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Are you a renter?

Here are 7 tips to be smarter about it.

December 6, 2017 by Reynolds & Rowella Leave a Comment


Renting an apartment, condo or house; leasing a piece of equipment; renting business property; and leasing a car all involve the common practice of renting something that is owned by someone else. To make sure you always have a good experience, here are some hints to becoming a smarter renter.

Read all agreements.

Read the lease agreement thoroughly prior to signing. Ask for clarification of anything you do not understand. Look for clauses in the agreement that might suggest the property owner has problems with its current tenants. If the agreement seems unfriendly, don’t sign it.

Negotiate up front.

Be ready to negotiate your lease terms up front. If anything is unclear in the lease, have it clarified and put in writing. Be very clear about security deposits, first and last month’s rent, and services included in the lease.

Follow the terms.

Be the tenant that pays a little early, not the one that always pays late. That way if you ever need a little extra time to pay, you have established the necessary trust to do so.

Proactive disclosure.

If you think you will need a temporary exception to part of the lease, try to include it in your upfront negotiations. If this is not possible, consider proactively disclosing the exception to your property owner.

Keep the property clean.

This is especially important if you have a pet in your rental property. When landlords come into your home, you will build confidence if the place looks like you treat it as if you owned it. The same is true with rental equipment. Always return it cleaner than you received it.

Know the owner and neighbors.

Building a relationship with the property owner and your neighbors helps. If your neighbor has a problem with you, wouldn’t you rather have them come to you than to your landlord? Establishing a good working relationship with a landlord will help you when you need help with a problem in your home or with the equipment you rent.

Leave with a smile.

This is especially true for home and vacation rentals. Before you leave, have the property cleaned and hassle-free for the landlord. Request a reference from the landlord for future rentals.

There are many tax considerations with real estate, contact us consulting@reynoldsrowella.com to discuss your situation.

Filed Under: Best Accounting Firms 2016 Tagged With: Accounting Services Fairfield County CT, Be a smarter renter CT, Tips when renting a condo CT, Tips when renting a home CT

Tax bracket, tax rate, what’s the difference?

May 2, 2017 by Reynolds & Rowella Leave a Comment

The difference between your tax bracket and your tax rate is more than a trick question. For example, knowing your tax rate gives you an accurate reflection of your tax liability in relation to your total income. Knowing your tax bracket is useful for planning purposes. For instance, you may want to spread a Roth conversion over several years in order to stay within the income limits of a particular tax bracket.

So, what’s the difference between the two? The main difference is that a tax bracket is a range of income to which a specific tax rate applies, while your effective tax rate is the percentage of your income that you actually pay in tax. Put another way, not every dollar is taxed at the same rate. Your tax bracket shows the rate of tax on the last dollar you made during the tax year. Your effective tax rate reflects the actual amount you paid on all your taxable income.

For example, say you’re single and in the 25% bracket for 2016. That means your taxable income is between $37,650 and $91,150.

Yet the tax you pay is less than 25% of your income.

Why? Because the 25% tax rate only applies to the amount of taxable income within the 25% bracket. The tax on income below $37,650 is calculated using the rate that applies to income in the 10% and 15% brackets.

So, if your 2016 taxable income is $40,000, only $2,350 is taxed at 25%. The remainder is taxed at 10% and 15%, leading to a “blended” overall rate. The result: a tax bracket of 25%, and an effective tax rate of less than that.

Good tax advice can affect both your bracket and your rate. Want to know how?

Contact us at consulting@reynoldsrowella.com.

Filed Under: Best Accounting Firms 2016, Tax Planning, Uncategorized Tagged With: Accounting Services Fairfield County CT, Best Accounting Firms Fairfield County CT, Financial Planning Fairfield County CT, Tax Returns Fairfield County CT

What’s an EIN? Who needs an “Employer Identification Number” anyway?

