Personal Taxes

In most cases NO. The Taxpayer Relief Act of 1997 changed the law for the alternative minimum tax due for corporations. For entities whose tax year began after 12/31/97, a "Small Corporation Exemption" was created. A corporation is treated as a small corporation exempt from AMT for its tax year beginning in 1999 if that year is the corporation's first tax year in existence or its average annual gross receipts for the 3 year tax period ending before 1999 did not exceed $7.5 million (5 million if the corporation had only 1 prior tax year). You should speak to your local CPA about the "Small Corporation Exemption" and special rules that apply in determining gross receipts.

NO. Funeral expenses, including the funeral, burial or cremation costs, are deductible on the decedent's federal estate tax return, Form 706.

No. Rent payments are not deductible for Federal purposes. Some states allow a deduction or credit for rent paid. Speak to your local CPA for a possible deduction or credit on your state tax return.

Generally, Yes. Timeshares can be considered second homes for mortgage interest deductions. Most timeshares can take advantage of the mortgage interest rules depending on the type of timeshare it is. Speak to your local CPA to determine the classification of the timeshare such as either a "fee simple" or "deeded" or "right to use" timeshare. This classification will determine its deductibility.

NO. Only the mortgage interest and real estate taxes paid at the closing are deductible in the year paid. The other costs at closing are added to your cost basis of the residence (and improvements over the years) to be used when you sell the residence to determine if there is a gain or loss on the sale.

Nine states are Community Property states. They are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

A number of states have community property laws mandating that each spouse legally owns half of the income and property of each other, even if legal title is held by only one spouse. Your tax return preparation is affected by whether you live in a community property state. We recommend you contact a CPA in your area for additional information on how these rules effect you directly.

The current year consists of 6 tax brackets and 6 tax rates.
Income tax rates for individuals for the current year are 10%, 15%, 25%, 28%, 33%, and 35%.
The higher bracket and rates start at $8,701, $35,351, $85,651, $177,651, and $388,351 for a single person;
$17,401, $70,700, $142,701, $217,451 and $388,351 for married filing jointly and Qualifying Widower; $12,401, $47,351, $122,301, $198,0501 and $388,351
for head of household: $8,701, $35,351, $71,351, $108,726, and $194,175 for married filing separately.

There is no gift tax or inheritance tax to the Recipient.
Form 709 is required since it exceeds the current year's annual exclusion of $14,000.
You may not owe any money to the IRS because everyone is entitled to a lifetime exclusion for gifts and their estate.
In the current year, this federal lifetime exemption is up to $5,250,000 .
Cumulative gifts during one's lifetime up to this exclusion although reported, are not taxed federally. State tax laws vary. Please consult with your local CPA.