Business Start-Up and Organizational Costs

Business start-up and organizational costs are generally capital expenditures. However, you can elect to deduct up to $5,000 of business start-up and $5,000 of organizational costs paid or incurred after October 22, 2004. The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. Start-up costs include any amounts paid…

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Gambling Winnings Are Taxable Income

Gambling winnings are fully taxable and must be reported on your tax return. Gambling income includes – but is not limited to – winnings from lotteries, raffles, horse and dog races and casinos, as well as the fair market value of prizes such as cars, houses, trips or other noncash prizes. Depending on the type…

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State Taxation of Marijuana

Robert Mikos (Vanderbilt) has posted Why Crime Doesn’t Pay: Thoughts on State Taxation of Marijuana Distribution and Other Federal Crimes on SSRN. Here is the abstract: The financial crisis has breathed new life into proposals to reform marijuana law. Commentators suggest that legalizing and taxing marijuana could generate substantial revenues for beleaguered state governments-as much…

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Capital Gains/Losses – Facts

The IRS wants you to know these ten facts about gains and losses and how they could affect your tax situation. Almost everything you own and use for personal purposes, pleasure or investment is a capital asset. When you sell a capital asset, the difference between the amount you sell it for and your basis…

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Olympic Athletes tax treatment

Every two years, a topic of conversation among tax folks is the tax treatment of Olympic athletes. The United States Olympic Committee pays athletes for winning Gold ($25,000), Silver ($15,000), and Bronze ($10,000) medals under its Operation Gold program — these payments clearly constitute income. In addition, one court has suggested that the medals themselves…

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Early Distributions from Retirement plans

Some taxpayers may have needed to take an early distribution from their retirement plan last year. There can be a tax impact to tapping your retirement fund. Here are ten facts about early distributions. Payments you receive from your Individual Retirement Arrangement before you reach age 59 ½ are generally considered early or premature distributions.…

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Social Security Benefit – facts

If you received Social Security benefits in 2009, you need to know whether or not these benefits are taxable. Here are facts about Social Security benefits so you can determine whether or not they are taxable to you. How much – if any – of your Social Security benefits are taxable depends on your total…

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Alternative Minimum Tax – facts

Alternative Minimum Tax (AMT) attempts to ensure that anyone who benefits from certain tax advantages pays at least a minimum amount of tax. Here are seven facts about the AMT and changes to this special tax for 2009. Tax laws provide tax benefits for certain kinds of income and allow special deductions and credits for…

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up to 15% of your Social Security benefits can be levied by IRS

Through the Federal Payment Levy Program (FPLP), Social Security benefit payments outlined in Title II of the Social Security Act, Federal Old-Age, Survivors, and Disability Insurance Benefits, are subject to the 15-percent levy, to pay your delinquent tax debt. However, benefit payments, such as lump sum death benefits and benefits paid to children, will not…

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Missing a W-2 form – what to do

Getting ready to file your tax return? Make sure you have all your documents before you start. You should receive a Form W-2, Wage and Tax Statement from each of your employers. Employers have until February 1, 2010 to send you a 2009 Form W-2 earnings statement. If you haven’t received your W-2, follow these…

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