Archive for March, 2009
Posted by taxguru on March 22, 2009
13 companies getting bailout money owe back taxes – Consistent with picking members of the 0bambi cabinet.
Posted in Crooks | Comments Off on
Sec. 179 vs. Standard Mileage Rate
Posted by taxguru on March 19, 2009
Q:
Subject: Re: section 179
Hi,Thanks for your previous replies in the past. If you take a section 179 deduction can you still deduct your businees mileage. O does the section 179 deuction fall under the itemised deductions therefore precluding mileage claims?thanks
A:
You really need to be working with a professional tax advisor because you are mixing up different tax issues that are technically not connected.
As I have explained on several occasions, if you use Section 179 or any other accelerated method of depreciating a vehicle, you are required to use the actual cost method of calculating deductible vehicle expenses for that particular vehicle for as long as you own it. You are not allowed to switch to the IRS’s standard per mile rate because that rate includes a portion for deprecation and to switch to it would end up giving you double deductions for deprecation.
The issue of the standard personal deduction versus Schedule A itemized deductions is completely separate from the issue of how the vehicle costs are calculated. As always, it’s generally a good idea to keep track of all of your actual itemized deductions and use them on Schedule A if they are higher then the standard personal deduction.
I hope this helps; but you need to be working with a tax professional.
Good luck.
Kerry Kerstetter
Follow-Up:
Hi,Thanks a lot.
Posted in 179, Vehicles | Comments Off on Sec. 179 vs. Standard Mileage Rate
Posted by taxguru on March 18, 2009
Why tax problems have plagued Team Obama – A more serious look at why so many of the new administration’s members are being exposed as tax cheats.
The Obama Budget: Spending, Taxes, and Doubling the National Debt – The Heritage Foundation looks at some of the upcoming tax hikes that we will be facing in order to support 0bambi’s new socialist paradise.
Smoothing income…
Posted by taxguru on March 18, 2009
Q:
Subject: s versus c article
I read your article with some interest and have a question about your tax splitting.
Lets say the C-corp does a split and takes $50k in a 15% bracket. Now what? A C-corp doesn’t have to buy food or put a kid through college. Why is it helpful for the C-corp to have 50k in the bank, especially if you are an individual with small company and just want all your money in your pocket so you can buy cocaine?
A:
The effective use of C corps to shift and smooth out income is a multi-year process; so looking at one year’s end result isn’t the best way to evaluate it. Any experienced professional tax advisor should be able to assist you with implementing these tactics in the best way for your particular goals and situations.
So, in addition to your particular financial priorities, be sure to budget enough money to pay for the services of a good professional tax advisor.
Good luck.
Kerry Kerstetter
Posted in corp | Comments Off on Smoothing income…
Tax pros and corps…
Posted by taxguru on March 18, 2009
Q:
Subject: C Corporations
How do I find an accountant in my area that is comfortable with C corporations. It seems like each one I talk to wants to continue to steer me away from them?
A:
That is frustrating; but look at the good side of that situation. Any tax pro who doesn’t understand how to utilize C corps effectively is doing you a huge favor by admitting his/her shortcomings up front, saving you from wasting a lot of time.
As I have repeatedly said, C corps are not automatically a one size fits all solution for everyone any more than S corps are. Any tax pro who can’t logically explain his/her rationale for recommending any particular strategy, including the fact that all of the pros and cons that I have spelled out have been evaluated, is to be avoided. Anyone who automatically rules out C corps without asking you a ton of questions and tries to assume that an S corp is automatically the right approach is too lazy and/or ignorant to be trusted.
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.
If you haven’t already done so, you should check out my tips on how to select the right tax preparer for you.
You should note that geographic location should not be the main criterion for selecting a tax pro.
I wish I could be of more assistance; and I wish you the best of luck.
Kerry Kerstetter
Posted in corp | Comments Off on Tax pros and corps…
Simpler tax form?
Posted by taxguru on March 18, 2009
Posted in comix, TaxForms | Comments Off on Simpler tax form?
Tax Guru - Ker$tetter Letter 