JFK Makes No Cents For Too Many Reasons To List
Posted by taxguru on August 2, 2004
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Posted by taxguru on August 2, 2004
John Kerry Won’t Be Punished For Senate Absence – It’s great having a highly paid taxpayer funded job that doesn’t require actually doing anything, allowing plenty of time to campaign for other offices.
I like his new nickname, The Frenchurian Candidate, as used by a caller on today’s Rush Limbaugh show.
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Posted by taxguru on August 2, 2004
Aug. 16 Deadline Approaches for Extension Filers – I’ll be sending in another 80 or 90 extensions in the next two weeks, since I’ve been so busy working on 2002 and older tax returns to do very many 2003s.
Contrary to popular belief, you don’t need a tear-jerking excuse for the October 15 extension. Save those for the extensions beyond October 15. The following text has sufficed for the past 25 years just fine.
We have been unable to assemble all of the information we require to prepare a complete and accurate tax return by the deadline.
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Posted by taxguru on August 2, 2004
Republicans Plan Push For Elimination Of IRS – It sounds too good to be true; but we can hope so.
Hastert Book Says GOP Plans to Abolish IRS
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Nothing New
Posted by taxguru on July 31, 2004
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Posted by taxguru on July 30, 2004
Amway & Taxes – Excellent post by Roth & Co on how important it is to have a true profit motive in order to deduct business losses. Since almost nobody ever makes any real money from Amway, that business already starts off as suspect in the eyes of the IRS.
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Limits On Section 179
Posted by taxguru on July 30, 2004
I continue to receive a lot of questions about the use of the Section 179 expensing election, such as this one:
Question:
I’ve read that taking this deduction cannot cause your business to have a loss, but If I have a business loss before taking this deduction, am I allowed to take it?
Thank you in advance,
My answer:
It is true that the Section 179 cannot be used to reduce taxable income below zero. However, this isn’t always based on the business income alone.
For corporations (Form 1120), it is pretty straight forward. The Sec. 179 deduction can only be as high as needed to zero out the taxable income. If there’s already a break-even or net loss, no current 179 is allowed and must be carried over (on Form 4562) to the next tax year.
For Schedule C sole proprietorships, it is actually possible to use Sec. 179 to create or increase a large net loss if there are other sources of income (W-2s, etc) that result in a positive taxable income before considering the Sec. 179 deduction.
I hope this helps. I’m sure your personal tax advisor can give you more specifics for your particular situation.
Kerry Kerstetter
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