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Volume 6, Issue 11, November 2008

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Tax Brackets, Exemptions and Standard
Deduction Adjustments for 2009

As required by law, a number of tax deductions and exemptions will adjust for 2009 to keep pace with inflation.

Personal exemptions, standard deductions, and tax brackets will all adjust. Listed below are the adjustments that likely will affect the most taxpayers:

1.

The standard deduction will be:

$11,400 for married couples filing jointly (an increase of $500)

$5,700 for singles and married couples filing separately (an increase of $250)

$8,350 for those filing as head of household (an increase of $350)

2.

Each personal and dependency exemption will be $3,650 (an increase of $150 from 2008).

3.

Tax brackets will increase for each filing category; for married couples filing a joint return, the taxable-income threshold separating the 15% bracket from the 25% bracket is $67,900, up from $65,100 in 2008.

4.

The gift tax exclusion increases to $13,000 (an increase of $1,000 from 2008).

5.

The maximum earned income tax credit for low and moderate-income workers, and working families with two or more children, is $5,028, increased from $4,824 in 2008. Those filing a joint return, with two or more children, have an income limit for the credit of $43,415, an increase of $1,769.

These adjustments will affect 2009 returns, which will be filed in early 2010. Careful tax planning now with the friendly professionals at Kemper CPA Group LLP will allow you to take advantage of these and other tax rate adjustments in the future. Contact us today!

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Tips for Generating New Clients and Business

It’s a tough economy, and you would like to bring in more revenue to your business. If it seems like an impossible task to generate new business during a time when you hear daily reports of layoffs, plant closings, and how difficult it is to obtain credit, take heart. You have more potential clients and new business available to you than you might realize.

Your existing customers are an excellent, perhaps untapped source of referrals for your business. They’re familiar with you and your services and can potentially help match you with new customers. A recommendation from a satisfied client is very valuable – and much more effective – than a cold call.

Here are some tips for asking existing customers for referrals:

Talk about it – tell a satisfied customer that you would really appreciate it if they could tell others about your business/services, and ask them for names of others who would benefit as well from your services.

Write it down – ask their permission, and then develop a list of those satisfied customers who would be willing to be a reference for your business. This list could be handed out in your office or store, included in a marketing mailing, or given to a bank or lender when you need capital to grow your business.

Collaborate – work with businesses in town that complement your services, and whose customers would benefit from working with you. Look for opportunities for you and the other business to speak at seminars or free health screenings, conduct training classes or attend local Rotary Club or Kiwanis Club meetings together. If you wish to speak or have a booth at a function that requires a fee, you could split the cost and save money.

Be appreciative and show it – if you do receive referrals from your customers, be sure to show your appreciation with a thank you card or a small gift. Those customers are extremely valuable to you, and it’s vital that you keep such a relationship healthy and strong.

Keeping your business strong and growing requires hard work and dedication, but with some networking and simple communication, you can find resources readily available to help you reach the next level. Take an active role in spreading the good word about your services in your community, and look for different means than the traditional to reach new customers. Leverage the credibility you already have with existing customers to reach new ones, and watch your business grow.

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Preparing your Business for Sale – Now or in
the Future

There is no time like the present to schedule an appointment with a tax professional. With the current state of the economy, business taxes are likely to go up, and there may be some actions you can take now to ease the burden of future tax increases and prepare your business for what lies ahead.

You need not be planning to sell your business in the immediate future to benefit from a business valuation, as knowing your business’ current value can help you make decisions that impact the value you will receive whenever you do decide to sell. Through careful planning now, and with the help of a certified accounting professional, you can reach your goals of business growth while also anticipating – and properly planning for – future tax increases.

Business valuation is a complicated matter that involves knowledge and experience in accounting, tax, finance, economics, and litigation support. The Certified Valuation Analysts at Kemper CPA Group LLP can provide you with a credible valuation that accounts for all of the details surrounding your unique business situation. We offer a host of business valuations services to meet your business’ exact needs.

Additionally, careful tax planning now can help you minimize your business taxes, but, more importantly, it can help reduce the tax burden you will pass on to the future buyer of your business, making it easier – and potentially more profitable – for you to sell your business in the future.

If you would like to set up an appointment to discuss tax planning strategies for your business, contact the Certified Public Accountants and Consultants at Kemper CPA Group LLP.

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Loose Change

The November/December 2008 issue of the “Loose Change” Newsletter includes the following articles:

Contact Kemper Capital Management LLC for all of your investing needs.

Securities offered through Securities America, Inc., Member FINRA/SIPC. Insurance products offered through KCPAG Insurance Services LLC. Advisory services offered through KCPAG Financial Advisors LLC. Kemper Capital Management LLC is the holding company for KCPAG Insurance Services LLC and KCPAG Financial Advisors LLC. Kemper Capital Management and its subsidiaries are not affiliated with Securities America.

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Finding the Right Accounting Software for Your
Business

The wrong accounting software can derail your business, stalling its growth while you are working so hard to keep it growing. Utilizing an accounting software product that maximizes your efficiency is key. The right software for your business will simplify critical business functions, giving you more time to concentrate on growing your business and better serving your clients. There are many options available, and choosing the right product for your business is no easy task.

Your accounting software program should:

Work seamlessly with your existing business practices

Be scalable and flexible so that it can meet the needs of your growing business

Streamline your cash management system to provide better cash flow

Provide easy access to accurate financial data

Your trusted accounting professional knows your business and is familiar with a variety of different accounting software programs. We can help you decide what kind of accounting software will be most beneficial and cost-efficient for your particular business. Many accounting software programs offer extra features at an added cost, and an accounting professional can help you determine which, if any, of those extras would be a wise purchase.

The information technology professionals at Kemper Technology Consulting, many of whom are also certified accounting professionals, can help you find the best accounting software match for your business. Contact us today!

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Kemper Technology Consulting
Robinson, IL
618-546-5633
www.kempertc.com

Evansville, IN  •  Indianapolis, IN  •  Paducah, KY  •  Effingham, IL

Please be advised that, based upon current Internal Revenue Service (IRS) rules and standards, the advice herein is not intended to be used, nor can it be used, as the sole basis for decisions. Additional issues may exist that could affect the treatment of the individual transactions, and this narrative does not provide a conclusion with respect to all such issues.

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