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TaxThink

Rick Taylor

The purpose of TaxThink is to discuss and explain serious tax topics in an offbeat and interesting manner.

10 Powerful Tax Planning Ideas You May Have Overlooked - PKF North American Summit

Nov 14, 2011
By Rick Taylor, CPA | Tax

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On November 14, I presented to an group of fabulous tax professionals at the PKF North American Summit in Washington DC. It was great to see everyone again and to renew old friendships. More importantly, we had time to share ideas and look for ways to add value to our clients. My presentation reviewed 10 often overlooked ideas.

WICPA’s 75th Annual Tax Conference Presentation

Oct 30, 2011
By Rick Taylor, CPA | Tax

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Rick's 20th annual tax update presentation at the WICPA’s 75th Annual Tax Conference. This presentation focuses on the relation of current year developments (whether legislative, judicial, or regulatory) to practical planning that will help you add value to your clients.

2011 Federal Tax Update: Back to the Future (Again)

Oct 23, 2011
By Rick Taylor, CPA | Tax

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Rick's Annual Tax Update presentation at the CPA Associates International 54th Annual meeting. This presentation focuses on the relation of current year developments (whether legislative, judicial, or regulatory) to practical planning that will help you add value to your clients.

Installment Sales Treatment Generally Unavailable for Related Party Sales

Oct 19, 2011
By Rick Taylor, CPA | Tax

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The installment method of reporting income generally is unavailable for sales of depreciable property between related parties. Related parties may include individuals for purposes of denying installment sales treatment.

Unexpected Tax Consequences of Related Party Sale Requires Careful Navigation

Jul 27, 2011
By Rick Taylor, CPA | Tax

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Normal tax rules are suspended in the case of certain sales between related parties. Related party sales generally create negative tax consequences for sellers including recharacterizing capital gains as ordinary income, denying installment sales reporting, disallowing realized losses and restricting the use of like-kind exchanges.

Reduction in Key IRS Interest Rate for June Offers Planning Opportunities

May 27, 2011
By Rick Taylor, CPA | Tax

Comments (0)

The interest rate that must be used by taxpayers to calculate the amount of taxable gifts when using certain planning strategies will decline to 2.8% for transfers made during the month of June. This reduction generally benefits taxpayers looking to transfer assets to their junior family members.

2011 Auto Depreciation Deduction Limitations - IRS Gives Certain “Luxury Auto” Owners a Break

Apr 26, 2011
By Rick Taylor, CPA | Tax

Comments (3)

Depreciation deductions for most new automobiles will be dramatically reduced unless a special election is made in the first tax year following the auto’s placed-in-service date.

Real property foreclosures require careful planning to avoid unexpected consequences

Mar 15, 2011
By Rick Taylor, CPA | Tax

Comments (0)

Real property foreclosures can produce dramatically different (and unexpected) tax consequences depending on the type of debt that is involved.

2010 Tax Relief Act Dramatically Reduces the Residential Energy Credit

Feb 14, 2011
By Rick Taylor, CPA | Tax

Comments (1)

The 2010 Tax Relief Act dramatically reduces the residential energy credit for individuals to 10% of qualified expenditures with a lifetime limit of $500. If you did not take advantage of the $1,500 limitation available in 2010, you may have lost the ability to claim an extra $1,000 credit forever.

Now May be the Time to Buy a New SUV for Business

Dec 21, 2010
By Rick Taylor, CPA | Tax

Comments (0)

New bonus depreciation and expensing rules can be used to deduct the entire cost of a new SUV placed in service during 2010 or 2011 provided certain requirements are met.

2010 Tax Relief Act – Finally some Holiday Cheer!

Dec 13, 2010
By Rick Taylor, CPA | Tax

Comments (1)

Despite all of the protests being expressed in the media by House Democrats, expect the 2010 Tax Relief Act to be sent to the President for his signature this week.

Increase the Benefits of Year End Planning for Your Business by Using the Tax Provision to Identify Tax Planning Opportunities

Dec 01, 2010
By Rick Taylor, CPA | Tax

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Regardless of your level of expertise, it seems that the best tax planning opportunities are often found as a result of pure serendipity.

2010 Federal Tax Update: Dancing with the IRS

Nov 03, 2010
By Rick Taylor, CPA | Tax

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2010 continues the annual tradition of piling tax change upon tax change and allowing important provisions to expire (only to re-enact them retroactively) making it next to impossible to understand, much less comply with our Federal income tax law.

