New Law Changes Highway Use Tax Rules: Installment Payment Option Eliminated
The IRS is reminding truckers and other owners of heavy highway vehicles that the installment option for paying the federal highway use tax will no longer be available. This change was included in the American Jobs Creation Act of 2004 and applies to filers of Form 2290, Heavy Highway Vehicle Use Tax Return.Beginning with the Form 2290 for the tax year that begins on July 1, 2005 and ends on June 30, 2006, the balance due shown on the form must be paid in full by the due date of the return. In most cases, the deadline for filing the return and paying any tax due is August 31, 2005. Payment can be made by check, money order or electronically through electric payment (EFTPS).In previous years, taxpayers who timely filed Form 2290 could choose to pay the tax in four equal installments. Ordinarily, these installment payments were due on the last day of August, December, March and June.
About 148,000 taxpayers chose this option last year in 2004.In general, the highway use tax applies to trucks, truck tractors and buses with a gross taxable weight of 55,000 pounds or more. Ordinarily, vans, pick-ups and panel trucks are not taxable because they fall below the 55,000-pound threshold.For trucks and other taxable vehicles in use during July, payments are due on August 31. The tax is based on weight and normally ranges from $100 to $550 per vehicle. A variety of special rules, discussed in the instructions for Form 2290, apply to vehicles with minimal road use, logging or agricultural vehicles, vehicles transferred during the year and those first used on the road after July.State governments are required to receive proof of payment of the federal highway use tax as a condition of vehicle registration. Schedule 1 of the Form 2290 is stamped and returned to filers for this purpose.
This process remains unchanged.The Jobs Act also eliminated reduced tax rates for vehicles registered in Canada and Mexico. For vehicles with a base registration in either country, the tax rate was 25% below the regular rate.In addition, the Jobs Act made electronic filing mandatory for taxpayers who file highway use tax returns for 25 or more vehicles. The availability of electronic filing for Forms 2290 is pending. Taxpayers should continue to file paper returns. The IRS will notify taxpayers when the electronic filing program is available..
Richard Chapo is CEO of <strong>Business Tax Recovery</strong> - Obtaining tax refunds for small businesses for overpaid taxes. Discovery tax strategies and deductions in our tax articles section.Book Helps S Corporation Owners Understand Taxes
Entrepreneur Peter Hupalo wrote "How To Start And Run Your Own Corporation: S-Corporations For Small Business Owners" to help entrepreneurs and small business owners who are starting S corporations."How To Start And Run Your Own Corporation: S-Corporations For Small Business Owners" discusses the taxation of S corporations in detail, including sample tax forms for a fictitious company."Many new entrepreneurs examine the S-corporation tax returns, the 1120S income tax return, and the shareholder K-1 forms and are confused. My book breaks down the tax forms line-by-line and explains intermediate topics like the Accumulated Adjustments Account (AAA) and Schedule M-2," says Hupalo.Other book topics include: stock basis; issuing shares, shareholder loans to the corporation; valuing a small corporation; par value versus non-par value stock, worker's compensation, withdrawing money from a corporation in the form of salary and dividends; the effect of Social Security and unemployment insurance...
Book Helps S Corporation Owners Understand Taxes
Tax help > Book Helps S Corporation Owners Understand Taxes
Real Estate investing is getting faster and easier
It takes time and effort for a real estate investor to locate a deal.
There are lots of properties for sale, but finding the deals is not always easy.
Fortunately, many tools and websites are available which provide valuable information and make it easier.
Now, an investor can do most of their analysis on a property before they even see it.
One example is a subscription site called Real Quest (www.realquest.com), which allows subscribers to look at liens, tax records and comparable sales.
Another site, www.zillow.com even shows an aerial view of some properties.
In addition, many of the counties across the U.S. now have free access to tax records on-line.
And, of course, if the investor is a licensed agent they have access to the MLS.
Taking advantage of these and other on-line resources, an investor can calculate the retail value of a property without even seeing it.
Figuring out the...
Tax help > Real Estate investing is getting faster and easier
Why Public Schools Hate Home-schooling Parents
Home-schooling is a great success. That's why many public-school authorities hate home-schooling parents.Home-schoolers are a direct challenge to the public-school monopoly. This monopoly makes it almost impossible to fire tenured public-school teachers or principals. As a result, tenure gives most teachers life-time guaranteed jobs. They get this incredible benefit only because public schools have a lock on our children's education.If public-school employees had to work for private schools and compete for their jobs in the real world, they would lose their security-blanket tenure.
That's why school authorities view home-schooling parents who challenge their monopoly as a serious threat.Many school officials also can't stand the fact that average parents who never went to college give their kids a better education than so-called public-school experts. Successful home-schooling parents therefore humiliate the failed public schools by comparison.Home-schooling parents also humiliate...
Why Public Schools Hate Home-schooling Parents
Tax help > Why Public Schools Hate Home-schooling Parents
YEAR END TAX PLANNING AND PREPARATION FOR INDIVIDUALS ? Tax Tips for 2004 including new tax relief due to the Working Families Tax Relief Act of 2004
Now is the best time to start thinking about your year end tax planning. These tax strategies can be put into effect by the end of the year and some as late as when the tax return is due. Planning now will save you money and reduce your tax liability not only with your IRS taxes but also with your state taxes. Here are tax tips that will help you accomplish your goal. MINIMIZE YOUR CAPITAL GAINSReview your capital gains and losses for the year including taxable investment accounts and taxable real estate sales.
If you have net capital gains, you may want to sell some of your investments that have a loss to offset the gain. You should also check your 2003 tax return for any loss carry forwards to 2004.NEW SALES TAX DEDUCTIONNew in 2004 taxpayers who itemize deductions can now choose between claiming the state income tax or sales tax as a deduction. The IRS will provide optional tables for use in determining this sales tax deduction if tax payers don't keep their receipts throughout...
YEAR END TAX PLANNING AND PREPARATION FOR INDIVIDUALS ? Tax Tips for 2004 including new tax relief due to the Working Families Tax Relief Act of 2004
Tax help > YEAR END TAX PLANNING AND PREPARATION FOR INDIVIDUALS ? Tax Tips for 2004 including new tax relief due to the Working Families Tax Relief Act of 2004
1031 Exchange Rules
In a 1031 Exchange an investor sells his property, called "Relinquished Property," to acquire a "Replacement Property" without attracting tax on capital gains.
The whole exchange is overseen by a Qualified Intermediary (QI), a middle-man who provides services of paperwork, oversight, escrow and expertise to ensure that the transaction conforms to Rules under Section 1031 of the Internal Revenue Code.
Now, let us see what all properties qualify for 1031 Exchange. Real estate in general, for income tax purposes, has been divided into four categories- business use, investment, personal use and outright sale. Of them, the last two are unfit for 1031 Exchange.
Then comes the foremost stipulation: the new investment must be in a like-kind property. But this is not a blanket barrier either. It does not restrict that the exchanged properties must be like the photocopy of the other property in all respects, as in a bare land for bare land situation....
Tax help > 1031 Exchange Rules