Purchase and ownership of a residence can provide many tax savings opportunities

Article Abstract:

Tax savings arising from home ownership are discussed. The 'points' paid upon closing a home loan are deductible. Interest paid on mortgage loans and home improvement loans are also deductible. Real property taxes paid in the year of sale are deductible in some states, if the taxes paid are for a period during which the payer did not occupy the home. Closing costs, recording fees, title expenses, and transfer taxes paid upon purchase of the home may be added to its value upon the subsequent sale of the home, to reduce the amount of gain from the sale, and thus save taxes. Home improvement costs should also be added to the value of the home to reduce the gain upon its sale. Other tax advantages are discussed relative to condominium purchases, use of the home as an office, home rental, and form of ownership elected, i.e., joint tenancy, tenancy in common, or tenancy by entirety.

Real estate, Real property, Real property tax, Real property taxes, Home ownership

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Current strategies for obtaining the tax advantages of straddle transactions

Article Abstract:

Prior to the Economic Recovery Tax Act of 1981 (ERTA) and the Deficit Reduction Act of 1984 (DRA), taxpayers with commodity investments frequently were able to use straddle transactions to allow the recognition of losses on commodity investments, while deferring gains on investments over extended time periods, in order to avoid capital gains treatment and promote the treatment of investment gains as long-term capital gains. The enactment of ERTA and DRA largely eliminated the tax advantages of straddle transactions. However, some tax savings are still available from the structuring of straddle transactions. These advantages and savings are discussed.

Capital gains tax, Commodities, Commodity swaps

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Many tax-free fringe benefits are still available

Article Abstract:

Firms typically wish to reward executives with non-cash fringe benefits in a manner in which the cost of the benefits is deductible to the firm. Profit-sharing and qualified pension plans have been restricted by tax law as to the benefits they can give highly compensated executives, but firms can still reward executives with tax-free or tax-deferred fringe benefits, the cost of which the firm can then deduct. Firms can target certain benefits to executives within narrowly defined limits. Firms designing fringe benefits packages must carefully consider specific Internal Revenue Code regulations covering the substantiation and disclosure requirements.

Tax accounting, Employee benefits, Revenue, Deferred tax (Accounting)

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