The homebuyer’s credit is drawing a lot of flak at the IRS. According to an April 15 report to the Senate Finance Committee by Nina Olson, National Taxpayer Advocate, more than 260,000 returns filed in 2010 have already been flagged for correspondence audits because taxpayers didn’t attach sufficient documentation for claiming the credit.
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.
Are you tired of paying tax twice on income as a C corporation owner? First, income is taxed to the corporation as it is earned and then again to you personally when it is paid out as dividends. To avoid the double tax whammy, consider a switch to S corporation status. But watch out for the built-in gains (BIG) tax.
Do you need someone to watch your young children during the summer months while you work? The full amount paid to a household worker can qualify for the dependent care credit even if the worker does other chores.
You might think of life insurance strictly as income replacement for your family if you should suddenly die. So, at some point, you don’t need that big whole life policy anymore. Strategy: Donate life insurance to charity. As long as you don’t retain any “incidents of ownership” in the policy—such as the right to change the beneficiary—you can claim a current tax deduction for your generosity.
A significant tax deadline may have come and gone for small charitable organizations. Due to a little-noticed provision in the Pension Protection Act of 2006, charities with annual revenue of less than $25,000 were required to file Form 990, Return of Organization Exempt From Income Tax, with the IRS by May 17, 2010.
A significant tax deadline may have come and gone for small charitable organizations. Due to a little-noticed provision in the Pension Protection Act of 2006, charities with annual revenue of less than $25,000 were required to file Form 990, Return of Organization Exempt From Income Tax, with the IRS by May 17, 2010.
Don’t tell your CPA any information you wouldn’t want the IRS to know. Although a 1998 law authorizes a “CPA-client privilege,” the privilege is hardly bullet-proof. It’s shot full of exceptions. Significantly, the confidentiality part of the privilege doesn’t extend to communications concerning the preparation of your tax return.
Don’t tell your CPA any information you wouldn’t want the IRS to know. Although a 1998 law authorizes a “CPA-client privilege,” the privilege is hardly bullet-proof. It’s shot full of exceptions. Significantly, the confidentiality part of the privilege doesn’t extend to communications concerning the preparation of your tax return.
Q. I guaranteed a loan my cousin took out for his business. Now I have to pay up because he is defaulting. Is this payment deductible?
In the past, it took two steps to transfer funds from a 401(k) plan to a Roth IRA, thereby effecting a Roth conversion contribution. The plan participant had to use a traditional IRA as a go-between. And certain high-income taxpayers couldn’t complete the deal in any event. But the rules have changed for the better.
