2010 Tax Planning Seminar. Presented by. Your Firm Name. The clock is ticking on savings …. Tax Rate Forecast. Tax Credits and Deductions. Credits: reduce tax dollar for dollar Deductions: lower your taxable income. 2010 Child Tax Credit $1,000 per child. Education Credits.
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Credits: reduce tax dollar for dollar
Deductions: lower your taxable income
Hope Scholarship Credit
(American Opportunity Tax Credit) = $2,500 maximum
Lifetime Learning Credit = $2,000 maximum
A credit for wage earners and the self-employed
Under Age 50: $16,500
Additional “Catch-Up” for those Age 50 and Older: $5,500
Income limits on conversions have
been eliminated in 2010.
You will be taxed on the conversion amount.
You will not owe a penalty
IRA savings can be used without penalty for qualified college expenses or to help pay for your first home.
Taxes Reduced for Capital Gains and Dividends through 2010
Gain Tax Net Cash
11 months $50,000 $17,500 $32,500
12 months $40,000 $ 6,000 $34,000
Real estate depreciation recapture 25%
(without further reform)
Offset gains in your portfolio with losses at the end of the tax year.
Ordinary income rates 10% – 35%
Dividend rates 0% – 15%
Rates apply for both regular tax and AMT.
15% dividends also cannot offset capital losses.
No 15% rate for dividends in retirement plans
Hold stock earning dividends taxed at 15% outside of retirement accounts
Focus on Total Return
Sell appreciated stock anduse the proceeds to…
Applies to children under age 19, or age 24 for full-time students.
Good News for Business Owners
Available through 2011
Eligibility expanded through 2010
Work Opportunity Tax Credit (WOTC)
Expense allowance $250,000
Phaseout threshold $800,000
Deduct $25,000 for Heavy SUVs or Trucks
Plan Your Asset Purchases Wisely
Make large purchases before 2011
Cost Segregation Nets $$$
Shorter Lives = Quicker Write-Offs
Capital Gains Tips for Businesses
Tax-Deferred vs. Taxable
Reconsider Tax-Deferral Techniques
Is it time to switch to a pass-through entity?
Take Out Earnings Prior to Making an “S” Election
We can help you monitor changing tax laws and update your strategies accordingly.