7 Procrastination Busting Techniques
Nothing is so fatiguing as the eternal hanging on of an uncompleted task.- William James Putting off an easy thing makes it hard. Putting off a hard thing makes it impossible. - George Claude Lorimer The best way to get something done is to begin.-AnonymousLast week you took a quiz to determine if you are a chronic procrastinator. But whether or not your procrastination issues are severe, everyone can benefit from a few procrastination busting techniques. In this installment of our two-part series, we provide you with 7 tips on overcoming procrastination:
1. End each day by planning the next.
You will be better prepared, mentally and physically, to tackle difficult tasks head-on when you schedule time to do them. At the end of each workday, review the schedule for the next day so you set aside time to perform those functions you've been postponing. Often you can overcome procrastination by giving yourself the time to do those things you've been avoiding.
2. Tackle the most formidable task first.
Those tasks you put off are generally the most distasteful. You'll be doing yourself a huge favor if you tackle those tasks first. You know what they say: swallow a toad in the morning and you will encounter nothing more disgusting the rest of the day. When you complete these tasks first thing, you'll find yourself recharged and ready to tackle the remainder of your day with ease.
3. Change your vocabulary.
Sometimes a change in perspective will come easily when accompanied by a change in vocabulary. When looking at those tasks you tend to procrastinate you probably feel as if you have to do them." Change "have to" to "want to" and see if that lightens the load a bit. Also certain projects can appear overwhelming. Rather than tell yourself you must "finish" such projects, tell yourself you will get a good "start" on the project. This may motivate you to tackle it a piece at time.
4. Break large projects into manageable tasks.
Those overwhelming projects are best handled bit by bit. Break those large projects into smaller tasks that can be handled on a daily basis. Schedule these smaller tasks into your day so that you're able to better inch towards project completion.
5. Practice the Ten-Minute Rule.
For whatever reasons, we are unmotivated by certain tasks. Practice the ten-minute rule with these tasks by dedicating just ten-minutes to them. Often you'll find that once you get moving, you're motivated enough to continue long after the ten minutes have ended. And if you're not, at least you did something that contributed to the completion of that task, and it's probably more than you would have thought could be accomplished in just 600 seconds.
6. Reward yourself for completed tasks.
When working on especially dreadful tasks, give yourself a small reward for completing the task by a given time. Whether you take a short walk, surf the internet, or read a page from an engaging book, rewarding yourself in small doses may help you work a little harder on those tasks you tend to procrastinate.
7. Feel the fear and do it anyway.
Sometimes we procrastinate certain things because we're afraid we will fail, we don't have the skill set, or are uncertain where to begin. In situations like these it is best if you feel the fear and move forward. Generally you'll find that your fears were unfounded and that you were equal to the challenge.
As always if you have any questions or comments please email me at rondazaragoza@gmail.com.
Friday, November 27, 2009
7216 - A Number That Changes My Firm
7216 - A Number That Changes My Firm
The number in question is 7216. No, that is not my winning lottery ticket number. But, just like if I hit the lottery, it will make a drastic change to my practice. 7216 refers to Code Section 7216 of the Internal Revenue Code. So, you are wondering why this number is so big of a deal. Basically, code section 7216 is about the tax preparer maintaining your privacy. Trust me, I already do that.
But, code section 7216 has been amended by our wonderful Congress in such a drastic manner that it greatly effects what I can do for you. In the past, you could call me up, and ask me to send a copy of your tax return to your mortgage company - and I would have done it. Now, everything has changed. Under the new rules, I must obtain written directions in advance from the taxpayer (and only the taxpayer) to release information. In addition, I must obtain very detailed information of why you want me to release that information including the purpose of the request etc. If I comply with those rules, I could open myself up to legal implications based on my professional responsibilities. So, it is kind of a catch 22.
