Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
More vehicles certified for clean-fuel deduction
The 2006 Ford Escape Hybrid and the 2006 Mercury Mariner Hybrid are the latest vehicles to be certified by
the IRS for the clean-fuel deduction. Taxpayers who are the original purchasers of a clean-fuel vehicle are entitled
to a tax deduction of up to $2,000 on their 2005 tax returns.
Seven year-end moves to cut your taxes
Time is running out on tax decisions and actions you can take to reduce your 2005 tax bill. Here are some year-end
tax-cutting moves to consider.
New Business
Surveys show health care costs a major business concern
A recent survey conducted by the nonpartisan Kaiser Family Foundation revealed that the number of employers
offering health insurance coverage to employees is declining. This year 60% of employers offered coverage, compared
with 69% five years ago.
Is paying zero tax a good idea for your corporation?
When you run your business as a regular C corporation, it can make sense to pay a little tax this year to avoid
large estimated tax payments next year.
Smart Business
Got mutual funds? Pay attention to year-end tax issues
If you’re among the millions of Americans who invest in mutual funds, you need to be aware of the year-end
issues that could affect your 2005 tax bill.
IRS announces changes
* New form for vehicle contributions. The IRS has created Form 1098-C, a new form that is to be used by charities
to report taxpayer contributions of vehicles, boats, and airplanes. Copy B or C of the form can be used to provide
the taxpayer with substantiation of his donation to the charity.
Consider the tax issues in caring for elderly parents
As the population in the U.S. continues to age, more and more people will find themselves caring for their
parents. Here are some of the tax breaks that caregivers should consider.
New Business
New per diem rates issued
New per diem rates have been released, effective for business travel on or after October 1, 2005.
Be prepared: How to lessen the blow of a disaster
When recent hurricanes slammed into the Gulf Coast, many families and businesses found themselves woefully
unprepared. Apart from the tragic loss of life, the hurricanes’ impact on individuals was also financial: lost
personal and real property, lost records, lost funds. In addition, businesses couldn’t gain access to administrative
offices and manufacturing facilities, inventories, computer files, or customer records.
Smart Business
Survey shows college costs increasing
The annual survey of college costs conducted by the College Board shows tuition and fees increased in the last
year at twice the rate of inflation.
Don’t put all your eggs in one basket
Even if you’re not an investment expert, you’re probably familiar with the term “diversification.” It means
not putting all your eggs in one basket. Diversification calls for choosing the right mix of investments to keep
a balance between risk and return.
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
Congress passes tax relief for hurricane victims
On September 21, Congress passed the Katrina Emergency Tax Relief Act of 2005 to provide immediate assistance
to individuals and businesses hit by Hurricane Katrina.
The gift tax exclusion – use it or lose it!
Did you know that this year you can give gifts of up to $11,000 to as many individuals as you want without
being liable for gift tax? Normally, any gift you make counts towards your lifetime exemption from gift and estate
taxes. That’s so you don’t just give away your estate shortly before death to avoid estate taxes.
New Business
IRS increases standard mileage rates
On September 9, the IRS announced an increase in the optional standard mileage rates for the last four months
of 2005. For business miles driven between September 1 and December 31, 2005, the rate increases to 48.5 cents
a mile, up from 40.5 cents a mile for the previous eight months of 2005.
Business relocation requires some planning
Many businesses face the prospect of relocating their operations at some point. Making the move go smoothly
requires careful planning. Some factors to consider include the timing of the move, the expense, employee relocations,
and minimizing downtime and lost production.
Smart Business
Treasury will start selling 30-year bonds again
The Treasury Department announced that it will begin selling 30-year Treasury bonds again in 2006. Absent from
the scene for the past four years, the 30-year bond will again be sold twice a year according to a schedule to
be released by the Treasury Department next month.
Check your credit information: Annual reports are free
It’s a good idea to review your credit information periodically. You might spot credit inquiries or applications
that you didn’t make — a sign that you could be a victim of identity theft. Or you might find errors in your personal
data or payment history, errors that could cause lenders to deny you credit or charge you a higher interest rate.
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
Check out the tax credits in the new energy bill
On August 8, President Bush signed the Energy Policy Act of 2005, a bill that makes numerous changes
to the tax code. Among the provisions that could save you tax dollars are the following:
Seven steps to cut your 2005 tax bill
Here are some things you can do between now and year-end to cut your 2005 tax bill.
New Business
IRS targets S corporations for audits
The IRS recently announced its intention to audit 5,000 randomly selected Subchapter S corporations for tax years
2003 and 2004. The audits, scheduled to begin by the end of this year, are being conducted to identify S corporation
compliance issues.
How to make smarter hiring decisions
Hiring and training new employees is one of the toughest jobs you face as a manager or business owner. Even when
there are plenty of applicants, finding the right one is still time-consuming. Here are some tips for each stage
of the process — from identifying your requirements to interviewing candidates.
