Category: Finance / Taxes

Is Your Retirement Plan Overloaded?

Beginning in the 1970’s, the tax laws were very favorable to persons desiring to contribute large amounts of their income to a qualified pension or profit sharing plan. In the early years discrimination in favor of owners was possible, the allowable deductions were high, and… Continue reading

The Value of a Gift

Many people do not realize that gifts can be subject to tax – the federal gift tax – which levies a tax on the donor (not the recipient) based upon the fair value of the property which is given. There are exclusions and credits available… Continue reading

A Summary of Recent Tax Legislation

0ver the course of 1996, Congress passed and President Clinton signed into law several important pieces of tax legislation. In many cases, the changes are favorable to individual taxpayers; in some cases the changes are not so favorable. Here is a summary: Individual Retirement Accounts.… Continue reading

New Uses for the Old IRAs

Much of the press given to the changes in Individual Retirement Accounts (“IRAs”) in the Taxpayer Relief Act of 1997 has been directed at the new Roth IRA. However, there are other changes that benefit those who have existing “traditional” IRAs. The biggest change is… Continue reading

What Is Garnishment?

Garnishment does not always involve adding thin orange slices or radishes shaped like roses to your favorite dish. Garnishment is also a mechanism under the Pennsylvania Rules of Civil Procedure where a judgment creditor (the person who holds the judgment) can have his debt paid… Continue reading

Why You Should Like “Like-Kind” Exchanges

Like the adage goes, death and taxes are two things you cannot escape. But just as medical science strives to postpone death as long as possible, tax lawyers and accountants work just as hard to defer the payment of taxes. One of the more effective… Continue reading

Pennsylvania’s Bad Check Statute

It is a crime in the Commonwealth of Pennsylvania to pass a check for the payment of money, knowing that it will not be honored by the underlying bank. For purposes of Pennsylvania’s bad check statute, a person tendering a check is presumed to know… Continue reading

Retirement Plans: An Overview

When Congress created the Individual Retirement Account (“IRA”), the “401K Plan”, the tax-qualified pension plan, and similar types of accounts which anticipate retirement, it obviously touched a major nerve in our collective psyche. The response has been overwhelming, and if the Congressional intent was to… Continue reading

Year End Tax Planning Tips

As we approach the end of 1998, a few days still remain for taxpayers to make adjustments in their tax picture to reduce the pain experienced on April 15, 1999. For many taxpayers as much as one-third of every dollar goes to pay income taxes.… Continue reading

2005 Form 1040: Automatic 6-Month Extension

  Individuals filing Form 1040 will no longer be required to file one form for an automatic four-month extension and a second form for an additional two-month extension.    Rather, the IRS has revised the extension procedures beginning with the 2005 returns due to be filed… Continue reading