LMGW Continues its Commitment to Community with 1st Annual Community Volunteer Day

On September 27, 2013, LMGW employees left their offices, donned jeans and tennis shoes, and ventured out for a day of work in their community, establishing the tradition of LMGW’s Annual Community Volunteer Day.

Senior accountant Katie Vachon coordinated the 2013 event, acting as liaison with community leaders on behalf of LMGW partners and staff.  LMGW’s nonprofit organization of choice this year was the Boys and Girls Club of San Jose, Smythe Clubhouse. (http://www.bgclub.org/join-the-club/smythe/)

After meeting at the start of the work day at the San Jose clubhouse, LMGW partners and employees were briefed on their volunteer work for the day. Tasked with organizing the long-neglected donation room, the group set to work emptying the room. LMGW volunteers tackled boxes and bags of assorted donations  – meticulously sorting and categorizing, labeling, and later putting everything in their proper places.

Michael Bryant and Jacen Dickman took the lead in installing bicycle hooks on the walls, while Matt Wheeler, Tim Hoffart, and other staff moved equipment.  The Boys and Girls Club of San Jose, Smythe Clubhouse, gives the majority of donations it receives as prizes for member boys and girls who earn tickets for homework, awards, citizenship, and for other recognitions. LMGW staff working as a team created an organized, easily accessible donation room to benefit the children and families of Smythe Clubhouse. Read more

LMGW Seeks Experienced Senior Accountant – Opportunity and Advancement Await!

Advancement and opportunity await at LMGW Certified Public Accountants! LMGW is seeking experienced senior accountant to join our team of growing professionals during this exciting growth phase in our company. Potential candidates must be dedicated to a rewarding and successful long-term career in public accounting and be focused on personal and professional growth.

Applicants will:

• Have a passion for public accounting
• Be focused on advancement to partner and a firm to call home for their career
• Possess a high degree of technical competence and a strong sense of confidence in one’s own abilities
• Be eager to put in the hours it takes to achieve rapid professional growth
• Recognize the opportunity to be part of the growth and transition of a firm moving to the next level
• Keep the “big picture” view in mind at all times

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Trusts Pay More Tax than Individuals Beginning in 2013

One of the most common tools used in estate planning is a revocable living trust that splits into one or more irrevocable trusts upon the death of the grantor. Most often, the income earned by these irrevocable trusts is distributed to the income beneficiary during his or her lifetime and is taxed on the income beneficiary’s individual tax return. The problem is that not everything we think of as income is considered trust income. For example, capital gains are generally considered principal and not income.

Who Pays Tax on Trust Income? Income received by the trust is taxed either on the trust return (Form 1041) or on your individual income tax return (Form 1040). In order for you to pay the tax, rather than the trust, the income must be distributed to you. Please see more details about distributions later.

What Governs Taking Trust Distributions? The short answer is that most trust documents provide that income earned by the trust may be distributed to the income beneficiary at least annually. However, some receipts of a trust are considered principal rather than income. Unless the trust documents specifically permit the trustee to allocate these receipts to income, receipts such as capital gains are not permitted to be distributed to an income beneficiary and are taxed on the trust return.

Who Pays the Higher Tax? Prior to The Affordable Health Care Act and The American Taxpayer Relief Act of 2012, it made little difference to the ultimate tax bill whether the income beneficiary or the trust paid taxes. Generally, long-term capital gains and qualified dividends were taxed at 15% regardless of who paid the tax.  With the passage of these two new laws, the question of who pays the tax will become quite significant. Read more

LMGW Seeks Interns for Winter and Summer 2014

Advancement and opportunity await at LMGW Certified Public Accountants! LMGW is seeking interns to join our team of growing professionals during this exciting growth phase in our company. Potential candidates must be interested in a rewarding and successful long-term career in public accounting and be focused on personal and professional growth. Interns will have an opportunity to see how a successful accounting firm operates and will participate in projects such as tax returns, audits, reviews, compilations, litigation support, bookkeeping, and trust accounting.

Applicants will:

• Have a strong interest in public accounting
• Possess a strong sense of confidence in one’s own abilities and a drive to learn
• Understand it takes hard work and discipline to succeed, and look forward to proving oneself
• Recognize the opportunity to be part of the growth and transition of a firm moving to the next level
• Keep the “big picture” view in mind at all times

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