Pass-Throughs with Research Credit Opportunities Reap Significant Benefit from Recent Tax Act

Sep 28, 2010
By Rick Taylor, CPA | Tax

Comments (0)

There are two provisions in the recently passed tax Act which can have a significant impact to shareholders of S corporations and partners of partnerships, including LLCs treated as partnerships, who are eligible to claim a tax credit for research and development activities but have been limited due to problems with the Alternative Minimum Tax (AMT).

Most Taxpayers Will Benefit from Accelerating Capital Gains to 2010

Sep 09, 2010
By Rick Taylor, CPA | Tax

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One of the most beneficial decision taxpayers can make this year is to accelerate capital gains.

2010 Year-end Tax Planning Requires New Strategies

Aug 29, 2010
By Rick Taylor, CPA | Tax

Comments (0)

Effective year-end tax planning for 2010 should focus on accelerating income and postponing deductions other than itemized deductions.

IRS Again Creates Confusion with Conference Call that Contradicts Published Guidance

Jul 29, 2010
By Rick Taylor, CPA | Tax

Comments (0)

A disturbing trend has developed at the National Office of the IRS where it attempts to significantly revise published guidance via a somewhat obscure conference call.

Getting Ready for Large Tax Increases – Taking Stock of what is in Store

Jul 13, 2010
By Rick Taylor, CPA | Tax

Comments (0)

It is time to review precisely where tax rates are going over the next few years as we are exactly six months away from the biggest tax increase in nearly 17 years.

House Passes Small-Business Tax Bill

Jun 16, 2010
By Rick Taylor, CPA | Tax

Comments (0)

The House on June 15 passed a small-business tax bill that essentially would eliminate the use of GRATs as an effective estate planning tool for most senior family members.

Business and Real Estate Owners May be Missing Valuable Opportunity

May 26, 2010
By Rick Taylor, CPA | Tax

Comments (2)

Certain taxpayers may be overpaying their current taxes because they misclassify deductible repairs and maintenance expense as capital improvements.

Passive Activity Loss Rules May Disallow Deduction of Current Losses Unless Taxpayer is a Qualifying Real Estate Professional

Apr 27, 2010
By Rick Taylor, CPA | Tax

Comments (1)

An individual's rental real estate activities, including those owned through pass-through entities, automatically fall under the passive activity loss (PAL) rules regardless of whether the taxpayer materially participates in the activity.

Employers Who Hire or Rehire Employees May Qualify for Important Tax Break

Apr 02, 2010
By Rick Taylor, CPA | Tax

Comments (0)

Employers who previously laid off employees as a result of a lack of work, or due to a change of season, may be able to take advantage of this new provision.

Don’t Jump from the Bridge… yet… President signs Patient Protection and Affordable Care Act

Mar 24, 2010
By Rick Taylor, CPA | Tax

Comments (0)

Tax increases resulting from health care legislation will not take effect until 2013.

What are your chances for being audited?

Mar 15, 2010
By Rick Taylor, CPA | Tax

Comments (0)

IRS data book provides valuable information about where the IRS is focusing its attention and how many tax returns the IRS audits.

If You Like Challenges – Choose a Career in Tax

Mar 01, 2010
By Rick Taylor, CPA | Tax

Comments (0)

A relative newcomer to the profession says it’s the thrills and spills that make this career choice worthwhile.

Second Shot at a “Once in a Lifetime” Benefit

Feb 23, 2010
By Rick Taylor, CPA | Tax

Comments (0)

Special tax benefit originally aimed at Chrysler could benefit your closely held C Corporation.

Beneficiary Designation Forms: The most important estate planning form that you don’t know about.

Feb 07, 2010
By Rick Taylor, CPA | Tax

Comments (0)

Proper planning requires the completion and continual review of a Beneficiary Designation Form (BDF).

President’s Budget for Fiscal 2011 Will Significantly Increase Your Taxes

Feb 02, 2010
By Rick Taylor, CPA | Tax

Comments (0)

On February 1, Treasury released the General Explanations of the Administration’s Fiscal Year 2011 Revenue Proposals indicating it’s time to get your wallet out.

