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New Tax Incentives in the Small Business Jobs Act of 2010

New Tax Incentives in the Small Business Jobs Act of 2010

President Obama signed into law the Small Business Jobs Act of 2010 (H.R. 5297, the “Act”) on September 27, 2010. The Act includes a $12 billion tax incentive package aimed at small businesses to help them grow and to expand lending. These tax incentives are offset by several revenue-raising provisions, as discussed in more detail below.

Provisions Providing Small Business Access to Capital

Temporary 100 Percent Gain Exclusion on the Sale of Certain Small Business Stock

In general, non-corporate taxpayers may exclude 50 percent of any gain from the sale or exchange of qualified small business stock

(“QSBS”) held for more than 5 years (75 percent of any gain may be excluded if the QSBS is acquired after February 17, 2009, and before January 1, 2011). The amount of gain exclusion permitted is the greater of (i) 10 times the taxpayer’s basis in the QSBS or (ii) $10 million. In general, QSBS is stock in a C corporation that conducts an active trade or business and has gross assets not exceeding $50 million at the time the stock is issued.

Under the Act, 100 percent of the gain from a non-corporate taxpayer’s sale of QSBS acquired after September 27, 2010, and before January 1, 2011, that is held for 5 years is excluded from taxable income and no regular or alternative minimum tax will be imposed on the gain.

Temporary Reduction in Recognition Period for S Corporation Built-in Gain Tax

When a C corporation converts to an S corporation the S corporation must generally pay a tax on gain that arose before the conversion to an S corporation, known as built-in gain, and that is recognized in the first ten years that the S corporation election is in effect. A C corporation is one that is taxed at both the corporate and shareholder level while an S corporation receives pass-through tax treatment and is taxed at the shareholder level only. An S corporation is formed by election and is only permitted if a number of specific requirements are met.

Under the Act, the recognition period for an S corporation to recognize built-in gain is reduced to seven years for taxable years beginning in 2009 or 2010 and to five years for taxable years beginning in 2011.

Eligible Small Business’s General Business Credit

A taxpayer’s general business credit is generally limited to the excess of the taxpayer’s net income tax over the greater of (i) the taxpayer’s tentative minimum tax or (ii) 25 percent of the excess of the taxpayer’s net regular tax liability over $25,000. General business tax credits that are greater than this limitation may be carried back one year and carried forward up to twenty years.

Under the Act, the general business tax credit of an eligible small business for 2010 may be carried back five years, instead of one year. These general small-business credits are not subject to the alternative minimum tax for 2010. For this purpose, an eligible small business is a non-publicly traded corporation or partnership that has average annual gross receipts for the three taxable years prior to the current taxable year of no more than $50 million.

Provisions Encouraging Small Business Investment and Growth

Expansion of Internal Revenue Code Section 179 Deduction Limits

Under Internal Revenue Code Section 179, a taxpayer may elect to deduct the cost of “qualifying property.” “Qualifying property” is depreciable tangible personal property that is purchased or used in the active conduct of a trade or business such as equipment purchased for business use, office furniture, or office equipment. For taxable years after 2007 and before 2011, the maximum amount a taxpayer may elect to deduct under section 179 is $250,000 of the cost of the qualifying property placed in service for the taxable year ($25,000 for all other taxable years). For taxable years beginning after 2007 and before 2011, this $250,000 maximum amount is reduced by the amount by which the cost of the qualifying property placed in service during the taxable year exceeds $800,000 ($200,000 for all other taxable years).

The Act increases the section 179 expensing limitation for 2010 and 2011 to $500,000 with a phase-out threshold of $2 million and allows taxpayers to expense up to $250,000 of the cost of qualifying leasehold improvement, restaurant, and retail property.

Bonus Depreciation

The Act extends for one additional year the temporary 50 percent depreciation bonus first enacted in the Economic Stimulus Act of 2008 and then renewed in the American Recovery Reinvestment Act of 2009.

Under this bonus depreciation provision, 50 percent of the basis of qualified property may be deducted in the year the property is placed in service and the remaining 50 percent is recovered under normal depreciation rules. Generally, qualified property includes (i) …

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Tax Attorney – How To Find Help For An IRS Audit

Tax Attorney – How To Find Help For An IRS Audit

The last letter anyone wants to receive is one from the IRS. You may have just found out that you are to be audited, but do not panic. All you need to do is know how to find the best help and you may be able to lessen penalties. The laws and processes pertaining to the Internal Revenue Service can be very complicated, so you will need assistance from someone who knows how the system work. Read on for some advice on how to find the best tax attorney for your auditing needs.

