Tax News in Brief
Applicable Federal Rates (AFRs) for November: The Section 7520 rate for November 2011 is 1.4%, while the Applicable Federal Rates (AFRs) are as follows (Rev. Rul. 2011-25, 2011-45 IRB ): Annual Semiannual Quarterly Monthly Short-term (≤ 3 years) 0.19% 0.19%...
Michigan Sales Tax to Rise to 7%?
A joint resolution introduced Oct. 18 in the Michigan Senate proposes to amend Article IX, Section 8 of the Michigan Constitution in order to increase the sales tax rate by 1%, to 7%, beginning January 1, 2012. The resolution further...
Have you evaluated your business’ healthcare costs?
Healthcare costs for a business can be significant and should be evaluated regularly. This article from Crain’s Detroit Business gives some great tips on how to evaluate your business’ healthcare costs and also poses some considerations to take into account...
SR Glossary: Basis
What’s your basis in your business? When you own an interest in a partnership or S corporation you may run into issues from time to time regarding “basis”, or simply, how much money you have in the business. Basis can...
From the Minutia File: Tax deductions that straddle the New Year
Our clients give generously to charitable organizations throughout the year, but not suprisingly a looming tax year-end deadline sends many pens flying to checkbooks in late December. Straddling the tax years presents some question of in which year a deduction...
Use tax planning to help pay for college
Planning for college is rarely an easy task. Although many parents begin funding dedicated college savings vehicles in advance, sometimes a tuition-paying strategy is developed only when the kids are already choosing schools. Fortunately, there are options for late-stage college...
Client Question: Should I convert my home to a rental property?
For various reasons, including a significantly depressed real estate market, homeowners can consider converting their personal home to rental property. The process for making this decision should include an analysis of economic factors, such as the homeowners’ marginal tax rate...
Client Question: Are insurance proceeds I receive from a fire loss taxable?
As almost always, the answer is "it depends". In general, there is taxable income if the amount received from the insurance policy is more than the cost of what was lost. However, there are also exceptions to this rule. For...
SR Glossary: Business Valuation
Every year, thousands of small businesses are bought / sold, and as a small business owner, maybe you have wondered "How much is my business worth? Can I sell it for $xxx,xxx? When is the right time to sell my...
Embezzlement can happen to every company
Here's an article in the Detroit Free Press regarding an embezzlement case in northern Michigan. This shows what a breakdown in control and blind trust in an employee can lead to disasterous concequences. It is also important to note that...