* Include the practitioner's conclusion as to the likelihood that the federal
tax treatment of the transaction or matter that is the subject of the opinion is the proper treatment and the reasons for that conclusion.
In fact, many jurisdictions encourage this by allowing for special reduced
tax rates for IPCos formed in their jurisdiction.
Congress originally launched the AMT in 1979 to prevent wealthy Americans from taking so many deductions that they wound up paying little to no
taxes. "It's the legacy of an era when
tax rates went as high as 70% and the
tax code was full of loopholes for the wealthy," according to Mark Luscombe, CPA, attorney, and principal Federal
tax analyst for CCH.
While there hasn't been much momentum for the Tobin
tax in the United States since the DeFazio-Wellstone resolution, the issue continues to garner political support on the other side of the Atlantic.
Unfortunately, students projected to enter college in September 2008 may be in a financial aid trap, because income earned on asset dispositions in 2007 or 2008 is counted for financial aid purposes and subject to income
tax. Nonetheless, immediate liquidation and depletion of the assets eliminate them as future countable assets and countable income.
Seven European countries have enacted some kind of
tax shift, specifically reducing
taxes, especially on labor, while also increasing them on pollution, solid waste generation or some other environmental ill.
As Shlaes writes, "We are all Beatles now." Even those of us who are modestly successful - earning, say, $80,000 in a high-tax state like New York or California - are paying marginal
tax rates somewhere between 40 percent and 50 percent.
Another area of concern is the appetite of investors, for State Historic Rehabilitation
Tax Credits.
If a client has taken advantage of the options in the previous steps and wants to accumulate more retirement savings, it's time to consider investing in an annuity Annuities offer deferred
taxes on earnings until payments are received but do not provide any of the other
tax advantages that investments in earlier steps do.
Tax Executives Institute appreciates the opportunity to participate in the fall 2006 pre-budget consultations by the House of Commons Standing Committee on Finance.
As one tries to game out what might happen on
taxes in the years ahead, the strategy seems to get bigger and bigger: We start by revisiting the Bush
tax cuts but move to comprehensive
tax reform, and from reform of the income
tax, we move to a more sweeping change that would balance taxation of consumption and income.
The second challenge, assuming the time issue can be overcome, is the lack of resources related to accounting for income
taxes.
Tax textbooks traditionally have not addressed FAS No.