Sandy Botkin

The instructor is Sandy Botkin CPA and Attorney. Sandy is the president of the Tax Reduction Institute of Washington DC and lectures all over North America. Sandy was formerly a senior tax specialist with the national accounting firm of Touche Ross (which is the predecessor of Deloite Touche). He is a former IRS attorney and has trained many IRS attorneys for the IRS's Corporate Tax Division. Sandy is a best selling author and has the highest rated tax planning book in the US entitled, "Lower Your Taxes:BIG TIME." Sandy has three kids and claims that his gray hair is a result of his having kids.

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e-Courses taught by Sandy Botkin:

How to get the Equivalent of a $6,000 yearly Subsidy from the IRS?
Why Having your Home Based Business Makes so Much Dollars and Sense

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Articles by Sandy Botkin:

Networking Trainers Article
Tax Scams
by Sandy Botkin

There are an ever increasing number of scams being investigated by the IRS. Some of these scams are so devious and clever that even the smartest of folks can be fooled. Every year IRS publishes a list of the dirty dozen tax scams. Following are some of the latest:

1. Phishing scams: Folks are receiving letters or emails with the IRS / Treasury department logo informing them that they may be owed a refund. In order to obtain this refund, they have to prove that they are the right person by confirming certain personal information such as social security number, mothers maiden name, address etc. To date, IRS has identified as many as 1500 different phishing scams.

Sandys Elaboration: IRS will NEVER call you or write you asking for this type of personal information. You should never provide it to anyone by phone, letter or email. If you get an email requesting this type of information allegedly from the IRS, forward the email to phishing@irs.gov.

2. Economic Stimulus Scams: Some scam artists are trying to trick individuals into revealing personal financial information that can be used to access their financial accounts by making promises relating to the economic stimulus payment, often called a rebate. To obtain the payment, eligible individuals in most cases will
   

   Networking Trainers Article
   What the Economic Stimulus Law Means to You!
   by Sandy Botkin
   

   Where there is an income tax, the just man will pay more and the unjust less on the same amount of income. -- Plato

   As in Platos day, most people know that the government stimulus law (which is known as the American Recovery and Reinvestment Act of 2009) is a giant bailout for some folks: namely large businesses. When I say giant, I was not kidding. The Act consists of thousands of pages. In fact, the entire text of the bill, and that of the previous economic stimulus act, is so huge that they might barely fit in a Winnebago! Congress must have purchased them, plus the vehicle to deliver such huge legislations, at either Wal-Mart of Costco.

   Unknown too many people, however, is that there are a number of provisions that apply to both individuals and small businesses. I will try to summarize some of these provisions so you can see how this new law can apply to you.

   Small Business Provisions:
   1. Automobile depreciation increased: In 2009, the maximum depreciation that you can take this year for a passenger automobile was going to be $3,160. This number was increased by $8,000 to $11,360 for the first year alone.
   2. 50% Bonus Depreciation: In addition to any depreciation taken on equipment, you can get an additional 50% bonus depreciation. This applies to any tangible equipment used in business and not to buildings. This is especially good for SUVs where business taxpayers can elect to write off only $25,000 of the business use of the SUV in the first year alone. Example: Sam buys a Cadillac Escalade for $54,000 and uses it about 92% for business. Thus, the business use is $50,000. Sam may elect to deduct the first $25,000 of the business use PLUS he would get 50% bonus depreciation of the remaining $25,000, which would be an additional $12,500 of depreciation. Moreover, he would get regular depreciation of the remaining $12,500 which would be taken over the forthcoming six years. The result is that you would be effectively deducting about 80% of the business use of a qualified SUV!
   3. $250,000 special expense rule: You know the old golden rule, he who has the gold, makes the rules. Since the government has the gold...or at least prints enough money to buy all of Fort Knox multiple times, they have limited depreciation of equipment. Usually equipment gets depreciated over 5-7 years depending on the equipment. However, now a small business can elect to deduct up to $250,000 worth of equipment in the year of purchase. However, Congress is an Indian giver. In order to take this deduction, the equipment must be new to you and purchased this year. Secondly, the equipment must be used over 50% for business. Finally, the total purchase of all equipment must be less than $800,000 or some of this $250,000 will be phased out.
   4. Transit pass exclusion increased to $230: In 2009, you can provide transit passes to your employees of up to...
      

      More Articles by Sandy Botkin

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      Products by Sandy Botkin:
      

      How to get the Equivalent of a $6,000 yearly subsidy from the IRS? (E-Learning)	How to get the Equivalent of a $6,000 yearly subsidy from the IRS? (E-Listening)	Sandy Botkin Tax Combo
      Overworked and Underpaid

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