Smart Business
New bankruptcy law goes into effect soon
Major changes to the laws governing bankruptcy go into effect next month. Here's an overview of the changes individuals
need to know.
Invest with an eye on inflation
Like the boy who cried, "wolf," experts' warnings of inflation have been largely
ignored over the last decade. Now, with the recent spike in fuel prices and rising interest rates, people are starting
to take notice again. Inflation, even at modest levels, can seriously reduce real investment return. Is your portfolio
structured to succeed in periods of inflation? Consider these fresh ways to combat an old foe.
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
IRS clarifies rules for donating vehicles to charity
Last year's tax law changed the rules for determining the amount of a tax deduction for giving a car, boat,
or airplane to a charitable organization. No longer can individuals deduct the fair market value of the vehicle.
The deduction is limited to the amount for which the charity actually sells the vehicle.
An exchange can save taxes
Sitting on a piece of investment property that you would like to sell? By structuring the transaction as a
tax-deferred exchange, you can delay paying taxes on the full amount of the gain realized.
New Business
Businesses must now shred employee information
A new rule has just gone into effect that hopes to prevent "dumpster diving" identity theft. Criminals
go through the discarded refuse of businesses, looking for personal information that will give them what they need
to steal identities for financial gain.
Smart Business
Turn employee reviews into constructive dialogs
The annual employee performance review - usually it's dreaded by both supervisor and employee. The employee
knows he'll have to hear about those mistakes from months ago, and the supervisor will finally have to discuss
those issues he's been avoiding all year.
What's New in Financial Strategies
Put your savings on automatic pilot
Even with the increased fear that social security will not be there when they retire, young people are not
overly concerned with saving for retirement. Fortunately, many companies are now automatically enrolling workers
in their 401(k) plans. Workers must then actively opt out of the plan if they decide not to participate. Companies
are finding that 90% of workers who are automatically enrolled stick with the plan.
Think it over before you pay off your home mortgage early
Is it wise to pay off your mortgage early? As with most financial decisions, this one depends on several factors
including your current mortgage rate, tax bracket, balances on credit card and consumer debt, near-term expenses,
retirement dates, and potential alternative investments.
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
Tax reform deadline extended
The President's Advisory Panel on Federal Tax Reform had a July 31, 2005, deadline for reporting its recommendations
to the Treasury Department. The recommendations were then to be sent to Congress, supposedly to form the basis
for tax reform legislation.
More taxpayers are getting the IRS red light
What are your chances of being audited? Nobody can say for sure. But it's certain that the IRS has stepped up its
enforcement staff in an effort to collect more tax dollars. The difference between the amount taxpayers owe and
the amount they actually pay (known as the "tax gap") runs over $300 billion per year. That's a staggering
amount, and the IRS is aiming to reduce it.
New Business
IRS reduces paperwork
In the past, employers had to send the IRS any Form W-4 (Employee Withholding Allowance Certificate) on which
an employee claimed more than 10 exemptions or complete exemption from withholding when $200 or more in weekly
wages was expected.
Smart Business
Should you incorporate your business?
There are many reasons why people feel they should incorporate their businesses. Very often these reasons are
based on misinformation about the advantages of being a corporation.
What's New in Financial Strategies
Survey shows gender matters in investing
A survey done by Merrill Lynch Investment Managers produced some interesting results on how gender differences
affect investing behavior. The telephone poll of 1,000 investors (half of them men, half women) asked questions
about investment attitudes and actions.
Are you looking for ways to help your grandchildren with college expenses?
If you have grandchildren, consider these tax-friendly ways to help fund their college education.
* Tax-advantaged education programs. The tax law provides two programs specifically intended to help with education
expenses: Section 529 plans and Coverdell education savings accounts (formerly called education IRAs). Both provide
the following advantages:
IRS certifies hybrid cars for $2,000 tax deduction
If you're planning to purchase a new car this year, be aware that buying a clean-fuel vehicle could give you
a tax deduction of up to $2,000.
Wedding bells bring tax concerns
June is the traditional month for weddings. We associate marriage with love, roses, and wedding cake. But if
you're walking down the aisle this summer, don't wait too long after the wedding to spend a little time on tax
matters. Here's a checklist of things to consider:
New Business
Age discrimination ruling could have major consequences
Company policies that are intended to discriminate against older workers are illegal under the Age Discrimination
in Employment Act. Now a new ruling handed down by the Supreme Court will allow discrimination claims when an employer's
actions or policies disproportionately affect older workers even when there is no intent to discriminate.
Smart Business
Your business can flourish, even when the "big boys" come to town
Many local businesses fold when a large retailer comes to their town. Is it possible to compete with these
giants? You also have increasing competition from the Internet and mail order sales. What should you do?
What's New in Financial Strategies
Flexible spending account "use it or lose it" rule changes
Flexible spending accounts (FSAs) let workers set aside pre-tax dollars to pay for medical expenses and child care
costs.
No, you're probably not saving enough
How much money did you save last year? If you didn't save at least 10% of your earnings, you didn't save enough.
