Giving gifts throughout the year doesn’t have to be costly at tax time. The current threshold is any gift given to an individual that is $12,000 in fair market value per year. However, if you are married, you and your spouse can consent to gift splitting, thereby qualifying to give up to $24,000 per individual recipient.

This threshold is for taxpayers who are giving the gifts. Any taxpayer who gives gifts to one person that exceeds the $12,000 per year must report the total gifts to the IRS. The person who is receiving the gift, however, does not have to report it to the IRS or pay gift or income tax on its value.

The gifts that qualify for this threshold can include money, real estate, personal property, below market interest loans, and future interests in property.

Although the donor may be required to file and report gifts to individuals in excess of the annual threshold amount (using Form 709), you can avoid a tax liability by using your unified lifetime credit against transfer tax. For Gift Tax returns, the transfer tax unified credit is $345,800 and it is the donor who files the return and pays any tax that may arise from the gift. In other words, any unified credit used against a gift tax in one year reduces the amount of credit that can be used against the gift tax in a later year.

For instance, in the year 2007, a taxpayer gives a nephew a cash gift of $8,000 and then gives their daughter and son $25,000 each. The following would apply for the unified credit:

* The first $12,000 given to one individual in 2007 is not a taxable gift. So the $8,000 given to the nephew and the first $12,000 given to both the son and daughter are not taxable gifts.

* The gift tax on $26,000 (the $13,000 remaining from your gift to the son and the $13,000 remaining from your gift to the daughter) is $5,120 (per the table for computing gift tax). The taxpayer then subtracts the $5,120 from the unified credit of $345,800 for 2007. The unified credit that can be used against the gift tax in a later year is $340,680. No gift tax needs to be paid for 2007. However, Form 709 still has to be filed.

In general, the following gifts are not taxable and do not require the filing of a gift tax return:

* Gifts that do not exceed the annual threshold amount.

* Tuition or medical expenses paid directly to an educational or medical institution on behalf of someone.

* Gifts to your spouse.

* Gifts to a political organization for its use.

* Gifts to charities.

For more information on gift taxes, you can refer to Publication 950, which can be found on www.irs.gov.

Copyright ©2009 JK Harris and Company

Giving gifts throughout the year doesn’t have to be costly at tax time. The current threshold is any gift given to an individual that is $12,000 in fair market value per year. However, if you are married, you and your spouse can consent to gift splitting, thereby qualifying to give up to $24,000 per individual recipient.

This threshold is for taxpayers who are giving the gifts. Any taxpayer who gives gifts to one person that exceeds the $12,000 per year must report the total gifts to the IRS. The person who is receiving the gift, however, does not have to report it to the IRS or pay gift or income tax on its value.

The gifts that qualify for this threshold can include money, real estate, personal property, below market interest loans, and future interests in property.

Although the donor may be required to file and report gifts to individuals in excess of the annual threshold amount (using Form 709), you can avoid a tax liability by using your unified lifetime credit against transfer tax. For Gift Tax returns, the transfer tax unified credit is $345,800 and it is the donor who files the return and pays any tax that may arise from the gift. In other words, any unified credit used against a gift tax in one year reduces the amount of credit that can be used against the gift tax in a later year.

For instance, in the year 2007, a taxpayer gives a nephew a cash gift of $8,000 and then gives their daughter and son $25,000 each. The following would apply for the unified credit:

* The first $12,000 given to one individual in 2007 is not a taxable gift. So the $8,000 given to the nephew and the first $12,000 given to both the son and daughter are not taxable gifts.

* The gift tax on $26,000 (the $13,000 remaining from your gift to the son and the $13,000 remaining from your gift to the daughter) is $5,120 (per the table for computing gift tax). The taxpayer then subtracts the $5,120 from the unified credit of $345,800 for 2007. The unified credit that can be used against the gift tax in a later year is $340,680. No gift tax needs to be paid for 2007. However, Form 709 still has to be filed.

In general, the following gifts are not taxable and do not require the filing of a gift tax return:

* Gifts that do not exceed the annual threshold amount.

* Tuition or medical expenses paid directly to an educational or medical institution on behalf of someone.

* Gifts to your spouse.

* Gifts to a political organization for its use.

* Gifts to charities.

For more information on gift taxes, you can refer to Publication 950, which can be found on www.irs.gov.

Copyright ©2009 JK Harris and Company

Giving gifts throughout the year doesn’t have to be costly at tax time. The current threshold is any gift given to an individual that is $12,000 in fair market value per year. However, if you are married, you and your spouse can consent to gift splitting, thereby qualifying to give up to $24,000 per individual recipient.