In addition, I will have to keep track of each of those written requests for 7 years. Further, I cannot use a "blanket" release and thus I must get a new release each time. Needless to say, that will become overly cumbersome - even in my paperless environment. As such, I am forced to change my policy on releasing data; And with that - here it is:
NEW POLICY ON RELEASE OF INFORMATION
I will no longer release information to any person other than the taxpayer. If you need a copy of your records for someone, I will only send it to you; and you will need to forward the information to the person requesting the information. I regret any inconvenience that this creates but I am sure you will understand. Specifically, here are the parties that I will release information to:
Individuals (non-minor) - taypayer
Minor taxpayers - taxpayer or parents or legal guardians
Estates - Executor (and like parties)
Trusts - Trustee
General Partner - Any general partner (may restrict to owner with highest ownership percentage)
Limited Partner - The general partner
Corporations - Officers and directors
Non-Profits - Board members and executive director
INFORMATION COVERED BY SECTION 7216
Unfortunately, section 7216 defines the information in such a broad manner that it includes all information obtained or gathered in the preparation of your tax return. Under the new rules, I cannot use the information I obtain in preparing your tax return for any other purpose.
EXAMPLE
If your bookkeeper calls and asks for a depreciation schedule so that they can record the monthly expense; Unfortunately, I cannot send that to them. I will send it to you and you will have to forward it.
Ronda Zaragoza Accountant Eagle Eye Accounting
As always if you have any questions or comments please email me at rondazaragoza@gmail.com.
The number in question is 7216. No, that is not my winning lottery ticket number. But, just like if I hit the lottery, it will make a drastic change to my practice. 7216 refers to Code Section 7216 of the Internal Revenue Code. So, you are wondering why this number is so big of a deal. Basically, code section 7216 is about the tax preparer maintaining your privacy. Trust me, I already do that.
But, code section 7216 has been amended by our wonderful Congress in such a drastic manner that it greatly effects what I can do for you. In the past, you could call me up, and ask me to send a copy of your tax return to your mortgage company - and I would have done it. Now, everything has changed. Under the new rules, I must obtain written directions in advance from the taxpayer (and only the taxpayer) to release information. In addition, I must obtain very detailed information of why you want me to release that information including the purpose of the request etc. If I comply with those rules, I could open myself up to legal implications based on my professional responsibilities. So, it is kind of a catch 22.
In addition, I will have to keep track of each of those written requests for 7 years. Further, I cannot use a "blanket" release and thus I must get a new release each time. Needless to say, that will become overly cumbersome - even in my paperless environment. As such, I am forced to change my policy on releasing data; And with that - here it is:
NEW POLICY ON RELEASE OF INFORMATION
I will no longer release information to any person other than the taxpayer. If you need a copy of your records for someone, I will only send it to you; and you will need to forward the information to the person requesting the information. I regret any inconvenience that this creates but I am sure you will understand. Specifically, here are the parties that I will release information to:
Individuals (non-minor) - taypayer
Minor taxpayers - taxpayer or parents or legal guardians
Estates - Executor (and like parties)
Trusts - Trustee
General Partner - Any general partner (may restrict to owner with highest ownership percentage)
Limited Partner - The general partner
Corporations - Officers and directors
Non-Profits - Board members and executive director
INFORMATION COVERED BY SECTION 7216
Unfortunately, section 7216 defines the information in such a broad manner that it includes all information obtained or gathered in the preparation of your tax return. Under the new rules, I cannot use the information I obtain in preparing your tax return for any other purpose.
EXAMPLE
If your bookkeeper calls and asks for a depreciation schedule so that they can record the monthly expense; Unfortunately, I cannot send that to them. I will send it to you and you will have to forward it.
Ronda Zaragoza Accountant Eagle Eye Accounting
As always if you have any questions or comments please email me at rondazaragoza@gmail.com.
Tax and Financial News for November 2009
Tax and Financial News for November, 2009
Year-End Reminders: April 2010 Can Hurt Less
The leaves are falling and winter is just around the corner — so, too, is the end of the year. With that comes the inevitable ritual of searching for ways to minimize your tax burden for 2009. With 10 months already gone, is there a lot you can do to lower this year’s tax bill? Yes, there is. And that is precisely what this article is about, but you must get started soon to keep Uncle Sam from cashing in on your hard work.
Income
The starting point for your tax savings quest is with your income. How much do you project bringing in from sources such as W-2 wages, interest, dividends and other income that is already on the books? Can you defer or, in some cases, accelerate their receipt?
