Employer-Provided Group Term Life Insurance (Part 2)

What should you do if you think you might be one of the people for whom the tax cost of employer-provided group term life insurance is undesirably high? First, you should determine if this is actually the case. If a specific dollar amount appears in Box 12 of your Form...

Employer-Provided Group Term Life Insurance (Part 1)

Does your employer provide you with group term life insurance? If so, and if your salary is higher than $50,000, this employee “benefit” may be creating undesirable income tax consequences for you. Here’s why. The first $50,000 of group term life insurance coverage that your employer provides is excluded from...

Recovering Withheld Social Security Taxes

Each of your employers is obligated to withhold social security taxes from their wages, even if the total they withhold exceeds the maximum amount of tax that can be imposed for the year—$6,622 in 2010 (equal to 6.20% of the $106,800 wage base); $4,486 in 2011 (4.20%, the reduced rate...

IRS Code Section 179 Election – Recapture

If you dispose of the property, or stop using it in a trade or business, before the end of the cost recovery period that would have applied to the property had you not made the election for the property, all or part of the amount of the deduction you claimed...

IRS Code Section 179 Election – Taxable Income Limit

If your taxable income from all of your trades or businesses is less than the dollar limit for that year, the amount for which you can make the IRS Code Section 179 election is limited to that taxable income. However, for most types of property, any amount you can’t immediately...

IRS Code Section 179 Election – Dollar Limit

The dollar limit doesn’t mean the IRS Code Section 179 election can’t be made for property costing more than that amount. For example, if you buy a machine for $600,000 and place it in service in a business in a tax year beginning in 2011, you can elect to immediately...

IRS Code Section 179 Election – Qualifying Property

To qualify for the IRS Code Section 179 election, the property must be tangible personal property. This means that real estate (buildings and their structural components) does not qualify, nor do intangibles such as patent rights. However, the following types of property also qualify: For a tax year beginning in...

IRS Code Section 179 Election

Generally, the cost of property placed in service in a trade or business can’t be deducted in the year it’s placed in service if the property will be useful beyond the year. Instead, the cost is capitalized and depreciation deductions are allowed for most property (other than land), but are...

Appealing a Levy – The Office of the Taxpayer Advocate

Filing an application with the office of the Taxpayer Advocate is a third method of administrative appeal of a proposed levy. The Taxpayer Advocate or his designee can issue a Taxpayer Assistance Order (TAO) based on a determination that the taxpayer is suffering or is about to suffer a significant...