First off, you will want to ask your lawyer, if you have one, or whoever files your taxes for a recommendation. However, these individuals should most likely only be asked for advice. They may not have the experience or knowledge necessary in dealing with this particular legal system.

Once you have found an ideal representative, you will want to check on their background qualifications, as well as their experience. You will want to make sure that the individual is qualified with the American Bar Association, as well as having the proper training. The best help will be someone who has had extensive education in taxation. Ask to see their credentials and if they studied in the areas you need help in.

Before actually retaining any particular representative, you may want to consult a few who can help you. You will want the best help you can afford in dealing with an audit, as this is a problem that should be resolved efficiently and completely. Be sure to ask for plenty of references from the lawyers you meet with, as you want to know their track record in dealing with other people’s audits in the past.

The best legal assistant is someone who tries to meet his or her clients more than halfway. The multitude of regulations and jargon that comes with tax law is not easy for most people to understand. Communicate with your tax attorney and ask for him or her to explain everything in terms that you will understand. You will also want to make sure your representative works with whomever you had prepare your taxes, so you get the best help possible.

Before retaining anyone, definitely make sure you can afford the help. Some attorneys can charge anywhere from 200 to 400 per hour for their services. Do not sign any agreements unless you know that the representation is well within your budget. Inquire about options for payment plans and if additional costs will be applied if the case moves into a tax court.

Most everyone would agree that hiring an attorney for something as serious as an IRS audit is a must. The key element to keep in mind is finding the best legal assistance for you as an individual. Consider a few different representatives, so long as their services are affordable for you. Use these advice tips to ask the right questions and to know what to look for in a proper lawyer, and you will find the best help for your all your legal, tax needs.…

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Need Answers to Legal Questions? Tips on Researching Before Hiring an Attorney

Need Answers to Legal Questions? Tips on Researching Before Hiring an Attorney

Most small and medium sized businesses and corporations have legal counsel on retainer, to gain quick access to legal questions which may arise at any time. Typically, the attorney on retainer specializes in their type of business and is familiar with the laws particular to their enterprise. However, ordinary people can also suddenly find themselves in need of legal advice, but without the benefit of a personal attorney. Some common examples include auto accidents, or landlord-tenant disputes. So where do you begin to find some answers? Frequently, you can obtain good legal advice and direction by doing a little research before you rush off to retain a lawyer. Here we have a few tips to guide you to the right lawyer, or a simple resolution to your legal problems.

Let’s say your situation involves a dispute with your landlord. While your rental agreement stipulates that the grounds will be maintained by the landlord, he’s recently fallen down on the job. You’re afraid that the branches of an aging tree may well fall on your roof. You decide to withhold a portion of your rent until he comes and addresses the problem. Do you have the legal right to do this? What do you do if he fails to respond? Or, perhaps you are the landlord and your tenant is neglecting the grounds, allowing trash or debris to accumulate to the point of being an eyesore. Do you have the right to evict the tenant? These are the sort of everyday legal questions which may not seem so serious as to warrant hiring an attorney for an amicable resolution.

Your first step should be to go online and search out some of the free legal sites. To begin your search, it’s often smart to precede your search criteria with the name of your state, or state and county, as appropriate. Most often, these websites have a wealth of information on common legal questions. You can conduct some preliminary research on your issue by browsing through the topic of your legal questions, reading up on the laws and local ordinances pertaining to your question. The free legal websites also offer articles and legal FAQs which can provide you with basic guidance and help you get a handle on your position. If your legal questions involve a fairly simple and straightforward problem, you may find your answers without any further research. For example, you may find that you’re unequivocally in the wrong. All you need do is correct the situation and the problem is resolved.

On the other hand, you may discover that your legal questions are a bit more complicated, with several issues that are best handled by an attorney. You can then fill in a summary description of your situation and submit it to the site. One of the staff will direct your inquiry to a qualified legal advisor, who will assess your legal position and email you a response. You’ll be matched up with an attorney in your area who can then offer his or her best advice on how to proceed.

This is where the legal websites make their money. The website is paid for referrals by the attorney who takes your case. You have the benefit of finding the right attorney to handle and resolve your legal questions.

