Q: I experienced unusually high medical expenses in 2003. In addition to my out-of-pocket costs, I contributed $2,500 to my company flexible spending account (FSA) and used up all the funds. Can I count those FSA expenses as deductible medical expenses? J.B., Winslow, Ariz.
Reports about the demise of family limited partnerships (FLPs) are greatly exaggerated.
The IRS turns a skeptical eye toward what it deems "unreasonable compensation" paid to C corp owner-executives. The taxman can decide your salary is too large and label part of it as a nondeductible dividend.
Tax-free is always better than tax deferred. So if you stashed your retirement funds in a Roth IRA account, you can collect tax-free cash while enjoying your retirement.
Q: My C corporation sold a long-term gain property this past summer. The gain amounted to $24,000 (rounded off). Do we benefit from the reduction in capital gains rates? O.T., Cincinnati, Ohio
Q: My son just started a new job where he’s required to wear a suit and tie. Since he had to buy several new suits for this position, can he deduct the cost. G.R., Islip, N.Y.
An S corporation operates a "pass-through" entity, meaning all corporate income and deduction items pass through to shareholders, who then report those amounts on their personal returns. Result: You owe personal income tax on your share of S corp profits.
Donations to charities offer tax savings as well as the chance to support your favorite cause. But don’t let a charity use your money for causes you don’t support. A bit of advance planning can make sure your dollars go where you want.
Check your stockpile of Series EE Savings Bonds. Time is running short on a great tax-deferral strategy.
When my son was born, relatives gave him Savings Bonds. Now that he’s going to college, we want to use some of those bonds to help pay tuition. Do we have to pay tax on the income?