WHITTIER, CA--(Marketwire - May 16, 2008) - Pop N Go, Inc. (OTCBB: POPN), a leading manufacturer of healthy snack vending machines, is pleased to announce the renewal of its underlying utility patent on its award winning popcorn vending machine. Pop N Go's patent, with the continued payment of maintenance fees to the United States Patent Office, will remain in force until the year 2018 and will provide the Company the right to exclude others from making, using, offering for sale, or selling or importing popcorn vending machines using Pop N Go's patented technology until 2018.
"The recent surge in demand for our machines which produce a single cup of freshly popped popcorn on demand makes the protection of the Company's intellectual property rights all the more important, especially as we intend to develop other machines using our core technology. We believe the demand for healthy snack products, freshly made and not prepackaged, will continue to grow as consumers continue to become aware of the importance of healthy eating," said Mel Wyman, Pop N Go CEO.
Monday, May 19, 2008
Pop N Go Renews Popcorn Machine Patent
Tuesday, May 6, 2008
Investment Advice From Congress
In fact, according to the nonpartisan Center for Responsive Politics, members of Congress have more money invested in each of the top five oil and gas companies, individually, than in 305 green stock companies combined.
Their most recent personal financial disclosures show that members of Congress had at least 45 times more money invested in the oil and gas industry (at least $20.6 million) than in public companies that provide “green” products and services (at least $452,100). This includes companies that develop renewable energy projects, manufacture energy efficiency products, recycle material or create wind or solar energy products. The amount of money members of Congress have invested in these green stocks, as listed in the newsletter Progressive Investor*, has actually decreased 23 percent since 2004, while their investments in oil and gas have increased by 30 percent.
If you prefer a more direct approach, you can also call our toll free hotline to reach a representative at 866-373-3468. We respect your privacy and will never sell or share your confidential information with any other parties.
Tax Advice | Finance | Code 179 | Investing | Equity
Tuesday, April 8, 2008
Taking Care Of Tax Business
Small business owners represent the fastest-growing segment of professionals in this country. Regardless of the industry, these entrepreneurs have their hands full everyday adhering to a business plan, managing daily cash flow, negotiating credit lines, overseeing operations and ensuring their overall business turns a profit.
Click here to download "How to Build a Global Sector ETF Portfolio," a free report from Forbes.
The deadline to file one's taxes is fast approaching and keeping up with changes in the tax code can be both time-consuming and confusing. Following is a sampling of tips taken from the The Ernst & Young Tax Guide 2008 that apply to the busy small business owner.
When President Bush signed new legislation to raise the federal minimum wage, many small business owners worried higher labor costs would cut into their bottom lines. According to the new law, the pay scale for lower-paid workers would climb proportionately over time. In July 2007, the minimum wage was increased to $5.85 an hour. This wage is expected to increase to $6.55 an hour in July 2008 and $7.25 an hour in 2009.
However, the Small Business and Work Opportunity Act of 2007 (signed in May 2007) still provides some tax relief to those small businesses facing the burden of higher minimum wage. The Act helps offset recent wage increases by granting business deductions, tax credits and filing simplification. It also incorporates tax incentives from the Work Opportunity Tax Credit and Section 179 properties.
Tax Strategies
Taking Care Of Tax Business
Small business owners represent the fastest-growing segment of professionals in this country. Regardless of the industry, these entrepreneurs have their hands full everyday adhering to a business plan, managing daily cash flow, negotiating credit lines, overseeing operations and ensuring their overall business turns a profit.
Click here to download "How to Build a Global Sector ETF Portfolio," a free report from Forbes.
The deadline to file one's taxes is fast approaching and keeping up with changes in the tax code can be both time-consuming and confusing. Following is a sampling of tips taken from the The Ernst & Young Tax Guide 2008 that apply to the busy small business owner.
