The financial and tax world has changed. A business needs to be ready to tackle the unforeseen challenges they face in order to survive and prosper in difficult times. Businesses and the entrepreneurs are facing difficult challenges as they try to navigate the recent economy and the almost certain changes that lie ahead in the tax codes.

The question that we ask at LeMastusMcDonough...Is your Consultant and CPA up to the challenge? We are entering an age of significant change in both the income tax and bank lending environments. The Obama administration and the Democratic Congress are looking at significant ways to raise revenue and it appears that a big part of it is going to come through changes to the income tax code for individuals and small businesses.

On the finance side, banking-lending is changing like never before. Whether it is a bank failing to renew a line of credit or changing the terms of existing loans.

At LM we recognize change and the challenges that these two issues present to business owners and we are progressive in helping clients develop solutions and plans for the future. Our difference is our people and the extensive experience they can bring to your side of the table. We believe in taking a proactive approach to finding solutions. Complexity doesn’t have to be a problem. We welcome the opportunity to get to know your business and show you the difference we can make.

Highlights of some of the Obama administration’s and or Congress’ recent income tax proposals that could affect small business owners and individuals.

• Increasing capital gain rates.
• Increasing the tax rate on dividends received by individuals.
• Estate planning changes.
• Increasing the income tax bracket for many individuals.
• Possible changes to FICA and Medicare limits. This could have a dramatic affect on small businesses and the entrepreneurs. Particularly affected could be lawyers, doctors, architects and other service professionals.
• Further limits to itemized deductions.
• Changes to alternative minimum taxes.
• Depreciation changes for small businesses.