Bulletins
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.
The information you provide to us via the Organizer can help us prepare a more accurate return and put a completed return in your hands more quickly. Read our Top Ten Tax Hit List to find out if you are missing anything important in the preparation of your return.
Bonus Depreciation & Section 179 More Valuable Than Ever (Click here to read more)
Some super-favorable depreciation provisions have a limited shelf life that may dictate placing eligible assets in service by no later than 12/31/11. If assets are just sitting around in a warehouse as of year-end, rather than actually having been placed in service, you will lose depreciation deductions you may be counting on.
Deductions for Heavy SUVs and Trucks (Click here to read more)
As you probably know, the 2010 Tax Relief Act provided bigger depreciation deductions for business assets. In fact, under Section 179, businesses can expense up to $500,000 of depreciable business assets acquired during 2011, with any remaining basis fully deducted using the 100% bonus depreciation.
Transactions Between Partners and Partnerships (Click here to read more)
The tax treatment of transactions between partners and partnerships is an ongoing source of confusion. No wonder! The rules are sometimes complicated and counterintuitive. In this Part 1 of our primer on partner/partnership transactions, we will try to dispel some of the confusion.
Year-end Tax Planning (Click here to read more)
As we approach year-end, it’s again time to focus on last-minute moves you can make to save taxes—both on your 2011 return and in future years. Before we get to specific suggestions, here are two important considerations to keep in mind.
Advice for Professional Startups (Click here to read more)
When one professional service provider or a group of professional colleagues decide to go into business for themselves, there are a host of significant legal and tax implications to consider. These range from choosing the best type of entity for the new practice, to setting up a qualified retirement plan, to taking advantage of year-end tax planning opportunities. This release highlights some key issues that are likely to affect professional startups.
Tax Credits for Energy-efficient Home Improvements (Click here to read more)
The Internal Revenue Code includes two different tax credits for energy-saving home improvements. The rules for one of the credits have changed significantly for the worse since 2010, and that credit is scheduled to expire on 12/31/11. The other credit, which covers more exotic and expensive improvements, is still generous. Here's what you need to know to cash in on the credits this year.
Importance of Updating Beneficiary Designations (Click here to read more)
Most of us have more than enough to do. Thus, it’s no surprise that we may let some important things slide until tomorrow or the next day or... whenever. A recent U.S. Supreme Court decision reminds us that sometimes “whenever” never gets here and the results can sometimes be tragic.
Mid-Year Tax Planning (Click here to read more)
Thanks to the extension of the so-called Bush tax cuts through 2012, the current federal income tax environment remains favorable. Now is the time to take advantage because we don't know what tax rates will be in 2013 and beyond.
Benefits and Rules of Qualified Small Business Corporation (QSBC) Stock (Click here to read more)
Are you getting ready to form a new business or reorganize an existing business? This letter summarizes the special tax advantages available to shareholders who sell stock in qualified small business corporations (QSBCs).
Which Is Better--100% Bonus Depreciation or Section 179 Deduction? (Click here to read more)
Taxpayers who acquire assets for use in their trade or business or for a rental activity this year have a very good chance of writing off the entire cost this year, thanks to 100% bonus depreciation plus very generous Section 179 deduction limits.
S Corporations--Look Out for Increased IRS Focus (Click here to read more)
In a report released by the Government Accountability Office (GAO) several months ago, it concluded that 13% of S corporations paid inadequate wages to shareholders—resulting in an estimated $23.6 billion in net underpaid compensation. With wages (but not S corporation distributions) subject to employment taxes, it is easy to see the incentive to minimize wages to shareholders and instead distribute funds as distributions.
2010 Tax Relief Act (Click here to read more)
On December 17 the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the 2010 Tax Relief Act) was signed into law. It inlcudes many taxpayer friendly provisions for both individuals and businesses. This letter summarizes the changes we think will affect the most taxpayers.
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.
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.