When President Bush signed new legislation to raise the federal minimum wage, many small business owners worried higher labor costs would cut into their bottom lines. According to the new law, the pay scale for lower-paid workers would climb proportionately over time. In July 2007, the minimum wage was increased to $5.85 an hour. This wage is expected to increase to $6.55 an hour in July 2008 and $7.25 an hour in 2009.
However, the Small Business and Work Opportunity Act of 2007 (signed in May 2007) still provides some tax relief to those small businesses facing the burden of higher minimum wage. The Act helps offset recent wage increases by granting business deductions, tax credits and filing simplification. It also incorporates tax incentives from the Work Opportunity Tax Credit and Section 179 properties.
Take advantage of pullbacks in the price of crude. Click here to download " Energy Bull Market: Six Must-Own Stocks.
The Work Opportunity Tax Credit will now be extended for three and a half years through Sept. 30, 2011. This expansion also includes a credit for employers who hire disabled veterans or individuals from countries that have suffered significant population losses and allows small business owners to take advantage of this credit even if they are subject to the Alternative Minimum Tax (AMT).
Thinking of buying some new equipment or software to help your small business run on all cylinders? Now would be a good time to do so. Under Section 179 of the tax code, the deductible amount for small business purchases of tangible, depreciable property (not including buildings) has increased to $125,000 in 2007. Also included under Section 179 is an inflation-indexing component for 2008 through 2010 (of note, businesses will be required to capitalize and depreciate any amounts in excess of these limits).
Another important item for small business owners to keep in mind is that as they complete their 2007 tax returns, now is also a good time to start planning for the 2008-filing year. The Economic Stimulus Act of 2008 contains items that will help bring about positive changes in the tax law for small business owners. For example, under this new provision, the Section 179 expensing limit will double to $250,000 for eligible assets purchased during the 2008 calendar year.
Don't Stop Thinking About Tomorrow
Small business owners must constantly generate ideas to keep their business profitable and their staff secure. But at the same time, they must also plan for the future.
Various retirement plans encourage employers and their employees to save today in order to provide for a more comfortable tomorrow. Many employees make annual contributions to traditional (or Roth) IRAs and participate in company-sponsored 401(k)s that may include a matching provision by their employers.
But what if you are the employer? What is the best retirement plan alternative for you and your employees?
SIMPLE (Savings Incentive Match Plan for Employees) IRAs are designed for small businesses with fewer than 100 employees. For example, in 2007, employees (including the owners) were able to make contributions of up to $10,500 and companies had to match a certain percentage for all those participating.
SEP (Simplified Employee Pension) plans are designed for self-employed individuals who desire to contribute even more to a retirement plan on an annual basis, but do not want to incur the added complexities of starting a full-scale 401(k). In 2007, participants in this program were able to contribute up to 25% (or as much as $45,000) of their self-employment income, based on whichever of the two was the lower amount.
Defined contribution Keogh plans allow the small business owner to contribute up to 20% (or as much as $45,000) of their self-employment income (also based on whichever of the two is the lesser amount), but also require the administrator or employer to file a tax return on an annual basis. Defined benefit Keoghs also provide small business owners with the opportunity to contribute even more to the plan based on age and income level.
When reviewing these options, it's important to keep in mind that these retirement plans must cover both the employer and their employees. They are not available for use solely by the employer themselves.
Keep in mind that the information above is general in nature, and may not apply to your specific situation. Tax laws can be complicated, so you should consult your tax adviser for more information. If you run a small business (or are contemplating such a move) there are a number of resources available for you. Sources such the IRS' Web site or The Ernst & Young Tax Guide 2008 can provide you with further details on items related to owning a business.
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Sunday, April 6, 2008
Tax-Free Investing
Taxes can reduce your investment returns by up to 35%. But it’s worse than that. The impact of taxes actually increases over time because it’s not simply the tax you pay on each dollar you earn. It’s the dollars lost to future compounding that can have a crippling effect on your long-term returns.
