When to donate your stock …when it has appreciated (and you’ve owned it for over a year).  Just donate your appreciated stock to a nonprofit and get a full write off for the full value at the time of donation.  You won’t pay tax on the appreciation of the stock.  If you had sold the stock, and then donated the cash, you would get hit with capital gains taxes.

When NOT to donate your stock …when it has declined in value. Instead, sell it, take the loss on your tax return (which may possibly offset other ordinary income up to $3,000) and then donate the cash.  If you donate the stock after the value has declined, then you have lost the chance to deduct the loss on your tax return.

Now you know…

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“Effort only fully releases its reward after a person refuses to quit.”

Napoleon Hill

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GoSee Thriveal's Three on Thursday!1.  Upstate SC woos three electric vehicle manufacturers – GoSee

2.  SugarSynch for business allow you to “backup, access and share your files” between mobile, PC and Mac – GoSee

3.  Dropbox is another service allowing you to synch files across multiple platforms – GoSee

Thanks, Jason M. Blumer

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Dave Barber, CEO of Dynamic Realty, Inc., Jason M. Blumer, CPA, and Rick Stroud, Founder of Dynamic Realty, Inc.

Dave Barber, CEO of Dynamic Realty, Inc., Jason M. Blumer, CPA, and Rick Stroud, Founder of Dynamic Realty, Inc.

It’s pretty rewarding when you get a client that is interested in developing strategic thought in their business, and change the common models that their industry often operates under.  I love clients that let us dive into their businesses, use our expertise in process design, and the implementation of new business technologies to make business smarter, more effective and more profitable.  And that is exactly what our firm has in Dynamic Realty, Inc.

I can see it coming a mile away.  I knew Dynamic Realty was different when they had to sit down with me and draw out their innovative plans for the future, how our firm fits into that model and what counsel they needed from me.  I’m geeking out about it just thinking about our first meeting (I know, I know, I’m a nerd).  But it sure is fun when the client is innovating in new unknown ways, and they seek your help to get there.

Dave Barber, Dynamic’s CEO, and Rick Stroud, the Founder and Owner of Dynamic Realty, Inc., came to my office for over an hour to talk strategy.  Their models of how the real estate market will change in our country are phenomenal, and I can’t wait to be a part of making it happen.  We got to share how our new models of service may be exactly what they are looking for to make their ideas work… and they fit like a glove!  We also got to share some newer technologies that take our clients’ businesses into the clouds and eventually make their processes paperless (you can have it too!).  Yummy.

Discussing the Dynamic Plan!

Discussing the Dynamic Plan!

If I told you what their plans were to change the Greenville real estate market, I would have to promptly dispose of your body in a dark alley somewhere (and then Dave and Rick would dispose of my body in that same alley).  But I digress.  As we do with all of our Client Highlights, we asked Rick and Dave to answer a few questions about what they see in business and how our firm can help them:

1.    What have you or your organization done to remain competitive and successful?
Dynamic Realty is redesigning our operation in order to more adequately respond to the expectations of today’s home buyers and sellers.  We are deploying small “client specialization” teams throughout the state.  These teams will be available to the customers who want more than what most general practitioner Realtors can provide.

Our “client specialization” agents will have expert knowledge of their specific real estate customer’s needs.  The market has become too diverse and complex to be a one-size-fits-all Realtor.

2.    What do you or your organization foresee as the greatest business obstacle in the near future?
One of the more serious obstacles facing our industry is over-manipulation of the housing market by the federal government.  It can be very challenging to stay ahead of knee-jerk reactions that will at best produce only short term solutions and unfortunately only create bigger problems.

3.    What do you enjoy most about your work?
Being a vital participant in a home buying or selling experience that has a happy ending.  Most of the time it’s easy to conduct the mechanics of buying and selling…but it’s something much different and far more satisfying to finalize a transaction and leave a trail of raving fans of our organization.

4.    What has the Blumer firm done to assist you in furthering your business and its operations?
We chose the Blumer firm because they weren’t like the other run-of-the-mill accounting firms in town.  They offer a fresh and innovative perspective on service and process that was a perfect match for the way we are expanding our company. They provide us access to resources that we can’t get or would be value prohibitive for us to do on our own.

Giving Dynamic a New Perpective!

Giving Dynamic a New Perspective!

