2001 - Page 29 of 35 - Journal of Accountancy

The magazines

February 1, 2001

The Business Auto Decision

EXECUTIVE SUMMARY THE DECISION TO BUY OR LEASE A BUSINESS AUTO is complex, complicated by both tax and cash flow considerations. Making the right choice is easier if a CPA uses discounted cash flow analysis to compare the available options. CAR BUYERS CAN RESEARCH THE MANY FINANCING options on the

February 1, 2001

oneil_ex7

Exhibit 7: Rules of Thumb—When to Do What When to Buy When to Lease Purchaser pays cash rather than financing. Lessee wants lower monthly payments. Purchaser plans to hold auto for more than four years. Lessee plans frequent trade-ins. Auto weighs more than 6,000 lbs. Auto weighs less than 6,000

February 1, 2001

hay_ex7

Exhibit 7

February 1, 2001

hay_ex9

Exhibit 9

February 1, 2001

hay_ex8

Exhibit 8

February 1, 2001

hay_ex6

Exhibit 6

February 1, 2001

Deposit Rules for Small Businesses Simplified

On January 1, the IRS ended its monthly employment tax deposit requirements for many small businesses, allowing them, instead, to make such payments quarterly. Businesses now can make employment tax payments every three months if the amount is under $2,500. Previously, the IRS permitted quarterly payments only for businesses whose

February 1, 2001

hay_ex1

Exhibit 1

February 1, 2001

Getting Less for Your Money

Source: Social Security Administration, www.ssa.gov .

February 1, 2001

Taxes Take Biggest Bite Out of Family Budget

Source: Special Report no. 96, Tax Foundation, www.taxfoundation.org .

February 1, 2001

hay_ex15

Exhibit15

February 1, 2001

hay_ex12

Exhibit12 Adjust Split-Screen here by holding down the left mouse button and dragging down.

February 1, 2001

hay_ex24

Exhibit 24

February 1, 2001

hay_ex23

Exhibit 23

February 1, 2001

IRS Allows Advance Distribution of Transit Passes

Employers now can distribute tax-free mass-transit passes to their employees more than one month in advance. IRS Announcement 2000-78 changed the distribution requirement in proposed regulations that would have exempted transit passes from taxes only for the month in which they were actually distributed to employees. Employers now may distribute

February 1, 2001

hay_ex22

Exhibit 22

February 1, 2001

hay_ex25

Exhibit 25

February 1, 2001

CFOs in Europe Favor International Accounting Standards

Judging by a November survey of financial executives in Europe, there is considerable business community support for the European Commission’s (EC) June 2000 proposal to implement the IASC’s international accounting standards (IASs). The EC’s tentative plan to foster “comparable, transparent” reporting would, if approved by the European Union (EU), require

February 1, 2001

hay_ex13

Exhibit13

February 1, 2001

Financial Accounting

FASB Issues EDs on Financial Instruments In October FASB released two proposed statements dealing with financial instruments. One, Accounting for Financial Instruments with Characteristics of Liabilities, Equity, or Both, would provide guidance on accounting for the noncontrolling interest in a consolidated subsidiary, for costs incurred in issuing a financial instrument