Business Toolbox: Tips to Get Ready for Tax Season

capeandcoastbk on January 31, 2023

Robert Martin

Robert Martin can be reached at 508.568.1250 or robert.martin@osaicinstitutions.com

One of the most important functions of business records is to prepare you (or your accountant) for filing tax returns.

To help make things easier for yourself, you may want to set up a record-keeping system that captures information in a way that matches the demands of the IRS.

If you are a sole proprietor, you’ll want to familiarize yourself with the requirements for completing Form 1040, Schedule C.

Here are some tax considerations to remember in relation to your record-keeping system design (for more information, see IRS Publication 334, “Tax Guide for Small Business”):

  • If your small business is one that carries no inventory, then you can generally use the cash method of accounting.
  • If you produce, purchase, or sell merchandise, you typically must keep an inventory and use the accrual method of accounting. However, there are exceptions to this rule if you are a “qualifying taxpayer” or a “qualifying small business taxpayer.” You are a qualifying taxpayer if your average annual gross receipts are $1 million or less and your business is not a tax shelter. You are a qualifying small business taxpayer if: your average annual gross receipts are less than $10 million; you are not prohibited from using the cash method as defined by Section 448 of the Internal Revenue Code; and your business is an eligible business as defined in IRS Publication 538.
  • The business-related portion of deductible car or truck expenses may be the actual expenses incurred (including gas, oil, tires, repairs, insurance, depreciation, and rent or lease payments), or you may elect to take the standard mileage rate.
  • Small businesses may elect under IRC Section 179 to expense the cost of qualified property, rather than recover such costs through depreciation deductions.
  • You may deduct any contributions to employee benefit plans (such as health insurance plans and other fringe benefits) or contributions to pension or profit-sharing plans that are for the benefit of employees.
  • You may deduct the cost of business supplies purchased during the tax year.
  • You may deduct the cost of utilities associated with business use.
  • You can deduct professional fees, such as those paid to your accountant.

Remember to save any records and underlying documentation, such as invoices or receipts, relevant to your tax return for at least three years. And don’t hesitate to talk with your accountant or tax advisor for more guidance.

Robert Martin, CCSCS, CIMA, is an Osaic Institutions Investment Executive at Cape Cod Financial Services at Cape & Coast Bank. He can be reached at 508.568.1250 or robert.martin@osaicinstitutions.com. 

Investment and insurance products and services are offered through Osaic Institutions, Inc. Member FINRA/SIPC. Cape Cod Financial Services is a trade name of the bank. Osaic Institutions and the bank are not affiliated. Products and services made available through Osaic Institutions are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2023.

Business Toolbox: Are Your Bank Accounts Fully Insured? What You Need to Know about Deposit Insurance

capeandcoastbk on January 13, 2023

Glenn FitzGerald

Glenn FitzGerald can be reached at 508.568.3410 or gfitzgerald@mycapecodbank.com.

Most of us don’t spend much time worrying about how safe our money is in the bank. And we shouldn’t. However, during these uncertain economic times, it is more important than ever to be aware of a few nuances to ensure your bank is fully safeguarding your deposits.

FDIC Insurance is the first step.

The FDIC insures all deposits up to $250,000 per depositor, and most banks are FDIC insured. So, in the unlikely event that your bank failed or there was a bank run, you’d be covered for up to $250,000 of your savings, checking and money market account; certificates of deposit; and retirement accounts.

But what if you have more than $250,000 in deposits? What happens then?

Enter the Depositors Insurance Fund (DIF).

The DIF is a private, Massachusetts-based fund that covers savings and mutual banks. It fills the gap that the FDIC leaves behind. The DIF insures all deposits above the FDIC limits, meaning your money is one hundred percent safe, one hundred percent of the time. This applies to personal, business, nonprofit and government accounts.

All banks that are members of the DIF are also members of the FDIC. But the reverse is not true.  Most member banks display DIF signs on doors and at teller stations and note their membership in advertisements and marketing brochures. Look for “Member FDIC / Member DIF”. Or simply ask a customer service representative.

So, you checked and your bank provides DIF, what next? 

Absolutely nothing, There are no forms, no paperwork, no special fees. Your coverage begins the moment you open a deposit account. If your bank does not offer DIF, it is likely time to re-evaluate your relationship with the institution.

Peace of Mind

Again, when you deposit money in the bank, you shouldn’t have to worry about whether it will be there when you need it. Taking the small step to make sure your institution provides DIF coverage provides the peace of mind you deserve. And considering that no depositor has ever lost a penny in a bank insured by both the FDIC and DIF, that’s peace of mind you can take to the bank!

