Volume
3
| Tax Planning Ideas | Tax News | Tax Tidbits | Tax Calendar | Additional Volumes |
If you own a vacation home, which you rent on a limited basis, monitor
the total rental days per year to assure tax-free rental income.
If the property is rented for less than 15 days annually, all of
the rental income can be excluded from your tax return.
This is one of the rare opportunities for tax-free income.
Qualified small business stock receives tax-favored treatment when sold. Only half of the gain is taxable for stock held over five years. If you invest your proceeds in other qualified small business stock within 60 days, you can elect to defer all of your gain.
If you own a business, consider hiring your child. You can deduct the wages you pay and the income is taxable to your child at their lower rate. In fact, the income is tax-free if the amount you pay them is less than the child’s standard deduction of $4,400 in 2000. You can increase this tax-free limit by an additional $2,000 if you have your child fund a traditional IRA account.
A simpler method of reporting certain capital gains is provided, starting with 1999 income tax returns. Capital gains and losses generally are reported on Schedule D, Form 1040. For 1999 returns, taxpayers do not have to file Scheduled D if their only capital gains are capital gain distributions, such as from mutual funds. Instead, the gains generally can be reported directly on Form 1040. A worksheet in the Form 1040 instructions is used to figure the tax. Taxpayers must also check the box on Line 13 of Form 1040, indicating that Schedule D is not necessary.
 | Effective for 1999, a child tax credit of $500 per child (under age 17) is available |
|
The Standard Mileage reimbursement
rate was lowered to
$0.31/mile effective April 1, 1999; for
2000 the rate is increased to $0.325/mile |
|
Effective for tax years beginning January 1, 1999, the PA Capital Stock/Foreign Franchise Tax has been reduced to 10.99 mills; the minimum has been reduced from $300 to $200 annually. |
|
The maximum amount of Section 179 expense deductions allowed in 2000 was raised to $20,000, up from $19,000 in 1999 |
| January 31, 2000 | Employee’s statements (W-2) for salaries and wages and the amounts of taxes withheld in 1999 are to be furnished by employers to employees |
| Information returns (1099s) must be furnished to recipients | |
| February 29, 2000 | Information returns must be filed with the IRS; W-2s must be filed with the Social Security Administration |
| March 15, 2000 | Due date of 1999 income tax returns (Form 1120 and Form 1120S) for calendar year U.S. corporations |
| Last day for filing application (Form 7004) by Calendar Year Corporation for automatic six-month extension to file 1999 income tax return | |
| April 17, 2000 | Due date for Individual income tax returns for calendar year 1999 |
| Last day for individuals to file application (Form 4868) for automatic four-month extension to file 1999 income tax return | |
| Payment of first installment of 2000 estimated income taxes by individuals | |
| April 30, 2000 | Employers must file Form 941 to report income tax withholding and FICA taxes for the first quarter of 2000 |
| June 15, 2000 | Payment of second installment of 2000 estimated income taxes by individuals |
| July 31, 2000 | Employers must file Form 941 to report income tax withholding and FICA taxes for the second quarter of 2000 |
| August 15, 2000 | Last day for filing 1999 income tax returns by individuals who obtained automatic four month filing extension |