TaxTips

Continuously looking for ideas to save your tax dollars


Keeping our Client's abreast of new tax laws and providing them with possible ideas on ways to reduce their tax burden is one of our goals.   We offer this through this continual update of new tax laws and providing some TAX TIPS which may offer savings ideas.  We present these ideas; however, please consider all facts in your case, and talk with your tax representative,  before implementing any of these these ideas.

       Other Tax Provisions of the Acts

S Corporation Reforms - The major provision is the increase of eligible shareholders from 75 to 100.  Also, family members can elect to be treated as one shareholder for determining the number of eligible shareholders.  There are other provisions as well.

Exclusion from Wages for Statutory Stock Options - AJCA now provides a specific exclusion from FICA and FUTA wages and from income tax withholding for statutory stock option income.

Extension of Various Tax Credits -  WFTRA extends several business tax credits that either had expired, or were to expire: Research Credit, Work Opportunity Credit, Welfare to Work Credit, Credit for Qualified Electric Vehicles, and Credit for Producing Electricity from renewable resources.

Enhanced Deduction for Qualified Computer Donations - The enhanced deduction allowed to regular C corporations for donating qualifying computer technology and equipment to an educational institution or public library, which ended after 2003, is extended for contributions made in tax years beginning after 2003 and before 2006.

Expatriation of Foreign Jobs/Profits - Several provisions of the AJCA address the issue of jobs and company profits being sent overseas instead of being retained in the U.S. One provision provides an incentive for multinational companies to repatriate profits from foreign subsidiaries by providing a dividends-received deduction for certain dividends received from controlled foreign corporations.

Contact us for more details, or if you have questions on any of the provisions of the two Acts of 2004 and how they will impact your business.

 

 Copyright   1987 - 2010 A. Harold Davis, CPA