So-Called Temporary Recession Tax Not So Temporary
Remember the great recession of 2009? Although the recession may now be a thing of the past, some so-called “temporary” taxes are having a harder time fading into the background. That’s because many states throughout the country are still collecting on tax bills that were enacted solely for the purpose of refilling public reserves.
Fourteen states and the District of Columbia imposed 25 new measures during the recession years of 2008 – 2011. So what’s the status of those measures now that the recession is over? Good question. Nine of them have expired on schedule, while three more have yet to reach their termination date.
So what about the other 13? They have all been extended, replaced or in some cases they’ve even been made permanent. For example, in Connecticut, a 10 percent “temporary” corporate income surtax has been renewed twice and has also jumped up to 20 percent. In Kansas, lawmakers imposed a sales and excise tax from 5.7 percent to 6.3 percent then lowered the tax to 6.15 percent, but also made it permanent.
In New York, the state took direct aim at one income group by imposing a tax hike on the rich. They upped the ante even more by imposing a second “temporary” hike on the even richer. That increase is set to expire in 2017 and will impose an 8.82 percent top rate on anyone with income more than $2 million.
The bottom line is if you live in a state that increased taxes for some “temporary” help with the recession, then don’t hold your breath if you’re expecting those measures to disappear anytime soon.
Loss on Sale of 1244 Stock
Have you considered a loss on sale of 1244 stock as a tax strategy? Ordinarily, a loss on a sale or exchange of stock is a capital loss. Capital loss treatment is generally less advantageous than ordinary deduction treatment because of the fact that a capital loss recognized by an individual is applied, first against…
Section 213 Medical, Dental, etc., Expenses
Section 213 Medical, Dental, etc., Expenses (a) Allowance of deduction There shall be allowed as a deduction the expenses paid during the taxable year, not compensated for by insurance or otherwise, for medical care of the taxpayer, his spouse, or a dependent, to the extent that such expenses exceed 7.5 percent of adjusted gross income.…
Prevent an IRS Audit, 10 Strategies
Prevent an IRS Audit, 10 Strategies Do you like to prevent an IRS audit, well, here are 10 strategies that might help avoid an agent making a visit to your home or office. I don’t know many people who like these experiences, but knowing strategies to prevent an unwanted visit could certainly save you from…
10 Strategies When Handling an IRS Audit
10 Strategies When Handling an IRS Audit The IRS is using new technology to process tax returns and conduct tax audits. As more people are submitting returns through Electronic Filing, the IRS efficiency in processing returns is improving. They also have more data in their system to identify tax returns with non-compliance issues. The IRS…