March 8, 2017 by Reynolds & Rowella Leave a Comment

There are a few qualifications that determine if you need Employer Identification Number (EIN) from the IRS:

• If you operate your business as a corporation or partnership.
• If you file reports for employment taxes, excise tax, or alcohol, tobacco and firearms.
• If you have one or more employees.
• If you have a self-employed retirement plan.
• If you operate as any of several other organizations.

Obtaining an EIN is very quick and simple. Go to www.irs.gov. Once there, use the search box and type in “EIN” online. You will be taken to the page that allows you to answer questions online and you will get your EIN upon validation of your answers. You will be able to download and print your confirmation notice.

If you need assistance, please contact our office at consulting@reynoldsrowella.com. We are here to help you.

Filed Under: Best Accounting Firms 2016, Employer Identification Number Tagged With: Accounting Services Fairfield County CT, Best Accounting Firms Fairfield County CT, Employer Identification Number, Financial Planning Fairfield County CT

Self-employed? A Solo 401(k) may be exactly what you need…

February 17, 2017 by Reynolds & Rowella Leave a Comment

If you are self-employed, currently utilizing a Simplified Employee Pension (SEP) plan, but want a simple way to contribute even more to your retirement… the Solo 401(k) plan may be exactly what you need.

The IRS calls it a one-participant 401(k) plan. You may have heard people speak of a Solo 401(k), Solo-k, Uni-k… all the same thing.

What is it?…

Simply a traditional 401(k) plan covering a business owner that has no employees…. same rules and requirements as any other 401(k) plan.

How do you contribute and how much can you contribute?…

Contributions can be made in 2 forms… Elective deferrals and Non-elective employer contributions (aka the profit sharing piece, which functions just like your SEP plan)

Elective deferrals of 100% of your earned income up to $18,000 in 2015 and 2016, or $24,000 in 2015 and 2016 if age 50 or over

Non-elective employer contributions (the profit sharing piece) of 20% of your net earnings from your modified self-employment (Net SE income less ½ SE tax).

The total of contributions to a participant’s account cannot exceed $53,000 for 2015 and 2016. This amount does not include the available catch-up contributions for those age 50 and over.

When does the plan need to be established to be effective for a given year?…

A Solo 401(k) must be established no later than December 31st of the year you would like it to be in effect. So for 2016, the plan must be established by December 31, 2016.

Is there any reporting required?…

A Solo-k plan is generally not required to file an annual report (Form 5500-SF) if it has less than $250,000 in assets at the end of the year.

Contact us at consulting@reynoldsrowella.com. We’re here to help.

Filed Under: Best Accounting Firms 2016 Tagged With: Accounting Services Fairfield County CT, Best Accounting Firms Fairfield County CT, Financial Planning Fairfield County CT, Tax Returns Fairfield County CT

5 Keys to Knowing when to sell a stock

February 9, 2017 by Reynolds & Rowella Leave a Comment

Deciding when to buy a stock is often easier than determining when to sell. As you’re reviewing your portfolio at year-end, consider these situations that may indicate the right time to sell.

When there are no tax consequences.If you hold stock in a retirement fund, you may want to reap gains with no tax impact.

To take money off the table. If a stock has had a nice run, you could sell a portion to recoup part of your investment. You can continue to invest in the stock but with locked-in gains.

A shift in fundamentals. Consider selling if the economy changes or an entire industry becomes vulnerable due to negative news.
When you’ve given up on a stock. If a stock has been declining or flat-lining for an extended period, selling low now can save you from having to sell even lower later on.

To take a contrarian position. If the market has gotten frothy and all the news is optimistic, choosing to harvest your gains could be a wise move.
When cash becomes attractive. A gloomy economic outlook could be reason to increase your cash reserves.

Having a disciplined selling strategy means giving as much thought to the sale of a stock as to the purchase.

Contact us at consulting@reynoldsrowella.com. We’re here to help.

Filed Under: Best Accounting Firms 2016 Tagged With: Accounting Services Fairfield County CT, Best Accounting Firms Fairfield County CT, Best time to sell stock, Selling Stock

Avoid hiring mistakes in your start-up

January 26, 2017 by Reynolds & Rowella Leave a Comment

Staffing errors can spell disaster for your start-up.Here are three to watch for.

