Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

Archive for November, 2009

Auditing the new Bo-Tax?

Posted by taxguru on November 30, 2009

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Taxes Paid In vs. Taxes Owed

Posted by taxguru on November 29, 2009

Tax planning and ensuring that you have enough paid in to avoid penalties has never been crazier.  The Feds have reduced withholdings and given rebates to encourage spending in the economy; while the geniuses in Sacramento are trying to force California taxpayers to intentionally overpay their withholdings as an interest free loan to Governor Arnold and his fellow idiots in control of that sinking state.

That’s the subject of this vidcast.

 

TaxCoach Software: Finally! Plain-English Tax Planning That Builds Your Business!

 

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Posted by taxguru on November 29, 2009

War Is the Health of the Taxman. Democrats want a temporary war tax on the rich, like the one from 1898. – Kevin Williamson gives an excellent recap of the “temporary” taxes that were supposed to be only for the evil rich over the past 150 years in this country.  As should surprise nobody, temporary taxes live on forever and slowly grow to apply to just about everybody.  No sane person should expect any different result from the new proposed tax by the DemonRats.

 

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We’re all going to be Mugged & Stuffed

Posted by taxguru on November 25, 2009

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Investing retirement funds into C corp

Posted by taxguru on November 23, 2009

Q:

Tax Guru
 
In 2005 you recommended the use of the BeneTrends rainmaker plan for using your 401k funds to finance a company.  Have you had anymore experience with them in the last four years?  I am thinking of using them, but am worried that there may be some problems with the IRS.
 
Any help you might give would be appreciated.
 
Best Regards,

 

A:

I haven’t heard of any problems with the BeneTrends program, and in act I am still recommending it, as in this recent vidcast.

Good luck.

Kerry Kerstetter

 

 

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Next best thing?

Posted by taxguru on November 23, 2009

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New BoTaxes?

Posted by taxguru on November 22, 2009

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Using Multiple Entities – Vidcast

Posted by taxguru on November 22, 2009

Using multiple entities for tax, liability, and other business reasons has been a very common and useful strategy for longer than I’ve been in this business.  Why many tax pros are unaware or unwilling to recommend them is still surprising to me.

YouTube page

 

 

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

 

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Exclusion from Gift & Estate Taxes

Posted by taxguru on November 21, 2009

Q:

Subject: Estate Tax Exclusion

Mr. Kerstetter,
I found your writeup on estate and gift taxes via google search, and then I read your blog with great interest.
Thank you for publlishing it.
 
You have this text on your page:

If you do give any one person more than the $13,000 during a single calendar year, you must file a 709 and either pay gift tax or use part of your lifetime exclusion.  When you pass away, the amount of exclusion that will be available on your estate tax return (706) will be whatever the exclusion is at that time reduced by the gifts you reported on 709s during your lifetime, where you opted to offset them with part of your lifetime exclusion.  If you never used any of the credit by keeping your gifts below the annual limits, the full amount of the credit will be available to your estate

My wife and I have six children, so we’re trying to get some intelligent estate planning done. The lifetime exclusion I understand is now $3.5M.  Is this $3.5M total for the estate, or $3.5M for each heir?
 
Thanks for your help.

 

A:

I have a chart of the annual estate tax exclusions on my website.  

For people passing away in 2009, there is an exclusion of $3.5 million of net estate value per decedent.

The lifetime exclusion on gifts is set at one million dollars.

You should be working with an estate planning professional because there are a lot of changes on the horizon; so you want to make sure any plan you set up is flexible enough to be able to handle the changes.

Good luck.

Kerry Kerstetter

 

 

Posted in Estates, Gifting | Comments Off on Exclusion from Gift & Estate Taxes

Posted by taxguru on November 20, 2009

Snipes Appeals Overly Taxing Prison Sentence – The Hollywood lunkhead’s tax planning strategy is still on course for him to stay at Club Fed for at least a few years.

 

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