Tax-free funds
What can you do to take the bite out of taxes? For starters, take advantage of every opportunity to invest in a retirement plan or account that allows you to defer taxes until you withdraw money. One investment lets you go a step further and pocket your earnings free of taxes: a mutual fund that invests in the bonds of state and local governments and agencies to fund projects such as schools, public hospitals and water districts. Municipal bond funds typically yield less than taxable bonds. But because the income they earn is exempt from federal income tax, they can generate a higher taxable-equivalent yield for investors in higher income-tax brackets.
Easy to figure
Here’s how you figure a fund’s taxable equivalent yield.
1. Subtract your marginal income tax rate from 1.0
For example, (1.0 - .35) = .65
2. Divide the tax-free yield by the product of #1.
For example 3.0 ÷ 0.65
3. The result is the taxable equivalent yield
For example, 4.6%
That’s the yield that a taxable fund would have to earn to equal the yield on the tax-free fund.
Some municipal securities are subject to the Alternative Minimum Tax (AMT), a tax system created to ensure that wealthy individuals pay a minimal level income tax. It’s a good idea to check a fund’s investment policy to make sure you’re getting the tax protection you need. If the securities in a tax exempt fund appreciate in value, the capital appreciation is subject to taxes.
Keep in mind that taxes change, and there’s no guarantee that today’s tax rates will prevail over the long term. But if you want to investigate whether there are tax savings that belong in your pocket, take time to discuss tax-exempt investing with your financial professional.
Friday, April 4, 2008
Do homework before investing overseas
Once high-flying markets like China and India are now feeling some of the same strains that are dogging Wall Street. Concerns about an economic slowdown have popped up worldwide and that means U.S. investors looking to put down money overseas probably need to be more selective.
Overseas holdings have had an allure for investors like Alexis Doyle, who likes them simply because there can be stronger returns outside the United States. Doyle, an educator who lives in New York, looks for "good value regardless of geography."
And she's not daunted by the recent upheaval around the globe - she thinks other countries can at times make her more money than the U.S. will.
"Basically, what the feds are doing is cutting interest rates aggressively so you have to find higher interest rates elsewhere," she said, referring to recent decisions by Federal Reserve policymakers to lower interest rates to stimulate the U.S. economy. While lower rates can be good news for some people with credit card debt or for those seeking loans, it means the interest earned on investments including savings accounts and bonds will likely decrease.
But investors searching abroad for deals will find many regions have fared worse than the U.S. in recent months.
Global markets have pulled back in March after gaining some ground in February and showing sizable losses in January, according to Standard & Poor's. In China, stocks are off by about one-third this year. Other developing countries that have been a favorite of U.S. investors, like India, Russia and Brazil, have also shown big declines in 2007, while in the U.S., the S&P 500 is down about 8 percent.
Geoffrey Pazzanese, co-manager of the Federated InterContinental fund, which has more than $900 million in assets, said that while volatility in one market can cause ripples in another, the correlations tend to disappear over longer periods. He still recommends that most U.S. investors have about 20 percent to 25 percent of their holdings in international investments.
These days, however, it's important to do some digging before investing.
"You need to pick your markets," Pazzanese said. Investors considering investing in a country should examine long-term themes like demographic shifts, the availability of natural resources and other large forces that shape economies.
"Look first for emerging markets that are growing attractively and that are having a sustainable growth pattern and attractive valuations. You have to just do your homework."
Subodh Kumar, global investment strategist at Subodh Kumar & Assoc. in Toronto, said investors looking to funnel money abroad should examine some of the same defensive areas like consumer staples and health care that they might turn to if they were girding for a U.S. pullback.
"As long as there is uncertainty about a recession in the U.S. and a slowdown globally, I think equity markets worldwide will remain highly correlated," he said.
Kumar said, however, investors shouldn't mistake what could be a short-term slowdown in worldwide economic activity as marking the demise of big growth potential for economies in places like China and India.
There are potential hurdles, he noted. The weak dollar, which is often highlighted as a reason why U.S. investors should have holdings denominated in other currencies, could help or hurt investors.
