.

 


 

"Like" us on our New Facebook FAN Page

 

Hi everyone!! We've just created a business/fan page for our CPA/CFP business.

 

If you want updates on tax or investment subjects, click on this link and LIKE our page.
 

We'll post new relevant information on tax reduction, accounting & finance as well as investing that you can read and comment on.

 

Thank you in advance for "Liking" us!

 

To read this or any other past article online please click here and then scroll down to our newsletter archive.

 

 



Would You Do Me A Quick Favor And Give Me An Online REVIEW on Google+ Local?

If you are a local business like I am, more and more people FIND you by going online and searching.  To help me be found the same way by good customers like you would you take 2 minutes and give me a Review on my Google+ Local listing?

 

Just click here and it will take you to my listing.  From there just click on the blue Write a Review button.  Thank you in advance for your help! 

If you have any questions about giving us a Review or have an accounting or investments question about yourself or your business, please give me a call at 704-552-8689.  I can help guide you in the right direction.

 

To read other articles like this online, click here or go to www.EdNewtonCPA.com and click on the News link.

 


 

As always you can call our offices if you have any questions about these or any other accounting, tax, financial planning or Quickbooks related issues, at 704-552-8689. 

 

Regards, W. Edward Newton Jr., CPA, CFP

Certified Public Accountant

 

 

 

W. Edward Newton Jr., CPA, CFP | Certified Public Accountant

13850 Ballantyne Corporate Place, Suite 500 Charlotte, North Carolina 28277 Phone: (704) 552-8689 | Email: ednewton@ednewtoncpa.com