MAP Point Results - 1st Qtr 2009

Great job folks! Combined, you earned $1500 in the 1st Qtr of 2009!

Purpose of Markting Awards Program: The primary incentive is for staff to grow personally and professionally and build important long-term business relationships. The financial rewards will be small compared to the gains that employees make. The goal is to encourage Saltmarsh employees become better business people and for owners to identify and train “stars” to follow in their footsteps.

All forms and further information are located on our intranet, Saltex, under Forms then Marketing.

Saltmarsh's Slim-Down for Summer

This 10-week Slim-Down for Summer is going to start following tax season…. the week of April 20th.

There will be weigh-ins every other week and a prize for the overall Biggest Loser(s)!

Following are the dates for the weigh-in weeks:

Initial weigh-in: April 20th – 24th
May 4th – 8th
May 18th – 22nd
June 1st – 5th
June 15th – 19th
Final weigh-in: week of June 29th

Personal Finance: How safe is your cash?

If you find yourself concerned about the safety of your bank deposits, you’re not alone. A recent article in the Wall Street Journal noted that bank officials have been receiving more calls from savers wondering just how safe their funds are. Those concerns are understandable considering the meltdown in financial markets and the economic problems facing everyone.

Historically, the Federal Deposit Insurance Corp. (FDIC) guaranteed bank deposits up to $100,000 per person, per institution. The Emergency Economic Stabilization Act of 2008 temporarily increased the limit on deposit insurance for all account ownership categories from $100,000 to $250,000. The increase in insurance limits is effective from October 3, 2008 to December 31, 2009 and unless the changes are made permanent, the deposit insurance limits will revert to $100,000 after December 31, 2009.
If you and your family have $250,000 or less in all of your deposit accounts at the same insured bank, your deposits are fully insured. However, even with the increase in insured limits many people find that they have cash balances that exceed the FDIC limit. Although cumbersome, one often used solution to this problem is to spread cash among different institutions. Some more efficient strategies for getting the most out of FDIC insurance include using joint accounts, brokered CDs, deposit placement services and payable-on-death (POD) accounts.

Deposit accounts held in different ownership categories may qualify for more than $250,000 in coverage. For example, deposit accounts owned by two or more people (joint accounts) are insured up to $250,000 for each account holder listed. Each co-owner’s share of the account is added together providing up to $500,000 in coverage. Brokered CDs can be purchased through a brokerage firm and allow the buyer to purchase multiple CDs from different institutions. If you have excess cash in a brokerage account, brokered CDs are an efficient way of spreading out your cash and obtaining FDIC protection on each purchase.

Certificate of Deposit Account Registry Service (CDARS) is a deposit placement service that allocates funds into different CDs providing access of up to $50 million in FDIC protection on CD investments. You will need to check with your financial institution to see if they are a network member. POD accounts can allow users to increase insurance limits by adding beneficiaries to those accounts. Only certain persons or groups can qualify as beneficiaries though and POD accounts may conflict with a will or estate plan. So you should consult with your tax professional or attorney when setting up this type of account.

In addition to the FDIC protection noted above, on October 14, 2008 the FDIC announced its Transaction Account Guarantee Program. This program provides full coverage (on a temporary basis) for non-interest bearing transaction deposit accounts at FDIC insured institutions that agree to participate in the program. The transaction account guarantee applies to all personal and business checking deposit accounts that do not earn interest at participating institutions. This program is temporary and will remain in effect for participating institutions until December 31, 2009. You should contact your financial institution and inquire regarding their participation in this program. Source: FDIC

Calculating deposit insurance can be complex, particularly when you have multiple accounts or multiple ownerships. For more information visit:

http://www.fdic.gov/deposit/deposits/insuringdeposits/index.html

George M. Peaden, Jr., is a financial advisor with Saltmarsh Financial Advisors, LLC. He can be reached at 1-800-477-7458.

NOL Carryback for Individuals {Judy Gund}

Hot off the presses –

Rev Proc 2009-19 has been published to provide guidance on how to apply Code Sec 172 to Individuals.

