Reasons for S corp switch

Changing from a C corporation setup to the S corporation setup can be beneficial, but there are numerous factors to consider. With the March 15, 2011 deadline for 2011 fast approaching, you should seek guidance for your situation. Basic benefits of a switch: If a C Corporation owner elects S corp status, the corporation’s income [...]

Appeals… Resolving Tax Disputes

Is Appeals right for you? The Appeals mission is to settle tax disagreements without having to go to Court and a formal trial. Appeals is here to assist you if you don't agree with a tax decision. The Office of Appeals is independent of any other IRS office and provides a venue where disagreements concerning [...]

Alternative Motor Vehicle Credit

The Alternative Fuel Motor Vehicle Credit was enacted by the Energy Policy Act of 2005 and includes separate credits for four distinct categories of vehicles: Qualified Hybrid Vehicles, Qualified Fuel Cell Vehicles, Qualified Alternative Fuel Motor Vehicles (QAFMV) and Heavy Hybrids, and Advanced Lean-Burn Technology Vehicles. The amount of the potential credit varies by type [...]

Closing a Business

There are typical actions that are taken when closing a business. You must file an annual return for the year you go out of business. If you have employees, you must file the final employment tax returns, in addition to making final federal tax deposits of these taxes. Also attach a statement to your return [...]

Tax angles on donated ‘clunkers’

The hugely popular cash-for-clunkers program ended Aug. 25, 2009. This new program enabled vehicle owners to realize a tax-free discount of up to $4,500 on a trade-in. But you can still qualify for big tax benefits if you donate your "clunker" to charity. Instead of trading in your vehicle, simply give it away to a [...]

Can you reconvert an IRA?

Suppose you converted your IRA to a Roth IRA just before the bottom fell out of the stock market last year. Because the tax liability for the conversion is based on the value of the account on the last day of the prior year – Dec. 31, 2007 -- you would have paid tax on [...]

Donate IRA funds to charity

Time is running out on a unique tax break for older taxpayers with charitable intentions. If you donate funds directly from your IRA to a qualified charity of your choice, you can avoid tax on the distribution. The 2006 pension law created a two-year window for these tax-free distributions. This provision was extended through 2009 [...]

Medicare Tax: Start Planning Ahead

The significant new health care legislation imposes a unique "payroll tax" on investment income.  At least the new tax doesn't kick in until 2013 providing an opportunity for advance planning. To recap, an individual must pay a 3.8% Medicare tax on the lesser of net investment or the excess of modified adjusted gross income (MAGI) [...]

New tax breakthrough for LLCs

An important new Tax Court case could provide valuable tax savings for owners of limited liability corporations (LLCs) and partners in limited liability partnerships (LLPs). The decision permits a couple to use a loss from an LLC or LLP to offset highly taxed income. Previously, it was presumed that such losses could only be used [...]