|
Greetings!
Identity
theft is real. Each year more than half a million Americans are
victimized by this fraudulent practice. The Fourth Quarter 2006 issue
of Sechrest & Associates, CPAs e-newsletter offers suggestions on
how individuals can protect themselves.
This article from the Massachusetts Society of CPAs entitled How
to Protect Yourself from Identity Theft, offers several suggestions
on how you can minimize your risk by taking a few precautions.
Information in this newsletter is for general purposes only and
should not be construed as advice. You should consult Sechrest &
Associates, CPAs at 978-263-7771, about specific recommendations for
your particular situation.
| In
This Issue |
 |
|
|
| How
to Protect Yourself from Identity Theft |
|
|
The Federal Trade Commission reports that more than a
half-million Americans are victims of identity theft each year.
Identity theft occurs when someone, without your permission,
uses your name, Social Security number, credit card number, or
other identifying information, to commit fraud.
Today, identity theft encompasses a range of crimes – from
credit card theft to intricate schemes in which a victim’s
personal information is used to set up falsified bank accounts.
This fraudulent activity can devastate your credit and require
significant time and money to resolve. The Massachusetts Society
of CPAs says that while it’s difficult to prevent identity
theft completely, you can minimize your risk by taking the
following precautions.
|
| Tax
Hint |
|
|
by Kristin
M. Cressman, CPA
Sechrest & Associates, CPAs
Kiddie Tax
A child that is subject to the “kiddie tax” rules, pays
tax on his/her unearned income greater than $1,700 at their
parent’s highest marginal tax rate, unless the child’s tax
would be higher. There is an option for the parents to include
the child’s unearned income in excess of $1,700 on their own
return rather than filing a separate child return.
Prior to 2006, a child was treated as a “kiddie” if they
had not reached age 14 before the end of the tax year. Under the
new act, for years beginning after 2005, a child is subject to
the “kiddie tax” rules if they have not reached age 18 by
the close of the tax year. By boosting the age by four years,
the opportunity to reduce taxes by transferring cash to income
producing assets to children under the age of 18 is
significantly curtailed.
Although tax savings opportunities are greatly reduced by the
boost in age, there are investment strategies that the taxpayer
can deploy to reduce taxes. Investments in savings bonds will
defer interest from recognition until maturity and disposition.
Municipal bond investments produce tax-free interest income.
Assets that concentrate on growth versus current income
production could also be a good tool for deferral such as growth
stocks, mutual funds that concentrate on growth stocks, and
unimproved real estate that will likely appreciate over time.
|
| Wealth
Management Hint |
|
|
by Cynthia
G. Sechrest, CPA, PFS
Sechrest & Associates, CPAs
Return on Investment
Much of the return of your mutual fund may be lost to
expenses.
According to an article by Andrew Gluck in The Investment
Advisor, an investor can lose up to 70% of a mutual fund's
returns due to taxes, trading, and expenses.
Would you like to know the costs of a mutual fund you own? If
so, send us the Ticker Symbol of one of your funds by December
15, 2006 and we'll send you information on your fund's costs,
tax efficiency, and a comparison with similar funds that may
have much lower costs. You may be surprised to see how much you
are "losing" by staying with a high cost fund.
|
| Let
Us Introduce You |
|
|
by Jarod
J. Bloom, CPA, CFP
Sechrest & Associates, CPAs
Rapport International
We work with a number of interesting clients in the immediate
area. This month, we'd like to spotlight Rapport
International, a company that offers foreign language
translation (written) and interpretation (spoken) services. They
offer quality language services to companies such as Blue Cross
Blue Shield, Wellington Management, the State of MA, the US
Federal Government, and The First Years, among others.
The company will be celebrating the 20th year in business
next year. This growing firm maintains long-term relationships
by providing excellent customer service and a willingness to
educate clients on language issues.
For more information about the many services they provide,
please visit their web site at www.rapportintl.com
|
| Tell
Us What You Think |
|
|
Copyright 2006 all rights reserved.
Sechrest & Associates, CPAs is a full service CPA firm.
We value your input and invite you to contact us with any
questions, concerns or ideas you may have. Please feel free to
call us at either 978-263-7771 or 978-795-1284.
jarod@sechrestcpa.com
Web Site: www.sechrestcpa.com
Web Site: www.sechrestfinancialservices.com
Please forward this email to your friends.
Privacy is important to us. We will never release, rent, sell
or give a subscriber's name or email address to a third party.
You may unsubscribe, at any time, by selecting the link at the
bottom of every email.
|
|
|
About
Us
|
|
|
Sechrest
& Associates, CPAs is dedicated to providing high
quality tax and accounting services for businesses and
individuals.
We believe in a high level of client contact and use a
customized approach to helping with your issues and situations.
Our staff is here to help educate and guide you through the
myriad of accounting and tax implications involved in your
financial decisions.
Sechrest
& Associates, CPAs helps you navigate complex tax codes
and provides guidance in tax planning toward wealth accumulation
and security. In the course of tax preparation and tax planning
we develop an action plan to track vital issues that affect your
life planning. Additionally, we are QuickBooks® Certified
Professional Advisors and, as such, provide help with your
management and accounting information systems.
By
combining the expertise of Sechrest & Associates, CPAs
with our sister firm Sechrest
Financial Services, LLC, we provide comprehensive and
all-encompassing life planning for individuals and businesses.
Our integrated approach gives you the benefit of financial
advisory services that consider the tax and accounting
implications of all decisions.
|
|