1. Staffing the firm with friends and family. While this strategy may work in some circumstances, hiring pals and relatives often spells trouble. For one thing, friends and family members often expect – even subconsciously – to be treated differently from other employees. A double standard, whether real or perceived, can hurt morale and productivity. As a general rule, focus hiring decisions solely on the needs of your firm and applicant qualifications.

2. Trusting in a handshake. Spell out employee arrangements in writing. This can be as simple as drafting employee offer letters that cover compensation, rights to intellectual property, and bonus arrangements. Employee handbooks are also a good way to spell out the responsibilities of your firm and staff.

3. Bringing in a partner for the wrong reasons. Downside risks of bringing in a partner include surrendering a portion of your company and control over important management decisions to someone else. Before selling part of your company, ask yourself what the partner will contribute besides money. Can you find other ways to fill gaps in your team? Choosing wisely can help you avoid ending up in the business equivalent of divorce court.

For assistance with issues facing your start-up business, contact us at consulting@reynoldsrowella.com to discuss your situation.

Filed Under: Best Accounting Firms 2016, Start Up Companies Tagged With: Accounting Services Fairfield County CT, Best Accounting Firms Fairfield County CT, Financial Planning Fairfield County CT, Start Up Companies

Changes to Deadlines for 2017 Filing Season

December 28, 2016 by Reynolds & Rowella Leave a Comment

With the 2016 tax filing season officially behind us, it is time to start looking ahead. There are some significant changes for 2017 to keep in mind as you plan on filing your tax returns.

For businesses, it is always a good idea to close out your books as close to the end of year as possible. Download statements and reconcile bank and loan accounts, review your financial statements, make any end of year entries, and send the files along to your tax preparer ideally by the end of January.

For partnerships, it will be particularly important to provide timely information to preparers. The 2017 filing season moves up the partnership filing deadline for 2016 tax returns by a month – from April 15th to March 15th. This will be good news for partners whose individual returns have been delayed in the past by partnerships having the same filing deadline as individuals.

For individuals, use your tax organizer as a checklist, review the questionnaire to make sure you are notifying your tax preparer of life and tax-related changes, collect important tax files as they are sent or as you are notified they are available for download, and send documents to your tax preparer ideally by the end of February.

If you or your business files for an extension every year, tax payments are still due by the timely filing deadlines. For passthrough entities, investors must estimate their tax liabilities. Even if business books and records for 2016 will be incomplete or are in draft form in the beginning of 2017, early communications will assist the preparer in managing the work flow at this critical time of year and allow ample time to estimate any amounts due.

If you are an individual with a Foreign Bank Account Report (FBAR) requirement, the deadline moves up by a month and a half to align with the individual tax return deadline. In the past, no extension has been allowed, but in the future, the deadline may be extended in line with the individual filing extension deadline.

Below is a chart summarizing the changes for the 2017 and future filing seasons.

Contact us at consulting@reynoldsrowella.com to discuss your situation

Filed Under: Best Accounting Firms 2016, Uncategorized Tagged With: 2017 Tax Filing Season, Accounting Services Fairfield County CT, Best Accounting Firms Fairfield County CT, Deadlines for Tax Filing, Financial Planning Fairfield County CT

What You Need to Know About Financial Accounting Standards Board (FASB) ASU 2016-14

November 21, 2016 by Reynolds & Rowella Leave a Comment

FASB issued an accounting standard update related to the presentation of financial statements of not-for-profit entities. There are several changes that will impact reporting and what is required to be included in financial statements of not-for-profits (NFP).

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What does this mean for you?

The major changes include:

• New titles for net assets,
• Requirement for all NFP’s to include functional expense schedule,
• Netted investment expenses are not required to be presented,
• Several new required disclosures.

