How can I reduce my 2007 taxes - Portfolio timing

The end of the year is an ideal time to examine your investments (winners and losers over the course of the year) to take the steps necessary to minimize your capital gains income and maximize the benefit of any capital losses. Long-term capital losses can be used to fully offset long-term capital gains. Losses taken in excess of gains can also be used to offset up to $3,000 in ordinary income (or $1,500 for a married couple filing separately). The strategy for short-term gains and losses follows a similar game plan, although coordinating the two sometimes takes special care.

Starting in 2008, traditional strategies in connection with capital gains and losses also need to accommodate a special, nontraditional opportunity -- the zero percent net capital gain rate for tax years 2008 through 2010. While this zero rate is only available for individuals in the 10 or 15 percent income tax brackets, it is well worth families, retirees, and others to manage their income tax brackets starting in 2008. That management starts at year-end 2007, as does the decision over whether to postpone a sale of a capital asset until January 2008 to take advantage of this favorable, zero rate.

Answer Provided By Andrew Taylor, CPA Haffley, Taylor & Company

Do you have product or service to sell to the federal government?

Many business owners are interested in selling to the federal government, however this endeavor can be overwhelming. Before you invest time, talent and expenses on pursuing
federal government businesses there are several issues to consider in determining your eligibility.

As a federal contractor, the government requires the following information:

• Are you eligible under the laws and regulations to do business with the federal government?
• Do you have adequate financial resources to perform the contract?
• Do you have a good past performance track record?
• Do you have corporate records that demonstrate ethics and integrity?
• Do you have the necessary skills, personnel, and experiences to perform the contract or can you acquire the necessary skills (through subcontracting etc.)?
• Do you have the necessary facilities and production capacity to deliver the products and/or services required?
• Can you meet the federal performance schedule or delivery schedule with all the other commitments placed upon your business?
• Do you have an experienced Contract Administrator with the academic and personal experience in acquisition management on your contract team?

The information and documentation from the questions above are utilized by the federal government to determine if a contractor is eligible to be awarded federal contracts.

For additional assistance with your federal business needs, please feel free to contact BIG FISH CONSULTING – “minnows to marlins” no service request is too small and no contract too big, contact us at boothb.L9600@sbcglobal.net or (765) 243-1782.

Answer provided by Marlin Boothby - Big Fish Consulting