Financial Services News

Moorman, Harting Financial Services, Ltd.  
Recognized for Accomplishments at
1st Global’s 2007 National Conference

James W. Harting and Alan E. Wolters representing
Moorman, Harting Financial Services, Ltd., with Eagle Award

Moorman, Harting Financial Services, Ltd. was recognized for it’s achievements in wealth management at 1st Global’s Sixteenth Annual National conference, held November 11-14, 2007, in Tucson, Arizona.  The conference titled, “Making Your Mark in Wealth Management,” provided attendees with an opportunity to network with fellow advisors and industry professionals, receive valuable education, and leave inspired with an array of new ideas and business-building resources.

 Top professionals and firms were recognized for their accomplishments over the past year during an awards celebration gala held at the conclusion of the conference.  The professionals at Moorman, Harting Financial Services, Ltd. were honored for their achievements with the Eagle award.

 The celebration dinner presented an opportunity to honor firms and individuals for a wide range of accomplishments.  Eagle awards were presented to top financial advisors and firms that have achieved specific goals set forth at the beginning of the year.    All of these prestigious awards are highly coveted because they are given only to select individuals and firms who truly excel in offering quality wealth management services to their clients.

 “Moorman, Harting Financial Services, Ltd.’s commitment to serve clients is what sets them apart.  Moorman, Harting Financial Services, Ltd is constantly seeking new opportunities to help their clients with financial solutions that will enable them to live their dreams,” said 1st Global CEO Tony Batman.  “We are honored to be able to recognize Moorman, Harting Financial Services, Ltd’s outstanding achievements and we wish them continued success in the future.” 

 Moorman, Harting Financial Services, Ltd. is affiliated with 1st Global Capital Corp., member FINRA
and SIPC, a Dallas-based broker/dealer that specializes in helping CPAs and tax professionals build total wealth management practices.  1st Global is headquarted at 8150 N. Central Expressway, Suite 500 in Dallas, Texas, (214) 265-1201.

 Accounting News

Tax planning ideas to keep in mind with the end of 2007 approaching:

 Small businesses and farmers may elect to immediately deduct up to $125,000 of equipment purchases in 2007.  The $125,000 maximum limitation begins to phase out dollar for dollar once $500,000 worth of assets have been placed in service for 2007.  For 2008, the expense limitation will increase to $128,000. 

 Maximize your retirement plan contribution for 2007.  You can defer up to $15,500 into your 401(k) plan, and $10,500 into your SIMPLE plan.  If you turn 50 by year-end, you can put away an additional $5,000 into your 401(k) and $2,500 into your SIMPLE. 

 Review your portfolio and consider selling securities that have gone down in value.  Losses on these securities can offset gains on profitable investments and reduce other ordinary income up to $3,000 each year. 

 Were you able to itemize your deductions in 2006?  If so, you may be able to save some tax in 2007 if you shift some expenses to 2007 from 2008.  Examples include increasing your charitable contributions, prepaying 2008 real estate or state income taxes in 2007, or making January’s mortgage payment in Dec. 2007. 

 The credit for purchases of an assortment of energy saving improvements and installing them in your main home expires at the end of 2007.  The credit percentage varies based on the energy efficient item purchased. 

 Until Dec. 31, 2007, purchases of SUV’s for business or farm use, weighing between 6,000 and 14,000 lbs will qualify for a $25,000 write off.  Beginning in 2008, only SUV’s weighing over 14,000 lbs will qualify for the $25,000 immediate expense deduction.  SUV’s weighing over 6,000 lbs and less than 14,000 lbs will be limited to a first year write off of $2,960 in 2008.

2008 Minimum Wage to Increase

Effective January 1, 2008 an increase to Ohio’s minimum wage will take effect:

$7.00
$3.50 for tipped employees (plus tips)

 The Federal minimum wage applies to these categories:

$5.85 for those employees whose employers gross under $255,000
$5.85 for 14 & 15 year olds

 July 24, 2008 the Federal minimum wage increases to $6.55.  Accordingly, those changes will apply to Ohio’s employers grossing under $255,000 and also to 14 & 15 year olds.

$6.55 for those employees whose employers gross under $255,000
$6.55 for 14 & 15 year olds

  For 2007, Congress has expanded the “Kiddie Tax” to include all children under the age of 18.  Previously, the tax only applied to children under the age of 14.  Beginning in 2008, the Kiddie Tax will apply to all children under the age of 19, and full-time college students age 19-23, if their earned income is less than half of their support.  These changes are going to significantly reduce the effectiveness of shifting income to children.  For 2008, unearned income of a child meeting the definitions above in excess of $1,800 annually is now taxed to the child at the parents’ top marginal tax rate. 

 Long-term capital gains may escape taxation beginning in 2008.  If you are in the 10% or 15% federal tax brackets, gains from assets held more than 1 year will be taxed at 0%.  The 2007 rate is 5%.  If you are in the 25% tax bracket or higher, gains will be taxed at 15% both years.  For 2008, the 25% tax bracket begins with taxable income of $65,100 and $32,550 for joint and single filers, respectively.  The 0% tax rate would only apply to the portion of the gains that fit in the lower brackets. 

 For 2008, contribution limits for IRA’s have changed.  The maximum contribution to a traditional or ROTH IRA increases to $5,000, with an additional $1,000 for those 50 or older.  The SIMPLE IRA contribution limit remains at $10,500 for 2008, with an additional $2,500 available for those 50 or older.  401(k) contribution limits remain the same as 2007, with a maximum of $15,500 able to be deferred and a $5,000 catch-up provision for those 50 or older. 

The social security wage base increases again in 2008 to $102,000, up from $97,500 in 2007.  As in prior years, there is no wage base for Medicare, and all wages are subject to this tax. 

The standard business mileage rate for 2007 is 48.5 cents per mile.  The 2008 standard mileage rate will be increased to 50.5 cents per mile.