If your savings in 2004 fell short, the only solution is to take charge of your financial future right now and
start saving more money.
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
IRS raises its interest rates
The IRS will charge 6% interest on individual and corporate tax underpayments for the second quarter of 2005
(April 1 through June 30). Large corporate underpayments will be assessed interest at 8%.
How to help your child buy a home
In today's market, young people often cannot afford to buy their first home. If you're considering helping your
son or daughter buy a home, you can choose to make an outright gift, provide or co-sign a loan, or become a part
owner. Each choice has its own tax consequences, so select the option that best suits your overall tax and financial
needs.
New Business
New rules could make an S corporation good for your business
The S corporation is alive and well, and this form of business operation remains appropriate for many business
owners. With the changes made by the recent passage of the American Jobs Creation Act of 2004, even more business
owners might consider this form of corporation. Here are the recent changes:
Smart Business
What's the best way to build customer loyalty?
As a business owner, you know how much effort goes into attracting new customers. So once you've found a new customer,
you want to keep that customer as long as possible. Many factors contribute to keeping your customers happy, but
underlying many of them is a single issue — good communication.
What's New in Financial Strategies
New Supreme Court ruling protects IRAs in bankruptcies
The U.S. Supreme Court issued a unanimous decision in April that will protect individual retirement accounts (IRAs)
from creditors in bankruptcy proceedings. Until this decision, company pensions and 401(k) plans were protected
under federal law, but IRAs were not.
Who owns your life insurance policy?
Life insurance is a valuable tool for estate planning. By having adequate life insurance to pay estate taxes,
you can leave more to the next generation. The pitfall is that if you have any "incidents of ownership"
in the policy, proceeds from your life insurance will be included in your estate and could be subject to estate
taxes.
A big refund may be bad for your financial health
Too many taxpayers overlook the fact that getting a big tax refund every year may not be a good thing. Will you
be among the thousands of taxpayers who get a big tax refund this year?
How to benefit from the 2004 tax laws with early 2005 planning
Two laws were passed late in 2004. Some provisions are permanent, but many are temporary. Here are some steps you
can take to maximize the tax breaks contained in these two tax laws.
New Business
Vehicle deductions for 2005 announced by IRS
The IRS has issued the depreciation limits for business cars first placed in service in 2005. For passenger cars,
the limits are -
Smart Business
Cell phone expenses: Are they deductible?
If you use a cell phone for business calls, you need to know what cell phone expenses are tax-deductible. According
to the IRS, cell phones are subject to strict substantiation requirements for deductions to be allowed. The business
use of the phone needs to be supported by maintaining a written record of:
What's New in Financial Strategies
Tax time's a good time
Right now is the ideal time to review your financial affairs. You pull together your financial information to prepare
your income tax return at this time of year. Why not take one more step and do something positive for your overall
financial well-being?
Review your children's tax filing requirements
Children who have income may have to file income tax returns. Here are the filing requirements for 2004.
A job change creates tax issues
Taxes may be the last thing on your mind when you're changing jobs, but overlooking their impact could mean
missed tax-saving opportunities. Issues to consider include:
New Business
New study reveals employee preferences
A recent employee-benefits study conducted by MetLife Inc. revealed some interesting information about employee
preferences and behavior.
Smart Business
Take steps now to benefit from 2004 tax laws
Last October, President Bush signed two substantial tax bills into law. Like other recent tax law changes, some
provisions are permanent, but most are temporary. What steps can you take to maximize the new tax breaks for your
business?
What's New in Financial Strategies
Important IRA deadlines coming up
The rules governing IRAs are complex, and making mistakes can be costly. Here are some important deadlines and
reminders
Don't let neglect derail your plans
Although life's only certainties may be death and taxes, we rarely enjoy planning for them. But without planning,
your assets can go to unintended recipients — including the government.
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
New tax numbers are released for 2005
The IRS adjusts many tax numbers for inflation each year. Other numbers change as a result of tax law revision.
As you begin your tax planning for 2005, here are some of the changes you'll need to take into account.
You pay the bills, but can you claim a dependency deduction?
It used to be easy to determine the number of dependents you could claim on your tax return. Your children were
your dependents until they moved out, and then they weren't.
New Business
Survey shows rising health insurance costs
A recent survey of 3017 randomly selected public and private companies revealed that the cost of health insurance
provided by employers rose 11.2% in 2004.
Smart Business
A business partnership needs a written agreement
Say you're planning to start a business or expand an existing one. You don't want to go it alone, but you're not
sure how to choose a business partner.
What's New in Financial Strategies
Don't let your gifts disappear
About $17 billion of gift cards were given as gifts this past holiday season, according to the National Retail
Foundation. That very likely means you or someone in your family received a gift card.
Give your children a good financial education
Schools teach children some financial lessons, but if you want your kids to pick up good money skills and become
financially responsible adults, you should give them some training yourself. Consider the following suggestions.
|
