Published for the
Clients and Other Friends of Zegarelli Associates
TAX LAW UPDATE
Recent changes to the federal tax law
(the "1996 Tax Law") will have a significant impact on
our business clients. In most cases, we believe that the impact
will be positive. Following are provisions which you should
investigate further, if any appear to apply to you.
The annual amount that may be
expensed for new assets has been increased from $17,500 to
$25,000 over a 6-year period. The 1997 amount is $18,000, and
$18,500 in 1998.
S corporation limitation of 35
shareholders has been expanded to 75 shareholders, effective for
tax years after 1996. In addition, the IRS now can approve S
status, even if there is an inadvertent failure to qualify. There
are also expansions on certain S corporation ownership
The law clarifies the
employee/independent contractor distinction, and provides a safe
There is a new retirement plan
called a Savings Incentive Match Plan for Employees (SIMPLE). It
may be in the form of an IRA or a 401(k). IRA contribution rules
have been expanded. The self-employed health insurance deduction
has been increased from 30% to 80% over a phase-in period. The
deduction is 40% in 1997, and 45% in 1998.
Employers may claim a tax credit
for certain FICA taxes paid on employee tip income. A home office
deduction is allowed for business expenses related to space
within a home regularly used to store inventory or product
Please call us for details on the new
law and how it may affect you. Also, consider adding these tax
planning issues to your annual meeting agenda or your annual
legal checkup. Provisions of the 1996 Tax Law will be explained
in more detail in future editions of our Client Update.
THE WORLD WIDE WEB
The "Internet," also known
casually as the "Information Superhighway" and the
"world wide web" is one of the most powerful means of
communication since the beginning of time. If you have the
entrepreneurial spirit, then you need to understand how the
Internet works, and how you can make it work for you! We have
implemented new services for our clients in good standing, even
if youre not on line. Read on for details.
What You Can Do.
How about: locate a person or company,
with address and telephone information get competitive
pricing and product information find an article on a
medical problem, or a map for a trip get the latest
government rulings, cases, forms or tax information search
for a certain word in every Shakespeare work get the
latest software updates contact someone across the block,
the country or the world, and have the mechanism for receiving a
written response in minutesat no incremental cost
give people the ability to learn about your products and services
at no incremental cost, with pictures and sound increase
your knowledge about almost anything.
With a few clicks of a button, you can
go from an IRS tax form to an encyclopedia to a video game.
Thats why its called "surfing the net." It
is the world in a window, right at your desk.
If business is war, the Internet is a
What You Need.
We represent many clients in the
computer industry, with different credentials and cost
structures, so we can give you referrals to get the equipment and
knowledge that you need. Many clients will offer you discounts if
you are also our client.
Remember that computers are now
sophisticated enough to think like you, rather than the other way
around. They talk to you, have pictures to help you, and are just
a lot friendlier than in the old days. If you cant afford a
computer right now, consider visiting a library or one of many
public facilities that offer Web access.
Surfing with Zegarelli Associates.
If youre already on line, then
you know what the Net can do as a business and communication
tool. We dont need to convince you. However, its
important that you know were on the Net.
All attorneys and staff at the firm
have access to the Net to communicate with you, and, accordingly,
we can get the latest government information or perform research
for you cost-effectively. We send and receive files, such as
contracts and electronic mail, in the ordinary course of
business. For example, we can e-mail you a word-processing data
file for a contract we wrote for you, so that you can make a
quick edit to a business issue without incurring additional legal
fees. Our web site is at http://www.zegarelli.com. Any
employee at the firm can be accessed at [initials]@zegarelli.com.
Whats On line.
All of our newsletters, such as our Legal
Links, and Client Updates are now on line. As
you might expect, you can perform text searches of all articles.
Best of all, our articles are cross-linked, as well as linked to
the relevant government office. For example, if youre
reading our Introduction to Copyrights article, when you
get to a section discussing the implication of being an
independent contractor on copyright ownership, with a click,
youre at the IRS web site relating to standards for
determining whos an independent contractor. Another click,
and youre back to the article. Where we mention the
Copyright Office, with a click, youre at the Copyright
Office web site, etc.
New Web Services for Clients.
To assist our clients leverage into the
Net, we have implemented new client services. Following are a few
casual introductory Internet definitions for the newcomers:
A domain usually consists of
("hosts") one or more web sites. For example, our
domain name is "zegarelli.com" (pronounced
"zegarelli[dot]com") and is usually used on a computer
with a technical introduction in the form of
"http://www.zegarelli.com." (E.g. if youre
sitting at your computer, and you type in this phrase, you will
then be looking at information about our firm.)
A web site resides on a domain
and is usually a collection of information about a company. Each
screen of information is called a "page." A
"home page" is usually a single page about an
individual or the introduction page of a web site. "E-mail"
(short for "electronic mail") is just a message that is
sent or received by telecommunication, via the Internet in this
Following are the client services that
what weve implemented for clients in good standing, on a
first-come, first serve basis:
Web Hosting: We can host your
web site or web page. For example, if your client name is
"ACME, Inc." we could host your web site at the
designation of "http://www.zegarelli.com/acme." You or
your consultant need to provide us with the complete web site
documents, and we will publish the site.
Links: We would be glad to give
your web site or e-mail designation a link on our "Cool
Links" web page. If you have a web site, then we ask for a
mutual link on your site.
E-Mail: If you need to send or
receive e-mail via the Net, but youre not on line, you can
have the firm handle it for you. To receive e-mail, have the
sender send the mail to "clientMail@zegarelli.com" (capitalization is not relevant). Have the sender
indicate your business and/or contact name on the first line of
the message. To send e-mail, just contact your attorney or
Responsible Legal Assistant with the information. Call Lisa Davis, Legal Coordinator, for information on these services.
Zegarelli Associates is pleased to
in the Client Spotlight. Pronounced "peez-i-ol-o",
our feature is a start-up restaurant with an emphasis in Italian
cuisineand has been very favorably reviewed by the Pittsburgh
Post-Gazette. It is open every day and has a great menu of
fantastic specialty pizzas, salads, and more! When you want a
great casual atmosphere for an evening out, try Pizzaiolo. They
certainly have the entrepreneurial spirit!
Pizzaiolo is centrally located in the Mt. Lebanon area of
Pittsburgh at 703 Washington Road, West Liberty Avenue,
Pittsburgh, PA 15228, and may be contacted at 412-344-4123.
As this month's feature client, Pizzaiolo receives a free web site at http://www.zegarelli.com/spotlight until our next issue of the Client Update.
Associates: We represent
the entrepreneurial spirit!®
Contact us today! Our firm can assist
you with understanding and applying the law to your particular situation.
Represent the Entrepreneurial Spirit®.
If you would like to obtain our other firm publications, please go
mailing list page.
Articles and information are for general information only, and often address
issues, without expressly indicating, in generalizations. Laws vary between and
among jurisdictions. You should not rely upon any
information provided by or on the website, including articles, as applicable to your
particular situation. The
law, filing fees, etc., change often, so the information in this document may
not be current. The laws of various jurisdictions may be different than provided
here. Please contact us at firstname.lastname@example.org
if you are interested in becoming our client--only then would this office be in
the position to provide advise with regard to your particular situation.
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Unless otherwise specified above, Copyright © 2004,2008 Technology & Entrepreneurial Law Group, PC. All rights reserved.
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