Glenn FitzGerald is an Assistant Vice President and Small Business Relationship Manager with The Cooperative Bank of Cape Cod. The Coop is a member of the FDIC and DIF.


Deposits at The Coop are 100% insured
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Key Factors to Keeping Your Credit Score Strong

capeandcoastbk on December 27, 2022

How to Pump Up Your CreditAs the New Year approaches, we’re all thinking about resolutions and goals. Before you dive in, consider reviewing your credit score. You may be asking, what goes into “good credit.” Let’s look at the five prongs that go into a credit score, starting from the lowest to the highest. So at 10% your credit mix.

  • 10% Current Credit Mix: That’s the profile of your accounts: credit cards, student loans, auto loans, home loans, etc.
  • 10% Inquiries: Multiple inquiries can damage your score because there’s the perception that you might be financially troubled. For example, if you’re applying for a mortgage and have four credit card inquiries and an auto loan inquiry, the underwriter might wonder if you’re going to have more debt that might affect your ability to repay. We wouldn’t worry about opening up one or two new store credit cards. However, going gangbusters and making five to 10 inquiries for new credit could affect your score.
  • 15% Length of Credit:  The longer you’ve had credit, the stronger your credit can become because you’ve proved a history of credit utilization.
  • 30% Account Utilization and Balances: This is a really key part, and it’s one of the biggest pieces that people can work on: how much credit you’ve used relative to your available credit line. If you have a credit card with $1,000 limit and have an $800 balance, that’s going to be flagged on the report as a bit risky and will negatively affect your score. So, what can you do? Look at your limit and keep your balance at or below 30% of that credit limit for the account. At the 30% mark, typically your credit is going to report neutral. If you’re above 50%, your credit is going to report negatively on a monthly basis even if you’re paying that bill. Over time, it could affect your scores and bring them down into a less than positive range.
  • 35% Payment History: Making sure you’re paying bills on time plays into that credit score. The payment history isn’t something that you can control retroactively, but your payment history does age. If you’ve had trouble making payments in the past and you’re able to get yourself back on track with making those payments on a monthly basis over time, your scores will improve.

Should I close my old credit cards?

You might think that by closing unused, old credit cards, you’d improve your credit score. Who cares about that Victoria’s Secret card from 15 years ago? Well, closing that can negatively affect your score because those old card could have positive payment histories or low utilization. They could sit there, behind the scenes, positively affecting your credit score.

What do the different levels of credit scores mean?

  • Poor: Anything under 580.
  • Decent: 580 to 660. Typically, for a mortgage, you’ll need above 620. Terms do get more competitive when you have a higher credit score because you’re a lesser risk.
  • Good: 680 to 720.
  • Very good: 720 to 780.
  • Excellent: 780 to 850.

I’ve got credit cards, but what if I never use them?

Bad idea. It’s called “ghost credit” because you don’t have any payment history. Remember, you need to use credit to build it. If you’re new to credit or trying to reestablish credit, consider getting a credit card and use it just for purchases you need to make anyway and pay it off in full at the end of the month. That way you’re not paying interest but you’re building credit in a positive manner.

If you have any questions, your banker is here to help. We can help solidify your plans as well as help achieve your financial goals. In addition, we can help you plan for those life-changing situations or unexpected expenses.

Here’s to a Happy New Year!

Charlotte H. Green is Vice President, Residential Mortgage Sales Manager.

The Coop Foundation Awards $40,000 in Grants to Local Nonprofits

capeandcoastbk on December 21, 2022

The Cooperative Bank of Cape Cod Charitable Foundation Trust Awards $40,000 in Grants to Local NonprofitsThe Cooperative Bank of Cape Cod Charitable Foundation Trust (The Coop Foundation) has awarded $40,000 in grants to six local nonprofit organizations dedicated to enhancing the quality of life in the region.

The new grants awarded mirror the bank’s corporate giving focus areas for fiscal year 2023 – Housing Initiatives and Solutions, and Social Justice and Racial Equity.

“I congratulate the extraordinary nonprofit organizations awarded Foundation grants this quarter – their dedication to making our communities better and more equitable places to live deserves recognition and support,” said Lisa Oliver, Chair, President and CEO, The Cooperative Bank of Cape Cod. “The challenges facing Cape Cod, especially the severe housing crisis, homelessness and poverty are significant and require all of us to participate in developing and implementing solutions, whether it be a financial commitment or through volunteerism.”

