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.

Manufacturer Deduction

FACTS:

Assumptions...

Prior Law

No provision. The new law is meant to replace the foreign sales corporation/extraterritorial income regime (FSC/ETI), a tax provision that lets American exporters exclude from gross income qualifying extraterritorial income, which the World Trade Organization declared an illegal export subsidy.

* 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.

We advised him he could "exchange" this property for another, or pass the property to heirs by inheritance.

* Client sold this property 2 years later resulting in capital gain tax due of $60,000.

CONCLUSION:

* Client willing the property to heirs, this $60,000 tax could have been saved !!

Child Tax Credit

Prior Law

The credit was $1000 per child for 2003 and 2004, $700 per child for 2005 through 2008, $800 perchild for 2009, and $1000 per child for 2010.