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Year-End Tax Strategies
The economic turmoil over the past year
has been painful, to say the least. The federal income tax
environment, however, is very favorable but not likely to stay
that way for long. Now is a good time to focus on last minute
tax strategies that might save you some money in the long run.
The ABCs of Deferred Compensation
A deferred compensation agreement is any plan or agreement in
which an employer promises to pay an amount to an employee at
some point in the future for past, present, or future services.
As a result, the compensation is generally paid after the
services are performed. This arrangement can provide an
additional incentive to attract or retain key employees.
Kiddie Tax Update
Now is a good time to
review the "kiddie tax" rules. We received surprised reactions
from several individuals when we informed them of the amount of
tax their "children" owed, and we realized that not everyone
were up-to-date on changes to the law. Several people still
believed that children over age 14 were exempt from "kiddie
tax." Not so.
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