This threshold is for taxpayers who are giving the gifts. Any taxpayer who gives gifts to one person that exceeds the $12,000 per year must report the total gifts to the IRS. The person who is receiving the gift, however, does not have to report it to the IRS or pay gift or income tax on its value.

The gifts that qualify for this threshold can include money, real estate, personal property, below market interest loans, and future interests in property.

Although the donor may be required to file and report gifts to individuals in excess of the annual threshold amount (using Form 709), you can avoid a tax liability by using your unified lifetime credit against transfer tax. For Gift Tax returns, the transfer tax unified credit is $345,800 and it is the donor who files the return and pays any tax that may arise from the gift. In other words, any unified credit used against a gift tax in one year reduces the amount of credit that can be used against the gift tax in a later year.

For instance, in the year 2007, a taxpayer gives a nephew a cash gift of $8,000 and then gives their daughter and son $25,000 each. The following would apply for the unified credit:

* The first $12,000 given to one individual in 2007 is not a taxable gift. So the $8,000 given to the nephew and the first $12,000 given to both the son and daughter are not taxable gifts.

* The gift tax on $26,000 (the $13,000 remaining from your gift to the son and the $13,000 remaining from your gift to the daughter) is $5,120 (per the table for computing gift tax). The taxpayer then subtracts the $5,120 from the unified credit of $345,800 for 2007. The unified credit that can be used against the gift tax in a later year is $340,680. No gift tax needs to be paid for 2007. However, Form 709 still has to be filed.

In general, the following gifts are not taxable and do not require the filing of a gift tax return:

* Gifts that do not exceed the annual threshold amount.

* Tuition or medical expenses paid directly to an educational or medical institution on behalf of someone.

* Gifts to your spouse.

* Gifts to a political organization for its use.

* Gifts to charities.

For more information on gift taxes, you can refer to Publication 950, which can be found on www.irs.gov.

Copyright ©2009 JK Harris and Company

If you are looking into a career in accounting then you may be worried about taking the right steps to ensure that you have a truly successful journey. With so much competition out there, you really have to make sure that you are staying on the ball. You have to be one step ahead and two times better then all of your competition. This is the only way to survive in the industry. If you are able to do that then you will have no problem making a great living. It really is a great field to get into as long as you are prepared for a lot of hard work and long nights.

Are you still a little concerned about how to make sure that you have a successful career in this field? Then all you have to do is follow some pretty simple steps and you will be able to be a true accounting success. The first thing you want to think about is all of the skills that are needed besides great knowledge of math in order to be a great accountant. There is the need for excellent written and oral communication skills so this may be something that you will have to brush up on. You will also need to be able to update your skill set according to the new technology that comes out. There is always something new and innovative coming out that will make your work a lot easier so this is very key.

Once you are pretty sure that you have all of the skill, passion, and desire needed to become an accountant, it is time to start looking for work. Those new to the field will generally find themselves working in entry-level positions such as Staff Auditor or Tax Staff. Even though these are decent jobs, they are not the end of the road. As you gain experience and more knowledge, you will be able to apply for bigger and better jobs in order to truly be a success in the field.

Generally, it is suggested that you give it three to six years in the entry-level positions before applying to better jobs. Tax Senior, Consulting Senior, and Senior Auditor are some great jobs to get into. And after you have just about six years of experience with these types of positions you can seek positions that are Senior Partner or Partner level. Keep applying for better jobs and after a few years in the new position, apply for something better. Continue to move up until you are completely satisfied with your position. The end is really unlimited for you as long as you keep working, keep learning, and continue to strive for excellence. You really can be a true success in the field as long as that is something that you really want in your life.

One of the major factors affecting productivity in today’s business environment is personal internet and computer usage, costing businesses both valuable time and money. In light of this, more and more employers are coming too close or even breaking the law in relation to workplace surveillance and it is important that they are aware of their obligations under privacy and surveillance legislation before it is too late.

The most common form of workplace surveillance is email and internet monitoring and most businesses do not realise that they have to follow specific guidelines in relation to carrying out these processes. The NSW Workplace Surveillance Act 2005 requires employers to provide employees with 14 day written notice before they can carry out any surveillance or monitoring.

The increasing range, capabilities and cost effectiveness of surveillance software makes it easy for employers to track personal use of the internet on work computers. In other words, with technology becoming increasingly sophisticated and accessible more technology-neutral legislation is needed in order to capture any further technological advances in this area.