Doing just this minimal footwork online can save you both time and money in making the best decisions for your legal situation.…

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Federal Tax Relief

Federal Tax Relief

Federal income tax relief is available to anyone who has an outstanding tax debt. Not everyone knows how to go about finding help. They think they are stuck and have no options. This is not true, you do have options. The IRS depends on the fact that most taxpayers will not seek legal counsel in these situations, but it is to your advantage in doing so. The IRS has severe penalties and fines for those who fail to pay back taxes, this can happen to anyone, no matter if you wealthy or a middle-class citizen. If you need Federal IRS tax relief, then you must seek help now before the IRS files a Notice Of Intent.

We all know the IRS is not playing games, and a Notice of Intent is just one tool designed to get the attention of the taxpayer. They can seize your income, retirement account, home, property, jewelry, automobiles, boat, stocks, property and anything else you may have of value. If the IRS is intending to file a lien against your property, they must first file a record with the county recorder where the property is located. This is just the first of many other steps the IRS will go through, if you do not seek to reduce tax debt, an income tax settlement or IRS tax debt help.

Once you get the Notice of Intent, which comes via certified mail, then it becomes a situation in which time is of the essence. You have ten days to file a response and up to thirty days before any formal collection action begins. It is during this time that you are advised to seek a consultation with a tax attorney, you need Federal tax relief.

The IRS has a series of strict guidelines and protocol which designates how much of your income can be garnished for tax debt. Your income being seized is a serious matter and not to mention the embarrassment and stigma that follows you. Your employer will also know you are having financial trouble, which is another reason why you need to seek tax relief as quickly as possible. You cannot be fired for having your wages garnished, but it can be degrading to have your boss know you are having financial problems. With out help, anything can happen.

Federal tax relief takes many forms, and what is available to you would be determined by how much money you owe the IRS. Certain amounts of money will predispose your eligibility to certain payment options. This is yet another reason why it is so important to know your rights and explore every possible avenue for paying tax debt.

There are Federal tax relief laws in effect that protect you from being left homeless and destitute. But, how is the government to know how dire your situation is? Your tax attorney will determine your income-to-debt ratio and review the plans you qualify for. After which time you will sit down together and review the information available to you, then you will choose which option suits you the best. It really is as simple as that, and you do not have to fear having tax debt. You can work something out with the help of our tax attorney’s.

Ultimately, the IRS has more power and resources available to them. It takes more than just a bit of knowledge and slick tactics to negotiate with them. This is a service that our tax attorney’s are very well versed and skilled at. We will gladly take on the IRS, protect your interests and provide you with a win-win situation in which you can find your way out of of debt through Federal tax relief.…

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Tax Relief Tips For Beating the Odds When Standing Up to an IRS Audit

Tax Relief Tips For Beating the Odds When Standing Up to an IRS Audit

When it comes to tax audits, the IRS wins 80% of the time. Taxpayers are deemed guilty till proven innocent, which means the IRS can start an audit by disallowing every deduction you made on a return until each one is proven to be legitimate. If a taxing authority has decided to audit you, it’s important that you don’t let yourself be pushed around by the IRS. Additionally, if you don’t file your taxes, the IRS may file them for you.

Once the IRS decides to audit you, they have a choice of three different ways to go about it: 1) correspondence (snail-mail) audit 2) office audit 3) field/home audit.

Some of these methods of auditing can be less direct than others, but it is still wise for you to be proactive about proving your innocence as soon as you are notified of your audit so that you don’t incur any IRS penalties no matter if the IRS is sending you letters or if they’re knocking on your front door.

Every taxpayer has the fundamental rights of due process, fairness and representation – even if the auditor does not explain this to you. Additionally, government auditors may not always perform a comprehensive review of all appropriate documents, and an incorrect assessment by an IRS auditor can end up costing you thousands of dollars or even fraud penalties. With IRS audits on the rise, it’s more important than ever for taxpayers to know their rights or seek professional representation from tax experts who know how to preserve those rights to your advantage in an IRS audit.

You can also visit our web site to learn more about How to Get IRS Tax Relief from Back Taxes or Unfiled Tax Returns.

Are you under audit? Our team ofA� expert tax attorneys, CPAs, and Certified Tax Resolution Specialists can defend you in the audit process and fight for your rights. We’ve helped thousands of taxpayers just like you by taking their IRS problems off their dining room tables and directly into our office where we take over all communication with the IRS.…

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Very Common Truck Accident Causes

A commercial truck presents some unique dangers to all smaller vehicles. The truck driver needs to be fully aware of all vehicles on the road and all the other drivers need to be cautious while in the presence of larger trucks. Even very small driving errors might lead to you needing a lawyer for truck accidents Indianapolis as soon as possible.

