SELECTED PERSONAL INCOME TAX INFORMATION:

• MAJOR INCOME TAX CHANGE 2008 - SALE OF RESIDENCE USED FOR BUSINESS OR RENTAL - MAJOR CHANGE!!...
• ALTERNATIVE MINIMUM TAX - THE "SILENT KILLER" TAX...
• Do the "rich" really pay their fair share? "The highest 1% in adjusted gross income pay 33.7% of ALL TAXES! A married couple at "the poverty level" gets a refund of 23.2% of their adjusted gross income" - AND that is a "refund" without paying withholding. It is a subsidy called Earned Income Tax Credit.
  People making more than $68,000 will pay 82% of all income tax revenue (the richest 20%), AND the lowest 44 million taxpayers will pay NOTHING!!!
• Retirement contribution limits for 2007 & 2008. for IRA, 401k, Pension, & annuities!
• Can you invest retirement contributions in real estate?
• Mandatory Minimum Retirement Distribution amounts for IRA', etc. See Table Here
• THE IRS AUDITING SYSTEM HAS BECOME MORE EFFECTIVE
• Do You Need a Living Trust?****** IMPORTANT
• Taxation of Dependent Children
• COLLEGE DEDUCTIONS, CREDITS, AND SAVINGS PLANS TOPICS:
• How will college credits and deductions benefit you?
• UPDATE ON QUALIFIED TUITION (SEC 529) PROGRAMS)This is detailed!
• Potential problems with 529 Programs
• College Saving Plans On Forbes (commercial website)
• U.S. Department of Education website:

• Make all checks payable to US Treasury, not payable to IRS! This reduces stolen check fraud.
• Please NEVER TRY TO HANDLE A TAX AUDIT YOURSELF. Terrible things can happen that you would never expect. And you can complicate the problem and make it more difficult and time consuming for me to try to repair.
• Terrible things can happen if you do not furnish changes of address to the IRS and California FTB. If they mail something to you and you do not answer, the proposed billing may become FINAL. Be sure to let us know of your change of address so we can prepare proper notification for you to mail to them as soon as possible.
• ROTH IRA's - You can withdraw from your Roth IRA as much as you have contributed without tax or penalty. If you liquidate and close all of your ROTH accounts and get back less than you paid in - You can claim this loss as a miscellaneous deduction, but not as a capital loss. Miscellaneous deductions are limited by 2% of AGI subtraction and by any AMT effect. If you wait until you have had the account for 5 years and are at least 59 1/2 the earnings are also tax and penalty free. Withdrawal of earnings before 5 years will result in penalties.

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Material Copyright © 2006 James E Reynolds CPA