The annual gift tax exclusion for 2012 remains at the 2010 and 2011 level of $13,000. If you are married, you can gift up to $26,000 per donee, per year, by using the gift-splitting rules while avoiding any federal gift tax ramifications. Gifting is a good way to reduce your taxable estate. For example, if [...]
On October 14th, the IRS issued Revenue Procedure 2011-48, 2011-42 IRB 527 which provides guidance for filing protective claims for refund under Section 2053 of the Code. Protective claims are needed due to the uncertainty surrounding many of the expenses associated with the administration of an estate. Commonly, legal and accounting fees related to the [...]
In the spirit of wrapping up 2011, we decided to give you our ten most viewed blog posts of 2011. That means you loved them! 10. Bonus Payments are wages from November 30 9. Alabama’s 529 fund could lower your tax bill from December 20 8. New Home Builder Ad Valorem Tax Reduction Opportunity from [...]
You can avoid penalties and excise taxes if you make deposits of deferrals and loan payments that are received by the retirement plan within seven (7) business days of the payroll date. [expand title="Read More..."] Many plan sponsors mistakenly believe that deferrals and loan payments which are remitted by the middle of the next month [...]
Congress agreed on, and the President signed, a temporary extension of the payroll tax cut from 2011. This extension expires on February 29, 2012, unless extended again. This is still only for the employee portion of Social Security and it continues to be 4.2% of wages. The law also includes a recapture provision that will [...]
As you may know not all states repaid interest due to the federal government related to unemployment borrowings. As a result the IRS has listed the states that are required to reduce their FUTA credit on Form 940 for 2011. An employer in a credit reduction state must complete Schedule A and include it with [...]
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Congratulations to one of our newest staff accountants, Kim Christian. She has passed all parts of her CPA exam. After working for one year as an accountant, she will have met the qualifications to become a certified public accountant. Kim is a University of Alabama graduate and received a $1000 bonus from JMF for her [...]
The CollegeCounts 529 Fund offers tremendous tax advantages including tax-deferred growth and tax-free withdrawals for qualified college expenses. In addition, Alabama taxpayers are eligible for a state income tax deduction of up to $5,000 per individual ($10,000 if married filing jointly). Over time, these tax advantages, along with your investment dollars, can help provide additional savings [...]
No one likes to pay taxes any sooner than required. Therefore year-end strategies typically focus on deferring income from this year into future years and accelerating deductions from future years into this year. Following are some basic principles that can help guide your overall thinking: If you expect your tax rate to be higher next year, [...]