During the recent quarterly meeting of the Board of Trustees, the following grants were awarded:

  • $5,000 to Cape Symphony to support its ongoing initiatives to provide need-based financial assistance and scholarships for its arts education programs, which annually serve more than 20,000 school children throughout Barnstable County. Historically these scholarship awards range between 10% and 75% of the total tuition cost. In cases of extreme financial need, full scholarships will be ordered.
  • $5,000 to Health Imperatives, Inc. to support its Partnering for Progress initiative for improving the coordination of immigrant services in Barnstable County. The initiative will spearhead outreach into immigrant communities, deliver training to nonprofit organizations to better assist immigrants, conduct resource fairs for immigrants to obtain information and services and launch a working group of nonprofits to streamline, coordinate and remove barriers to immigrant services. Health Imperatives’ Hyannis location serves nearly 6,000 people annually, of which approximately 40% are immigrants.
  • $10,000 to Champ Homes for its Transitional Housing Assistance Program, an intermediate step between emergency shelters and permanent housing that serves approximately 75 individuals annually who are on the brink of homelessness. The program addresses immediate concerns such as hot showers, clean towels, clothing and toiletries, an address for mail services, and food. Additionally, participants work closely with a team of care coordinators to navigate continuing education, access healthcare, complete housing applications, obtain employment, and learn to advocate for themselves.

In addition, The Coop also distributed the next round of multi-year grants to three nonprofit organizations, including:

The Coop Announces Winners of 10th Annual #MyCapeCod Photo Contest

capeandcoastbk on December 9, 2022

Sandy Neck Lighthouse at Barnstable Harbor by Richard Bielen

Sandy Neck Lighthouse at Barnstable Harbor by Richard Bielen

The Cooperative Bank of Cape Cod has announced the winners of its 10th Annual #MyCapeCod Photo Contest.

The annual contest offers amateur photographers, age 13 and older, the opportunity to enter a photo that reflects what they think makes Cape Cod a wonderful place to visit, live or work. Photos are judged on originality, creativity, concept and photographic quality in four seasonal categories – #mycapecod Winter, #mycapecod Spring, #mycapecod Summer and #mycapecod Fall.

The grand prize winner of the 2022 contest is Richard Bielen, whose photo is of Sandy Neck Lighthouse and Barnstable Harbor. Bielen will receive a $200 VISA Gift Card and his winning photo will be featured on the front cover of the bank’s 2023 Community Calendar.

Additional winners, along with photo titles and the towns where they were taken, include:

First Place – photos featured in 2023 Community Calendar and a $100 VISA gift card:

  • Summer category – Lauren Colon, Crimson Moons (Falmouth)
  • Spring category – Amy Homa, Art Cottages in the P-town Dunes (Provincetown)
  • Fall category – Paul Leidenfrost, Cranberry Harvest (Yarmouth)
  • Winter category – Erin Duffy, Not a Creature was Stirring (Yarmouth)

Second Place – photos featured in the 2023 Community Calendar and a $50 VISA gift card:

  • Summer category – John Flanagan, Aerial Art (Chatham)
  • Spring category – Elizabeth Johnson, April Sunset at Duck Harbor (Wellfleet)
  • Fall category – Kevin Gallagher, That Fall Moment (Yarmouth Port)
  • Winter category – George T. Slone, Arboreal Harmony (Yarmouth Port)

Runner Up – photos featured in 2023 Community Calendar:

  • Summer category – Katelyn Eppler, Mill Pond (Chatham)
  • Spring category – Jay Canale, Sunset over Herring Cove (Provincetown)
  • Fall category – Marilyn Harquail, Fall Folly (Yarmouth Port)
  • Winter category – Amie Medeiros, Warm Winter Glow (Yarmouth)

The Coop Promotes Six Client Relationship Employees

capeandcoastbk on December 1, 2022

The Cooperative Bank of Cape Cod has announced the promotion of six client relationship experts in recognition of individual performance and successes within the organization.

“Our client focused personnel represent the front-line of the bank and have the important role of interacting with The Coop’s clients and small business customers on a daily basis,” said Lisa Oliver, Chair, President and CEO, The Cooperative Bank of Cape Cod. “I congratulate this dynamic, talented and dedicated group of employees on their well-deserved promotions. It is a pleasure to reward their exceptional professionalism, expertise and community commitment with advancement to new positions within the organization.”

