Archive for December, 2007
How can I reduce my 2007 taxes - Gift-giving
Take advantage of the 2007 annual and lifetime gift-giving limits to reduce your income and estate tax liabilities. For 2007 and then again in 2008, you can transfer $12,000 per person, per year, without paying gift tax on the amounts transferred.
Married couples can gift $24,000 per person, per year without tax liability on the [...]
How can I reduce my 2007 taxes _ Retirement planning
Year-end planning for 2007 also involves maximizing annual contributions to your retirement plan accounts, since one year’s limit cannot be added to the next year’s if not taken in time. While contributions to IRAs may be applied retroactively if made before the filing deadline, an individual’s elective deferral contribution made as an employee to a [...]
How can I reduce my 2007 taxes - Portfolio timing
The end of the year is an ideal time to examine your investments (winners and losers over the course of the year) to take the steps necessary to minimize your capital gains income and maximize the benefit of any capital losses. Long-term capital losses can be used to fully offset long-term capital gains. Losses taken [...]
How can I reduce my 2007 taxes? Deduction management
Essential end of the year tax planning requires determining whether you will take the standard deduction or whether you will itemize your deductions. Consider “bunching” deductible expenses into one or the other year depending upon whether the standard deduction may be taken in one year or whether the adjusted gross income limits for medical (7.5 [...]
How can I reduce my 2007 income tax? Income shifting
One of the most fundamental year-end tax planning techniques involves accelerating deductible expenses in 2007 and deferring income, if economically feasible, into 2008. By delaying taxable income you defer taxes. Delaying taxable income may also prevent you from losing lucrative tax breaks that can be reduced or eliminated altogether as your income level rises and [...]
What is a corporation?
A corporation is a more complex business structure generally. It is a legal entity separate from its owners, called “shareholders,” who own shares of stock in the company. For “regular” or C corporations (often used for large and publicly traded companies), profits are taxed both at the corporate level and again when distributed to shareholders. [...]
Are You Backed Up?
Today’s post is made possible because of Gary Hubbard at Data Doctors. He and his store manager Tony, got my computer running in under an hour after I broke something. The drive to the computer store was not scary because I knew my data was securely backed up thanks to Kevin Vanover of Reliance Technology.
If [...]
How is the LLC treated for tax purposes?
The LLC enjoys the same “flow-through” tax treatment that partnerships and S-Corporations do. The rules concerning capital accounts, contributions and other basic partnership taxation principles apply to LLCs as well. In short, this means that although the LLC must file a tax return, the LLC owners report income and pay the taxes owed on such [...]
How does the LLC end?
The death, retirement, withdrawal, or bankruptcy of a member or manager may end the existence of the LLC, depending on the terms of the operating agreement. Apart from the death, retirement, bankruptcy or withdrawal of a member or manager, an LLC usually only ends upon the date of expiration (often set 25 - 30 years [...]
