The August 2009 Consumer Price Index – the main indication of inflation – has a surprise. It’s one that may mean no raises next year if you receive social security, invest in TIPS or if your income is somehow tied to the CPI. The Bureau of Labor Statistics (BLS) apparently decided those Cash for Clunkers checks decreased the price of new vehicles. With an estimated 700,000 cars bought under the program, that’s a lot of money not being counted as what Americans spent on cars.
|
|||||
|
 |
Rumor has it that Congress will pass a temporary one-year extension of the estate tax before the end of the year. This would continue the estate tax at a 45% maximum rate and a $3.5 million exemption. Otherwise, the tax will be ‘repealed’ in 2010 and then, in 2011, revert to a maximum 55% rate and $1 million exemption. This is a question President Obama was asked in an AARP town hall meeting last week. A Congressional website refutes claims that health care reform will start “us down a treacherous path toward government-encouraged euthanasia”. What’s the truth? This article will help you sort through the facts to find it. You may have heard about a bill that Representative Earl Blumenauer (D. Ore.) introduced on July 15. While it’s formal name is the Water Protection and Reinvestment Act, some prefer to call H.R. 3202 the Toilet Paper Tax. Here are 8 tax tips that will help you start a new business. As you create this new business and run it in the future, keep in mind the first rule of tax law. It is the first thing my tax professor in law school told us on the first day of class. Here’s what he said. “Ladies and gentlemen. Let me tell you the one rule, which if followed, will keep you out of tax trouble. It is this: Pigs may get fat but hogs are slaughtered.” In other words, when it comes to taxes you may be able to get away with being (a little) greedy. Be too greedy, however, and you will not enjoy the results. A recent Tax Court case, Garnett v. Commissioner, could mean you may be able to offset losses from ‘part-time’ business ventures against your salary and other investment income. But the case is not as black and white as some may think it is. Hang on tight. Michael Jackson’s estate is likely to be a wild ride! Is there a will? Is there not? If so, who gets a cut? What did Jackson own when he died on June 25? How much is it worth? Is there enough cash to pay the federal estate taxes that will come due on March 25, 2010? Given the intensity of the Jackson family relationships in the past and the questions surrounding who the mothers of his children are, this particular estate will be anything but boring. And it will undoubtedly prove to be a source of long-term income for the attorneys, accountants and appraisers involved. The blended interest rate used to calculate taxable income on demand loan split dollar plans is falling to a historic low 0.82%. The new rate, effective from July 1, 2009 until June 30, 2010, makes those plans less expensive than ever before. Most people think life insurance is income tax-free. That is not the general rule for business life insurance that falls under rules Congress created in 2006. To keep it tax-free, you must first meet certain notice and consent requirements. Even then, the insurance can still be taxed if it is not paid in a way that satisfies one of the four ’safe harbors’ described in this article. Earlier we reported the administration’s proposed changes to the estate tax laws. This article delves deeper to look at how proposals offered by the administration and in several Congressional bills, might affect common estate planning tools and techniques. Late last week the IRS provided some answers to questions about the 2006 law that taxes most of the death benefit of business-owned life insurance. IRS Notice 2009-48 answers many questions. It leaves others unanswered and raises yet others. If you own or advise a business, it’s important to know what employer-owned life insurance is and the rules you need to follow to keep the death benefit income-tax free. Was it President Barack Milhous Obama who spoke at Arizona State University’s commencement on May 13? Referring to the controversy created by ASU’s refusal to give him an honorary doctorate because he had not achieved enough in his life, Obama said: Now, before I begin, I’d like to clear the air about that little [...] [Update: The IRS on May 22, 2009, released Notice 2009-48 that provides answers to many questions about employer-owned life insurance. See the article on this website for analysis of that Notice.] This article answers common questions about the Notice and Consent requirements you must satisfy to avoid paying tax on employer-owned life insurance. The last 5 [...] On May 11 the Treasury Department released its “2009 Green Book”, General Explanations of the Administration’s Fiscal Year 2010 Revenue Proposals. These are the tax hikes the Obama Administration wants to help pay its health care changes. The tax hikes include $24 billion more in estate and gift taxes over the next decade. An earlier story [...] The White House Monday afternoon announced another $59 billion in tax increases to help pay for its health insurance proposals. Three proposed changes affecting life insurance policies popped out at us. Treasury’s Office of Tax Policy summarizes the tax increases in the “2009 Green Book”, its General Explanations of the Administration’s Fiscal Year 2010 Revenue Proposals. [...] |
    |
|||
|
Copyright © 2010 Walter Bristow - All Rights Reserved
You're new! If you like it here, please subscribe to my feed.
|
|||||