Avoiding Big Tax Surprises

This is a friendly note from Bob Martin, USN veteran with BW James LLP to inform you that if you had a significant change in your finances this year, such as a fluctuation of income or a major purchase, then it is best to make an appointment with you tax professional right now.

If there are changes in your life currently you should definitely review the impact it will have on you taxes to determine if you will owe more or less on your 2013 tax return.  After all, no one likes a big surprise on April 15th.

A higher-than-expected tax liability that you cannot immediately pay isn’t just costly, it can also be stressful.  Avoid those headaches now by visiting one of the tax professionals at BW James during the slow season so we can easily help you to accommodate and plan.  Getting a head start can allow you to begin a savings program or adjusting your payroll withholdings to prepare for the liability.  So avoid those April blues and start off strong today!

For more information about the professionals at BW James visit http://www.bwjames.com

Don’t Let the Delayed Tax Season Stop You from Being Prepared

The IRS recently announced that, for the second year in a row, it will delay the start of tax season. However, the April 15 filing deadline, which is set by statute, remains in place. Last year it was the fiscal cliff negotiations that pushed back the start of the tax filing period. This year, of course, it is the 16-day government shutdown that put the IRS approximately one to two weeks behind in preparing for the 2014 filing season.

According to an IRS news release, the government entity is “exploring options to shorten the expected delay and will announce a final decision on the start of the 2014 filing season in December.”  The original start date of the 2014 filing season was January 21, so with a one- to two-week delay, the IRS will potentially start accepting and processing 2013 individual tax returns no earlier than Jan. 28 and no later than Feb. 4.

Although the IRS is behind schedule, we encourage our clients to start preparing now in order to be prepared for filing as soon as the opening date of tax season arrives. Start organizing your tax documents and don’t hesitate to contact our office if you need tax planning advice or have questions about this tax season.

For more information about the professionals at BW James visit http://www.bwjames.com

Keep Your Home Warm for Less

It is winter time in Texas, recently the temperature has dropped and people are turning on the heaters for the first time this year.  Courtesy of BW James here are a few tips you can use to reduce the cost of your heating bill during these cold months.

Turn Down the Thermostat

This one is kind of a “duh” tip, but you’d be surprised how many people forget to do it.  Turning down the thermostat when you head off to work and when you go to bed can add up to at least 16 hours a day and save you about 14% on your heating bill.  In fact the rule of thumb is that you save about 3% on your heating bill for every degree that you set back on your thermostat full time.

Watch Those Fans

In just one hour, a hard-working bathroom or kitchen fan can completely expel a houseful of warm air.  Use them when you need to and shut them off when the job is done.

Close the Fireplace Damper

Heat rises, and an open damper is essentially a hole in the roof.  In fact you should limit the use of your fireplace, since fires actually suck the heat from a room.  Light it when you want the ambience they provide, but really they aren’t viable for heating the house in conjunction with central heat.

Turn Down the Water Heater

Reducing the temperature of the water in the water heater to 115-120 degrees reduces the power use without a noticeable difference when you take that morning shower.

Open the Curtains

When the sun is up, let it in.  Opening curtains and shades on south-facing windows during the day allows solar radiation to warm a living space, just remember to close them at night to reduce the heat from escaping.

These are some cost-free ways to reduce that heating bill.  We hope everyone stays warm this winter, and hopefully these tips can allow you to do so for less.  

For more information about the professionals at BW James visit http://www.bwjames.com 

How to Save During the Holidays

The leaves are falling, the temperature dropping, and the people are shopping.  The holidays are nigh and Christmas is just around the corner.  Tis the season for giving, but with a little planning you can give and save at the same time.  Courtesy of the professionals at BW James, here are some money-saving Holiday tips.

Budget, Budget, and Budget

Since your holiday budget is likely to be similar to what you’ve spent in the past few years, it’s relatively easy to come up with a budget and have an idea of what you’re going to be spending.  Advanced planning will take away quite a bit of stress come December and if you list out everyone you need to buy for and how much you would like to spend now you’ll save money in the long run.  Waiting until the week or two before Christmas will make you more likely to spend more on a gift just to get it over with.

