No Ponzi Scheme is bigger than Social Security…
Posted by taxguru on December 19, 2008
(Click on image for full size)
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Posted by taxguru on December 13, 2008
IRS Interest Rates Drop for the First Quarter of 2009
The main IRS interest rate will be 5.0% for at least the first three months of 2009.
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Vehicles exempt from luxury car rules…
Posted by taxguru on December 12, 2008
We frequently discuss the 6,000 pound exemption from the luxury car depreciation limits that have been around since 1984.
There has recently been some confusion regarding whether the vehicle needs to be constructed on a truck chassis to qualify for the exemption. According to this analysis from CCH, that distinction regarding the chassis may have been removed by IRS.
The IRS announced the applicable 2008 luxury car depreciation caps in Rev. Proc. 2008-22, I.R.B. 2008-12, 658. For the first time since the release of Rev. Proc. 2003-75, the language indicating that an SUV should be considered to be a truck if it was built on a truck chassis was omitted.
In an informal response to a CCH inquiry, the IRS indicated that the language in Rev. Proc. 2003-75 (and the subsequent annual depreciation cap update) was only intended to represent a safe harbor that taxpayers could use to determine whether an SUV qualifies for the higher depreciation caps that apply to trucks and vans with a GVWR of 6000 pounds or less. The IRS either has or will eliminate language in its publications and form instructions that equate an SUV to a truck if it is built on a truck chassis.
Since I have noticed that CCH news stories have a tendency to disappear from their website after a few weeks, I made a PDF copy of this one that you can download.
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New tax prep tool?
Posted by taxguru on December 12, 2008
For those folks who work on taxes by hand, Neal Boortz believes this special “Spread the Wealth” pencil sharpener would be appropriate.
When you’re ready to send your tax return off to IRS, how about sticking it into this mailbox?
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Outdated tax advisor?
Posted by taxguru on December 9, 2008
Q:
Subject: Lifetime exclusion for gift taxes?
Dear Tax Guru,
On your website you say that the lifetime exclusion for gift taxes is 1 million dollars. My tax accountant in California says that the IRS publications say that it is 1 million dollars for estate taxes but $385,000 for gift taxes.
Can you enlighten me on this matter.
Thank you,
A:
Your accountant is obviously using reference materials that are seriously out of date. That is very scary in the ever changing world of taxes to think that a tax guide from at least five years ago is still relevant today.
You can see the exemption amounts on my website.
You can also download the IRS’s forms and instructions from the IRS website.
Good luck.
Kerry Kerstetter
Follow-Up:
Dear Mr Kerstetter,
Thank you very much for responding to my e-mail.
Sincerely,
Posted in Estates, Gifting | Comments Off on Outdated tax advisor?
Tax Guru - Ker$tetter Letter 