Winter 2008

Economic Stimulus Act of 2008
On February 7, 2008, Congress passed, and the President is expected to sign, the Economic Stimulus Act of 2008. The major intent of this bill is to get tax rebate checks into the hands of consumers who will spend them and stimulate the economy. Read more...

Late AMT Reprieve for 2007 Filers - Congress Creates Another One-Year Patch
A tax law change enacted in the waning days of 2007 has saved a multitude of taxpayers from a dire tax fate. The new tax legislation increases the exemption amounts included in the complex alternative minimum tax (AMT) calculation on 2007 returns. It is expected to protect approximately 19 million taxpayers from the AMT and reduce the tax bite for over 4 million others. Read more...

Putting a Mortgage Into Reverse - Pros and Cons of Technique for Homeowners
For some homeowners in a tough spot, it may make sense to “back into” a reverse mortgage. In brief, this financial-planning technique allows you to tap the equity that has been building up in your principal residence over the years. It may be used to help pay expenses of elderly people during retirement or to free up cash for medical procedures or other unexpected emergencies. Read more...

IRS Authorizes Late S Corporation Elections
As a general rule, you must elect S corporation status for a business entity by the 15th day of the third month of the tax year. Therefore, an election for 2008 must be made by March 17. (March 15 falls on a Saturday.) Otherwise, you have to wait until next year. Read more...

How to Give Stock to Charity - Special Rules Apply to Appreciated Property
Depending on your situation, you may decide to give a gift of stock or some other appreciated property instead of cash to a charity. The rules are slightly more complicated, but the tax benefits for such generosity may be well worth it. Read more...

Facts and Figures - Timely Points of Particular Interest
Homeowner Tax Breaks—Congress passed legislation late in 2007 granting relief to homeowners in debt. For a three-year period, joint-filers may exclude from tax up to $2 million of debt forgiveness on a mortgage for a principal residence. Read more...

Indiana Wellness Tax Credit
The Indiana State Department of Health has announced a certified wellness program that Indiana small businesses may use to qualify for a new tax credit. 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

Somerset Seminar Spotlight

Financial Skills for Kids
Ages 10 to 14
Date: Saturday, March 8, 2008
Time: 9:15 a.m. to 11:00 a.m.

Financial Skills for Teens
Ages 15 to 18
Date: Saturday, March 15, 2008
Time: 9:15 a.m. to 11:30 a.m.

Financial Skills for Young Adults
Ages 19 to 25
Date: Saturday, June 21, 2008
Time: 9:15 a.m. to 11:30 a.m.

Click here for more details. To register, please send an
e-mail message to us or call 317-472-2503.
Click here for our complete seminar calendar.

Jenifer Groth of the INCPAS recently had an article on this topic published in BizVoice magazine.  Click here to read.