By month: November 2007
15 Last-Minute Tax Planning Tips for 2007
You have very little time left to impact your 2007 taxes. Here is a meat-and-potatoes list of last-minute opportunities.
Antiques Can Make Smart Assets for Your Business
Furnishing your office with antiques can actually make you money. Instead of buying new, depreciable furniture, furnish your office with antiques. Though they have a higher price tag, they can yield 36 times more money than new furniture.
Missing 1099 Creates Trouble
Uriah Jones’ employer was late and didn’t send him his 1099 in time; he didn’t send it to the IRS, even late. Not surprisingly, he was audited. He then took that matter to court and lost. Always report your income, even when you don’t receive the 1099. It’s taxable, regardless of 1099 receipt.
Get Your SUV Deduction on the Right Tax Form
Getting your numbers on the right tax forms is critical to properly filing your tax return and claiming your money. This means that you need to pick a preparer who knows what he or she is doing, and you need to know enough yourself to know that your preparer is right.
Capital Gains Are Biggest Tax Expense
A government committee identified the capital gains’ 15% rate as the biggest tax expense from 2007 to 2011. This expense is growing, and just might prod some lawmakers to increase the rate that’s now available. Take advantage of current rates!
New Rules on Contingent Fees
With four exceptions, tax law prohibits contingent fees with regard to any matter before the IRS. The beauty of the contingent fee for the taxpayer is the certainty that you don’t pay if you don’t get a positive monetary result. This certainly beats the alternative: big payments, no results.
Putting Tax Practitioner’s Feet to the Fire
A new law makes tax preparers subject to higher penalties for errors, and establishes high standards for claims made on tax returns. The moral: if your tax advisor examines your issue and tells you that you can claim that deduction, you have a very solid claim.
One taxpayer is audited, and told incorrect information by an IRS agent. We give her proof to support her position.
Teeth Whitening as a Business Expense
You probably should not try to deduct teeth whitening. The law generally disallows a teeth whitening–type of expense because it has both a personal and a business benefit.
Joint Venture Taxed as Partnership
As a two-person team that splits costs and commissions, these two people are a partnership for legal purposes. They have three choices: file as a partnership, C corporation, or an S corporation.
Real Estate Joint Venture
As a two-person real estate team, these two taxpayers are real estate dealers, according to the tax law. They have two choices: file as a partnership or as an S corporation.
105 Deduction for Back Chair
Deducting a piece of furniture, like a back chair, is tricky. You can do it, but you have to be very precise. For example, we recommend supporting your position by getting a prescription, and building proof that this chair would not be used generally as an article of furniture