| Circulation Costs |
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| If you are the publisher of a newspaper, magazine, or other periodical, you can deduct the costs of establishing, maintaining, or increasing circulation as a current business expense. However, this general rule of deductibility is limited. A current deduction is not available for expenditures for the purchase of land or depreciable property or for the acquisition of circulation through the purchase of any part of the business of another publisher. In addition, a deduction is not permitted for the cost of purchasing another publisher's list of subscribers. These expenditures must be capitalized. More... |
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| Determination Letters |
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| If an employee retirement plan is qualified under the Internal Revenue Code, it is entitled to favorable tax treatment. Benefits include the employer's deduction of contributions made in accordance with the plan document and the accumulation of tax-free earnings. In addition, participants in the plan are not required to include their contributions into income until they receive a plan distribution. Because of these tax advantages, many employers look for advance assurance that the terms of their plans satisfy the statutory qualification requirements. More... |
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| Foreign Tax Credits |
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| Congress passed legislation authorizing foreign tax credits to relieve a taxpayer of the double tax burden of paying tax on foreign source income to both the United States and a foreign country. Generally, if the foreign tax rate is higher than the U.S. rate, there will be no U.S. tax due on the foreign income. If the foreign tax rate is lower than the U.S. rate, U.S. tax on the foreign income will be limited to the difference between the rates. The foreign tax credit can only reduce U.S. taxes on foreign source income; it cannot reduce U.S. taxes on U.S. source income. More... |
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| Health Savings Accounts |
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| In an attempt to deal with the high cost of medical care in the United States, Congress has passed a tax law allowing certain taxpayers to set up a health savings account (HSA), a tax-exempt trust or custodial account for the payment or reimbursement of medical expenses. More... |
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| Tax Advice for Newlyweds |
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| Newly married individuals should notify the Internal Revenue Service of name and address changes. A change in marital status will affect an individual's filing status. Marital status is determined on the last day of the year, so if you were married on December 31, the IRS considers you to have been married for the entire year. More... |
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