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Category: Corporate Finance
Chicago Southland Chamber of Commerce

The Chicago Southland Chamber of Commerce Annual Meeting was a great night as Jeff Arseneau passed the gavel to me for 2012.  2011 was a great year for the Chamber under the leadership under Jeff Arseneau.  Jeff is a strong leader, good friend and mentor.  He hands the gavel over to me I want to work harder to improve the Chamber for 2012.  See the link for more information

trib article

 

House is Expected to Pass 1099 Repeal

The attached article notes that the House is expected to pass the repeal of the 1099 reporting rules that were part of the Health Care Reform Act.  Once passed the House and Senate most reach an agreement via Joint Conference.

http://www.congress.org/news/2011/03/01/house_senate_disagree_on_1099s#src=db

How to Earn $2,500 by hiring an Employee

Illinois Small Business Job Creation Credit

 On January 17, 2011 Governor Quinn signed in to law an expansion of the tax credit “Put Illinois to Work” program.
The Illinois Small business Job creation tax Credit is a one year credit for hiring new employees from July 1, 2010 to June 30, 2011.  Employers can earned up to a $2,500 tax credit for each employee hired during the 12 month period.

There are two categories of businesses eligible to receive the credit:  small businesses with 50 or fewer employees as of June 30, 2010.  It is also available to any-sized business that hires new Illinois employees under the “Put Illinois to work Program”.  The credit is available to employers that hire new Illinois employees earning at least $10 per hour or $18,200 annualized salary.

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IRS issues new Mileage Rates for 2011
December 10, 2010   |   , , ,

IRS has announced that the optional mileage allowance for owned or leased autos (including vans, pickups or panel trucks) is 51¢ per mile for business travel for 2011. That’s 1¢ more than the 50¢ allowance for business mileage during 2010. Further, the 2011 rate for using a car to get medical care or in connection with a move that qualifies for the moving expense deduction is 19¢ per mile, 2.5¢ more per mile than the 16.5¢ for 2010. 

Simplified mileage deduction method is used instead of deductions for lease payments or depreciation if the car is purchased, maintenance, repairs, tires, gas, oil, insurance and license and registration fees. The taxpayer may, however, still claim separate deductions for parking fees and tolls connected to business driving.

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Cash Flow is the No. 1 worry for Companies
November 1, 2010   |   ,

See the link for an article discussing survey results stating that CFOs number one worry is cash flow.  A Company is always concerned about cash flow but with the current economy there is more concerns especially with uncertain future, receivable aging and the tighter credit market.

http://www.cfozone.com/index.php/Newsflash/CFOs-Cash-flow-is-top-concern.html

IRS Rules may hinder Business Growth

The attached link is for an article that details the continued struggles of small businesses to comply with the numerous IRS rules.  It is very interesting because it can lead to slower and smaller job growth.  Many small business owners feel that the IRS is targeting them with increased rules and discouraging business growth.

http://www.csmonitor.com/Business/The-Entrepreneurial-Mind/2010/1028/IRS-targets-small-businesses

The End of Community Banking

Banking reform will end the small bank, the very banks that help small businesses

See article from the Wall Street Journal

http://online.wsj.com/article/SB10001424052748703964104575334611037072320.html?mod=dist_smartbrief

How to Handle Late-Paying Customers

A problem with every business, is collecting from your customers.  The ecomony has caused many long-term customers to become slow pay or non-pay customers.  See the link for helpful hints.

http://www.openforum.com/idea-hub/topics/money/article/how-to-handle-late-paying-customers-anne-field

The End of Free Checking
Tax Rules for Deducting Cost of Travel

  You are travelling and you want to deduct the travel cost of your spouse.  There are certain rules and the first and most important, your spouse must be an employee of the company.  the spouse’s employee role must be necessary and not incidental.

If your spouse is your employee, then you can deduct his or her travel costs if their presence on the trip serves a bona fide business purpose. In general, it isn’t sufficient for the spouse’s presence to be “helpful” to your business pursuits—it must be “necessary.” In most cases, a spouse’s participation in social functions, even as hostess, isn’t enough to establish a business purpose. If the spouse’s purpose is to establish general goodwill for customers or associates, this is usually insufficient. Further, if there is a vacation element to the trip, i.e., if your spouse will be spending time sightseeing, etc., it will be more difficult to establish a business purpose the spouse’s presence on the trip. On the other hand, a bona fide business purpose exists where your spouse’s presence is necessary to care for a serious medical condition that you have.

 If your spouse’s travel satisfies these tests, the normal deductions for business travel away from home can be claimed. These include the costs of transportation, meals, lodging, and incidental costs such as dry cleaning, phone calls, etc.

Even if your spouse’s travel doesn’t satisfy the requirements, however, you may still be able to deduct a substantial portion of the trip’s costs. This is because the rules don’t require you to allocate 50% of your travel costs to your spouse. You need only allocate to your spouse the addition costs you incur for the spouse. For example, in many hotels the cost of a single room isn’t that much lower than the cost of a double. If a single would cost you $150 a night and a double would cost you and your spouse $200, the disallowed portion of the cost allocable to your spouse would only be $50. And if you drive your own car or rent a car, the cost will be fully deductible even if your spouse is along. Of course, if public transportation is used, and for meals, any separate costs incurred by your spouse wouldn’t be deductible.

There are many options for your spouse’s travel, so explore and plan your travel plans.

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