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At Kosmatka Donnelly & Co. we want to you get answers to your questions quickly and efficiently. That’s why we’re keeping you updated on the latest financial and accounting news and information right from this page. Check back for new articles and links often.
What Will Happen If the Bush Tax Cuts Are Allowed to Expire? (Click here to read more) (pdf file)
As you know, the so-called Bush tax cuts (from legislation enacted in 2001 and 2003) are scheduled to expire at the end of this year. But, you may not understand the full extent of what is in store for you if Congress simply sits back and allows the expirations to occur without making any changes. Here's the little-known truth.
When Transferring Assets to a Low-risk Family Member Can Save the Day (Click here to read more) (pdf file)
For many people, liability insurance is the primary method of asset protection. However, low coverage limits, liberal policy exclusions, insolvent insurance companies, and/or exorbitant premiums insurance coverage can sometimes leave high-risk/high-wealth individuals (e.g., a surgeon or business owner) exposed and in need of additional protection from creditor claims. One simple and inexpensive method for protecting assets in such a case is for the high-risk person to transfer (retitle) property to a low-risk family member.
Midyear Tax Planning Opportunities (Click here to read more) (pdf file)
Although this year is half over, we’ve already seen legislation with major tax changes, and more are almost certainly on the way. Despite confusion created by the never-ending changes, the 2010 federal income tax environment is still quite favorable. However, we may not be able to say that for 2011 and beyond. Therefore, tax planning actions taken between now and year-end may be more important than ever. This article presents some planning ideas to consider this summer while you have time to think.
Tax Benefit to Employers Hiring New Workers (Click here to read more) (pdf file)
Two new tax benefits are now available to employers hiring workers who were previously unemployed or only working part time. Employers who hire unemployed workers this year may qualify for a 6.2 percent payroll tax incentive. Employers may claim the payroll tax benefit on their federal employment tax return beginning with the 2010 second quarter filing. In addition, for each worker retained for at least a year, businesses may claim an additional general business tax credit, up to $1,000 per worker on their 2011 income tax returns.
2010 Small Employer Health Insurance Tax Credit (Click here to read more) (pdf file)
For tax years beginning in 2010 through 2013, eligible small employers (including small tax-exempt employers) that purchase health insurance coverage for their employees may be eligible for a tax credit to help offset the cost of the insurance coverage. (See new IRC Sec. 45R.) This is one of the few provisions in the Patient Protection and Affordable Care Act (Health Care Act) that is effective in 2010. It's also one that is likely to be of keen interest to small business employers, especially now that the IRS has mailed millions of postcards to small businesses and tax-exempts advising them of its possible availability to save them big tax dollars.