At present, while Victoria, Western Australia and the Northern Territory have legislation regulating video or visual surveillance of private activities, NSW is the only state that has legislation that specifically covers surveillance within the workplace. However, the existing NSW legislation on workplace surveillance is regarded by many as obsolete and many are calling for new legislation. The Act prohibits all forms of video surveillance in areas such as change rooms, toilets, and showers, and prohibits covert surveillance unless the employer has obtained a magistrate’s warrant. General video surveillance, however, remains largely untouched by the Act.

Increasingly we are seeing employers inadvertently breaking the law in relation to workplace surveillance as they are not correctly informed of their rights and obligations under the Act.

If you would like further information in relation to your workplace surveillance rights and responsibilities or perhaps you would like help to introduce workplace surveillance policies into your workplace contact at the lawyers at The Quinn Group on 1300 QUINNS or click here to submit an online enquiry form.

If you have ever thought about doing your own taxes and then chickened out at the last moment because you thought that it would be too difficult to do. Well, you are not alone. Most people use a tax consultant or an account to prepare their taxes each year. They do this because they feel more peace of mind because they know that all of the forms will be filled out correctly. Unfortunately, this peace of mind comes with a large price tag. That is why more people are looking to do their own taxes this year to try and save some money. There is one great way for people to save money doing their taxes and still have peace of mind. They can use online tax software.

Online tax software is the steadily growing way that people have found to make their tax lives easier and save them some extra dollars in the meantime. This simple program is the difference between paying some person to do your taxes and feeling like you were taken to the poor house and enjoying the idea of getting to keep the majority of your money safe in your wallet where it belongs.

Online tax software acts like a computerized accountant. The program basically does everything that your accountant or tax consultant would do. The software gives you blanks where you can enter all of the financial information from the same forms that would give your accountant. Some of these programs just provide a brief description and a space for the type of money while others will ask questions to make sure you list everything that the program will need to prepare your taxes for you.

One of the best reasons to use online tax software to do your taxes yourself, is the support back up of the company. Every tax software company has some type of support setup to help you if you ever get stuck preparing your taxes with their software. This little piece of personal interaction can be the peace of mind like the type you get from your accountant before you pay him

When you have competed filling in the information in the online tax software, you can have the software prepare and send off your taxes to the appropriate places in a secure file. That is it. That is all that there is to online tax software. It can be a simple and stress free process that will save you money when you choose to do your taxes online.

Thinking of what to do to settle your IRS tax debts? One option available to taxpayers with unmanageable tax debts is an IRS program known as an offer in Compromise.

Now, the most pertinent questions in your mind would be What is an Offer In Compromise? and How does it benefit the average tax payer?

An Offer In Compromise is one of the most common tax settlement program opted by tax payers. Offer In Compromise is when the tax money is settled by paying less than what we actually owe to the IRS. A person has to satisfy a number of criteria to qualify for an Offer In Compromise.

Since IRS has a certain set of rules, anyone who opts for Offer in Compromise is advised to seek the professional help a tax expert to deal with the application. Also the tax expert helps us arrive at a compromise with the IRS and hence ensuring that we pay less that what we actually owe.

Before an Offer In Compromise is filed, the tax payer has to convince the IRS as to why he can’t pay the taxes. He can state that the taxes that have been levied on him are incorrect or the tax amount owed is highly unlikely to be paid.

If the tax payer was an elderly or disabled person, then he can go for the Effective Tax Administration, where he states that collecting taxes is correct as long as it is not a cause of hardship for the person. Consulting a tax expert is the next best thing a person can do to keep the IRS off his door steps!

Buy your first home has turned into a great investment option for many people these days. Nevada is turning into a great location for first time home buyers to purchase a new home. In our current economic times many people have had to relocate to the state in search of new job opportunities. There is a constant demand for housing especially with the new tax credit that the government is giving to first time home buyers. This $8,000 tax credit is given to first time home buyer or people who haven’t purchased a new home in over 3 years. Nevada new home builders are offering thousands on top of the $8,000 as an added incentive to purchase a home from them.

Receiving a tax credit for your purchase is not the only tax break you can expect. Interest paid on your home mortgage is tax deductible; in the case of property exchange you are exempt from paying taxes in the year of the exchange. You will also be able to deduct any loans taken out for the purpose of remodeling your home and also real estate properties are always tax deductible.

