Q: In a recent Mail Call, you correctly answered a reader by saying that a tax refund would not be reduced by a Roth IRA contribution. (8/11/03 issue) But in stating that Roth IRA contributions don't affect current tax liability, aren't you omitting the use of the retirement tax credit? M.A.C., Union Beach, N.J.
Small Business Tax
Section 179 vehicles should be a key part of your small business tax deduction strategies. Can Section 179 property fit in with your business tax strategies?
Let Business Management Daily help you get each and every rental property depreciation credit and business tax deduction you’re entitled to.
Q: The annuity I bought a couple of years ago charges high maintenance fees. Will I have to pay any penalties if I withdraw my funds and switch to a different investment with lower fees? C.R., Mt. Pocono, Pa.
Q: We have a vacation home at the Jersey shore. We normally only use the house ourselves two weeks in September. But this year my teenage son and his friends spent a few weekends there in the fall. Do we have a tax problem? G.A., Mahwah, N.J.
Q: I have an outstanding loan for my oldest child's college tuition. I've received some credit card offers with lower rates than the existing college loan. Should I take one to pay off the college loan? K.H., Binghamton, N.Y.
Q: We own S corporation shares bought more than 12 months ago at $12 per share that now have a market value of $25 per share. If the shareholder dies, is the basis adjusted to market value at death? T.M., via e-mail
Q: I'm buying rental property with my brother for $425,000. Although we are joint owners with 50 percent ownership rights each, I'm putting $50,000 down, and he is putting down only $30,000. Will I be taxed on more of the rental income? S.S., via e-mail
Q: I liked your recent story on Section 529 college savings plans. (See 11/17/03 issue.) It made me wonder: I'm thinking about going to law school in a few years. Can I set up a Section 529 plan for myself? S.M.R., via e-mail
Parents on your staff face a big-time dilemma if they've got kids approaching the college years: How are they going to pay the ever-increasing tuition bills?
Staying one step ahead of the IRS isn't easy for most small businesses. One wrong step—a forgotten form, a lost receipt—could invite Uncle Sam's wrath.
Many business owners enter into "split-dollar" life insurance arrangements, in which the employer and employee share the cost of life insurance. But the IRS recently changed the rules, making those plans less attractive.