P: 815.464.8730
Tag Archives: Frankfort
Qualified Personal Residence Trusts

A special kind of irrevocable trust can be used to transfer your residence to your children at a significantly reduced gift tax cost and with no estate tax, yet allow you to continue to live in the residence for as long as you wish. This special type of trust is known as a qualified personal residence trust (QPRT). (QPRTs are sometimes also referred to as “residence GRITs” or “house GRITs”.) Here’s how it works.

During your lifetime, you transfer your residence to the trustee, who (if state law permits) can be yourself. The trustee must allow you to continue to use the residence rent-free for a fixed number of years specified in the trust instrument (the “fixed term”), which should be a term you are likely to survive. During the fixed term, you will continue to pay mortgage expenses, real estate taxes, insurance, and expenses for maintenance and repairs, and will continue to deduct mortgage interest and real estate taxes on your individual income tax return. When the fixed term ends, the residence is distributed to your children, or remains in further trust for them. (more…)

Illinois Corporations – Watch Out for Scam

In the last month Illinois corporations have received a mailing from “Corporate Records Service” stating all Illinois corporations are required to complete this form and pay $125.  This is a scam to take $125 of your money.  See the Secretary of State link for information regarding the scam

http://www.cyberdriveillinois.com/departments/business_services/business_not-for-profit/home.html

 

Payroll Tax Cut will Expire and Probably not Renewed

According to this news report and other sources it appears that the 2% employee social security payroll tax cut will not be extended to 2013.  This means everyone will have a 2% net pay decrease.

Follow the link for more information.

http://www.nytimes.com/2012/10/01/business/economy/payroll-tax-cut-unlikely-to-survive-into-next-year.html?_r=0

Tax Cliff Uncertainty is Hurting Business

The uncertainty of the tax law for 2013 is creating uncertainty and lack of planning for future business expansion.  Congress needs to resolve the issue as soon as possible so that the economy can grow for 2013.  See the link discussing the issue.

http://www.journalofaccountancy.com/News/20126434.htm

 

Chicago Southland Chamber of Commerce

The Chicago Southland Chamber of Commerce Annual Meeting was a great night as Jeff Arseneau passed the gavel to me for 2012.  2011 was a great year for the Chamber under the leadership under Jeff Arseneau.  Jeff is a strong leader, good friend and mentor.  He hands the gavel over to me I want to work harder to improve the Chamber for 2012.  See the link for more information

trib article

 

Work from Home, What do you do?

Can You Claim a Home Office Deduction?

Answer the following questions to determine if you qualify for the home office deduction:

  1. Is your home office used in a trade or business?
    1. You can only take a home office deduction if you are involved in a trade or business.   No deduction can be claimed for non- trade or business activities, for example personal investments
  2. Do you regularly use your home office exclusively for business?
    1. You must use a room or separately identifiable area of your home only for business.  Any personal use of the separately identifiable area will disqualify that area for any home office deduction. (more…)
Chicago Southland Chamber Janaury RCL

The Chicago Southland Chamber of Commerce January RCL Luncheon speaker was Cook County President Toni Preckwinkle.  See the two links for information about the luncheon:

http://triblocal.com/tinley-park/community/stories/2012/01/preckwinkle-talk-focuses-on-big-savings-job-initiatives/

http://triblocal.com/tinley-park/2012/01/10/preckwinkle-talks-economic-development-at-southland-chamber/

 

IS YOUR BUSINESS A HOBBY?

Many people start and run a business and ask the question is my business subject to the IRS hobby loss rules?  There is no easy answer because there is no clear cut rules for “Hobby Loss Rules.”  People at the greatest risk for hobby loss rules are people who run a business in addition to their regular job.  The big question do you engage in your business with a profit motive, in other words, are you trying to make a profit?

(more…)

House is Expected to Pass 1099 Repeal

The attached article notes that the House is expected to pass the repeal of the 1099 reporting rules that were part of the Health Care Reform Act.  Once passed the House and Senate most reach an agreement via Joint Conference.

http://www.congress.org/news/2011/03/01/house_senate_disagree_on_1099s#src=db

How to Earn $2,500 by hiring an Employee

Illinois Small Business Job Creation Credit

 On January 17, 2011 Governor Quinn signed in to law an expansion of the tax credit “Put Illinois to Work” program.
The Illinois Small business Job creation tax Credit is a one year credit for hiring new employees from July 1, 2010 to June 30, 2011.  Employers can earned up to a $2,500 tax credit for each employee hired during the 12 month period.

There are two categories of businesses eligible to receive the credit:  small businesses with 50 or fewer employees as of June 30, 2010.  It is also available to any-sized business that hires new Illinois employees under the “Put Illinois to work Program”.  The credit is available to employers that hire new Illinois employees earning at least $10 per hour or $18,200 annualized salary.

(more…)

Categories
Accounting & Auditing
Business
Chicago Southland
Corporate Finance
Deadlines & Events
Estate & Retirement Planning
Income Tax
Payroll
Pension Compensation & Benefits
Small business
Standard
Tax
Uncategorized
Upcoming Dates
No Upcoming Dates
About   |   Personal   |   Blog   |   Business   |   Resources   |   Client Log-in
815.464.8730   |   info@curriercpa.com