| Do you own real estate? At the very end of 2007, | | | | 2011, the credit will be available for wages paid through |
| Congress passed a bill with several tax law changes | | | | August 30, 2012.) The targeted veterans group is |
| impacting real estate. Expect some changes when | | | | expanded to include veterans with service-connected |
| you file your 2007 tax return! Here are a few highlights | | | | disabilities, and doubles the maximum credit for hiring |
| from the Small Business and Work Opportunity Act of | | | | those veterans. The "high-risk youth" targeted group |
| 2007. | | | | has been replaced with a much broader group that |
| Expect some changes when you file your 2007 tax | | | | includes older individuals (up through age 39), and |
| return! Here are a few highlights from the Small | | | | individuals who reside in certain rural counties. The |
| Business and Work Opportunity Act of 2007. | | | | rehabilitation referrals group has been expanded to |
| Do you own real estate? | | | | include individuals referred through a Social Security |
| At the very end of 2007, Congress passed a bill with | | | | Administration Ticket to Work and Self-Sufficiency |
| several tax law changes impacting real estate. | | | | Program. Applies to individuals who begin work for the |
| Qualified Joint Ventures by Married Taxpayers If a | | | | employer after May 25, 2007. |
| husband and wife who file a joint return are the only | | | | Waiver of AMT Limits on Work Opportunity and FICA |
| members of a qualified joint venture, they can elect | | | | Tip Credits: The work opportunity tax credit and the |
| not to be treated as a partnership for Federal tax | | | | credit for portion of FICA taxes paid with respect to |
| purposes. Applies to tax years beginning after | | | | employee cash tips may offset alternative minimum |
| December 31, 2006. | | | | tax liability. The waiver of AMT limits apply to credits |
| §179 Deductions: This great deduction has been | | | | determined in tax years beginning after December 31, |
| extended through 2010. Taxpayers with $500,000 or | | | | 2006, and to carrrybacks of such credits. Effective for |
| less in assets placed in service on or after January 1, | | | | tax years beginning after December 31, 2006, and to |
| 2007 can elect to expense immediately up to $125,000. | | | | carrybacks of such credits. |
| GO ZONE §179 Deductions: For 2007 Taxpayers | | | | Sale of Stock in a Qualified Subchapter S Subsidiary: |
| with $1,050,000 or less in assets placed in service on | | | | An S corporation's sale of a QSub's stock is treated |
| or after January 1, 2007 can elect to expense | | | | as a sale of an undivided interest in the QSub's assets |
| immediately up to $212,000. | | | | followed by a deemed creation of the subsidiary in a |
| FICA Tip Credit: The FICA tip credit will continue to be | | | | §351 transaction. These new rules are not |
| based on the old minimum wage of $5.15 even though | | | | intended to affect current law treatment of transfers |
| the minimum wage is scheduled to increase to $7.25 | | | | of QSub stock in otherwise nontaxable transactions. |
| over the next two years. Applies to tips received for | | | | For example, certain pro rata distributions of QSub |
| services performed after December 31, 2006. | | | | stock by a parent S corporation to its shareholders |
| Work Opportunity Tax Credit: The Work Opportunity | | | | can qualify for tax free treatment if the requirements |
| Tax Credit is extended an additional 44 months | | | | of §355 and §368(a)(1)(D). Applies to tax |
| through August 31, 2011. (Note that with respect to an | | | | years beginning after December 31, 2006. |
| employer that hires a targeted individual on August 31, | | | | What changes are in store for your 2008 taxes? |