Year-end brings tax cutting opportunities for individuals and businesses

December is always a busy month with a flurry of holiday and year-end activities. In the rush of events, it’s easy to forget that the end of the year is also a very important time for tax planning. This year is no exception. Indeed, 2008 has been one of the busiest years for federal tax legislation. Congress not only created some new tax breaks, it also extended many others. Many of these tax incentives are temporary so if you want to take advantage of them, you need to set your plans in motion now. more...

During economic downturn, NOLs can give your business a boost

With the economic downturn taking its toll on almost all facets of everyday living, from employment to personal and business expenditures, your business may be losing money as well. As a result, your business may have a net operating loss (NOL). Although no business wants to suffer losses, there are tax benefits to having an NOL for tax purposes. Your business can use the NOL in future years to offset its taxable income. Your business can also use an NOL to offset income from the prior two years; in this type of “carryback” situation, it can mean an immediate tax refund to help with current operating expenses. more...

FAQ: Do I need to pay tax when I sell gold jewelry or collectibles?

If you are finally ready to part with those old gold coins, baseball cards, artwork, or jewelry your grandmother gave you, and want to sell the item, you may be wondering what the tax consequences will be on the disposition of the item (or items). This article explains some of the basic tax consequences of the sale of a collectible, such as that antique vase or gold coin collection. more...

How Do I? Recharacterize a Roth conversion, and why would I want to?

If you converted your traditional IRA to a Roth IRA earlier this year, incurred a significant amount of tax liability on the conversion, and then watched as the value of your Roth account plummeted amid the market turmoil, you may want to consider undoing the conversion. You can void or significantly lower your tax bill by recharacterizing the conversion, then reconverting your IRA back to a Roth at a later date. Careful timing in using the strategy, however, is essential. more...

December 2008 tax compliance calendar

As an individual or business, it is your responsibility to be aware of and to meet your tax filing/reporting deadlines. This calendar summarizes important tax reporting and filing data for individuals, businesses and other taxpayers for the month of December 2008. more...