We have all seen the ads for asbestos exposure and “bad” prescription drugs…
“have you or someone you know taken the drug Acutane… if so, you may be entitled to cash compensation… call 1800-bad-drug…”
So what are the tax consequences of receiving compensation for your damages?
Well, it depends… Some damages and settlement proceeds are tax exempt under [...]
New York Times columnist Paul Krugman famously dubbed the Bush 2001 tax cuts the “Throw Momma From The Train Act”, because the estate tax was eliminated for just one year—2010. But as 2010 grinds on without a federal estate levy, it’s becoming clear that Krugman got it wrong. Any Momma who would ride the rails [...]
With the rising deficit and a substantial economic strain on our Government, it is not terribly surprising that our Government’s financial woes tickle down, resulting in a larger financial burden on Americans.
August 19th marked the “Cost of Government Day” for 2010. This is the day the average American has earned enough gross income to pay [...]
With the US Court of Appeals recent decision to affirm Wesley Snipes’ criminal tax conviction, it looks like Wesley Snipes may have to rely on the royalties from his cheesy “Total Gym” Infomercials to pay off his substantial legal fees and restitution incurred from his long battle with the IRS. I wonder if the Federal [...]
With a substantial portion of provisions in the Internal Revenue Code (Code) set to expire the end of this year, I am strongly encouraging my clients to take advantage of the current tax planning opportunities available this year. In the midst of the over sensationalized estate tax repeal and first-time homebuyer credit, the Code provides [...]
For tax years 2009 and 2010, long-term capital gains taxes are eliminated for some low- and moderate-income individuals. This zero-tax break will end Jan. 1, 2011, when all capital gains rates revert to pre-2003 levels, unless Congress extends the current law.
Ordinary income
tax bracket
Long-term capital gains [...]
INTERNAL REVENUE CODE § 1. Tax imposed
a) Married individuals filing joint returns and surviving spouses -
There is hereby imposed on the taxable income of—
(1) Every married individual who makes a single return jointly with his spouse, and
(2) Every surviving spouse, a tax determined in accordance with the following table:
Taxable income is:
The tax is:
Not [...]
As 2009 is quickly coming to an end, many taxpayers are looking for opportunities to minimize the money they will owe the IRS. Considering the numerous taxpayer-friendly legislation implemented this year, I encourage you to assess your prospective tax situation (if you have not already done so) and consider some year-end tax planning.
Here’s a review [...]