Fall 2007

Winners and Losers in the New Tax Law
Despite its name, the new “Small Business and Work Opportunity Tax Act of 2007” is more than a just a package of tax breaks for small businesses. It also includes several revenue-raisers that could have a significant impact on your personal tax return. Thus, the new law contains both “winning” and “losing” propositions for taxpayers. Read more...

The Kiddie Tax Continues to Grow
Under the new tax law passed earlier this year—the Small Business and Work Opportunity Tax Act of 2007—Congress extended the reach of the so-called “kiddie tax.” Now this onerous tax provision might begin to affect families with children well into their twenties. Read more...

Seven Tax-Wise Ideas at Year-End
The end of the year is usually the optimal time for tax moves that can make a big difference on your return. This year is no different than most. In fact, several tax law changes may impact year-end planning in 2007. Here are seven tax ideas to consider. Read more...

IRS Unveils New Audit Program
The tax audits are coming, the tax audits are coming! The IRS is bringing back dreaded random audits as part of a new National Research Program (NRP) study. This new study is expected to help the IRS fine-tune the tools it uses to select individual taxpayers for closer examination. Read more..

Answers to Questions About Internal Controls
One of the cornerstones of a successful business is a system of internal controls. Yet many business managers ignore or pay little attention to this critical need. This brief article answers several key questions about implementing a system for your firm. Read more...

IRS Releases 2008 Standard Mileage Rates
The IRS has released the 2008 optional standard mileage rates to be used by employees, self-employed individuals and other taxpayers to compute deductible costs of operating an automobile (including vans, pickups and panel trucks) for business, medical, moving and charitable purposes. Read more...

Combine Two Top Homeowner Tax Breaks
Suppose you are selling your home at a sizeable gain. Although you can benefit from the giant home-sale exclusion, part of the profit will still be subject to tax. Intriguing idea: Fortunately, there is a way you can combine the home sale with a like-kind exchange. In other words, you could convert the home to a rental property before you sell it. As long as you meet all the tax law requirements, you qualify for this tax-saving parlay. Read more...

   - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Wherewithal is provided by Somerset for our clients and other interested persons upon request. Since technical information is presented in generalized fashion, no final conclusion on these topics should be made without further review.

For additional information on the issues, please contact a member of the firm. Somerset provides total financial solutions, including accounting, assurance, information solutions, litigation & valuation, tax, wealth management and management consulting to entrepreneurs and their businesses. This document is not intended or written to be used, and cannot be used, for the purpose of avoiding tax penalties that may be imposed on the taxpayer.

Somerset CPAs, P.C.
3925 River Crossing Parkway, Third Floor
Indianapolis, Indiana 46240
317.472.2200 • 800.469.7206 • FAX 317.208.1200
www.somersetcpas.com

MAS 90/MAS 200 ERP Users Group Meeting

Thursday, December 13, 2007
11:30 a.m. to 1:00 p.m.
Somerset Conference Center
(Lunch Provided)

Click here to register.

 Income Tax Literacy  for Women

Thursday, January 10, 2008
11:15 a.m. to 1:00 p.m.
Somerset Conference Center
(Lunch Provided)

During this seminar, we will discuss the basics of individual income taxes, including a review of Form 1040 and its schedules, how to organize your tax documents, types of deductions and how to maximize them and much more.

Click here for more details.  Register here.