IRS Proposed to Require Notification of FIN 48 Uncertain Positions

Jan 26, 2010
By Rick Taylor, CPA | Tax

Comments (0)

The IRS is now proposing that taxpayers provide them with a roadmap to potential audit adjustments and to provide them with worse case estimate.

Favorable IRS Interest Rates Create Estate Planning Opportunities

Jan 06, 2010
By Rick Taylor, CPA | Tax

Comments (0)

With IRS interest rates at historic lows and legislative changes in the air, now is the time to lock in significant tax savings by moving your estate planning forward by utilizing one of these techniques.

Tax Extenders Act of 2009 Extends a Variety of Pork Barrel Provisions

Dec 14, 2009
By Rick Taylor, CPA | Tax

Comments (0)

Every year Congress enacts a one-year extension for a variety of politically popular provisions for which it has to scramble to pay.

Energy Credits Saving More Valuable in 2009 than 2010

Dec 03, 2009
By Rick Taylor, CPA | Tax

Comments (2)

Nonbusiness energy credit can be used to offset alternative minimum tax in 2009, so you should not put off buying qualifying property until 2010.

Generous Education Tax Credits Available to Certain Taxpayers in 2009

Nov 20, 2009
By Rick Taylor, CPA | Tax

Comments (1)

An overlooked provision included in 2008 Stimulus legislation may generate significant benefits for certain individuals attending a higher education institution located in a Midwestern Disaster Area in 2008 and 2009.

Home Buyer’s Credit Provisions Vary Greatly

Nov 13, 2009
By Rick Taylor, CPA | Tax

Comments (1)

The popular first time home buyer’s credit has undergone significant changes since enactment.

Comparison of NOL Carryback Provisions Summary - Tax changes occur so frequently it's difficult to keep them straight.

Nov 11, 2009
By Rick Taylor, CPA | Tax

Comments (0)

Because there have been so many tax changes that revise recently enacted legislation with different effective dates, its difficult to keep the changes straight.

Congress passes Worker, Homeownership, and Business Assistance Act of 2009

Nov 07, 2009
By Rick Taylor, CPA | Tax

Comments (0)

On November 6, 2009, the President signed new legislation that gives businesses of all sizes an expanded net operating loss carryback and extends and liberalizes the home buyers tax credit.

2009 Federal Tax Update

Nov 05, 2009
By Rick Taylor, CPA | Tax

Comments (0)

2009 has turned out to be a fairly routine year as we’ve only had to deal with 300-400 tax law changes.

How IRS Interest Rates Affect Your Transfer Tax Planning

Oct 21, 2009
By Rick Taylor, CPA | Tax

Comments (0)

Special interest rates determined monthly by the IRS can dramatically affect your transfer tax planning.

Numerous Expiring Tax Provision May Significantly Increase Your Future Tax Bill

Oct 12, 2009
By Rick Taylor, CPA | Tax

Comments (0)

Expiring provisions give Congress and the President a way to raise taxes without debating the tax increases.

Does a Roth Conversion Make Sense Next Year?

Aug 19, 2009
By Rick Taylor, CPA | Tax

Comments (0)

High income taxpayers should consider converting their traditional IRA to a Roth IRA in 2010.

Courts Reject IRS Unreasonableness on Passive Losses

Jul 28, 2009
By Rick Taylor, CPA | Tax

Comments (6)

The Tax Court and the Court of Federal Claims in separate cases this month have held that LLC and LLP members are not automatically presumed to lack material participation.

IRS Changes Position on Reporting for Investments in Foreign Hedge Funds and Private Equity Funds

Jul 06, 2009
By Rick Taylor, CPA | Tax

Comments (0)

IRS “announces” major change in reporting rules on obscure conference call three weeks before filing deadline creating havoc and uncertainty for taxpayers.

Plan Now to Take Advantage of the One Person 401(k) - Part 1 - Overview of the Strategy

Jun 16, 2009
By Rick Taylor, CPA | Tax

Comments (0)

One person 401(k) plans can provide extraordinary benefits to individuals with full-time positions and unrelated self employment income.

Far Ranging Tax Proposals will Radically Alter Individual and Corporate Taxes

May 20, 2009
By Rick Taylor, CPA | Tax

Comments (0)

Proposed tax law changes will significantly increase taxes for individuals, families, and businesses beginning in 2011 and individuals dying on or after the date of enactment.