Passenger Vehicle Driver Causes

Passenger vehicle drivers (mostly cars) are often to blame in truck accidents. Usually, the cause is ignoring the capabilities of the truck, like the limits naturally associated with visibility and braking. Examples of unsafe acts often committed by passenger vehicles including:

  • Unsafe driving in “no-zones” – These are the areas beside and behind commercial trucks with zero visibility for the truck driver.
  • Going to the right side of the truck when it makes right turns.
  • Abruptly changing lanes while in front of the truck.
  • Misjudging the speed of the approaching truck while at an intersection, followed by making left turns when in front of it.
  • Improperly merging into traffic, which would cause the truck to brake quickly or have to maneuver really fast.
  • Not speeding up or slowing down when there is a truck that starts to merge or change lanes.
  • Passing trucks and after being moved out of the position due to cross-wind or air turbulence.
  • Passing in an unsafe way, which is especially dangerous when passing and there is not sufficient headway present.
  • Not accelerating as much as needed when you pull into traffic in front of the truck from another road.
  • Driving your vehicle between large commercial trucks.
  • Abandoning the vehicle in the travel lane.
  • Not completely removing the disabled vehicle from the highway.

Whenever driving near trucks, you have to be very careful and you need to respect absolutely all traffic rules.

Commercial Truck Vehicle Causes

In order to become a commercial truck driver, the individual needs to have patience and get some specific skills. However, this does not mean even the most experienced commercial truck driver cannot make mistakes. There are actually several business characteristics that will contribute to the appearance of traffic accidents. The common examples you need to know are:

  • Inadequate or improper training related to safety concerns, defensive driving, and driving techniques.
  • The creation and use of a compensation system that is encouraging the truck driver to drive more and at higher speed at rates that are not advisable.
  • Unrealistic expectations and schedules from the trucking company. These encourage the driver to keep hurrying even if safety risks are involved.

Conclusions

The most common causes of commercial truck accidents are related to the drivers. This includes the drivers of the trucks and the drivers of the other vehicles on the road. However, there are several other parties that might end up getting involved and might share fault.

If you are involved in any commercial truck accident, the most important thing is to go to the hospital as soon as possible. Get checked out even if you do not think you are injured. Then, you most likely need the services of a truck accident attorney if the accident was not your fault.…

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Attorney At Law

Australia Immigration Land of Rising Opportunities

Australia is all geared up to open its doors for the skilled workforce for its local industries.

Australia with its 22 million populations occupies the sixth rank in world’s total area. The vast land and rising economy attracts many immigrants from around the world. Initially it was only for education and its world class universities that brought student mostly from Asia to its door steps. World class universities are not the only draw for students to Australia. It is also the promising future and the dream lifestyle after the education and lucrative job that attract the students to the country. Majority of the students moving to Australia eventually seek its citizenship.

Recently the government brought about reforms in immigration policies. According to Australia immigration the doors for Australia are now open to skilled workers. The need has arisen from the local industry which is running short of skilled workforce. The visa would be granted to skill specific employees with required education and experience. Majority of this requirement has come from the south eastern region of the country where major population resides. There are a number of documents required to even fulfil these formalities. Australia Immigration tends to provide all the necessary support in this case. The guidance and information provided by the consultants is always updated and authentic.

The documents that require verification include those of work experience and educational qualification, apart from the usual identification proof, bank statement and letter of admission to the universities. Also students completing their education from Australian universities tend to have advantage over the international students. Also the individuals who have prior experience of working in Australia, for them Job opportunities are available in various fields of employments. Research, technology, energy sector, hospitality, medicine, engineering and mining are some of the fields with high requirements.

Australia immigration department publishes a yearly report updating about the requirements in upcoming sectors and also about the process involved for those seeking these opportunities. There are various other visas also for the budding entrepreneurs. Australia is indeed moving towards multicultural and cosmopolitan nation with global citizenship. The country’s culture and policies are immigration friendly. Australia has always been the same ever since its discovery though there are few exceptional cases that take place every now and then.

Another sector where Australia is attracting revenue is the tourism. With the image of bigger and beautiful it has turned into one of the most selected tourist places on the map. Earlier it was just about kangaroos and the Opera House, but now Australia has surely moved ahead of all this with its new campaigns. The country is launching a range of campaigns, ranging from the tourism to adventure sports and education. The most looked forward among them is the underwater coral tours. Today Australia has all it needs for a better future, a moving economy and a pool of talented people to build its development plans on. The government policies have been pro-development and we wish for them to be the same in coming future also .…