Women’s Winter Series
W.E.B.O.N.D.
(women’s empowerment and business owners networking development)
January – Health
February – Love
March - Happiness
Farmer & First, P.C., CPA's 1/8/13
Our Sponsor for the Series…
Farmer & First, P.C., CPA's 1/8/13
Who are You?
Name and Company only please, we’ll get to
know more about each other as the weeks
progress….
Farmer & First, P.C., CPA's 1/8/13
W.E.B.O.N.D.
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Like our Face Book Page
Connect with us on Meet Up
East Bay Chamber of Commerce Website
Suzanne Munroe, Bette Walpole
Every Tuesday from noon – 1pm
Drawing each week to exclusively feature one
vendor at upcoming meetings!
• Treats and prizes, bringing a unique twist to
marketing our local businesses
Farmer & First, P.C., CPA's 1/8/13
History and Mission of WEBOND
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Been around a couple of years
Evening events at local restaurants
Founded by myself and a chiropractic physician
To support, educate and empower women to be
their best both physically and financially
through uniting and building each other up and
providing a platform in which to share resources
that encourage personal growth and a
prosperous community.
Farmer & First, P.C., CPA's 1/8/13
W.E.B.O.N.D.
• Can you benefit from a collaboration of like-minded
women who are taking a new approach to networking
and supporting one another in business?
• Would it be beneficial to you to learn how others solve
problems, make decisions and organize their lives to be
full, productive and healthy?
• What’s important to you and how will you choose to
shape the future of your career, family, health and
business?
Farmer & First, P.C., CPA's 1/8/13
Michelle Hughes, CPA
Farmer & First. P.C.
CERTIFIED PUBLIC ACCOUNTANTS
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What can I offer you?
How could a CPA help you, your business?
What would you like me to share?
How can I help you network?
Who do you want to meet?
Farmer & First, P.C., CPA's 1/8/13
2013
The Great Fiscal Cliff
Have we gone over the edge?
Farmer & First, P.C., CPA's 1/8/13
Senate in Session on New Year’s Eve
• Tax rates stay the same
unless you make over
$400,000 if single or
$450,000 if married
filing jointly
• Over those same limits;
the capital gains rate
increases to 20%
• Also a 3.8% “surcharge”
from the Affordable
Care Act
– We go back up to the
rate in effect during
1990 at 39.6%
– Up from 35%
– Stock sales
– Sales of investment
property, rental units
Farmer & First, P.C., CPA's 1/8/13
The U.S. has a “spending problem”
• Per Mitch McConnell,
the new legislation is an
imperfect solution
• We have spending
problem, not a revenue
problem
• No signs that President
Obama will move to cut
entitlements or
spending?
3.5
3
2.5
2
1.5
1
0.5
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Revenue
Farmer & First, P.C., CPA's 1/8/13
Spending
Everyone will have a little less
• Less money in our
weekly paychecks
• Social security tax for
employees goes back
up to 6.2% from 4.2%
• New withholding
schedules have been
released
Farmer & First, P.C., CPA's 1/8/13
Phase Outs
• Phase out of itemized
deductions
– Adverse effects on those
who ordinarily give large
amounts to charities
• Phase out of personal
exemption
– MFJ over $300,000
– Single over $250,000
Farmer & First, P.C., CPA's 1/8/13
Unemployment Benefits
Extending emergency unemployment
insurance benefits for another year
Affects 2 million people currently on
unemployment
Farmer & First, P.C., CPA's 1/8/13
How does all this affect small
business?
• Depending on what you
make and how your entity
is organized, you could be
someone that has a “flow
through” income, where
if you make too much;
you’ll pay more tax
• If your under the
$400,000 you’ll see little
or no change
• If you’re paying more tax,
you're likely to resist
hiring new employees
• Less likely to purchase
large items; except that it
would reduce your
taxable income (IRS code
section 179)
– This depends on cash flow
– Depends on if you can get
credit or loans
Farmer & First, P.C., CPA's 1/8/13
Any businesses that benefit?
• R&D Tax Credit. The law
extends the research and
experimentation tax credit
(popularly known as the
R&D credit), which had
officially expired at the end
of 2011, through 2013. In
addition the law allows
businesses to apply the
credit retroactively to
investments made in 2012.
• Section 179 Deduction.
permits small businesses to
deduct the cost of certain
new and used property
placed in service for the
year rather than depreciate
those costs over time.
• The new law extends the
maximum deduction to
$500,000 for the 2012 and
2013 tax years for
companies with under $2
million in qualifying capital
expenditures.
Farmer & First, P.C., CPA's 1/8/13
Small Business Provisions
• Bonus Depreciation.
enables small businesses to
recover the costs of
qualified new equipment
faster than the ordinary
schedule, by permitting the
depreciation of 50 percent
of the cost in the first year.
The provision was set to
expire at the end of 2012,
but has been extended
through the end of 2013
(and 2014 for certain types
of property).
• Work Opportunity Tax
Credit. The new law extends
through 2013 the tax credits
for employers who hire
military veterans or
individuals from
underserved communities
that have faced barriers to
employment.
Farmer & First, P.C., CPA's 1/8/13
Other Small Business Incentives
• the new markets tax
credit for businesses that
invest in certain
community development
entities and other
qualified investments
• a reduction in the
recognition period for Scorporation built-in gains
tax
• reduction in the time
from 39 years to 15 over
which a business can
recover the cost of
certain leasehold
improvements and
restaurant and retail
property
Farmer & First, P.C., CPA's 1/8/13
• Make great wedding gifts, first time homebuyers,
college students
• Have a small home repair to do?
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Book a party and we can fix it up together
Learn how to use tools
Save money by doing it yourself
What can I teach you about home repair and
maintenance?
– Start your own business, complement and existing
business
Farmer & First, P.C., CPA's 1/8/13
Diversification & Planning
Farmer & First, P.C., CPA's 1/8/13