The dollar's slide in recent months to fresh lows against other major currencies could mean strong returns when investors convert investments back into dollars. But a partial recovery in the dollar, which some observers say is due, could eat into this bounce.
At the same time, a further decline in the dollar could stir unease in international markets and cause them to fall, Kumar said.
He said investors stepping into international investments should likely do so gradually to guard against the effects of short-term fluctuations in currencies and in the world's markets.
"It goes back to looking long term. It's a good idea to be diversified internationally but I still think you can allocate your investments more gradually. You don't necessarily have to do it all at one time."
Wednesday, April 2, 2008
Hot Sources of Tax-Free Income
* Home rentals of up to 14 days are tax free. If you rent out your home or second home for no more than 14 days, you don't have to report to the IRS the rent you receive.
Tactic: If a popular tournament, race, or other attraction is scheduled near you, consider renting your home to an attendee and using the money you receive tax free to pay for your own vacation.
* Roth IRAs allow withdrawals after
age 59 1/2 that are totally tax-and-penalty free. A Roth IRA that's set up early in life will earn compound investment returns for decades and will ultimately provide a tremendous tax-free payoff.
* Gifts of all kinds are income tax free to the recipient. They can reduce or eliminate income taxes that a family is currently paying, too, when income-producing property is given by a high-tax-bracket taxpayer to family members in low tax brackets, such as children over age 13.
Caution: Investment income above $1,700 of children under age 14 is taxed at their parents' top rate.
Gifts of up to $12,000 each can be made to as many recipients as you wish, in 2006 using the annual gift tax exclusion. The limit is $24,000 for gifts made jointly with a spouse.
* Expense reimbursements from an employer are tax free. Negotiate for reimbursement from your employer if you currently incur out-of-pocket business costs for items such as publications, professional dues, meals, driving, purchases of supplies or equipment, etc.
You and your employer can both benefit by converting salary to reimbursements. You'll then pay your expenses with pretax rather than after-tax dollars -- and your employer won't owe employment taxes on the reimbursement amounts as it does on salary.
* Flexible spending accounts (FSAs) for medical and dependent-care expenses let you avoid owing tax on a portion of your pay that you set aside to cover these expenses. If your employer offers FSAs through a "cafeteria" benefit plan, make full use of them.
* Children's salaries paid by a family business effectively let the business take a portion of its income tax free. The business gets to deduct the salary payments at its high tax rate, while a child can earn up to $5,150 tax free in 2006 -- plus another $7,550 taxable at only 10%, and additional income over $7,550 to $30,650 taxable at only 15%.
When a child under age 18 is paid by a parent's unincorporated business, the payments are also free of Social Security and Medicare taxes. And the Tax Court has allowed deductions for reasonable wages paid to children as young as seven.
* More Social Security benefits may be taken tax free if you invest in appreciating assets, Series EE and I savings bonds, and cash-value life insurance. The increase in the value of such investments adds to your wealth but is excluded from your current income until cashed in -- so it won't push your income over the threshold that makes your Social Security taxable.
* Gain on the sale of a home is tax free up to $250,000 ($500,000 on a joint return) when you have used the home as your main residence for at least two of the prior five years. You can make such a tax-free sale once every two years.
If you own other residences (such as vacation or investment properties) in addition to your principal residence, you can move into them for two years at a time to take tax-free gain on them, too, when selling them.
* Life insurance proceeds are tax free to the beneficiary. They also escape estate tax when the insured individual does not retain "incidents of ownership" in the policy. Achieve this by having the policy owned by another party or a life insurance trust.
Tactic: Instead of leaving taxable bequests of other assets, consider using tax-free life insurance to fund bequests.
* Borrowed funds are tax free -- even if you don't have to repay them during your lifetime. Examples...
o Borrowing against the appreciating cash value of a life insurance policy, with the loan to be repaid ultimately from the policy proceeds.
o A reverse mortgage on a house that provides the home owner with a stream of income, which ultimately will be repaid from his/her estate.
