Pity the late Albert Strangi. He tried to save his family from estate taxes by transferring the bulk of his assets into a family limited partnership (FLP). But the IRS stepped in and nixed the tax benefits.
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.
It's not very often that the IRS lets you pull down tax-free income. So, take advantage of such opportunities when they pop up.
Q: My wife and I are getting divorced. I own mutual fund shares worth about $150,000, which are all in a taxable brokerage account in my name. If I transfer some of the shares to her as part of the divorce, do I have to pay tax on the gain over basis? A.R., Monsey, N.Y.
Q: I was interested in your special report on business education. (7/11/05 issue) Both of my kids work for me as employees and also attend college. I found a course on family business dynamics at a different college that I'd like my kids to take. If I pay for the course, can I deduct the cost? A.C.
Q: I have a carried-over capital loss of $6,500 from last year. Can I use this loss to offset some of my income from a required IRA distribution? S.B., Toms River, N.J.
By disclaiming an inherited IRA, you can pass the account along to someone else, free of gift tax.
If you shut down a business, you can't just lock the doors and turn out the lights. You must provide employees with W-2s by the due date of your final Form 941.
Does your teenage child have a summer job? Even though the pay may be paltry, the job is a valuable life experience. Now, you can teach your child another lesson ... about tax savings.
Just before Congress ran home for August recess, it passed a major energy bill that includes a few tax breaks aimed at consumers, manufacturers and home builders. President Bush signed the bill on Aug. 8.
Q: I retired earlier this year, but I'm starting a consulting business as a sole proprietor. In my line of work, I'll need to use subcontractors. But won't I be taxed in full on the 1099s that I receive from my customers? L.L., Pittsburgh