First, let’s talk about deferring income. In most cases, it’s difficult to minimize salary income that’s already scheduled to be paid. However, your employer might be willing to put off payment of year-end bonuses. This is especially true when the payment has no significant effect on either the employer or the employee. For example, regular C-Corporations that report on an accrual basis can typically deduct bonuses that are owed to an employee who owns less than 50 percent of the company as long as those bonuses are paid by March 15 of the following year. If your employer usually pays bonuses on Dec. 31, it probably will not affect its bottom line to put the payment off until Jan. 1, 2010. Receiving that pay one day later can be a significant savings to you and other employees.
What’s the source of your interest income? If you are not already locked into an interest-bearing vehicle that pays at the end of a month, you could reduce taxable income by investing in a certificate of deposit or something else that pays interest after Dec. 31. The same is true for dividend-paying investments. When investing during the last part of the year, one trap you should be wary of is purchasing taxable income. This happens when you buy a mutual fund or stock that is guaranteed to pay a dividend before year’s end. Typically, the price you pay for the investment includes the amount that will ultimately be paid as a dividend. When the dividend is paid, the market price of the investment decreases and you are left paying unnecessary taxes.
How does your investment portfolio look? Believe it or not, there are a lot of folks with investments that are worth less than what they paid for them. The next two months is a good time to harvest a few losses to offset realized gains on other investments. However, remember that Uncle Sam will let you deduct only $3,000 in capital losses against other income, so be judicious in your sales.
Do you have other sources of income such as rents, installment sales or lease bonuses? As a cash-basis taxpayer, these sources do not become taxable to you until you receive them in cash. While care must be exercised to avoid what is called constructive receipt, it is possible to reduce income by putting payment off until 2010.
Constructive receipt is a concept that basically means you can’t avoid tax on income by refusing to accept payment for that which you are legally entitled. For example, say you own a corporation and it rents a building from you. If the business has the cash to pay the monthly rent, you can’t stop accepting rent payment to avoid taxable income.
Earlier, we mentioned accelerating income. Tax planning generally involves playing the rate game. Sometimes, accelerating income for years in which you expect a low marginal tax rate can enhance your overall tax savings. If 2009 is such a year, consider accelerating the income that you can in order to minimize taxes. Additionally, with looming deficits and the current administration’s stated intentions, there is a good chance that capital gains taxes will increase in the future. When that will happen is anybody’s guess, but the probability makes it a reasonable move to report long-term capital gains sooner rather than later.
Expenses
Expenses over which most individuals have control are itemized deductions, rental and Schedule C business expenses. With respect to itemized deductions and rental expenses, the most important thing to remember is that cash is king. If you pay the expenses before Dec. 31, you can deduct them. If you do not pay the expenses by year’s end, you cannot deduct them.
The cash rule can be difficult to follow if your checking account is a little light. Fortunately, there is always the plastic rule. If you pay your deductible medical bills, taxes and contributions with a credit card before year’s end, the deduction is still valid.
Don’t forget to maximize your retirement plan contributions as well. If your plan allows for it and if you can afford to do so, increase your contributions in the last two months of the year to reduce your taxable income.
Conclusion
Just because most of 2009 is now behind us does not diminish all opportunities to save on your tax bill. Give us a call and let’s look at your tax picture now — while there is still time to help you keep more of your hard-earned money.
This article is intended to provide resources for the tax and accounting needs of small businesses and individuals. The information contained in this informative letter is intended to provide general information on matters of interest in the areas of tax and accounting. Readers are encouraged to contact us regarding specific situations.
Ronda Zaragoza
Accountant
Eagle Eye Accounting
PO Box 20925
Albuquerque, NM 87154
505-550-2621
rondazaragoza@gmail.com
As always if you have any questions or comments please email me at rondazaragoza@gmail.com.
Year-End Reminders: April 2010 Can Hurt Less
The leaves are falling and winter is just around the corner — so, too, is the end of the year. With that comes the inevitable ritual of searching for ways to minimize your tax burden for 2009. With 10 months already gone, is there a lot you can do to lower this year’s tax bill? Yes, there is. And that is precisely what this article is about, but you must get started soon to keep Uncle Sam from cashing in on your hard work.