The promotions include:

Glenn FitzGeraldSarah Duffany, Branch Manager - Small Business Specialist in our Falmouth and North Falmouth branchesHeadshot of Gina KirkseyKim Kvietok - AVP, Branch Manager - Small Business Specialist in our East Dennis Officeheadshot of Jen Deutsch, Universal Banker in our East Dennis BranchCrissy Smith, Assistant Branch Manager in our Falmouth and North Falmouth branches

  • Glenn FitzGerald, Small Business Relationship Manager: Glenn, of Plymouth, joined The Coop in 2019 as a Branch Manager – Small Business Specialist in the Yarmouth Port branch, and quickly became a trusted and valued advisor to local clients. He was also instrumental in assisting business clients with the PPP loan process during the height of the COVID-19 pandemic. Glenn previously held senior positions at State Street Corporation and Fidelity Investments.
  • Sarah Duffany, Branch Manager – Small Business Specialist for the Falmouth branches: Sarah, of Wareham, joined The Coop in 2016 as a Universal Banker and was promoted to Assistant Branch Manager in 2019. She has completed the Massachusetts Bankers Association Branch Manager Certification Series and currently serves as an Ambassador for the Falmouth Chamber of Commerce and is a Director for the Bands for Badges organization. She also received the Cape & Plymouth Business 40 Under 40 in 2022.
  • Gina Kirksey, Branch Manager – Small Business Specialist for the Yarmouth Port branch: Gina, of Yarmouth, joined The Coop earlier this year as manager of the Marstons Mills branch. An accomplished financial services professional with more than 25 years of banking and retail management experience, Gina previously held management positions at Santander Bank and Bank of America. She is active in community affairs and has volunteered with nonprofit organizations including Habitat for Humanity, United Way and Make-a-Wish Foundation.
  • Kim Kvietok, Branch Manager – Small Business Specialist for the East Dennis branch: Kim, of South Dennis, joined The Coop in 2005 and has been promoted several times to positions of increasing responsibility, most recently to Assistant Branch Manager in 2016. She is active in the Dennis Chamber of Commerce, participates in several local charity events and is currently in the process of establishing a women’s business group.
  • Jenn Deutsch, Assistant Branch Manager for the East Dennis branch: Jenn, of Dennis, joined The Coop in 2018 and has held the positions of Teller, Senior Teller, Universal Banker and Floating Supervisor. She is committed to providing exceptional service to clients and branch teams, is an active community volunteer and currently serves as a Director of the Dennis Chamber of Commerce.
  • Crissy Smith, Assistant Branch Manager for the Falmouth branches: Crissy, of Mashpee, joined the Coop as a Floating Supervisor in 2016 and was promoted to Floating Supervisor Team Leader in 2021. During her tenure, Crissy has supported clients at each of the bank’s nine branch locations.

Tis the Season for Scams and Scoundrels

capeandcoastbk on November 30, 2022

beware of holiday scamsThis time of the year we always see an increase in both Debit/Credit Card Fraud and Social Engineering Scams.  Here at The Cooperative Bank of Cape Cod, we have a number of tools and resources you can use to be on guard for Fraud attempts and how to spot Scams.

When it comes to keeping watch over your accounts and the transactions debiting and crediting your accounts, The Cooperative Bank of Cape Cod has a number of useful tool to help you.  Online Banking and Mobile Banking are available 24 hours a day, seven days a week.  When enrolled in these products, you may set up various notification and alerts that will inform you of various types of activity.  With our Mobile Applications, you can even turn on or off your Debit Card if you suspect fraudulent activity.  Visit https://staging.thecooperativebankofcapecod.com/manage-my-cards/ for more information.

Are you using Zelle?  It’s a fabulous tool to instantly transfer money to people that are well known to you. What happens when you’re unsure about using Zelle to pay someone you don’t know?  If you don’t know the person, or aren’t sure you will get what you paid for (for example, items bought from an online bidding or sales site), you should not use Zelle for these types of transactions.  We have an entire Frequently Asked Questions page about Zelle on our website, you may access it here https://staging.thecooperativebankofcapecod.com/zelle-faqs/

 

A scam does not have to be elaborate to fool someone.  Scammers have a vast toolbox they can pull from to use tried and true scams from years gone by to more elaborate scams using today’s most advanced technology.  Whether the scam is old or new, these scams usually have warning signs that should help you spot them.

Scammers usually pretend to be contacting you from a legitimate organization.  It is very easy for a scammer to manipulate the phone number you see displayed in the caller id on your telephone.

Always authenticate who you are speaking to and learn the Warning signs of a scam:

  • Pressure for you to act immediately
  • You are in trouble with the government (IRS, Local Sheriff, etc.)
  • You have won a prize
  • Scammers will manipulate the method they want you to pay them
    • Such as gift cards
    • Or, they may send you a check and ask for you to send money back; however, the check they sent you turns out to be fake

How you can avoid Scams:

  • Authenticate who you are really dealing with outside of the initial contact. For instance, if the caller claims to be from the IRS, get off the call, look up the phone number for the IRS, then call the IRS office directly.
  • As a rule of thumb, NEVER give out personal or financial information for a request you were not expecting or you did not initiate.
  • Slow down, think, and then respond. You should not feel pressured into acting immediately.
  • Get a second opinion! Stop and ask someone you trust.

