Toscano & Ardito PC

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If you decide to go into business, you must choose how to structure the business. Operating as a sole proprietorship is the easiest approach: you don't have to fill out any startup forms, and you'll have little ongoing paperwork to handle. However, sole proprietorships are personally liable for claims against the business. Furthermore, raising capital for a sole proprietorship can be difficult; thus, most business owners who envision a growing company choose another form of business entity.

Making Sense of Mutual Funds' Returns (January, 2010 -- #37) If you decide to invest through mutual funds, you'll have literally thousands of funds to choose among. Hoping that your fund will do well in the future, you'll likely look for a fund that has done well in the past. You'll have to go over a great deal of data in order to make an informed decision.

Financial Resolutions for the New Year
(January, 2010 -- #38) With the calendar turning to 2010 and the winter holidays past, now is a great time to create a to-do list of financial steps to take this year. Here are some suggestions:

Hopeful Times for Home Buyers (December, 2009 -- #39) If you are interested in buying a home, you might find a good deal these days. The same may be true if you have children who want to enter the housing market or parents who want to buy a retirement home. Both sellers whose home values have slumped and banks that own homes after foreclosures may offer bargains to buyers. (Cont.)
Higher Costs for Long-Term Care

People who need long-term care are paying more each year. You may be able to partially protect yourself by buying a long-term care insurance policy when you're relatively young. For added protection, include a cost of living adjustment to the benefits you might receive.

Some investors will receive higher after-tax yields from tax-exempt municipal (muni) bonds than from taxable bonds. To find out what's best for you, you must crunch some numbers.

Estate Planning for Blended Families
(December, 2009 -- #42) Many people don't get serious about estate planning until they are well into middle age. By then, some of them are part of blended families: they are married, and one or both spouses have children from previous families. Estate planning in such families can be tricky because the spouses may want to provide both for each other and their own children. If you're in such a situation, you should proceed cautiously.

Year-End Tax Planning for Investors
(November, 2009 -- #33) If you expect to sell securities for a profit in a taxable account, consider doing so in 2009 while tax rates are at low levels. Some predict that those rates may move higher. What's more, you may be able to shift your gains to loved ones who'll owe no tax in 2009. (Cont.)
Year-End Tax Planning for Mutual Funds
(November, 2009 -- #34) Mutual fund methods -- If you invest in mutual funds, proceed cautiously at year end. At this time of year, funds may distribute any net capital gains for 2009 to their shareholders. These distributions are taxable to investors (unless the fund is held in a tax-favored retirement account), and the share price typically drops to reflect the distribution. (Cont.)
Year-End Tax Planning for IRAs

Through 2009, you can convert a traditional IRA to a Roth IRA only if your 2009 modified adjusted gross income (MAGI) is no greater than $100,000 on a single or joint tax return. The $100,000 cap will come off in January 2010. Under current law, this change is permanent. Therefore, high income taxpayers can convert traditional IRAs to Roth IRAs in 2010, 2011, 2012, and so on. For taxpayers whose 2009 MAGI is $100,000 or less, year-end 2009 presents a dilemma.

For 30 years Toscano & Ardito, P.C., CPA has been a leading full-service accounting firm with clients throughout Massachusetts, New Hampshire and the entire New England region.

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Toscano & Ardito, PC, CPA
Forty Bayfield Drive, North Andover, MA 01845 (978) 688-2880
Portsmouth, NH (603) 427-0900