Executive's Tax & Management Report articles from January 2002

Executive's Tax & Management Report archives from January 2002

IRS slams door on fringe benefit tax saver: IRS says medical reimbursement arrangement doesn't meet tax law requirements.(Brief Article)
January 21, 2002... Companies (and their tax advisors) are always on the lookout for new techniques to cut taxes--and the IRS is always scrutinizing these techniques to make sure that they pass muster. One company recently came up with an idea that involved...

IRS releases numerous tax numbers for 2002. (Tax Procedures).(Brief Article)
January 21, 2002... The tax code is full of dollar figures. Some of these figures are stationary, such as the $25 deduction for business gifts. However, many other figures are adjusted annually to reflect increases in the cost of living changes. The IRS recently...

Clip-and-save tax facts for 2002: 2002 tax rate schedules.(Brief Article)
January 21, 2002... Clip-and-Save Tax Facts for 2002 2002 TAX RATE SCHEDULES Married Filing Jointly and Surviving Spouse If Taxable Income Is: The Tax Is: Not over $12,000 10% of taxable income Over $12,000 $1,200 plus 15%...

New tax law changes now in effect for retirement plans. (Retirement Plans).(Brief Article)
January 21, 2002... The year will see the first round a series of tax law changes affecting retirement plans. One major result of these changes will be to make retirement plans more attractive for business owners and highly compensated executives. Here's a rundown...

A tax question for your editor: Q&A.(Brief Article)
January 21, 2002... Q I own an electrical supply business and one of my long-time employees recently died. His widow is not in good health herself and I would like to help her out financially. I am going to do it, regardless of taxes, but I was wondering: Are...

Correction.(Brief Article)
January 21, 2002... The amount of the Section 179 "expensing" deduction was misstated in the December 21 issue. The maximum deduction (for 2001 and 2002) is $24,000.

Some employees get a new chance to tap their 401(k) accounts. (Retirement Plans).(Brief Article)
January 21, 2002... The 2001 Tax Relief Act could not have come at a better time for some employees. With many people having to tighten their belts in the wake of the economic slowdown, the recently enacted law gives some employees a new opportunity to make...

Get top tax benefits from business entertainment. (Second In A Series).(Brief Article)
January 21, 2002... Business deductions can become a red flag for the IRS when there is a chance that they are disguised personal expenses. For example, in the last issue, we took a look at the special rules for home offices. The rules were enacted to prevent...

Tax savings tips.(Brief Article)
January 21, 2002... Passive Business Owners Get Whipsawed If you are a business owner but don't "materially participate" in the business, you could end up with the worst of both worlds: Any profits are taxable to you and losses are nondeductible. If someone else...

IRS makes it easier to qualify for research tax credit. (Business Expenses).(Brief Article)
January 21, 2002... The IRS has issued new proposed regulations that will make it easier for businesses to claim tax credits for their research expenses [IRC Sec. 41]. Most significantly, the proposed regulations eliminate the controversial "discovery test" that...

"Cosmetic" surgery after weight loss is deductible. (Medical Expenses).(Brief Article)
January 21, 2002... The tax law allows you to deduct your out-of-pocket expenses for medical care to the extent they exceed 7.5 percent of your adjusted gross income. However, the law provides that you cannot deduct the cost of medical treatment designed to make...