Dave, Rick and Jason Geeking Out!

Dave, Rick and Jason Geeking Out!

Devising the Plan for Future Growth

Devising the Plan for Future Growth

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Bad Business Model
Bad Business Model

One of the main problems with a bad business model is offering too many services under one roof (i.e., one common corporate shell).  And even if you offer different services under separate corporate structures, then you are still stretching yourself beyond what you can be BEST at.

<—Mable Peabody is breaking one of the foundational rules of the Good To Great book: The Hedgehog Concept (see review here).  In his research, Jim Collins found that the companies which went from to Good to Great:
1.  Only did what they could be the best in the world at,
2.  Figured out what the single denominator, or profit per x, which drove their “economic engine”, and
3.  Only pursued what they were passionate about

So you need to rethink your model when it involves too many offerings.  There are other ways to make money, but they may not be the ways YOU should make money.  You can’t do everything well.
Make sure you are passionate about what you do, and that you can be your best at it.

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Largest flawless quartz sphere. Displayed at N...

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Would you make different tax decisions now if you could see the future?

- What if the first time home buyer’s tax credit was NOT going to expire December 1st, 2009?  You wouldn’t have to “hurry” and buy a house this year, would you?

- And if you aren’t a first time home buyer, and knew the tax credit would be extended to those beyond first time home buyer’s, would you wait just a few months before buying a new home?

- What if you knew the Bush tax rates won’t change until after 2010?  That is, what if you knew that the top tax rates will be raised back up to 39.6% after 2010?  Would that change what you sale or what you recognize as income in 2010?

I’m just sayin’…

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John Adams

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“In my many years, I have come to a conclusion that one useless man is a shame, two is a law firm, and three or more is a congress.”

John Adams

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GoSee Thriveal's Three on Thursday!1.  Review of Windows 7 from PC WorldGoSee

2.  Review of Windows 7 from CNETGoSee

3.  Review of Windows 7 from EngadgetGoSee

Almost all reviews I’ve heard have been good, and a welcomed change from Vista.

Thanks, Jason M. Blumer

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Our Firm's CRM/Practice Management System

Toward the end of 2008 I set out on a journey to find a solid CRM (Client/Customer Relationship Management) system for our firm.  I knew it was time to employ another system that would allow us to better serve our clients with efficiency and knowledge.  I wonder if it’s time for you to research this same system for your company, and ultimately for your clients?  Let me know (Yes or No) in the comments above.

Here is how Inc. Technology put it: “With effective CRM processes and technology, you can build a single “book of truth” about each customer. It’s a data warehouse that chronicles each customer’s history.”  I knew I needed this.

Several things are important to remember in researching this system:

(1)  We needed a system that would employ other aspects of a professional firm as well, like managing time and billing.  Our CRM would not only allow for management of the “relationship intelligence” of our firm, but the management of our staff’s time and the production of invoices from that time,

(2)  You can’t employ a CRM system (or any other large IT project) without first employing a company-wide process to place the new technology “on top of.”  That is, technology is only to be used as a tool.  When a process is first implemented in a company, then, and only then, should a technology be employed to use that process more efficiently.

(3)  All good systems still require constant staff training, continued improvement, and on-going monitoring,

(4)  Though the CRM system will allow you to gather more information about your clients, it is ultimately to be used to serve your clients better (a great point from the article above), and

(5)  Large implementations of technology require time and commitment to fully realize the benefits.  Understand this when deciding to implement these systems.  Without this knowledge, you will burn out early in the use of the product and never see the benefits that come to those who stick with the technology to the end.

Any other thoughts on implementing CRM systems (or other large technologies) in your company?

Thanks, Jason M. Blumer, CPA

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10 Euro starwars
Image by hegarty_david via Flickr

As a reminder to our clients and friends, you are required to file a Report of Foreign Bank and Financial Accounts (FBAR) if -

(1)  you are a “United States person” (includes citizens and residents of the US, as well as green card holders),

(1)  you have significant authority (i.e., signature authority) over a foreign bank/financial account, and

(2)  the aggregate value of that account exceeds $10k at any time during the year.

The form is due June 30 of each year (for the previous year), and the civil penalties are $10k for non-willful compliance, or MUCH higher if the non-compliance is deemed to be willful.

Please don’t forget to let us know if you have cash in a foreign bank account!

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