Tax information from RE/MAX Classic Group in Branchburg New Jersey
RE/MAX Classic group and John Bendall present tax information from CPA Louri Rivero of Westfield New Jersey
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1. LOURI’S UPDATE- NJ SALES TAX
On July 8, 2006, NJ Governor signed New Jersey’s fiscal 2007 budget as well
as new legislation. The new legislation contains sales tax increases, a
corporate tax surcharge, a 1% tax on commercial property transfers, and
various misc. tax increases. The following provides with a summary of the
changes.
NJ sales tax increased to 7% as of July 15, 2006. There are specific
provisions provided for service and maintenance agreements. (If this
applies to you, please contact me for more detail.)
On October 1, 2006 the NJ sales and use tax base will expand to include
receipts from electronically delivered software, digital property and
certain specified services that previously were not taxed. These services
include:
- Self storage services
- Tanning services
- Massage (unless prescribed by a doctor)
- Tattooing
-Investigation and security (detective, security guard, security systems,
and others)
- Information services, data processing
- Transportation services (limos, etc.)
-Delivery services
-Installation of floors and carpets, and landscaping
-Membership fees/dues for health, fitness, athletic, sporting or shopping
club
-Parking services (including garages)
- The existing exemption for magazines and periodicals will be limited to
periodicals sold by subscription and to membership periodicals distributed
by a nonprofit organization to its members.
- The exemption for laundering, dry cleaning, tailoring, weaving, and
pressing will be limited to apply to clothing only.
NJ enacted a 4% corporation business tax surcharge, computed using the
corporation’s tax liability. Additionally, the $500 minimum corporation
business tax was increased for taxpayers with gross receipts over $100,000
based upon a sliding scale and goes up to $2,000.
For transfers of commercial real property of $1 million or more, on or after
August 1, 2006, a 1% realty transfer fee will be imposed to the purchaser.
(There are exceptions and additional provisions related to this, please
contact me if his applies to you.)
For businesses located in urban enterprise zones, certain procedures have
changed with respect to tax exempt purchases on the part of the vendor.
Other changes include:
-The motor vehicle rental surcharge increased to $5 per day.
- After July 15, a 1% fee on new vehicles priced over $45,000 and on
vehicles with an average fuel efficiency below 19 miles per gallon.
- Various other (tax on fur sales, and increased cigarette taxes)
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2. IMPORTANT DATES - MARK YOUR CALENDAR
July 15 – Payroll Tax- Federal tax deposit for monthly depositors
July 20 - NJ Sales & Use Tax - 6/30 quarterly sales tax return and payment
June 30 - Payroll Tax - state quarterly payroll tax returns
August 15 – Payroll Tax- Federal tax deposit for monthly depositors
August 20 - NJ Sales & Use Tax - monthly sales tax submission for May
August 30 - Payroll Tax - state monthly payroll tax estimates
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3. NEW JERSEY CPAs OFFER FREE DISASTER RECOVERY GUIDE
New Jersey residents and business owners affected by the
recent storms and flooding face major challenges in
recovering from their losses. The New Jersey Society of CPAs
has updated its Disaster Recovery Guide and, through its New
Jersey CPA Help Center, is providing free financial and tax
advice to crisis victims.
http://www.moneymattersnj.com
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4. IMPROVE YOUR CREDIT SCORE FOR LOWER INTEREST RATES
When you apply for credit, insurance, employment or a lease,
your credit score could be the primary factor in determining
whether you qualify. It may also be used to determine what
interest rate and repayment terms you will receive when you
borrow money. Even a small improvement in your credit score
can get you a better deal.
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5. THREE KEY RULES FOR VACATION HOME DEDUCTIONS
A vacation home can be more than just a place to get away
from the stresses of daily living. It can be a valuable
source of income tax deductions.
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6. HIRING YOUR CHILDREN IS GOOD BUSINESS
It’s only July, and the kids are already bored. Why not put
them to work? When you pay your children reasonable wages to
work in your family business, you provide your offspring
with valuable knowledge and get a few special tax breaks in
the process.
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7. EVERY FAMILY BUSINESS NEEDS A SUCCESSION PLAN
There’s a widely published statistic that says only
one-third of family-owned businesses survive the transition
to the second generation. A primary reason for this dismal
survival rate lies in poor succession planning. While issues
of mortality and family relationships can make succession
planning difficult, a well-constructed plan is essential to
passing the business on to the next generation. Here are
several key strategies for a successful transition.
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8. ADDITIONAL HEADLINES
* Travel Insurance: Peace of Mind or Waste of Money?
How do you know if travel insurance is worth the
investment?
http://www.accountingweb.com/
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* Beginner’s Guide to Car Loan Hunting
In the market for a new car? Carefully consider your
financing options.
http://www.youngmoney.com/wheels/auto_shopping
* Missed the Medicare Prescription Plan Enrollment Deadline?
Some Medicare beneficiaries can still enroll without a
penalty. http://www.moneymattersnj.com
* Five Advantages to Incorporating Your Business
While owning a small business can be a risky venture, you
can limit your personal liability by incorporating your
business. http://www.moneymattersnj.com
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9. LOURI’S STAFF NEWS
August should be a slower month, so some of us will take off some time.
George Miller will be out August 21st through August 25th. Louri will be
out August 25th through the 30th. Have a great summer!
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E-CPA is a monthly email publication provided by
Rivero CPA, L.L.C.
414 Central Ave
Westfield, NJ 07090
(908) 935-0181
website www.riverocpa.com
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