If any recent laws enabling new tax deductions have come up they will notify you on those as well. If you wish to avail the tax benefits available to you, consult a real estate accountant who is well-informed on laws allowing tax deductions and who will assess how such deductions apply in your situations. If any recent laws enabling new tax deductions have come up they will notify you on those as well. When looking for a new house, be sure to enlist an agent with qualities you like. This will usually lead to better communication between the two of you and that will lead to he or she working harder you’re your goals.

Tax professionals come in many forms. They can be attorneys, CPAs, or Enrolled Agents. No matter which professional you choose, you will want someone with the knowledge and experience needed to help you make good decisions regarding your finances.

What’s the Difference?

Tax attorneys are lawyers who specialize in complex tax and estate matters, IRS dispute resolution, and complex tax return preparation. They should have either a law degree or be certified as a tax law specialist.

CPAs are accountants with college degrees and experience with a CPA firm. They prepare tax returns, do accounting, and audit work. They are licensed and regulated in all states. It will depend on the training and experience the CPA has received as to whether they will be able to deal with the IRS comfortably.

Enrolled Agents are fulltime tax advisors and tax preparers. They are licensed to practice before the IRS. They have either passed an IRS exam or have five or more years of IRS work experience. They are not able to represent you in tax court.

A good tax professional will know about the laws that govern the IRS and its many facets. They will keep up-to-date on the many changes in tax laws. They will have experience with the resolution of tax debts, with dealing with the IRS, and with IRS collections.

How to Find a Good Tax Professional

1. Personal referrals

2. Tax preparer recommendation

3. Prepaid legal plans

4. Audit assistance or preparer guarantee

5. Advertising

6. Professional associations

7. Direct solicitation

Questions to Ask a Tax Professional

1. Are you an attorney, CPA or Enrolled Agent?

2. What licenses do you have?

3. How long have you been in practice?

4. How many clients do you handle?

5. Do you have IRS experience?

6. What are your fees?

7. Does your fee include preparing IRS forms, documentation backup, and negotiating with the IRS?

8. Do you provide a written fee agreement?

9. Do you provide monthly itemized statements?

10. Do you specialize in tax issues?

11. Do you think you can handle my tax situation?

12. Do you perform your work personally?

13. What is your privacy policy?

You should feel comfortable with your tax professional. You should be able to communicate with them. You should feel confident that they would do their best for you. You should trust them.

The Marriage Penalty

The marriage penalty is a word that is commonly thrown around during tax season, but most people do not have a clue what this penalty is. The so-called penalty is levied on couples that make enough money to put them above the 15% tax bucket. It causes personal exemptions to phase out, reductions in itemized deduction limits, and a phase out of child tax credits for those with an adjusted gross income of $110,000 or more. However, there are several ways couples can still make the best of their marriage financially, and find other ways to save in their taxes.

Filing Status

Since you have the choice to file jointly or separately, you should always see which one costs less. However, figuring out which filing status benefits you most can be very difficult and confusing to figure out. If you are seriously considering changing your filing status, then I highly recommend you speak with a tax professional who can evaluate the pros and cons of every option.

Newlyweds

The first and foremost tax rule for newlyweds is to make sure that you are married, in the correct year. In order to qualify as ‘married’ for tax purposes, you and your spouse must be married by December 31st of that year. If you changed your last name during marriage, you will also need to get an updated social security card with the new name for tax season.

Medical Expenses

If you or your spouse accumulated a lot of medical bills in the tax year, then filing separately may benefit you greatly. Taking the burden on in a joint return could result in less deduction choices, as well as probable overall return loss. But as with all changes to filing status, you want to make sure to thoroughly investigate your options before making a decision.

Tax Debt

Unpaid tax debts can be tricky once you become married, because it could expose your spouse to liability for some of your mistakes. Especially if you file a joint return. If your spouse was expecting a significant tax refund, he or she will be in for a rude awakening if the refund is held to pay-off your old debt. Luckily, the IRS has relief for this situation-Injured Spouse. However, if you have a large amount of unpaid taxes that you will not be paying off any time soon, then you should definitely consider filing separately. You should also consider informing your spouse of the underlying debt to avoid any unnecessary surprises.

Consider Hiring a Pro

Unless you or your spouse works in the tax industry, then I highly recommend hiring a professional to help you with your taxes. Even if you have been married and filing together for years, tax codes are always updating and changing. At least check with a specialist before sending your forms in make sure you have taken advantage of any and all credits and deductions.

Update Withholdings

After getting married you want to make sure to remember to adjust your withholdings at work, so that you do not overpay the government. Overpaying by a little bit is okay, but you want to make sure that your withholdings are as accurate as possible. No need to pay Uncle Sam any more money than necessary.