Tax Guru – Ker$tetter Letter

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Archive for October 25th, 2007

Posted by taxguru on October 25, 2007

Rangel’s ‘Mother of All Tax Reforms’ Gets Abortion – Scott Ott has some fun with the recently announced tax plan by the Dims.  

I’m not planning to waste much time dissecting this ridiculous tax hike package other than to agree with some commentators that this is what can be expected under the third term in office by the two headed president

 

Posted in TaxHikes | Comments Off on

Posted by taxguru on October 25, 2007

Posted in audits, comix | Comments Off on

Sharing the Client Guide

Posted by taxguru on October 25, 2007

Q:

Subject: New CPA loves your agreement…

Hi,

Your website is terrific.  Where did you get that fabulous client service agreement?  Did you buy from someplace?

I would love to use it with some minor modifications.  There is another CPA who uses a very similar agreement which makes me think that there are templates out there with interesting client service agreements out there but I am unable to find them.

Let me know your thoughts and have a great week,

A:

Actually, I first wrote that from scratch over 20 years ago and have been tweaking it ever since.

It’s not surprising that you’ve seen it from other tax pros.   Many other tax pros have  asked for permission to use it for their clients and I’ve never had a problem with that.

Please feel free to use it any way that you feel appropriate for your clients.

Good luck.

Kerry Kerstetter

Follow-Up:

Hi Kerry,

 

Thank you so much for letting a novice like myself use your hard work.  I certainly do appreciate that!  It is such a good idea to post your fees and have a positive outline of your expectations.  It saves a great deal of surprises and heart ache in the long run.

 

Thanks again for your support and best wishes to you.

 

  

TaxCoach Software: Are you giving your clients what they really want?

  

Posted in Clients | Comments Off on Sharing the Client Guide

A different kind of Flat Tax?

Posted by taxguru on October 25, 2007

Posted in comix, FlatTax | Comments Off on A different kind of Flat Tax?

2008 Medicare Rates

Posted by taxguru on October 25, 2007

From a reader:

Subject: Social Security & Medicare – 2008 & Beyond

Thanks for the SS information for 2008 as well as 2008 tax rates & info.

Here are the new monthly Medicare premiums for 2008 based on 2006 MAGI:

2008 Medicare Premiums based on MAGI for 2006 [AGI + TAX EXEMPT INTEREST].

You Pay If Your Yearly Income* is
Single
$96.40 MAGI=$82,000 or less
$122.20 MAGI= $82,001-$102,000
$160.90 MAGI=$102,001-$153,000
$199.70 MAGI=$153,001-$205,000
$238.40 MAGI-Above $205,000

Married Couple
$96.40 MAGI=$164,000 or less
$122.20 MAGI=$164,001-$204,000
$160.90 MAGI=$204,001-$306,000
$199.70 MAGI=$306,001-$410,000
$238.40 MAGI=Above $410,000

*[Modified Adjusted Gross Income (Includes Tax-Exempt Interest)]

In 2006, I was able to save a friend from jumping into a higher premium bracket by about $500 with a few end-of-year minor investment transactions.

Your predictions about what will happen to SS benefits for upper bracket payers is likely spot on. Favorable treatment of dividends & capital gains is likely to end also.

I’ve started a “Doomsday” folder as the assault on the evil rich “if the two-headed president” [or others so inclined] is elected. My ultimate doomsday strategy? All munis all the time.

Speaking of munis there is a vital tax case [Kentucky v. Davis] that will be heard before the U.S. Supreme Court on November 5, 2007
[http://legaltimes.typepad.com/blt/2007/10/municipal-bonds.html].

My reply:

Thanks for that additional info on the 2008 means tested Medicare premiums.

That is also a very interesting case you referenced, on the ability of State tax agencies to give tax free status to only interest from in-state muni bonds. I wasn’t aware of it. That has been a logistical problem for taxpayers who move between states, and whose holdings change from tax free to taxable status as a result. I wonder if a positive (for taxpayers) finding in this case will result in a lot of amended State income tax returns.

Thanks again for sharing that.

Kerry


Posted in MediCare | Comments Off on 2008 Medicare Rates

Posted by taxguru on October 25, 2007

MAKING TAXES SIMPLER & FAIRER – Another reminder of the exponential growth of the insane AMT; from its original goal of sticking it to 155 super rich folks to the current situation of over 25 million victims.

 

Posted in AMT | Comments Off on