NEWS PAGE FOR SEEKERS OF PERSONAL OR BUSINESS TAX AND FINANCIAL INFORMATION
Tax Related News and Other Info from William W. Hollister, PSC
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KY Tax Law Effect on Business
As of January 1, 2005, the tax law is now based on the greater of the following questions:
Changes & Impacts Tax Laws Have on Business
Interested in investigating some useful business links? How about some smart agri-business links? Well, try these, for starters:
Regular corporate income tax.
Lesser of gross receipts tax and
gross profits tax.
$175 Minimum tax to be paid.
The Kentucky Tax Modernization Act, passed by the Kentucky legislation, indicates state taxes due or all C-Corporations and pass-
Personal Financial Planning
Charitable Contributions of Vehicles
Federal Personal Income Tax Changes as a Result of the Family Tax Relief Act of 2004 and the Jobs Creation Act of 2004
by William ‘Bill’ Hollister
William W. Hollister
Many CPAs see themselves only as tax preparers. But we believe a critical aspect of the tax and accounting profession is about looking to the future.
Personal financial planning can offer peace of mind with well implemented planning. This could include making sure that you're not paying unnecessary taxes, not paying too much for insurance, or that your investments meet your needs. Most of all, start planning...stop worrying.
SAVING CAPITAL GAINS TAX ON APPRECIATED REAL ESTATE
Prior Law
Donation is fair market value. Written acknowledgment required from charity, but not required to be attached to the return.
proceeds from the sale by the charity. If the charity uses or improves the vehicle, the charity must estimate market value oat the time of the donation. Contributions for which the claimed value exceeds $500 require written acknowledgement from the charity and the taxpayer must attach it to the return.
FACTS:
Assumptions...
* Client held commercial rental property many years with value of $300,000.
* Client now past 70 years of age and wants to sell to gift cash to family members.
Current Law
The charitable contribution deduction for vehicles depends on the use of the vehicle by the charitable organization to which it was donated. If the charity sells the behicle without any significant use or making any improvements, the donor’s deduction is limited to the gross
TAX TIPS
FACTS:
Assumptions...
* Client (propreitor) owns small business.
* And client needs to save money for school tuition for 2 teen-age children under 18 years of age
Is Free Tax Advice Worth the Price?
TAX FREE
Tax Deferred Exchanges
Are you looking for an aid in building your successful financial future?
When real estate is sold, the seller must pay tax on the gain from the sale of the property. This gain results because the property appreciates as time goes by, and from depreciation deductions for tax purposes.
An exception to this capital gains tax is allowed by Internal Revenue Code Section 1031...
To Maximize the Sale Price for Your Business
FACTS:
Assumptions...
* Client wants to sell retail business held many years to retire.
* Client presents to us the value of the business prepared by an outside appraiser to be reviewed to negotiate with buyer.
CONCLUSION:
After preparing a Valuation of the above business using a capitalization of earnings, We were able to obtain
5 New Tax Benefits for 2008
A Wide Range of Services
Our Biggest Concern is Your Success
Tips from SmartMoney.com
by Bill Bischoff
At William W Hollister PSC, we go the extra mile. Fundamental accounting practices that help you learn from the past are only a start to making your dreams for tomorrow become a reality.
We help you create something of value. You deserve the assistance needed to meet the challenges of today. Not just from reporting on yesterday --- we help you develop your future!
At this point, you’ve probably received your 2008 Form 1040 packet. Now, it's time to start thinking about getting your return underway -- whether you choose to do it yourself or hire a pro.