It’s been a while since I’ve come across a new version of George Harrison’s classic TaxMan song.

I just stumbled across this one by Tony Levin:

TaxManTonyLevin.mp3

It’s from the new heavy metal Beatles tribute album.

http://rcm.amazon.com/e/cm?t=taxfreeexchacorp&o=1&p=8&l=as1&asins=B000ICMF58&fc1=000000&IS2=1&lt1=_blank&lc1=0000FF&bc1=000000&bg1=FFFFFF&f=ifr

IRS has officially acknowledged the accuracy of the 2007 tax brackets, standard deductions and personal exemptions which CCH calculated almost two months ago – for those folks who don’t trust the numbers until IRS blesses them.

The weak link in the reliability of all retirement plans has always been the unknown variable of exactly how long the money has to last.

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Some interesting items in the November FTB Newsletter:

Real estate withholding law changes for 2007

Disclosure of list of corporations under audit – Whoops! So much for confidentiality.

Q:

Subject: Completing a Form 4797

 

Dear KMK:

 

Sold a business as a sole proprietor.  Asset allocation (Form 8594) goes as follows:  Class IV Assets:  $5500 (stock in trade) ; Class V Assets (Equipment)  $8400; Class VI/VII Assets (Goodwill and non-compete) $ 146,100.  Where do these numbers appear on Form 4797? ( and if they _all_ don’t appear, then the numbers on 4797 won’t “foot” to the total selling price.  Is this OK??)

 

Thanks

A:

If you check over the Q&A posts on my blog, you will see that I do not give people instructions on how to prepare their own tax return schedules, especially for something as complicated as the sale of a business. 

You should have been working with a professional tax advisor while your business was in operation and most definitely need to have one prepare the 1040 for the year of the business sale.  It is not as straight forward as you seem to believe.  Each component of the sales price needs to be reported in a special way, not all of them on the 4797. 

If you don’t already know of a good tax pro to work with, you should check out my tips on how to select the right tax preparer for you. 

Unfortunately, we don’t have anyone specific to whom we could refer you. I did recently post some names and links for some like-minded tax pros around the country. 

I wish I could be of more assistance; and I wish you the best of luck.  

Kerry Kerstetter

 

Ranches work as retreats for rich – It’s not just a great environment for the wealthy.  Having lived full time on rural properties for the past 17 years, I can’t imagine ever going back to living where the roads are paved and we can see any of our neighbors.  

Don’t Forget April 15 on Election Day – A good idea that pops up every so often, moving the tax filing deadline to election day.

Employers expected to be responsible for 401(k)s – Another good look at costly admin fees that erode retirement savings.

Sherry found this Christmas card for sale on the web.

“Girls of the IRS” Calendar a Hit With Male Taxpayers – Obviously a spoof.

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