Do you plan to raid your retirement plan early? If you use the money for medical payments, you can avoid the usual 10 percent penalty tax on early withdrawals.
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: I operate a small relocation company with 10 full-time employees and a few part-timers. We don't have a retirement plan. I remember reading something recently about a tax break for setting up a plan. Is there such a break? E.R.M., Chicago, Ill.
Q: I'm 56, my wife is 55 and both of our kids graduated from college. I maxed out my 403(b) plan at work last year, but I still want to increase my retirement savings. If we're over the income limit for Roth IRAs, can we both contribute to nondeductible IRAs? T.R., Logan, Utah
Q: I am a private attorney going into practice. With the new 15 percent tax rate on dividends, am I better off tax-wise setting up the practice as a personal service C corporation, rather than a self-employed taxpayer filing Schedule C? J.J., Los Angeles, Calif.
Q: I realized a large long-term stock loss early in 2003 when the capital gain tax rate was still 20 percent. But I had to carry over part of the loss because I had little stock gain in 2003. Do I have to use the loss to offset gain taxed at only 15 percent in 2004? S.T.P., Lake Geneva, Wis.
Q: I am 72 and work part time. I earned $15,000 from my part-time job last year. Can I contribute to an IRA for the 2003 tax year? D.W., Jacksonville, Fla.
Q: I read your recent article about filing separate tax returns. If my wife and I file separately, do we simply split our itemized deductions? G.S., Manchester, N.H.
Q: For years, I've been giving away appreciated stock to my low-bracket children. I recently gave $11,000 worth of my C corporation stock to my daughter, who sold it. My CPA says this technique is not allowed. Is that correct? T.J., Virginia Beach, Va.
Q: My husband and I collectively earn $85,000 a year. Neither of us participates in any retirement plans. Can we both make deductible IRA contributions for 2003? I.M., Thomasville, N.C.
For many U.S. taxpayers, "March Mad-ness" has nothing to do with college basketball. It's all about dashing around gathering receipts, filling out forms, meeting with your tax guru and hoping you'll emerge victorious in the 1040 game.