Net assets will no longer be presented in three categories of unrestricted, temporarily restricted, and permanently restricted. The update will require NFP’s to report only two net asset categories: net assets with donor restrictions and net assets without donor restrictions.

All NFP’s will be required to report the natural classification as well as the functional classification for expenses. This can be included in the statement of activities, statement of functional expenses, or in a disclosure in the financial statements. Previously, only voluntary health and welfare entities were required to report functional expenses and it was recommended for other types of NFPs but not required. This may cause your Organization significant reporting difficulties if you do not plan ahead.

Investment returns are to be reported net of external and direct internal expenses. These expenses are not required to be presented on the face of the statement of activities or in financial statement disclosures.

The following is a summary of the new required disclosures:

• Amounts and purposes of governing board designations, appropriations, and similar actions that result in self-imposed limits on use of resources.
• Composition of net assets with donor restrictions at the end of the period and how the restrictions affect the use of resources.
• Qualitative information that communicates how an NFP manages its liquid resources available to meet cash needs for general expenditures within one year of the statement of net assets reporting date.
• Quantitative information, either on the face of the statement of net assets or in the footnotes, and additional qualitative information in the footnotes as necessary, that communicates the availability of an NFP’s financial assets at the statement of net assets reporting date to meet cash needs for general expenditures within one year of the reporting date. Availability of a financial asset may be affected by:
• its nature,
• external limits imposed by donors, grantors, laws, and contracts with others, and
• internal limits imposed by governing board decisions.
• Method of allocating costs among program and support functions.
• Underwater endowment funds, if any.

When will this to into effect?

ASU 2016-14 is effective for annual financial statements issued for fiscal years beginning after December 15, 2017 and interim periods beginning after December 15, 2018.

Early adoption is permitted.

What if you report comparative financial statements, do you now need to provide all information for the year before implementation as well?

If you are reporting comparative financial statements in the first year applied, you can omit:
• Analysis of expenses by natural classification and functional classification.
• Disclosures about liquidity and availability of resources.

Why was this change made?

These changes are going to improve the usefulness of information provided to users of the financial statements and reduce some of the complexities and costs for those preparers of the financial statements. In essence this should help NFP’s report more useful information about their resources and any changes to those resources. The face of the financial statements will be simplified but disclosures will provide more descriptive narratives and data to users than in the previous guidance.

Questions?

These changes mark significant changes to the reporting process for many not-for-profit organizations. If you would like to discuss these changes and how these changes may effect your Organization,

please call Jessica Smith at (203) 972-5191.

Filed Under: Best Accounting Firms 2016 Tagged With: Accounting Services Fairfield County CT, Best Accounting Firms Fairfield County CT, Financial Accounting Standards Board (FASB) ASU 2016-14

Reynolds & Rowella Accounting and Consulting Firm:

Named to Top 300 Firms of 2016

October 19, 2016 by Reynolds & Rowella Leave a Comment

top 100 2011

Reynolds & Rowella, an accounting and consulting firm with offices in Ridgefield and New Canaan, has been named to the Inside Public Accounting (IPA) list of top 300 firms in 2016. The nationwide survey was conducted by The Pratt Institute of Carmel, Ind. Reynolds & Rowella is ranked 285, up from number 291 in 2015.

“We are proud to be counted among the top-ranked accounting firms nationwide on a list that includes Deloitte, PwC, Ernst & Young and KPMG,” says Frank Rowella, Reynolds & Rowella’s managing partner.

“The IPA list is known as one of the most thorough and accurate sets of rankings in the accounting profession. Our inclusion reflects our determination to provide the very best quality compliance and financial services solutions to our valued clients. Our partners and staff really do put into practice the firm’s Expect More From Us mission statement.”

Each year, more than 500 accounting firms across North America complete an in-depth financial and operational survey. The IPA Benchmarking Report has been published each fall for more than 20 years.

Filed Under: Best Accounting Firms 2016 Tagged With: Best Accounting Firms 2016, Best Accounting Firms Fairfield County CT, Top 300 Firms of 2016 for Accountants

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