The Millennials Are Coming.

Why stop a bad idea from getting even worse? The McSelfie

Why stop a bad idea from getting even worse? The McSelfie

In fact, the Millennials are already here. You hear a great deal in the media about the generation born between 1982-2002. Generations get names for a reason. And the more people in a generation, the more change they bring relative to the generations that succeeded them. The baby boomers had a nice run as the largest (and therefore the most influential) generation in US history. It’s over. And many (maybe most) boomers are not pleased with their replacements.

Millennials are the most change adaptive, “open source”, creative people you’ll face as competitors in the next 20 years. Don’t be fooled into thinking they are either lazy or unproductive. One of the least obvious, yet most critical factors in the friction between people over 50 and the Millennial generation is that the Millennials think very differently. Not only that - they work differently. They are much less likely to subscribe to things like “the customer is always right.” As you know, he isn’t. And in the not too distant future that sort of customer service will be a thing of the past. You notice there are no more elevator operators. Walmart even got rid of the Boomer greeters.

Things change. They’re changing so much faster now that you may mistake change for something else. It’s not. You may have already figured some of this out, yet missed the significance it has to your business Did you know more people under 25 are operating successful small business than ever before. And if you did know - have you figured out what that means for your business?

There are adolescents making more money than you with Youtube channels and Twitter feeds. This is not a fad. This is change you pay attention to. Don’t have one of your Millennial employees nursing your Instagram feed? You may not even understand why that’s a mistake.

The advice from this side of the divide - from a 62 year old Boomer - is that you keep an eye on that crazy kid in the stock room. You think he’s wasting time on Facebook; he’s actually reading something about his job that might make you money.

Need smart business advice about what’s next?

The CPA and the Airline Pilot

Stick to what you know . . .

Stick to what you know . . .

It's early summer. The last thing you're thinking about is taxes. And that's good, because that's what you pay me for.

But occasionally when clients have a tax question, or are wondering how something they are doing will affect their tax situation - they don't take a minute to phone and ask me about it.

They should.

Many times actions you take and events which occur during the year can have a profound effect on your tax situation. Waiting till tax time to ask about taxes can be costly.

A client of mine inherited land in the 1970s. She sold it in 2018 for a large sum and reinvested the money in other real estate. A colleague of hers mentioned that "inheritances are not taxable." My client took this to mean that appreciated property, if it was inherited, could be sold tax free... There's a kernel of truth in that statement. When property is inherited, the person receiving it does not, in fact, owe any taxes on the inheritance.

But if the inherited property is sold 50 years later for $1 million more than it was worth when you got it, an enormous amount of tax will be due. But she didn’t call me. Everything turned out OK, but it would have turned out better if she would have just given me a short call before the transaction.

When I asked my client why she would take tax advice from a colleague (my client is an airline pilot) she really didn't have an answer.

Frequently when we hear an answer we like, we run with it. Don’t do that with taxes. Very few people who aren’t CPAs or lawyers know very much about taxes. Never was “A little information is a dangerous thing” more true than in the tax world.

You can count on for two things:

1. Solid, accurate tax advice and counsel.
2. Our CPAs will never attempt to fly passenger jets.

Maui.Tax If you need something, say something.

ITS SUMMER!!! What does a tax accountant do after tax season? 

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Things don’t stop on April 16.

Many of my clients after April 15... should have been my clients BEFORE April 15th! MAUI.TAX helps folks who are filing late... all year long. If you haven't filed yet get in touch and we'll get things straightened out. Don't wait long, back year income tax problems are some of the most stressful financial issues there are. If you have seriously delinquent back taxes, you need a local professional, not an online tax relief firm. The cost for a local CPA is generally less than a tax relief company, and ... we'll actually get your problems solved. Call me, if you're having tax problems - let's get them solved.

A Letter From the IRS

An IRS letter landing in your mail box is almost never a good thing. Unless it’s a refund check. Most letters you’ll see from IRS are generated via an extensive (and frequently inaccurate) computer matching system. These letters represent approximately 75% of all audits IRS conducts.

Hawaii Real Property Tax Act (HARPTA)

Planning ahead when you decide to sell your real estate can save you precious cash flow by minimizing or eliminating the amount of HARPTA that will be withheld from your proceeds at the closing table. There are exemption applications which may eliminate or reduce the amount of HARPTA withholding. These exemptions require timely filing and must occur well in advance of the closing date.

How’s your Refund?

I find a lot of my clients misunderstand tax refunds. If you don’t work with with these things every day, it can be difficult to understand the relationship between your tax liability and your refund. Think of your taxes in three separate chunks:

Hawaii General Excise Tax

It applies to basically everything and almost no person or business is exempt from it. Unlike sales taxes in other states, the Hawaii GET applies to everything from groceries to rents and even medical services. If you are receiving money in a business transaction of any kind selling to an end user in the state of Hawaii: you owe the state 4% of the amount of the transaction.

What Just Happened With My Refund?

First, let’s get straight precisely what a tax refund is and why you normally get one. A tax refund is what’s left over after your tax bill has been paid. Your tax bill is the amount of tax you owe on your income. Your refund is the amount of money you gave the government over and above what you owed.