Generation X Accountants Inc

Ugh… Anyone tax plan with their NOL Carryforwards, Keep in mind that Illinois has suspended the loss carryforward for five years! Please call my office with great news to tax plan around this issue.

We are gearing up for another exciting tax season.  Remember the first round of home buyer credits? This fabulous credit for qualified buyers that purchased a principle residence between April 2008 and July 2009.  The buyers that are required to pay back their 10% credit received. This credit repayment starts this year–2011, if you captured the credit remember to put it on your return. 

A few things that did not change from last year is the standard dedcution for most filers and the exemption amounts???? Unlucky break I would say… Is this a subtle way of saying there were no wage increases?

Wonder if the audits this year will be to schedule A and the Education Credits as these filers will be held up until mid to late February along with the filers that claim educator expenses on page 1of their 1040–keep your receipts.  Not sure of what qualifies?  Call our office and we will help you.

Call us for more information…

Remember to pay your officers reasonable compensation for what they do in the corporation.  Officers that perform services are employees…like it or not.  Beware of tax preparers that take distributions from S Corps and/or pay rents to the officers and pay no officer wages, this is a no-no.  Corporations cannot pay rents to their incorporators solely either.  If the officer works for the business–and most do especially one officer corps–reasonable compensation needs paid.  (Of course if there is absolutely no money then there are no rents being paid either.  There are many court cases about this issue.  Vehicle leases paid to officers for the use of their personal vehicles is not smart either; this was handled in 2003–use an accountable plan or a non accountable plan instead.  There are better methods of taxplanning than this gross negligence to tax law.  Call us for all of your tax planning needs. 

For individuals, estates, and trusts the lower maximum gain tax rate is zero percent. That is great for many taxpayers.  Some of the qualifying rules for this precious gem are married couples filing jointly with taxable income up to $68,000, singlers are taxable income up to (You guessed it) $34,000.  What is really taking place is the 10% tax bracket is being eliminated this time).  Don’t count on this for your unrecatptured Secion 1250 gain as well as the gain from collectibles as those rates remain the same.

Welcome to Gen X’s website.  Are you ready for filing?  Do you want to know more about your tax return?  Need business coaching?  Savings, tips, application of tax law…..More to come…..