Winning a gold medal brings a $9,000 tax bill (Yahoo)

-   When Olympic medalists return to the United States, they're in high demand. Everyone, from Michael Phelps to a bronze medalist in judo will be sitting for television interviews, talking to newspapers, going to assemblies at local schools and celebrating with friends, family and young athletes. They'll also draw some unwanted interest from everyone's favorite bureaucrats: the IRS.

Article originally published on Yahoo Sports by Chris Chase - 08/01/2012

Medalists will have to pay hefty taxes for standing on the podium in London. It's not the value of the medal itself that will require a separate line on this years tax returns, it's the tax on the prize money that comes with a gold, silver or bronze.


The United States Olympic Committee rewards Olympic medalists with honorariums. A gold medal brings $25,000. Silver medals get you $15,000. And a bronze is worth $10,000.

The Weekly Standard, a conservative news magazine, ran the numbers and tabulated that the tax bill on a gold is $8,986, silver is $5,385 and bronze is $3,500.

They note that Missy Franklin, an amateur who has yet to cash in on her fame with endorsements, already owes $14,000 in taxes from her gold and silver medal. By the time the Games are finished, Franklin's tax bill could reach $30,000.

Florida senator Marco Rubio (R) reacted to the story on Wednesday, proposing a bill that would leave athletes exempt from the federal tax. ""Our tax code is a complicated and burdensome mess that too often punishes success, and the tax imposed on Olympic medal winners is a classic example of this madness," he told reporters.

Article originally published on Yahoo Sports by Chris Chase - 08/01/2012

Security Tax Services LLC

North Sound                                    South Sound

2802 Wetmore Ave, Suite 212         33530 1st Way S, Suite 102

Everett, WA 98201                          Federal Way, WA 98003

425.339.2400                                  253.237.0751

fax 425.259.1099                            fax 253.237.0701

www.SecurityTaxServices.com

STS QuickBooks Tips - Maintain Balanced Inventory Levels with QuickBooks

-   It seems so simple in theory. Don't overstock goods because you'll tie up too much money and perhaps need a clearance sale to get rid of the excess. On the other hand, don't let yourself run out of anything and lose orders.

In practice -- especially if you stocks dozens or hundreds of items -- it's impossible to ensure this if you're managing your inventory manually. Guesswork can be costly.

It's a complex element of accounting, but QuickBooks comes equipped with a handful of reports that can keep you on track. They don't teach you how to balance your inventory to improve profitability, but we can help with that.

Figure 1: Be sure to enter a figure in the Reorder Point field so QuickBooks can remind you to reorder. 

Building Precise Records

There's a critical number in your item records that must be completed: Reorder Point. You'll see it at the bottom of theEdit Item window (click Lists | Item Lists and double-click on the correct entry or click New in the Item drop-down list). Without it, QuickBooks can't alert you when you're running low.

QuickBooks also tells you how many items are currently on hand. If you had reached the reorder point and created a purchase order, you'd see a number under On P.O.

Ideally, you would do this when you're first adding item records, but you can go back at any time and add it.

Rigorous Reporting

Running reports regularly will keep you apprised of your inventory status. To see what QuickBooks offers, clickReports | Inventory or go to the Report Center. Select Inventory Valuation Summary. You can also see this report in detail, but if you carry a lot of inventory, it's difficult to get a birds' eye view. Do run it, though, if you want to see the transactions that affected your inventory's value.

Figure 2: The Inventory Valuation Summary does just what the name says. 

In addition to what's pictured here, this report displays columns for Sales Price, Retail Value and % of Total Retail. As always, you can click Customize Report to change the date range.

Figure 3: This report provides a real-time update of the status of every inventory item. 

Precise Tracking

The Inventory Stock Status by Item report should be consulted frequently. It tells you exactly where all of your items are in the pipeline.

Watch for checkmarks in the Order column; they appear when you've hit or exceeded your specified reorder point. Three other important figures populate columns in this report: the number on purchase order, the date the next shipment should arrive and average sales per week.

Reminders can come in quite handy here. To set them up, go to Edit | Preferences | Reminders | Company Preferences. And you'll find the most comprehensive view of your items in the Inventory Center. Go to Vendors | Inventory Activities | Inventory Center. This screen also provides quick access to commonly-used reports.

Figure 4: The Inventory Center tells you everything you want to know about your items. 

Automate Your Inventory Reporting

Here's a quicker way to grab your reports:

• Go to Reports | Memorized Reports | Memorized Report List.
  
• Click the down arrow next to Memorized Report at the bottom and select New Group. Type in Inventory and click OK.
  
• Open an inventory report and click Memorize. The Memorize Report window opens. Check Save in Memorized Report Group and select Inventory from the drop-down list. Click OK. Repeat for others you want in this cluster.
  
• Click Reports | Process Multiple Reports. Select Inventory from the drop-down list and make sure that there's a check mark next to the reports you want. You can click on the dates in the From and To column to change them.
  
• Click Display or Print.

If you operate a product-based business, the success of your company depends in large part on your ability to find the sweet spot: neither too much nor too little inventory. It's an ongoing, daily challenge. Let us know if we can provide guidance for this critical balancing act. We are your QuickBooks ProAdvisors & financial partners, and we are here to help. Give us a call today.

Security Tax Services LLC

North Sound                                       South Sound

2802 Wetmore Ave, Suite 212           33530 1st Way S, Suite 102

Everett, WA 98201                             Federal Way, WA 98003

425.339.2400                                     253.237.0751

fax 425.259.1099                               fax 253.237.0701

www.securitytaxservices.com