2008 Newsletter
For more than 40 years, Vollmer, Daniel, Gaebe & Grove has been providing quality business related and accounting services to our clients. Our partners and staff have many years of experience in public and private accounting, including with national accounting firms.

Many of our clients represent family businesses that involve several generations of family members. Others are corporations that have operations in multiple states or even other countries.

The outstanding qualifications and credentials of our partners and staff, allow us to provide the level of services of larger firms. While our local roots allow us to understand our clients needs and develop close working relationships. This allows us to provide our clients the personal care to which they are entitled.

     • Payroll and Information Returns 2008 (For Your Bookkeeper)

New Legislation
The Small Business and Work Opportunity Act of 2007 raises the federal minimum wage (still lower than California's 2008 minimum of $8.00 per hour) but offsets this cost to small businesses by continuing generous equipment expensing rules through 2010. Other legislation includes extension of lower capital gains and divident tax rates through 2010 and makes permanent higher retirement plan contribution limits and certain higher education tax breaks. Documentation is now required for all charitable contributions claimed. This documenation includes a written receipt, cancelled check, other bank record, payroll deduction record, etc.

Year-End Tax Planning
Substantial tax savings can often result due to effective planning. Our complex tax calculation system and the likelihood of increased rates to fund government deficit spending dictate the need for continual review of your tax situation. Please call us to scedule an appointment.

Estate and Gift Planning
The Estate Tax exemption allows you to transfer $2 million in 2008 to your heirs tax-free at death and is scheduled to be reduced after 2009. Estates in excess of the exemption are taxed at a rate nearing 50 percent. Because of this, estate plans should be reviewed annually and each individual should use their annual $12,000 per donee gift exclusion.

Please contact us for further information available from our firm including:

Retirement Savings Rules

We can help you make sense of new retirement plan contribution options as well as proper planning for distributions. IRA contributions for qualifying individuals increases from $4,000 in 2007 to $5,000 in 2008. For 401(k) plans, those over 50 are allowed to contribute more now including an additional $5,000 ($20,500 total). For eligible individuals, consider a ROTH IRA for yourself and even your children.

Kiddie Tax

In 2007, the age threshold included the unearned income of children under the age of 18. For 2008, the age limit is increased to include those under the age of 19, or under 24 if the child is a student and does not have earned income that exceeds one-half of the amount needed for support.

Domestic Production Activities Deduction

This deduction remains at 6% of qualifying business net income for 2007 through 2009 and applies to businesses engaged in manufacturing, construction, farming, engineering and architectural services.

Energy Tax Incentives

Incentives include credits worth 30 percent of costs up to $2,000 for specific solar systems and $500 for certain installation of doors, windows, insulation, and heating and air-conditioning units. Hybrid vehicles generate credits that range from $400 to $2,400 depending on the vehicle.

Annual Payroll Information

This pamphlet includes the annual information that will assist your bookkeeper/Payroll clerk.

Range of Services

In addition to income tax planning, preparation, and compliance, we offer a variety of financial related services including:

• Estate and Gift Planning
• Litigation Support
• Business Valuations
• Accounting Systems and Computerization (including help in selection of the proper accounting system and computer software for your individual needs)
• Personal Financial Affairs (including paying of bills, medical insurance claims, et cetera)
• Audited, Reviewed, and Compiled Financial Statements
• Computerized Bookkeeping and Payroll
• Transaction Planning (call us early - while you plan the deal)
• Business Consulting
• New Entity Planning (Limited Liability Companies, Family Limited Partnerships,
  S-Corporations, et cetera)