Rebella Accountancy | 507 E. First Street, Suite A | Tustin, CA 92780 | Phone: 714-619-0667 | Fax: 714-544-0236




Monica Rebella, CPA

Rebella Accountancy


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Other Articles

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Feature Articles

- July 2011 tax compliance calendar

- Stay within the tax rules when combining business and personal travel
- Tax Code's disaster relief provisions can help after a natural disaster
- Check status of a charity before making a contribution
- Using fringe benefits as an income substitute during the economic downturn
- The Saver's Credit: An underused retirement savings benefit

How Do I?

- How do I Use the mid-year depreciation convention
- How do I obtain an appraisal for a noncash charitable contribution
- How do I Compute gain in a like-kind exchange when some cash is received
- How do I Deduct a contribution of clothing or a household item under the new rules?

Frequently Asked Questions

- When is the best time of year to contribute to an IRA?
- How is a major repair on a business vehicle deducted?
- How does a 60-day loan from an IRA work?
- What if I owe taxes and can't pay the full amount?
- How does the new sales tax deduction for vehicle purchases work?
- How much proof is enough, when contributing used clothing to charity?
- Are summer camp costs deductible?



What's on Tap for the Market?

I am not talking about beer...


After the long July 4th holiday, many of you may be thinking I was speaking of those drinks you enjoyed this weekend as you grilled out with friends and family.


However, I am talking about the tap at the gas pump, and the tap or I should say spigot coming out of Washington.


We just finished up the first half of they year, so I want to give you a "heads" up what is to come for the remainder of 2011. The year is really taking shape as I expected.


The next week or two will give us some insight if we can move higher or if it works out like I suspect, we will retest these lows one more time prior to a final move higher for the year.


VERY IMPORTANT: We have some forces for the next six months that will move the market higher, but please be cautious after this next run up. A few things I would like to share with you that will move the markets going forward.


The first item is gas. Not the politicians blowing hot air, but the kind you put in your car. This reprieve from higher gas prices needs to stick around to create a stimulus for the average consumer. From the 2nd quarter of 2010 to the second quarter of 2011, the increase in gas prices sucked nearly $120 billion from the consumer in just the second quarter alone. It is projected to now drop from $30-$50 billion per quarter with the recent decrease in prices. However, it is still much higher than the second quarter of 2010. This will continue to drain John and Jane Doe.


The second item is quantitative easing #3. Yes, I said it. This economy is not running correctly except for the government printing presses. I actually think they will turn down a bit, but expect the government to give a tax holiday to corporate America and with the projected $1 Trillion dollars or more overseas, this will create the same effect as another stimulus right here in the USA. This is the best kind of stimulus we could ask for.


The third item which many of you will not want to hear has to do with the debt ceiling. If the Republicans and Democrats come to terms and cut federal spending (which they need to), it will cause another downturn in corporate earnings and yes the market will falter sometime in 2012. The federal cuts will eventually offset any corporate spending if they are great enough.


My personal opinion is this will not happen, they will announce cuts, not live up to them, and just kill the US dollar to pay back debt easier. You can also read this as the largest tax increase in the next five to seven years without actually having a tax increase. This 2012 downturn will then be temporary.


So for the rest of the year, the markets will tend to move higher and then we may have some adjustment in 2012.  Obviously, I will give you more insight to this as we move closer and things become more apparent as to how they will play out.


Remember if you are looking at your own investments / IRA and want to adjust your asset allocation OR your risk tolerance has changed and you want to become less or more aggressive in your portfolio, I can perform a Complimentary Portfolio Analysis.  Give me a call or email me if you're interested.


If you have any questions about investing, tax or accounting, please give us a call at 714-619-0667.


To read more articles on our web site click here or go to and click on the Newsletter section.



As always you can call our offices if you have any questions about these or any other investment or accounting related issues, at 714-619-0667. 


Regards, Monica Rebella, CPA

President, Rebella Accountancy


Disclaimer:  The opinions contained herein are not intended to be investment advice or a solicitation to buy or sell any securities. Archer Investment Corporation manages The Archer Funds. You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the Fund before investing. The Fundís prospectus contains this and other information about the Fund, and should be read carefully before investing. You may obtain a current copy of the Fundís prospectus by calling 800-800-1776 or visit Past performance is not a guarantee of future results. The investment return and principle value of an investment in the Fund will fluctuate so that an investorís shares, when redeemed, may be worth more or less than their original cost. Distributed by Rafferty Capital Markets, LLC, 59 Hilton Ave., Garden City, NY 11530 Member FINRA


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Monica Rebella, CPA | President - Rebella Accountancy | Certified Public Accountants
507 E. First Street, Suite A | Tustin, CA 92780 | Phone: 714-619-0667 | Fax: 714-544-0236
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