Get Your Tax Planning Started Now or Risk Significant Increases in Coming Years

May 15, 2009
By Rick Taylor, CPA | Tax

Comments (0)

Proposed tax law changes will significantly increase taxes for individuals, families, and businesses beginning in 2011 and individuals dying on or after the date of enactment.

Surviving an IRS Audit

Apr 29, 2009
By Rick Taylor, CPA | Tax

Comments (0)

If you are contacted for an IRS audit, you need to act immediately to resolve the matter. You should use a tax professional to level the playing field.

It's Not Too Late to Reduce Your 2008 Taxes: Establish a Simplified Employee Pension

Mar 31, 2009
By Rick Taylor, CPA | Tax

Comments (2)

Certain small business owners and self-employed individuals may reduce their 2008 taxes by establishing a SEP by the due date of their tax return, including extensions.

COBRA Provision Imposes New Burdens on Employers

Mar 10, 2009
By Rick Taylor, CPA | Tax

Comments (0)

COBRA provisions included in the 2009 Economic Stimulus Act will increase administrative burdens to the employer by requiring the employer recover the cost via a tax credit and requiring retroactive coverage.

Individual Provisions Included in the 2009 Economic Stimulus Act

Feb 24, 2009
By Rick Taylor, CPA | Tax

Comments (0)

The individual provisions of the 2009 Economic Stimulus Act are too narrow and targeted to provide any measurable tax relief to middle-class two-wage-earner families.

Business Provisions Included in 2009 Economic Stimulus Act

Feb 18, 2009
By Rick Taylor, CPA | Tax

Comments (1)

The 2009 Economic Stimulus Act primarily extends existing tax benefits and provides little or no stimulus for business.

Senate Holds the Upper Hand - Comparison of Provisions

Feb 11, 2009
By Rick Taylor, CPA | Tax

Comments (0)

Expect a stimulus bill sometime this week (before Monday).

Strategies for a Troubled Economy

Feb 05, 2009
By Rick Taylor, CPA | Tax

Comments (0)

You'll sleep better at night if you address the issues head on.

House and Senate Stimulus Provisions Have Important Differences

Jan 29, 2009
By Rick Taylor, CPA | Tax

Comments (0)

Important differences exist between the House passed Stimulus Bill and Senate provisions working their way to a vote.

Stimulus Bill Provides Few Business Incentives

Jan 19, 2009
By Rick Taylor, CPA | Tax

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Business tax provisions included in the new stimulus bill offer few incentives for business to expand.

Six More Planning Ideas for Reducing 2008 Taxes After Year End

Jan 12, 2009
By Rick Taylor, CPA | Tax

Comments (1)

Earlier this week, we focused on six planning ideas that can be implemented after year end. Here are six more strategies that can be used to reduce 2008 taxes even though we are well into 2009.

Tax Planning Moves Still Possible After Year End for Businesses

Jan 05, 2009
By Rick Taylor, CPA | Tax

Comments (0)

Although year-end has passed, there are still a number of tax-saving moves a company can make to reduce its tax burden for 2008.

Should I Accelerate My Capital Gains to 2008?

Dec 21, 2008
By Rick Taylor, CPA | Tax

Comments (1)

Will Obama and the Democratic Congress raise capital gains rates in 2009 thereby making it beneficial for me to accelerate capital gains to 2008?

The only way to be absolutely certain you will not be subject to a tax increase in 2009 on capital gains is to accelerate them to this year. At the same time, it seems clear that because the economy is in worse shape than originally thought, it is unlikely that President-elect Obama and the Democratic Congress will push through a capital gains tax increase in 2009. Based on recent statements made by close advisors, it appears there is support among them to simply let the Bush tax cuts expire at the end of 2010. That would mean no tax increases until 2011...

Hello - Welcome to TaxThink-Dispatches from the front lines of our tax system

Dec 19, 2008
By Rick Taylor, CPA | Tax

Comments (2)

Welcome to TaxThink. We're glad you stopped by. Our purpose is to discuss and explain serious tax topics in an offbeat and interesting manner. Can't be done? Maybe; but lets reach high. Please stop back often to review the latest post, and if the mood strikes you, comment on the topic at hand. Your comments and questions are welcome and I will do my best to address them as quickly as possible. In the coming months, we'll also be adding interesting links to expand your knowledge...

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