Higher Education Costs

The deduction for higher education costs expires at the end of 2009. In addition the American Opportunity Credit replaces the Hope Credit with an increase in the maximum tax credit from $1,800 to $2,500 for 2009 and 2010. Income phase-out levels are raised to $160,000 of adjusted gross income (AGI) for joint filers and $80,000 of AGI for single filers. Also new is the change to make 40% of the tax credit refundable which should enable lower income taxpayers to get a tax refund for 2009 and 2010.
Continue reading “Tax Planning Part II” →

Proper Planning of Investments In Start-Up Businesses May Eliminate Tax on Gains.

Investors in new start-up businesses should consider the benefits of a provision in the Small Business Jobs act of 2010 which eliminates the tax on gains on the sale of Qualified Small Business (QSB) stock issued between September 27, 2010 and December 31, 2010 and held for more than 5 years.

The act modifies Section 1202, which is a tax provision intended to stimulate cash flow into new start-up companies by reducing the taxes on future gains. The provision was originally enacted in 1993 and excluded 50% of gains on Qualified Small business Stock. The exclusion was increased to 75% for stock acquired after February 17, 2009 and was increased to 100% for stock issued between September 27, 2010 and December 31, 2010.
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Bill Hesch Named “Leading Lawyer” for Ninth Consecutive Year

William E. Hesch, Esq., CPA, PFS, was recently recognized as a “Leading Lawyer” in the Trust and Estate area by Cincy Magazine for 2012. This is the Ninth consecutive year Bill Hesch has received the coveted distinction, which is determined by the ballot of local attorneys.

“This designation reflects excellence in estate planning,” Bill comments. “My background as both an attorney and a CPA makes me an integral professional who is able to address complex legal matters from accounting, financial, and tax perspectives.”
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Cincinnati Estate Tax Rules Relating to Debt Discharged in Connection With Your Personal Residence

The Mortgage Forgiveness Debt Relief Act of 2007 and subsequent amendments allow taxpayers to exclude up to $2 million of income from the discharge of indebtedness as a result of debt discharge on their principal residence. This applies to debt forgiven in calendar years 2007 through 2012. This applies to foreclosures as well as short sales, so it is not required that the taxpayers stay in the home until the foreclosure.
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 How to Manage Money More Effectively

 

I. The problem – Money is the #1 problem in relationships today

A.

Since 2005 our country has been in a negative savings mode nationally.

 

Debts have increased and household budgets are getting stretched to the limit.

B.

Higher gas and medical costs are now forcing the average person to cut their personal living expenses deeper and deeper.

C.

The average person at all income levels $15,000/50,000/100,000 is spending more than they make in take home pay and the solutions are not easy.

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American households are struggling to make ends meet with higher gas prices and the trickledown effect on the cost of our day to day household expenditures. Now more than ever, households are living paycheck to paycheck. An ominous sign of the times are “middle income” families beginning to seek help from the food pantries.

One solution is putting together and managing your personal budget.

1. Review current spending habits.
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Pay itemized deductions before December 31, 2010 to save 2010 taxes:

• 2010 income taxes
• 2010 real estate taxes
• January, 2011 mortgage payment
• Charitable donations – donate appreciated stock to your charities and deduct the fair market value of the stock and no tax is due on the appreciation of the stock

Continue reading “Tax Savings Tips – Cincinnati Capital Gains Tax” →

Employers Hiring Tax Incentives
Qualified new hire:

• Must sign affidavit on new IRS Form W-11 under penalties of perjury that he qualifies as a new hire…has not worked a total of 40 hours over 60 days prior to hire date.
• Begins work for a qualified employer which is not a governmental entity (exclusive of a public higher education institute).
• Not employed to replace another employee of employer unless such employee separated for cause or voluntarily quits work.
• Is not a related party.

Continue reading “Tax Law Changes for Employers” →

This letter highlights certain issues relating to the operation of your limited liability company (LLC) that are important in realizing the limited personal liability and tax benefits of doing business in the form of an LLC.

1. BENEFITS OF LLC FORM
As we discussed when you formed your LLC, doing business in the form of an LLC provides limited liability for all owners (“members”) and permits the LLC flexibility in its taxation strategy. These are significant benefits as compared with other forms of structuring a business entity. However, to gain that limited liability protection or experience the advantages of some taxation strategies, the LLC must be treated as a separate entity from its members and be operated in accordance with its operating agreement and/or the governing statutes.
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The aftershocks of the Terri Schiavo case encourage us to consider what, if any, life-sustaining treatment we would want in similar circumstances. But how do you make your wishes known? And to what extent is your own will-to-live subordinate to the state’s mandate-to-live?

Since 1990, the Supreme Court has maintained that a competent person always has the constitutional right to accept or refuse medical treatment, Cruzan v. Director, Missouri Department of Health 497 U.S. 261. Inherent in due process is your right to accept or to attempt to prolong the natural dying process. On the other hand, the state’s duty is to protect human life and dignity’ and to exercise particular oversight especially when one cannot communicate competently. Striking a proper balance between the state’s interest in protecting life and the individual’s right to self-determination is no easy task for the legal system or the human conscience.
Continue reading “Health Care Directive – Cincinnati Living Will Attorney” →