|
|
|
Welcome to this month's edition of the Tax and Business Alert. Our goal is to provide you with current articles on various tax and business topics. The articles are intended to keep you up to date on trends and issues that may impact your business and personal financial affairs. Please contact us if you have questions about any of the issues discussed. |
|
|
Reevaluate Shareholder Loans With all the angst about the economy, high gasoline prices, and the lousy real estate environment, you may not have noticed that most interest rates are near historically low levels.
Increased IRS Mileage Rates The IRS has increased the optional standard mileage rates for the six-month period from July 1, 2008, through December 31, 2008. Although the IRS normally updates the mileage rates once a year (in the fall for the following calendar year), the IRS made this special adjustment in recognition of the recent run-up in gasoline prices. Filing Requirements for Nonprofits Have Changed If you serve on a nonprofit organization’s board of directors, you should be aware of a recent law change that could put the organization’s tax-exempt status at risk. Funding Education Costs The ability of high-income parents to use a child's lower tax rate to report significant income at a low tax cost is often referred to as the tax capacity of the child. A number of strategies exist for the efficient use of a child's tax capacity for college funding. These strategies differ depending on the method the parents choose to fund higher education expenses for their child. S Corporation Subsidiaries Many taxpayers are aware of the more common advantages of S corporation ownership, which include avoiding the double taxation of income; passing through losses, deductions, and credits of the corporation to the shareholders to be used on their personal returns; facilitating shareholder deduction of investment interest expense; and shifting income to other members of the family to reduce taxes, among others. |
|
