I recently had to look some information up for my son who is in the Navy and I thought I would share what I found with you. In general, members of the US Armed Forces (including activated reservists, National Guard & Coast Guard members but not the Merchant Marine) who serve in a combat zone […]View Post
Tax Ramifications to Foreclosure
2009 had a high rate of individuals losing their homes to foreclosure and to make matters worse there are tax ramifications to foreclosure. One would think it was bad enough to lose your home to foreclosure but there is more bad news. Even though you did not sell your home the IRS views the transaction […]View Post debt forgiveness, foreclosure, short sale, tax
Why pay entire tax bill on a converted Roth IRA?
As promised last week a discussion on why someone might choose to pay the entire tax bill in 2010 instead of deferring it to 2011 & 2012. Keep in mind that absent Congressional action, after 2010 the tax brackets above the 15% bracket will revert to their higher pre-2001 levels. That means the top four […]View Post deferring tax, roth ira, tax
Why a Roth IRA?
Good News! It is finally 2010 and with the new year the limit on adjusted gross income for those individuals wishing to convert their traditional IRA or 401k plan to a Roth IRA has been lifted. No longer are individuals with less than $100,000 in adjusted gross income the only ones allowed to convert. But […]View Post convert traditional ira, roth ira, tax
2010 Updated Rates
Happy New Year! The last couple of times I have talked about steps that need to be done at the end of the year for businesses. This week I thought I would give you some fast facts about common tax item rates for 2010. Income Tax Information Standard Mileage Rate cents per mile $0.50 Personal […]View Post 2010 tax rates, exemption amounts, minimum wage, retirement contributions, tax
Steps To Take At Year-end
I hope you survived the Christmas holiday and are looking forward to the new year. Last week we talked about the dreaded W-2 and 1099 preparation. This week I thought I would share some year-end tasks business owners should do on their Financial Statements. • Reconcile all bank accounts and review outstanding checks and deposits […]View Post business owners, financial statements, tax, yearend
W-2 and 1099 tips
Merry Christmas! It is that time of year where thoughts turn towards friends and families and how much our lives are truly blessed by their presence. As business owners your thoughts should also be turning towards year-end bonuses and the dreaded W-2 filing and those pesky 1099 Misc forms! Employee Bonuses Make sure to run […]View Post 1099, employee bonus, payroll, tax, W-2
What is Bonus Depreciation?
Ever wonder what bonus depreciation is? The term is thrown out there like everybody knows what it means. Today I would like to share with you what it is and why it is being used in 2009. Equipment purchased for use in a business is expensed through depreciation. A concept the IRS has created that […]View Post bonus depreciation, tax
Extended Homebuyer Credit
On November 6th President Obama signed a bill extending the first time homebuyer credit. This extension also added a provision for existing homeowners who have owned a home for 5 of the last 8 years to also qualify for a credit. Which makes sense, if the intent of the credit is to stimulate home sales […]View Post first time homebuyer, tax
Making Work Pay Credit
In 2009 President Obama signed a making work pay credit. It was designed to give every taxpayer a $400 credit. Instead of making the taxpayer wait until they filed their tax return, new withholding tables were designed. At the time it seemed like a pretty good idea give each taxpayer a little more to spend […]View Post making work pay credit, tax