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Showing posts from December, 2006

New Tax Law Has Many Tax Breaks

Wide-Ranging Tax Gifts
For Businesses
and Individuals


Before heading home for the holidays, Congress passed a long-awaited bill that retroactively extends several valuable tax breaks that expired last year. The law also includes a new deduction for certain taxpayers buying homes in 2007, and it contains several provisions that make Health Savings Accounts more attractive.
Why Some IRS Forms
Are Already Out of Date
For the 2006 Tax Year



The Tax Relief and Health Care Act of 2006 is filled with many provisions that can save taxpayers money. Unfortunately, it was passed after the IRS printed the tax forms and other materials it provides to taxpayers. In some cases, printed materials will not have a line for certain deductions, such as the one for state and local sales taxes.
The tax agency is now scrambling to print new mailings, update information on its Web site and launch a media campaign to inform taxpayers about the new and extended tax breaks. Professional assistance in the p…

529 Plans are Good Tax Investment

Section 529 Plans Can Provide Tax-Smart Learning for Kids and Adults

Contributing to a Section 529 Plan before year end on behalf of children or grandchildren can be a wise idea. But have you ever thought about

one of these tax-favored accounts for yourself — to pay for post-secondary courses you might want to take in the future?
Adults can open up Section 529 plans (also called Qualified Tuition Programs) and make themselves the beneficiaries. The plans allow you to put money in a state plan for tuition, fees, books, supplies, and equipment that are required to attend an eligible educational institution.
What's an eligible school? "It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions," according to the IRS.
That means you can generally use withdrawals to study for a second career, go to graduate school, or do coursework in retirement.
Section 529 advantages include:
Your ac…

Purchase Equipment before Year-End!

Purchase Equipment before Year-End!

Under current tax guidelines, businesses can deduct up to $108,000 in equipment purchases, as long as they do not buy more than $430,000 in equipment. Therefore, if you're going to buy something in January, buy it now and get the deduction this year !

YEAR END TAX PLANNING

YEAR END TAX PLANNING

Help Minimize Your
Company's 2006 Tax Bill


A basic principle of year-end tax saving is, accelerate deductible expenses into this year and defer income until next year. Of course, that doesn’t work in all cases. The right strategy for your company depends on several factors, including how you answer these questions:
Does your business operate on a cash or accrual basis?

Do you expect a profit or a loss for 2006?

Do you anticipate that 2007 will bring significantly higher revenue or expenses, or a tax bracket change?
Depending on the answer, you could be better off reserving some tax breaks for next year or New Court Case:
Accounting for Inventory Shrinkage

Astute inventory accounting at the end of the year can help improve the bottom line. But as one new Tax Court case illustrates, there’s no need to be greedy.

Facts of the case: The Tax Court ruled that a company could not increase reported purchases by the same amount it had properly allocated to invent…

Is New Wife Liable for Husband's Prior Taxes?

Is New Wife Liable for Husband's Prior Taxes?

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Question:
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Category: Tax and Taxation Law
Location: VA
Subject: responsibility

If I marry a man that has back taxes due federal and state will I be responsible for his back debt also?


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Reply:
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Category: Tax and Taxation Law
Location: VA
Subject: Re: responsibility

No, you will not be responsible for the prior taxes of your husband. Nevertheless, if you file a joint tax return, the IRS will keep the refund and apply it to his past due taxes. You would then have to fight to get it back. You should talk to a tax lawyer to answer your questions.

My web site www.taxesq.com has some articles which may help you.

I hope this helps!

Ron Cappuccio


Don't Be Fooled by Jackson Hewitt's 'HELP'

 Don't Be Fooled by Jackson Hewitt's 'HELP'
PR Newswire via NewsEdge Corporation :


Jackson Hewitt, a leading tax preparer with more than 6,000 offices throughout the country, claims they want to "HELP" low-income consumers this year. Their "HELP" though is an expensive and risky loan known as the Holiday Express Loan Program or "HELP." "HELP" loans are based on a taxpayer's projected 2006 tax refund calculated only with paystub information, and not official tax documents. Jackson Hewitt started offering HELP loans on November 13 and will continue the program through early January. Click Here for the full article.