Home
office deduction as the "principal place of business" if:
The office is used by the taxpayer to conduct administrative or
management activities of a trade or business and there is no other fixed location of the trade or business where
the taxpayer conducts substantial administrative or management activities of the
trade or business.
In
the case of an employee, the deduction will be allowed only if the exclusive use
of the home office is for the convenience of the employer.
Internal
Revenue Service cannot levy against the assets of a single member LLC for the
tax liability of the owner. The
Service can only levy the assets of the owner that are not in the LLC. As long
as no distributions are made to the owner from the LLC, those assets remain the
property of the LLC and, therefore, not subject to levy.
Health
insurance costs of the self employed are 100% deductible for adjusted gross
income. However, if a
medical expense reimbursement plan is adopted, out of pocket insurance premiums plus
medical expenses can be deducted before self-employment tax. Call us about the StarPlan to see how it works.
Maximum
deferrals for 401(k) plans is $16,500 or $22,000 if age fifty or older.
Points
paid on the purchase of a home can be amortized. If a taxpayer purchases a home late in the year and does not have enough deductions to
itemize, then the points can be amortized over the life of
the loan. Refinanced mortgages
always have to be amortized.
Capital
gain rates for individuals are 5% to 15%. The
5% rate applies to individuals in the 10% to 15% tax bracket, all other
brackets are 15%. A 0% rate will replace the 5% rate in 2008.
The
gain on the sale of depreciable real property has many tax rates. First of all, the excess depreciation over straight-line is taxed at
ordinary tax rates. The recapture
of straight-line depreciation is taxed at 25% and the excess gain over
depreciation recapture is taxed at the capital gains rates of 0% or 15%
depending on the taxpayers tax bracket.
Employers with accumulated payroll taxes less than $2,500 per quarter can
remit payments with the payroll tax return. No change has occurred for deposit requirements of monthly, semi-weekly
or next-business day.
2009 Mileage
allowance for use of personal auto are as follows:
Business Use
55¢
Charity Work
14¢
Medical or Moving
22¢
Section
179 expense deduction for 2009 is $250,000. This is the maximum that can be expensed on the purchase of depreciable
personal property in 2009 if sufficient profits are available to offset the
deduction.
The
estate tax exemption for 2009 is $3,500,000. This amount is unlimited in
2010, back to $1,000,000 in 2011 and thereafter.
We
at G. R. Starbuck & Co., P.A. are here to help with these or any other tax
issues. Please give us a call.
