Nila Rakhit consults with two CPA firms. She also works from her home office in Newton providing personalized and convenient services to her own clients.  

In mid to late ‘70s, she was in the insurance industry working on pension products.The ERISA (Employer Retirement Income Security Act) was just enacted and pension industry was in a takeoff. After getting her MBA in the early 80’s, she worked for a state board of banking, analyzing and recommending mergers and acquisitions of banks and bank holding companies.  This was the era when ATMS were not widely used.  Some states did not allow branch banking.  Interstate banking had not arrived yet.  In the mid ‘80s she changed my career and became a CPA and moved to Boston.  Around this time, Boston area businesses were becoming increasingly global. An opportunity opened up in the tax department of The Boston Consulting Group where she worked for over 10 years. While at BCG, she went back to school again to earn a Masters degree in Taxation from Bentley College. After BCG she worked at Monitor Company for a year. In 1999, with online internet facilities, she dared to go on her own and started her own practice.  

What are the services that you  offer in your firm ?
•    Start-up consulting
•    Tax planning and preparation
•    Financial Statements Preparation
•    Bookkeeping
•    Payroll Reporting
•    Other business and financial consulting

Looking for a little upside in an economic downturn?

At a time known for mortgage meltdown, bank failures, investment losses and natural disasters, believe it or not, a likely source of some relief may come from the U.S. Treasury itself.  Knowing how you can safeguard your bank deposits, what tax breaks are available to you, and how you may qualify, can be a first step to a recovery

What are the chances of being audited by the IRS?

Good question! Generally, if you are reporting all your reportable income and taking those deductions that are allowed or allowable by law, you do not have much to worry about (even if you are audited!)

What are some of the tax laws and changes in the recent past?

• Emergency Economic Stabilization Act of 2008 signed by President Bush on October 3, 2008:
•   increases the exemption amounts for the AMTo    extends to 2009 deductions for state and local sales taxes
•   tuition expenses
• teacher’s out-of-pocket expenses
• allows older taxpayers tax-free contributions of IRA funds to charity
• extends (thru 2016) credits and deduction for residential energy saving investments (was to expire in 2008).  Beginning 2008, residential energy credit can be taken against Alternative Minimum Tax Credit

• Provides for Refundable credits up to $7,500 for first time home buyers.  To qualify the home must be purchased after April 8, 2008 and before July 1, 2009
• Must be the first home owned in the past three years
• The credit must be repaid in 15 years in equal installments
• Phase out of the credit begins when AGI exceeds $75,000 for singles and $150,000 for couples filing joint returns
•  Provides for additional standard deductions for real property taxes
•   allows you to deduct state and local real estate property tax on your 2008 tax return even if you do not itemize.  
• You will be able to increase your standard deduction by up to $500 (single) or $1,000 (joint)
  

• Provided tax rebates to individuals up to $600 (Single), $,1200 (Joint) filers
•  Provided tax incentives to businesses for 2008:
• You may consider replacing worn-out business equipment vehicles before year end to take advantage of :
• Sec 179 expense deduction of $250,000 (increased from $128,000) for newly acquired assets that otherwise would have to be depreciated over a number of years (their useful life)
• An additional 50% special bonus depreciation
  

•  Excludes from taxable income up to $2million of certain home mortgage debts that have been forgiven.  Generally, forgiven debt is included in taxable income.  The rule (exclusion) applies to debt forgiven in 2007 thru 2012.  

• The rule applies only to debt incurred to purchase the principal residence.  It does not apply to home equity loans

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