Executive's Tax & Management Report articles from June 2003

Executive's Tax & Management Report archives from June 2003

Use your IRA to cash in on today's housing market.
June 7, 2003... With interest rates at all-time lows, now is the time to consider buying that first home. You can now withdraw funds without penalty from your Individual Retirement Account (IRA) to buy a first home. What's more, you can also make penalty-free...

House passes tax cut bill; rocky road ahead.
June 7, 2003... The House passed a $550 billion tax cut reconciliation bill (H.R. 2) that contains some significant differences in the Senate's version. Hammering out a House-Senate compromise bill will be a tough task. BANK ON THIS Lower individual tax...

Avoid this trap and pocket tax-free home sale profits. (Your Home As A Tax Shelter).
June 7, 2003... The tax law allows a generous break when you sell a home. You can avoid tax on up to $250,000 of the gain--$500,000 for certain married couples filing a joint tax return. To qualify for the break, however, the house must have been used as your...

The foundation for the executive's financial plan. (Retirement Planning).
June 7, 2003... Although the more accurate terminology for most executives is retirement planning, for some the more appropriate terminology is "financial independence." No matter how it is described, it is the process for determining when and how an executive...

More companies that switch tax years can use NOL carrybacks. (Corporations).
June 7, 2003... The IRS has changed the ground rules under which it grants approval of certain requests for changes in annual accounting periods. The procedure changes the terms under which taxpayers generally are prohibited from carrying back net operating...

10 ways to save corporate cash to prepare for recovery. (Management Strategies).
June 7, 2003... Economic tough times never last forever. To prepare for the next recovery, companies need to conserve cash in order to be ready to take advantage of upcoming opportunities. Fortunately, companies have learned how to conserve cash during...

Tax question.
June 7, 2003... Q Recently, my father moved into a nursing home. His income, primarily from Social Security, is not enough to cover all the nursing home expenses. To make up the shortfall, my sister and I split the difference, and we each make payments to the...

Time to take a fresh look at the sale-leaseback idea. (Managing Your Business).
June 7, 2003... With the current credit crunch, companies may not be able to get the financing they need for large capital projects. One solution: the sale-leaseback. With this asset-based financing technique, a company can generate additional capital while...

Executive's briefcase.
June 7, 2003... IRS OKs Use of Debit Cards for Medical Plans. The IRS has approved the use of debit and credit cards as a way to reimburse employees for expenses provided under a qualified health reimbursement arrangement, flexible spending account, or...

New tax law brings changes across the board.
June 21, 2003... Although the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) is less than half the size of the $726 billion plan originally sought by the President, the new law contains sweeping changes for individuals and businesses. ...

Tax hikes take a hike--for now.
June 21, 2003... The final version of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) contained no tax increases. The Senate bill included about $72 billion in "revenue raisers," but they were stripped from the bill at the insistence of House...

Tax-free benefits: the better raise. (Compensation And Benefits).
June 21, 2003... Have you ever wondered whether there's a way you can legally pay less income tax? Sometimes, a quick review of your tax return reveals the opportunity to reduce taxes by tweaking your compensation package. Structuring compensation to ensure...

Easy way to set up tax-smart personal residence trusts. (Estate Taxes).
June 21, 2003... The IRS has issued new guidelines to help homeowners set up a personal residence trust, which can save estate taxes. Personal residence trusts are used to transfer ownership of a home to children (or other family members) at a minimum tax cost....

Two alternatives to controversial stock-based pay plans. (Incentive Compensation).
June 21, 2003... Stock-based executive compensation plans are under fire by regulators and shareholders. So now may be a good time to take a look at so-called "stockless" plans, which can be just as effective--and sometimes more effective--than plans that are...

Tax question.
June 21, 2003... Q My wife is an artist who regularly sells her paintings. She is thinking about donating one of her paintings to our local museum. Can we claim a charitable deduction for the price at which she could have sold the painting? A No. This type...

IRS rules on deductibility of certain medical procedures. (Executive's Briefcase).
June 21, 2003... In two separate revenue rulings, the IRS spells out which medical procedures are--and are not--deductible. Teeth whitening is not deductible because the procedure is for cosmetic purposes. Nonprescription drugs are not deductible, even if they...

New proposed rules to clamp down on split-dollar insurance. (Executive's Briefcase).
June 21, 2003... The IRS has issued proposed supplemental regulations [REG-164754-01] designed to effectively prevent companies from using split-dollar life insurance arrangements to provide tax-free compensation to their executives. (Split-dollar life...

FASB halts blockage discounts for marketable securities. (Executive's Briefcase).
June 21, 2003... In a reverse of its prior stance, the Financial Accounting Standards Board (FASB) voted to disallow the use of blockage discounts in accounting for the value of certain marketable securities. (A blockage discount reflects the impact on the...

Youngsters may face tougher retirement years than parents. (Executive's Briefcase).
June 21, 2003... When the members of Generation X retire, they may not be able to replace as much of their preretirement income as their parents will. Reasons: They will live longer and the Social Security system is running out of money, says a new report from...

Many companies have underfunded pension plans. (Executive's Briefcase).
June 21, 2003... Nearly two-thirds of corporate pension plans are underfunded, reveals new research from Watson Wyatt, a leading human capital consulting firm. The percentage of employers with fully funded pension plans declined from 84 percent in 1998 to 37...

Be on the alert against new tax scams. (Tax Compliance).
June 21, 2003... The IRS has announced two new tax scams that target e-mail users and families of those serving in the Armed Forces [IR-2003-63]. In both schemes, the perpetrators represent themselves as being from the IRS. Be on the alert against these new...

Labor group denounces CEOs' lavish retirement plans. (Retirement Plans).
June 21, 2003... The AFL-CIO says many CEOs have negotiated extraordinary" retirement benefits from their companies--while the rank-and-file have lost trillions in retirement savings due to corporate malfeasance and stock market woes. The AFL-CIO's...

How to avoid a personal tax trap for reimbursable expenses. (Business Expenses).
June 21, 2003... If you personally foot the bill for some of your company's valid business expenses, you could have a problem if you try to deduct them on your personal return--as one individual recently found out. NEW CASE * The Tax Court has ruled that an...