| Family Partnerships |
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| Under certain circumstances, Congress permits income splitting among numerous family members to avoid higher tax brackets by the use of the "family partnership." If capital is a material income-producing factor in the business, a family member will be recognized as a partner for federal income tax purposes only if he or she acquires a genuine capital interest in a partnership through a bona fide transaction. He must actually own the partnership interest, and he must actually control it. The transfer may be accomplished by gift or by a purchase. Capital is an income-producing factor if the operation of the business requires substantial inventories or investments in buildings, machinery, or equipment. More... |
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| Who May File a Joint Tax Return |
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| When a couple files a joint tax return, they are considered a single economic unit in the eyes of the Internal Revenue Service. But not every "couple" is entitled to file a joint return. Only a married couple may file jointly, They do not have to be married for the entire year. A husband and wife must be married on the last day of the tax year in order to benefit from the joint filing status for the entire year. These benefits include a lower tax rate and certain credits, such as the earned income credit, the tax credit for the elderly, and the credit for child and dependent care expenses, which are only available to married taxpayers who file a joint return.More... |
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| Self-Employment Taxes |
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| If you work for yourself, you are usually required to pay a self-employment tax, which is a combination of Social Security and Medicare taxes. It is very much like the Social Security and Medicare taxes withheld from the wages of most employees.More... |
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| Clean Fuel Tax Deduction |
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| A taxpayer who is the original owner of a qualifying hybrid vehicle that combines an electric motor with a gasoline-powered engine may be eligible to claim a one-time tax deduction on his or her federal income tax return. In an attempt to encourage consumers to purchase more fuel efficient automobiles, Congress has enacted a federal tax law that allows individuals to claim a deduction for the incremental cost of buying a motor vehicle that uses a clean-burning fuel. Hybrid vehicles obtain higher fuel efficiency and produce fewer harmful emissions than similar gasoline-powered vehicles.More... |
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| Installment Agreements |
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| The Internal Revenue Service wants you to pay as much of your federal income tax liability as soon as possible. In order to implement this goal, the IRS allows taxpayers who cannot pay the full amount owed on April 15th to apply for an installment agreement, under which the taxpayer will make equal monthly payments until the full amount of the debt to the government is eliminated.More... |
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