For more information, please visit one of the following resources:

The Cooperative Bank of Cape Cod’s website security page:

https://staging.thecooperativebankofcapecod.com/resources/your-security/

The Federal Trade Commission (Identity Theft and Online Security)

https://consumer.ftc.gov/identity-theft-and-online-security

2022 Stuff A Stocking at The Coop

capeandcoastbk on November 22, 2022

Dad with daughter outdoor in winterHelp local families this holiday season by bringing donations of warm accessories, books and gift cards to any of our branches. The unwrapped items can be dropped into the giant stockings located at each branch through Friday, December 16th.

This year’s Stuff A Stocking will benefit:

Homeless Prevention Council works directly in our community with our neighbors in need. They are confronting the housing crisis by providing support and resources to ensure that everyone in our community can thrive.

Items needed: 

  • Hats
  • Scarves
  • Gloves or mittens
  • Socks
  • Children’s books
  • Gift Cards for teenagers
  • Gift Cards to local grocery stores for families

Monetary donations also can be made directly to the Homeless Prevention Council online, as well.

The Coop supports local food pantries on Giving Tuesday

capeandcoastbk on November 21, 2022

Giving Tuesday 2022For the ninth consecutive year, The Cooperative Bank of Cape Cod will support local food pantries for Giving Tuesday 2022. The Coop will donate $10,000 to 10 local pantries serving communities from Falmouth to Provincetown.

“With inflationary pressures and the worsening housing crisis, the number of people across Cape Cod experiencing food insecurity has never been higher,” said Lisa Oliver, Chair, President and CEO of The Cooperative Bank of Cape Cod. “The Coop applauds the dedication and hard work of these food pantries and their volunteers to ensure Cape Cod families have food on the table. Please join us and generously support our local food pantries during the holiday season and throughout the year.”

The pantries receiving $1,000 donations include Cape Cod Military Support Empowerment Center; Falmouth Service Center; Family Table Collaborative; Hands of Hope Community Outreach Center and Food Pantry (operated by Cape Cod Council of Churches); Helping Our Women; Lower Cape Outreach Council; Sandwich Food Pantry; SKIP (Soup Kitchen in Provincetown) Food Pantry; The Family Pantry of Cape Cod; and Yarmouth Food Pantry.

Giving Tuesday was established in 2012 as a dedicated day during the holiday season to encourage people to do good. Over the past decade, Giving Tuesday has grown into a global movement that inspires hundreds of millions of people to give, collaborate and celebrate generosity.

The Coop’s nominee FAIR Project Inc. receives grant from Massachusetts Bankers Association Charitable Foundation

capeandcoastbk on November 21, 2022

The Cooperative Bank of Cape Cod announces that FAIR (Financial Assistance in Reentry) Project, Inc., its nominee for a Massachusetts Bankers Association (MBA) Charitable Foundation award, has received an Honorable Mention designation with an accompanying $1,500 grant.

FAIR Project, Inc. is Cape-based nonprofit organization that is dedicated to improving the lives of formerly incarcerated people through financial lending and community support. It helps recently released individuals legitimately overcome financial barriers to get resettled in their communities by providing low-interest loans. Repaid principal and interest are reinvested, which increases the organization’s capacity to serve more individuals.

“FAIR is very grateful to the Massachusetts Bankers Association for their generous donation, and to The Cooperative Bank of Cape Cod for nominating us,” said Jud Phelps, vice president, FAIR Project, Inc. Board of Directors. “The formerly incarcerated population on Cape Cod is a vulnerable group who face unique challenges. FAIR will put this donation to good use and make a significant difference in the life of a person who truly needs it.”

Additional information about FAIR Project, Inc. can be found here.

“FAIR Project gives hope for the future by providing a second chance to formerly incarcerated individuals returning to the community and looking to rebuild their lives,” said Lisa Oliver, Chair, President and CEO of The Cooperative Bank of Cape Cod. “The Coop is proud to support FAIR Project and its efforts to provide clients with resources needed for successful reentry and reducing recidivism.”

Past recipients of funding from the MBA Charitable Foundation nominated by the bank include Amplify POC Cape Cod, Calmer Choice, Cape Kid Meals, Duffy Health Center, and Pause A While.