Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

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Archive for December 26th, 2009

Using LLCs

Posted by taxguru on December 26, 2009

Just as with other kinds of entities, there are pros and cons for using LLCs.  As with any entity choice, there is no such thing as a cut and dried selection process.  It requires an intelligent judgment from an experienced professional tax advisor after asking a lot of questions, as I explain in this vidcast.

 

 

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

 

Posted in LLC | Comments Off on Using LLCs

Gift Tax History

Posted by taxguru on December 26, 2009

Q:

Hello Kerry,

I was wondering if you could help me out with a few questions. I have been doing quite a bit of extensive searching for the maximum gift exclusions for years 1994, 1995, and 1996 and haven’t been able to get anywhere. Was wondering if maybe you might know what these numbers would be? I found your website during the many searches I’ve done.

Thanks so much for your help in advance.

A:

It was $10,000 for each of those years, as you can see in the attached chart, which was part of the more extensive history of the gift tax that you can download from here.

Good luck. I hope this helps.

Kerry Kerstetter

Business Plan Pro

Posted in Gifting | Comments Off on Gift Tax History

Timing of Sec. 179 Deduction

Posted by taxguru on December 26, 2009

Q:

Subject: Section 179 question

I found your organization via Google, and the information is very helpful!
I own a Dental Laboratory, and want to purchase a $33,000 cad cam system.  My question:  can I take advantage of a year-end purchase incentive by the manufacturer, and have the purchase documents dated December 2009, but take advantage of the section 179 deduction in 2010?  I won’t begin using the new equipment until January.
 
Thank you for your help!

 

A:

You seem to have the opposite situation than most people present; when they want to claim Section 179 in the year prior to actually using the equipment.

If you don’t actually place the new equipment into service until 2010, you shouldn’t have any problem setting it up on your 2010 tax return’s depreciation schedule and claiming Section 179, subject to the other limitations that could affect the actual deduction.

Your own personal professional tax advisor should be able to give you more specific advice on this.

Good-luck.

 Kerry Kerstetter 

 

 

Posted in 179 | Comments Off on Timing of Sec. 179 Deduction