Income
The starting point for your tax savings quest is with your income. How much do you project bringing in from sources such as W-2 wages, interest, dividends and other income that is already on the books? Can you defer or, in some cases, accelerate their receipt?
First, let’s talk about deferring income. In most cases, it’s difficult to minimize salary income that’s already scheduled to be paid. However, your employer might be willing to put off payment of year-end bonuses. This is especially true when the payment has no significant effect on either the employer or the employee. For example, regular C-Corporations that report on an accrual basis can typically deduct bonuses that are owed to an employee who owns less than 50 percent of the company as long as those bonuses are paid by March 15 of the following year. If your employer usually pays bonuses on Dec. 31, it probably will not affect its bottom line to put the payment off until Jan. 1, 2010. Receiving that pay one day later can be a significant savings to you and other employees.
What’s the source of your interest income? If you are not already locked into an interest-bearing vehicle that pays at the end of a month, you could reduce taxable income by investing in a certificate of deposit or something else that pays interest after Dec. 31. The same is true for dividend-paying investments. When investing during the last part of the year, one trap you should be wary of is purchasing taxable income. This happens when you buy a mutual fund or stock that is guaranteed to pay a dividend before year’s end. Typically, the price you pay for the investment includes the amount that will ultimately be paid as a dividend. When the dividend is paid, the market price of the investment decreases and you are left paying unnecessary taxes.
How does your investment portfolio look? Believe it or not, there are a lot of folks with investments that are worth less than what they paid for them. The next two months is a good time to harvest a few losses to offset realized gains on other investments. However, remember that Uncle Sam will let you deduct only $3,000 in capital losses against other income, so be judicious in your sales.
Do you have other sources of income such as rents, installment sales or lease bonuses? As a cash-basis taxpayer, these sources do not become taxable to you until you receive them in cash. While care must be exercised to avoid what is called constructive receipt, it is possible to reduce income by putting payment off until 2010.
Constructive receipt is a concept that basically means you can’t avoid tax on income by refusing to accept payment for that which you are legally entitled. For example, say you own a corporation and it rents a building from you. If the business has the cash to pay the monthly rent, you can’t stop accepting rent payment to avoid taxable income.
Earlier, we mentioned accelerating income. Tax planning generally involves playing the rate game. Sometimes, accelerating income for years in which you expect a low marginal tax rate can enhance your overall tax savings. If 2009 is such a year, consider accelerating the income that you can in order to minimize taxes. Additionally, with looming deficits and the current administration’s stated intentions, there is a good chance that capital gains taxes will increase in the future. When that will happen is anybody’s guess, but the probability makes it a reasonable move to report long-term capital gains sooner rather than later.
Expenses
Expenses over which most individuals have control are itemized deductions, rental and Schedule C business expenses. With respect to itemized deductions and rental expenses, the most important thing to remember is that cash is king. If you pay the expenses before Dec. 31, you can deduct them. If you do not pay the expenses by year’s end, you cannot deduct them.
The cash rule can be difficult to follow if your checking account is a little light. Fortunately, there is always the plastic rule. If you pay your deductible medical bills, taxes and contributions with a credit card before year’s end, the deduction is still valid.
Don’t forget to maximize your retirement plan contributions as well. If your plan allows for it and if you can afford to do so, increase your contributions in the last two months of the year to reduce your taxable income.
Conclusion
Just because most of 2009 is now behind us does not diminish all opportunities to save on your tax bill. Give us a call and let’s look at your tax picture now — while there is still time to help you keep more of your hard-earned money.
This article is intended to provide resources for the tax and accounting needs of small businesses and individuals. The information contained in this informative letter is intended to provide general information on matters of interest in the areas of tax and accounting. Readers are encouraged to contact us regarding specific situations.
Ronda Zaragoza
Accountant
Eagle Eye Accounting
PO Box 20925
Albuquerque, NM 87154
505-550-2621
rondazaragoza@gmail.com
As always if you have any questions or comments please email me at rondazaragoza@gmail.com.
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