In our 4th quarter 2012 newsletter we mentioned that LMGW would be making charitable donations in lieu of mailing holiday cards in December. We did things a little bit differently and allowed our employees to choose the charitable organizations to make a donation to. LMGW then matched the employee’s donation, up to $50 per person, to each charity. Below are the charities our employees chose:
- The David Andrew “Pooh” Maddan Foundation
- Students Rising Above
- Wildlife Center of Silicon Valley
- Earth Island Institute-Save Japan Dolphins
- Saint Francis High School Alumni Class Endowed Scholarship Program
- Second Harvest Food Bank
- St. Jude Children’s Research Hospital
- Humane Society Silicon Valley
- American Red Cross – Hurricane Sandy Relief
If you are not familiar with any of the organizations listed feel free to ask us about them. Several members of the LMGW team are personally involved with the charities and would be happy to tell you about them!
If you are age 70½ or older and have an IRA there are two tax savings clauses in the 2012 Taxpayer Relief Act that you may want to take advantage of. First, eligible taxpayers can make a tax-free transfer from their IRA to an eligible charity by January 31, 2013 and treat the transfer as made on December 31, 2012. This strategy can help lower your Adjusted Gross Income (AGI) in future years by lowering the value of your IRA, which in turn lowers the amount of your required minimum distribution. Note the charitable distribution is limited to $100,000 per taxpayer per year. Essentially you have the ability to reduce your IRA value by $200,000 by making a $100,000 transfer by January 31, 2013 and allocating it to 2012 and then making another $100,000 transfer in February 2013 for the 2013 year. With all the tax increases and surtaxes taking effect in 2013, this can be a valuable tool to reduce your future tax liability.
A second option is for taxpayers to treat an IRA distribution received in December 2012 as a qualified charitable distribution as long as the taxpayer transfers the money to an eligible charity by January 31, 2013. This gives taxpayers a way to retroactively reduce their 2012 taxable income.
Remember, charitable IRA transfers are not included in taxable income. Additionally, a qualified charitable IRA transfer is beneficial because the charitable deduction is directly offset “above-the-line” against the IRA withdrawal. Without the charitable transfer the IRA distribution will increase your AGI, which impacts numerous other tax calculations and deduction phaseouts including how much of your Social Security is taxable, allowable deductions for charitable and medical expenses, as well as a myriad of tax credits. You must act quickly to take advantage of either, or both, of the provisions discussed above as transfers must be made by January 31, 2013 in order to qualify.
LMGW Certified Public Accountants, LLP (LMGW) was recently named as one of the 2012 Best Accounting Firms to Work for. This annual list was created by Accounting Today and Best Companies Group to identify, recognize and honor the best places of employment in the accounting industry. This is the fourth time that LMGW has been included in the annual list.
The Best Accounting Firms to Work for list is made up of a total of 100 companies, split into three groups: 47 small-sized companies (15-49 employees), 45 medium-sized companies (50-249 employees) and 8 large-sized companies (more than 250 employees). LMGW has been named one of the Best Accounting Firms to Work for in the small category.
LMGW Certified Public Accountants, LLP would like to congratulate Katie Vachon for not only passing all parts of the CPA exam, but also being promoted to Senior Accountant. Katie is submitting her application for her CPA license and awaiting official designation from the Board of Accountancy.
Katie also has another exciting event coming up this month. She is getting married to her college sweetheart, Joe, in a ceremony that will be held in their home state of New Hampshire. Katie and Joe will enjoy a honeymoon taking in the sights of Europe. LMGW wishes Katie and Joe all the best as they begin their new life together.
LMGW Certified Public Accountants, LLP has promoted Michael J. Bryant, CPA to Partner in charge of attest (Audits, Reviews and Compilations.) He will also continue assisting with litigation support services. Michael has a diverse client background which includes finance, technology and manufacturing clients for both private equity and closely held businesses as well as a range of nonprofit clients. In his tenure as manager, he was in charge of the firm’s larger and more complex audit and review engagements. He also gained experience on single audits and government audits. Read more