* Frequent-flier miles continue to go untaxed by the IRS -- and the IRS recently stated it will not try to tax them in the future without giving advance warning to the public.
* Capital gain property held until death becomes income tax free to heirs. Currently, at death, the tax basis in the property is stepped up to market value -- making all appreciation in the property's value up to that date tax free to those who inherit it.
* Like-kind exchanges allow you to trade an appreciated property for a similar property -- such as one real estate property for another -- while deferring the realization of taxable gain until the second property is sold.
But that property, too, can be disposed of through another like-kind exchange, and so on, deferring taxation on gain indefinitely.
* Parking paid for by an employer is tax free up to $205 per month. So is up to $105 per month for transit passes or car-pooling expenses.
* Tuition reimbursement of up to $5,250 per year can be provided tax free by an employer to an employee under an educational assistance program.
* Interest-free loans can be a source of cash at no tax cost to either lender or borrower, up to certain limits. Loans of up to $10,000 have no adverse tax consequences.
Loans of more than $10,000 and up to $100,000 are treated as if interest is paid on them (interest is "imputed," so taxable interest income results to the lender) but only to the extent that the borrower has investment income.
Thus, interest-free loans are tax free if the borrower has no investment income.
* Long-term health-care insurance provides proceeds that are tax free. In addition, premiums on these policies are deductible in an amount that varies by age (from $280 at age 40 or younger to $3,530 at age 71 or older). Premiums paid for by an employer may be a tax-free benefit.
* Government bonds are tax favored. State and municipal bonds are generally free of federal income tax, and may be free of state tax as well, providing totally tax-free income. Federal bonds are exempt from state taxes.
* Coverdell education savings accounts let investment returns earned in them be used tax free to pay not only college costs but also elementary and high school costs, as well as for books, supplies, after-school programs, tuition, tutoring, and even home computers.
* Section 529 college savings plans let investment earnings be used tax free for education costs. In contrast to Coverdell accounts, much more can be contributed to a 529 plan, but 529 funds can be used only for college costs.
* Scholarship and fellowship grants are tax free when used to pay for tuition and course-related fees, books, equipment, and supplies.
* Accelerated death benefits (viatical settlements) paid on a life insurance policy to a terminally ill insured individual before he/she dies are tax free.
* Adoption expenses. Employers can provide up to $10,960 in tax-free assistance to employees who are adopting children to help cover adoption expenses.
* Employer-provided insurance, such as health and accident insurance, and up to $50,000 in group term life insurance, can be provided tax free to employees while being deducted by the employer who provides it.
Monday, March 24, 2008
CPAs share clients' most creative tax write-off attempts
Did you hear the one about the pot dealer's tax return? The New Yorker who claimed the whole city as a dependent? The exotic dancer who deducted ... well ... you know?
It's time once again for Bankrate's 10 craziest tax write-offs, presented as a shot of levity to help make filing your annual federal income tax return a little less taxing.
Of course, it is no laughing matter to try to knowingly defraud Uncle Sam. Serious consequences await those who fail to file, falsely file, knowingly underreport or otherwise play fast and loose with their returns
"In my business, as the saying goes, 'Pigs get fed, hogs get slaughtered.' If you want to deduct something, just don't be overly aggressive with it. It's everything in moderation," advises Walt Hatter, a CPA at Hatter & Associates in Fort Worth.
Steer clear of these crazy tax tactics:
1. It went up in smoke. Mr. Hatter must have thought he was hallucinating when one of his clients, a criminal defense attorney, referred a marijuana dealer he was defending to him. The dealer was facing prison time for drug dealing and didn't want to be nailed for tax fraud as well.
"Because he was involved in an illegal business, he could not take any deductions, period," Mr. Hatter says. "The tax code is written where if you are engaged in something illegal, you have to recognize all of the income, and none of the deductions are recognized, even the cost of the product."
