John M. Hoffman & Associates CPAs

Tax News

 

Last updated on February 11, 2008

"Economic Stimulus Package" also known as "Where's My Rebate"?

Economic Stimulus Package

This legislation is intended to "jumpstart" the economy with the advance tax credits and billions of dollars sent out to taxpayers. Many view this as George Bush's gift to Walmart where much of it will undoubtedly end up. This package also increases depreciation for small businesses.

http://tax.cchgroup.com/legislation/2008-stimulus-package.pdf Links you to CCH's "Special Report" on this tax act.

2007 Year End Tax Legislation "The AMT Patch"

Tax Increase Prevention Act of 2007

This legislation addressed a "rollback of AMT exemption amounts and instead gave AMT exemption amounts that are slightly larger than 2006 amounts. The AMT is still alive and well but at with this legistlation fewer people will be subject to this tax and many subject to this tax will pay less.

http://tax.cchgroup.com/legislation/2007-year-end.pdf Links you to CCH's "Special Report" on this tax act.

Small Business and Work Opportunity Act of 2007

The item within this legislation that impacts more of our clients than any other is the change to the "Kiddie Tax" rules. Effective for years beginning after May 25, 2007 the age limit for kiddie tax is raised to all children under age 19 and students under are 24. The impact of this legislation is to negate much of the tax planning opportunity of gifting appreciated securities to children who could turn around and sell these appreciated securities (perhaps to use for college tuition) and pay very little capital gains tax in their own bracket.

This change in legislation makes the use of section 529 college savings plans even more of an excellent choice.

Most of the other provisions (in our opinion) effect only a small number of taxpayers.

http://tax.cchgroup.com/legislation/2007-small-business-work.pdf Links you to CCH's "Special Report" on this tax act.

Keep posted for future changes as we want to keep everybody up to date. If you see something you think merits consideration on this page, please email it to jhoffman@hoff-man.com.