This revenue procedure applies to any taxpayer that is an “Eligible Small Business” (ESB), a partner of a partnership that is an ESB, a shareholder in an S corporation that is an ESB, or a sole proprietor of a business that is an ESB, and that incurred an NOL for any taxable year ending in 2008 or beginning in 2008. NOL’s from Farms or Rentals do not qualify.

How to make the election:
01. Eligible small businesses that have not filed a return for the applicable 2008 NOL taxable year.
(1) A taxpayer within the scope of this revenue procedure that has not filed a return for the taxable year in which the applicable 2008 NOL arises makes the election under § 172(b)(1)(H) by attaching a statement to the taxpayer's federal income tax return for the taxable year in which the applicable 2008 NOL arises. The statement must—
(a) Clearly state that the taxpayer is electing to apply §172(b)(1)(H);
(b) Describe the length of the NOL carryback period elected by the taxpayer (3, 4, or 5 years); and
(c) If applicable, state that the taxpayer is electing to apply § 172(b)(1)(H) to the taxpayer's taxable year that begins in 2008.

(2) The taxpayer's return must be filed by the due date (including extensions of time) for filing the taxpayer's return for the taxable year of the applicable 2008 NOL. In the case of a late election, relief may be available under § 301.9100-2(b) of the Procedure and Administration Regulations. Notwithstanding this due date, an election to apply § 172(b)(1)(H) to an applicable 2008 NOL for a taxable year ending before February 17, 2009, will be treated as timely if the election is filed on or before April 17, 2009.

.02. Eligible small businesses that have filed a return for the applicable 2008 NOL taxable year and did not elect to forgo the NOL carryback period.
(1) A taxpayer within the scope of this revenue procedure that previously filed a return for the applicable 2008 NOL taxable year and did not elect to forgo the NOL carryback period under § 172(b)(3) makes the election under § 172(b)(1)(H) as follows:
(a) What to file.
(i) The taxpayer must file the appropriate form including a statement of the carryback period the taxpayer elects (3, 4, or 5 years). The appropriate form is—
(A) For corporations, Form 1139, Corporation Application for Tentative Refund, or Form 1120X, Amended U.S. Corporation Income Tax Return;
(B) For individuals, Form 1045, Application for Tentative Refund, or Form 1040X, Amended U.S. Individual Income Tax Return; and
(C) For estates or trusts, Form 1045, or amended Form 1041, U.S. Income Tax Return for Estates and Trusts.
(ii) A taxpayer that makes the election by filing an amended return must file the return for the earliest taxable year to which the taxpayer is carrying back the applicable 2008 NOL. The taxpayer should not file an amended return for the applicable 2008 NOL taxable year.
(b) Labels. The taxpayer should type or print across the top of the appropriate form “2008 NOL Carryback Election Pursuant to Rev. Proc. 2009-19.” If the taxpayer previously filed an application for a tentative carryback adjustment or an amended return applying an NOL carryback period that did not qualify for the election under § 172(b)(1)(H), the taxpayer also should type or print across the top of the appropriate form “Amended NOL Carryback Election Pursuant to Rev. Proc. 2009-19.” In addition to the labels listed above, a taxpayer that elects pursuant to § 172(b)(1)(H)(ii)(II) to treat its NOL arising in a taxable year beginning in 2008 as the applicable 2008 NOL, must include a statement that the taxpayer is electing to apply § 172(b)(1)(H) to a taxable year that begins in 2008.
(c) When to file. The taxpayer must file the appropriate form by the later of the date that is 6 months after the due date (excluding extensions) for filing the taxpayer's return for the taxable year of the applicable 2008 NOL, or on or before April 17, 2009.

(2) If a taxpayer makes the election under § 172(b)(1)(H) by filing an applicable form that amends a prior refund claim, the amendment also will apply to a carryback of any alternative tax NOL for the same taxable year. In the case of an amended application for a tentative carryback adjustment, the 90-day period described in § 6411(b) will begin on the date the amended application is filed.

The complete Rev Proc 2009-19 is attached for your convenience. Please see myself or Lisa if you have any questions or concerns.

2009 PACE Professional Leader of the Year - Ron Jackson

Congratulations Ron on being the 2009 PACE Professional Leader of the Year!