Tax benefits for elderly continue to erode, but tax saving strategies are still available
Article Abstract:
Changes in the tax code, including the taxation of Social Security benefits of beneficiaries whose income exceeds established limits, and the repeal of the additional personal exemption for taxpayers 65 years of age or older, have resulted in an erosion of benefits for the aged. However, there are remaining planning opportunities for the aged to maximize after-tax income. Taxpayers whose itemized deductions are close to the standard deduction should consider bunching deductions within a single tax year. In the area of retirement income, the type of retirement plan, the age of the taxpayer, the type of contributions to the plan, and the date payments begin are all relevant considerations when deciding on the method to receive retirement benefits, whether through a lump sum or periodic annuity payments.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1990
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Extension of low-income housing credit also expands available tax benefits
Article Abstract:
The credit for low-income housing, which was due to expire on 31 Dec 1989, has been extended by the Revenue Reconciliation Act of 1989 (RRA '89) to 31 Dec 1990. RRA '89 also has made the credit available to individuals with higher incomes. The credit was provided by the Tax Reform Act of 1986 to create an incentive for investors to invest in low-income housing. Under the program, owners of low-income housing projects receive a credit for each year of a 10-year period on a percentage of the project's qualified basis, the qualified basis generally being the low-income housing section of the building. Qualification for credit is predicated upon a minimum percentage of tenants being low income and the units being used on a non-transient basis.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1990
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Tax and other benefits still available to a professional who incorporates
Article Abstract:
Reduced company rates, fringe benefits, and income division are a few of the leftover benefits for the professional incorporation, regardless of parity in the qualified plan contributions. The article examines the final incentives, non-tax and tax, for the professional operating the corporation. Tax advantages of professional corporation have been negated by the Tax Equity and Fiscal Responsibility Reduction Act of 1982 and the Deficit Reduction Act of 1984.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1985
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