2012 Tax Planning: Individual Overview

2012 began with great uncertainty over federal tax policy and now, with the end of the year approaching, that uncertainty appears to be far from any long-term resolution. A host of reduced tax rates, credits, deductions, and other incentives (collectively called the “Bush-era” tax cuts) are scheduled to expire after December 31, 2012. To further complicate planning, over 50 tax extenders are up for renewal, either having expired at the end of 2011 or scheduled to expire after 2012. At the same time, the federal government will be under sequestration, which imposes across-the-board spending cuts after 2012. The combination of all these events has many referring to 2013 as “taxmeggedon.” (more…)

2012 Tax Planning: Business Overview

In recent years, end-of-the-year tax planning for businesses has been complicated by uncertainty over the future availability of many tax incentives. This year is no different.  In 2010, Congress extended many business tax incentives for one or two years. Now, those incentives have expired or are scheduled to expire. Whether they will be extended beyond 2012 is unclear as Congress debates the fate the Bush-era tax cuts and across-the-board spending cuts scheduled to take effect in 2013. In the meantime, you need to be aware of the expiring provisions and explore developing a multiyear tax strategy that takes into account various scenarios for the future of these incentives. (more…)

2012 Practical Tax Planning: Capital Gains and Losses

Are you harvesting your tax losses? You should be. There’s not much that’s more disappointing than leaving tax losses on the table unnecessarily. With this article, we’ll help you harvest those losses. (more…)

2012 Practical Tax Planning: Family Business

Do you have children? Are they on your payroll? If they’re not, and if the situation is right, you may want to hurry and get your children on the payroll. Do you give money to your parents or other relatives? If so, keep reading. (more…)

2012 Practical Tax Planning: Business Vehicles

Do you need a new or replacement vehicle? To achieve any purchase benefit from a vehicle this year, you need (before midnight on December 31) to both own the vehicle, and have placed the vehicle in service for your business.

Ready to take the plunge? Here are how tax matters are handled for the various vehicles you may be looking at. (more…)

2012 Practical Tax Planning: Retirement

Your retirement plans and IRAs may be among the largest, if not the largest, asset that you have. Understanding the basic tax rules and then planning your distributions to meet your personal financial and estate planning objectives is essential. We can explain those rules and provide some strategies for you to consider as part of your overall tax plan. (more…)

2012 Practical Tax Planning: Deducting Medical and Retirement in your Business

Strictly speaking, personal retirement and medical expenses are not a business expense. But with a little planning and some specific requirements, your company can be deducting these expenses on your behalf. (more…)

2012 Practical Tax Planning: Simple Business Strategies

Here are a few year-end tax-planning strategies.  These are meant to suggest potential area’s to save, but many have specific requirements.  Be sure to implement the strategies with professional advice from a tax expert – this is not a do-it-yourself project. (more…)

2012 Practical Tax Planning: Gift Exclusions

The current state of our economy has left thousands reeling to find that next dollar and maybe more importantly how to keep what they already own. Estate planning is one of the best ways to accomplish this goal and there is no better to time create or revise your estate plans. The laws in effect for 2012 are some of the most favorable for estate planners in the past 80 years. For that reason, 2012 presents a golden opportunity to reduce your future estate tax liability, capitalize on your lifetime taxable gift tax exemptions, and take advantage of current portability options. (more…)

Are they my Dependent? Qualifying Child

According to the IRS list of Frequently Asked Tax Questions, there is some confusion out there as to exactly when a taxpayer can claim someone as a dependent. So let’s see if we can shed some light on the subject.

There are two categories for claiming a dependent, a Qualifying Child, and a Qualifying Relative. In this article, we are looking at the requirements for a Qualifying Child. The IRS has a specific definition of what a child is. To claim someone as a dependent, they must pass 5 tests:

1. Relationship to the Tax Payer
2. Age of the individual
3. Residency
4. Support
5. Filing status

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