Bring a Lunch

If you’re in the habit of going out to lunch everyday now is the time to start packing a sandwich.  It may not seem like much at first, but if you take $8 a day and put it back instead of spending it on grub for the next 30 days, you’ll still have over two weeks until Christmas and a cool $240 to cross some names off the gift list.

Be Creative

Do you normally buy for co-workers, neighbors, or other non-relatives?  You can save money by simply being creative.  For the crafty people you can find out things they really enjoy and make a cross-stitch or a painting or something like that.  Or perhaps you can simply find out their favorite dessert and bake it for them.  These type of gifts are easier on the wallet and because they’re thoughtful, go a much longer way than an overpriced generic gift at the department store.

Be Prepared

Make a list of everything you’ll need during the holidays, whether it be plenty of napkins for that Christmas meal, batteries, drinks, etc.  Stock up on everything you’ll need.  This will save you more stress than money, but stocking up on supplies at the grocery store is a lot cheaper than realizing you need something Christmas day and buying it at a convenience store.

Hopefully these few tips will save you some stress and money during the holidays.  For more information about financial planning and the professionals at BW James visit http://www.bwjames.com

BW James Supports Our Veterans

Many people will be enjoying a three-day weekend due to many government offices and other businesses closing on Monday, November 11th.  We hope everyone who gets to enjoy the extra time off has fun and is safe, or just gets some much needed pre-holiday R&R.  However, it is important that we take the time to remember why this upcoming Monday is a celebrated holiday, Veterans Day.

Veterans Day is a holiday which serves to honor all people who have served in armed service.  The reason for Veterans Day being celebrated on November 11th is to mark the anniversary of the end of World War I, major hostilities of World War I were formally ended at the 11th hour of the 11th day of the 11th month of 1918, when the Armistice with Germany went into effect.  U.S. President Woodrow Wilson first proclaimed the observance of November 11th as a holiday in 1919.

So no matter what you’re doing over the weekend, we encourage you to show your support for our troops anyway you can, even with a simple “Thank You” to the veterans in your life.  Without their selfless, brave, and hard-working efforts we wouldn’t be able to enjoy the country we know and love today.

On behalf of everyone at BW James LLP we would like to say Thank You to all of our veterans, we greatly appreciate all that you have done for us and it is because of you we are able to walk the streets as free men and women.  Thank you.

Texas Franchise Tax Returns Due November 15

This is a friendly reminder from the professionals at BW James that all Texas Franchise Tax Return Forms are due on Friday, November 15, 2013.

The Texas Franchise tax is a privilege tax imposed on each taxable entity formed or organized in Texas or doing business in Texas.  Any corporation doing business within the state of Texas will be required to pay franchise tax.  This includes corporations, banking corporations and association, limited liability companies and S-corporations.  In Texas, sole proprietorships and some non-profit companies may be exempt.  To determine if your corporation, association or limited liability company is required to pay franchise tax, BW James is available for consulting.

For more information about the professionals at BW James visit http://www.bwjames.com

Election Day is November 5, 2013

This is a friendly reminder from the professionals at BW James that tomorrow is Election Day!  Voters will be able to cast ballots for the November 5th election which involves nine proposed amendments to the Texas Constitution.

Texans can cast ballots at any voting location in the same county as their registration and it is the first statewide election with photo identification requirements for in-person voting, with seven forms of ID accepted.  Common forms include a Texas driver’s license, a U.S. military identification card, or a passport.  So don’t forget to bring your identification in order to comply with the new Voter ID law.  If you don’t have an ID, the state is offering free election ID certificates so you can still cast your ballot.

For those of you inside the City of Houston, there are some important races on the ballot, including a race for mayor and several city council positions.  The cities of Baytown, Bellaire, Friendswood, Pasadena, and West University place are also holding city-wide elections.  Voters will also decide on passing bonds to renovate the Astrodome.

No matter what box you tick, be sure to make your voice heard by showing up at the polls!

For more information about the professionals at BW James visit http://www.bwjames.com