The Potts Report

A Lame Duck- A Short History Lesson

What is a "lame duck"? It has nothing to do with income taxes, but here is an article in the Christian Science Monitor that explains the etymology of the term "lame duck" just as Congress enters its lame duck session.

The Potts Report Returns

The Potts Report has been inactive for several months. I began The Potts Report without a clear vision of what I wanted it to achieve. Who was my audience? Who was I writing for and on what topics did I know enough to write intelligently. I’ve been to the sweat lodge and received my vision for The Potts Report. When writing The Potts Report, the primary audience addressed will be the clients of Potts & Company. I will address topics that I feel will primarily benefit small businesses and their owners and professionals. The topics will be varied and address income taxes, reading financial statements, small business finance and management, marketing, creativity and innovation, technology, security, and just about anything else that I think my clients will find interesting and beneficial. Although my primary audience will be the clients of Potts & Company, I bet any small business owner or professional will benefit from reading The Potts Report.

Keep in mind I am a CPA, not a professional writer. I attended school in the seventies when the English curriculum was written, I believe, by educators still recovering from the sixties. My writing skills and grammar are weak. However, my ideas are strong. I will post at least once a week and it will be worth your time to read. Read On!

A Review of the Basics for Politicians and Their Appointees and Those That Wish to Be

 

For those of you with political aspirations please review IRC Section 61.

 

Section 61 of the Internal Revenue Code: Gross income defined

(a)  General definition.
Except as otherwise provided in this subtitle, gross income means all income from whatever source derived, including (but not limited to) the following items:

(1)  Compensation for services, including fees, commissions, fringe benefits, and similar items;

(2) Gross income derived from business;

(3)  Gains derived from dealings in property;

(4)  Interest;

(5)  Rents;

(6)  Royalties;

(7)  Dividends;

(8) Alimony and separate maintenance payments;

(9) Annuities;

(10) Income from life insurance and endowment contracts;

(11)  Pensions;

(12)  Income from discharge of indebtedness;

(13) Distributive share of partnership gross income;

(14) Income in respect of a decedent; and

(15) Income from an interest in an estate or trust.

(b) Cross references.
For items specifically included in gross income, see part II ( sec. 71 and following). For items specifically excluded from gross income, see part III ( sec. 101 and following).

Change.Gov…When?

One of the things that irked me about the Bush Administration was that he diverted government contracts intended for small businesses to Fortune 500 companies. Is Obama going to do the same thing? Read Obama Dropped Small Business Stimulus Plan Days Before The Election by Lloyd Chapman.

 

Let’s participate in the democratic process. Go to www.whitehouse.gov , hit contact us, and ask the White House if they are going to discriminate against small businesses.  I did.  I’ll let you know what if any response I get.

Food for Thought

Organizing Your Documents

Organization is a valuable skill.  The realization of its value is felt by many when gathering documents needed to prepare their income tax returns.  Organization saves time.  It can save money.  If you are fearful of the IRS examining your income tax return, organization can greatly reduce stress by giving you confidence that you can always find the documents supporting your tax deductions.

It may be time for you to develop your organizing skills.  Smead, a manufacturer of file folders, has some articles on their web site that may help you become better organized. (Click here). They also have a free booklet titled 100 Ideas for Better Organization that you can download in pdf format. Of course Smead wants you to buy their products and these tips are designed for that purpose. I am not endorsing Smead over any other folder manufacturer.  Buy hey, the information is free and you might find it useful.