Mr. Hatter chuckles at his client's income statement, or lack thereof: "Let's just say he wasn't getting 1099s from his customers. He gave me a number, and we paid taxes on it."
2. No receipts from above. Putting a few bills into the church offering plate got one client of Virginia CPA James T. Campbell in a bind when the IRS asked for canceled checks or receipts to support his charitable deductions. Explaining why he had no such receipts, the taxpayer said he throws in cash "as the spirit moves me."
Mr. Campbell says the IRS agent paused to consider the taxpayer's response, and then offered this advice: "Always take your checkbook to church with you. When you feel the spirit coming on, just take out your checkbook and fill in any amount you think is right. ... This way both the spirit and the IRS will be pleased."
3. Silence is golden ... and deductible. Allyson Baumeister, CPA, of Sanford, Baumeister & Frazier in Fort Worth, recalls one prominent client who found a creative solution to a chronically noisy next door neighbor: He bought the house, ripped it out of the ground and donated it to a local women's shelter. He then claimed the value of the house as a charitable deduction.
4. He took Manhattan, the Bronx and Staten Island, too. When accounting software was in its infancy, a rookie CPA at Hunter Group of Fair Lawn, N.J., prepared a return for an individual with one small glitch: The software mistook the filer's address "New York, N.Y." for the name of a dependent. The mistake went unnoticed until one day the IRS called. The agent apologized that the deduction was being disqualified, even though, as the agent politely agreed, it might indeed be justified.
5. You can write off the pimp hat. When does an entertainment expense exceed IRS criteria? A client of Ed Mendlowitz, CPA with WithumSmith+Brown in Morristown, N.J., wanted to deduct the cost of a call girl he hired to entertain some clients. When Mr. Mendlowitz told the businessman he'd have to present said contractor with a Form 1099 to support this business expense, the client dropped the whole idea.
6. The "Zoolander" deduction. Those who work in front of the camera for a living – like Derek Zoolander in the 2001 film comedy – often ask their accountants to deduct all manner of personal property and perks as business expenses, from full wardrobes to back waxing.
"We have public speakers, and we help them understand that they cannot deduct all of their clothing, even though they wear it onstage," says Dallas CPA Ken Sibley. "Models can deduct a lot of makeup and certain pieces of apparel, but it has to fit the rules. We don't let them deduct the pedicures, manicures and back waxing."
7. What are you, an Indy driver? New Jersey CPA Elihu Katzman couldn't believe this one: "We had a client-salesman that was asked the number of miles he used his car for business that year. He insisted that he drove 60,000 miles, all for business. We asked him if he had any time to sleep, in that he must have spent most of the day and night driving."
8. The $50,000 business meeting. Imagine Mr. Hatter's surprise when a client-attorney listed $50,000 in entertainment expenses on his return – quite a chunk considering the guy's gross income was about $300,000.
"I said, man, what is that? He said, 'Well, I threw a party for my clients.' And I said, 'You didn't invite me?' Anyway, we started going through it and he said, 'Walt, I've got to tell you, that was for my daughter's wedding. But I did invite all my clients.' "
The lawyer's occupation? Criminal defense attorney.
9. Finally, the Social Security crisis solved. If parents ever start documenting this deduction, we'll no longer need to worry about Social Security. Marcia Geltman, CPA with Nisivoccia & Co. in Randolph, N.J., says parents have asked her more than once if they can claim a bad-debt loss from unpaid loans to their children.
"The correct answer is, unless you have documentation verifying the existence of the loan and have taken legal action that resulted in a determination that the loan is not collectible, no deduction is allowed," she says.
10. Inflating your assets. "The one they always talk about at CPA classes is where the topless dancer got breast implants and wrote them off as a business deduction under Section 179 and treated them as a capital asset, as an ordinary necessary business expense, and was able to deduct them," Mr. Hatter says. "The IRS challenged her, it went to the tax court and she won."
