Articles
Tax Relief Act of 2010: Alternative Minimum Tax (AMT) “Patched” for Two Years
The Tax Relief Act contains a trove of other tax breaks for businesses and individuals. One area of the tax-cut rules to be extended regards the Alternative Minimum Tax (AMT). The AMT exemption amounts for 2010 will be $47,450 for individuals and $72,450 for married...
Tax Relief Act of 2010: EGTRRA Tax-Cut Rules Extended for Two Years
On December 9, Senate Majority Leader Harry Reid (D-NV) introduced H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the Tax Relief Act). The Tax Relief Act contains a two-year extension of the Bush-era tax cuts that was...
Tax Relief Act of 2010: JGTRRA Rules for Capital Gains and Qualified Dividends Extended for Two Years
The Tax Relief Act contains a trove of other tax breaks for businesses and individuals. One area of the tax-cut rules to be extended are those under JGTRRA. The bill defers for two years the sunset rule of Sec. 303 of the Jobs and Growth Tax Relief Reconciliation Act...
Congress Passes 2010 Tax Relief Bill
Congress passed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 on December 16, 2010 and President Barack Obama signed it into law on December 17, 2010. This sweeping tax package includes, among many other items, an extension of...
Year-End Business Planning Provides Tax Savings: Debt Instruments
You may be able to reduce your tax liability through smart debt management planning. Consider whether to defer cancellation of debt (COD) income from the reacquisition of an applicable debt instrument in 2010. The business can elect to have the cancelled COD income included in gross income ratably over five tax years beginning with the fourth tax year following the tax year in which the repurchase occurs (i.e., beginning with 2014). Contact our office for more information.
Larry Marietta to be Tele-Class Guest Speaker
Our very own Larry Marietta will be a guest speaker at My REI Advisor Tele-Class: Tax Strategies - Use Them To Your Advantage. Mark Your Calendar - January 14th - Noon EST - Register At MyREIAdvisor.com for the FREE call today! Start the New Year by positioning...
Year-End Business Planning Provides Tax Savings: Corporate Losses
Increase your basis in a partnership or S corporation if doing so will enable you to deduct a loss from it for this year. A partner’s share of partnership losses is deductible only to the extent of his partnership basis as of the end of the partnership year in which the loss occurs. An S corporation shareholder can deduct his pro-rata share of an S corporation’s losses only to the extent of the total of his basis in (a) his S corporation stock, and (b) debt owed to him by the S corporation. Contact your CPA for a review of your options.
Year-End Planning Provides Tax Savings Opportunities: Energy-Efficiency Improvements
Reduce your tax liability and your electric bill at the same time. Make energy saving improvements to your main home, such as putting in extra insulation or installing energy saving windows or buying and installing an energy efficient furnace, and qualify for a 30% tax credit.
Year-End Planning Provides Tax Savings Opportunities: Retirement Plan Rollovers
Facing a penalty for underpayment of estimated taxes and the increased withholding option is unavailable or won’t sufficiently address the problem? Take an eligible rollover distribution from a qualified retirement plan before the end of 2010. Income tax will be withheld from the distribution and will be applied toward the taxes owed for 2010. You can then timely roll over the gross amount of the distribution, as increased by the amount of withheld tax, to a traditional IRA. No part of the distribution will be includible in income for 2010, but the withheld tax will be applied pro rata over the full 2010 tax year to reduce previous underpayments of estimated tax. Contact your CPA with questions about this tax saving opportunity.
Year-End Planning Provides Tax Savings Opportunities: Are you facing an underpayment penalty?
Year-end tax planning tip of day: Increase your withholding if you are facing a penalty for underpayment of federal estimated tax. Doing so may reduce or eliminate the penalty. Contact your CPA if you have any questions about appropriate withholding rates.
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