This issue of Tax Advisory Insights includes the following articles:
- 2012 Business Tax Planning Tips
- Using Tax Software to Prepare Your Return
- The Fiscal Cliff, and Charitable Contributions
The Retro Look is "In"
2012 Business Tax Planning Tips
Year-end planning is a bigger challenge this year than in past years because, unless Congress acts, tax rates will go up next year, many more individuals will be snared by the alternative minimum tax (AMT), and various deductions and other tax breaks will be unavailable. To be more specific, as a result of expiring Bush-era tax cuts, individuals will face higher tax rates next year on their income, including capital gains and dividends, and estate tax rates will be higher as well. The AMT problem arises because, for 2012, AMT exemptions have dropped and fewer personal credits can be used to offset the AMT. Additionally, a number of tax provisions expired at the end of 2011 or will expire at the end of 2012.
Using Tax Software to Prepare Your Return
Using a chainsaw to cut down that overgrown tree in your back yard can be very dangerous. If you're inexperienced, you can get seriously injured. The tree can fall on your house or car. It can fall into your neighbor’s house. You could do a lot of damage. Using the same tools by an experienced tree trimmer can ensure the job gets done safely with no collateral damage. Same can be said for tax software.
For many years, people have used tax preparation software to prepare their personal tax returns. The software is relatively inexpensive, provides electronic filing capabilities, and is generally easy to use. But what happens when there is an error in your tax return. Can you claim the "TurboTax defense"? Three recent court cases have said no.
The Fiscal Cliff, and Charitable Contributions
You can't turn the on television or listen to the radio without talk of the 'fiscal cliff' and taxmagedon looming for 2013. But hold the bus! What about tax planning for 2012? As 2012 quickly comes to a close, there are still some planning items to consider. One of the easiest ways to mitigate your tax bill, at least under current law, is to give cash, stock or household items to charity. So as you make way for this year's Christmas presents or contemplate a year end gift to your favorite charity, learn more about the rules on charitable giving.
The Retro Look is "In"
The Retro Look is “In”, at least when it comes to commercial real estate. Many developers are choosing to retrofit or remodel older buildings, rather than incurring the usual higher costs related to building from the ground up. What many developers might not know is that there are many tax Federal benefits available to developers of older buildings. This article discusses several of these tax savings opportunities.
For more information on our Cleveland tax planning and preparation services, leave a message below or contact one of our professionals by calling 440-449-6800.