Posts

The Age of Tax Aquarius (This is the waning of . . . )

Peace and Love BusThese days are the tax equivalent of when the moon is in the Seventh House and Jupiter aligns with Mars. Congress and IRS have put two things in force which create an unusual tax-saving opportunity between now and year’s end. It is the 2012 equivalent of the days of Aquarius – at least between now and December 31.

The opportunity starts with the much-maligned Estate Tax Credit. Rail if you must, curse if you’d like. But its disappearance doesn’t appear on anybody’s agenda.

So you can presume that the Tax Credit is either going to (a) stay at $5.12 million; (b) shrink to $1 million; (c) end up somewhere in between; (d) head up GA Hwy. 372 towards Ballground, GA.

It doesn’t really matter. But what could make a big difference to you is if you’re holding on to assets which produce income that you’re not spending or using. Read more

Record Low Interest Rate from IRS!

IRS has set all-time low interest rates for loans made in August, 2012. If you loan money — even to a family member — you don’t have to charge an interest rate higher than 0.25% (!) for a loan of three years or less. For a loan that runs nine years, the minimum interest rate would be 0.88%. Read more

Buying or Selling a Business isn’t like Buying or Selling a Candy Bar

KeysSome people think that buying a business is a cinch, as easy as buying a candy bar.  It’s not. You can’t say, “Here’s X dollars; give me your computer and the key to the office (or to the truck, or whatever); and go enjoy the rest of your life.”

It’s the same if you want to sell a business. You can’t say, “Pay me X dollars right now, I’ll hand you this key and the computer, and then I’m outta here.”

You want a clean purchase and sale, right? Without any bad after-effects. So figure on resolving a bunch of matters up front. Read more

You Can’t Write Off An Item Your Business Isn’t Using

PlaneGetting tax write-offs for purchases you make through your business is a good deal.  And if you do business as an S corporation, you know lots of tax benefits flow through your business to your personal tax return.   You can write off all sorts of things and save yourself and your business a lot of money.

But you can’t write off an item the business isn’t using. Read more

Why Your LLC Needs a Tax Return – Especially if it’s Husband-and-Wife-Owned

Tax return

A number of CPAs still resist filing a separate partnership return for husband-and wife-owned LLCs. We recommend doing the separate return, for both IRS reasons and liability-shield reasons under Georgia law. Here’s more detail about why. Read more

New Tax Break for Caregiver Costs

Providing care for someone with Alzheimer’s or dementia can be an expensive, long-term problem.  (You know this already, right?  Or been thinking about it?  Sooner or later, everyone thinks about it.)

Now you can catch a break.

On July 5th, 2011, the United States Tax Court held that expenses you incur for providing unlicensed caregivers will be deductible on your income tax return.

Read more

After Death, Don’t Rush The Net

Memo to someone who has just lost a loved one: don’t rush the net.

You’re kidding, right? Not at all. There is no legal reason to do anything quickly. And there are lots of legal reasons not to. Go be with family. Talk to clergy and friends. And do as little as possible with tax-significant assets.   Read more