Andre and Lana got divorced in January, 2006. The two children, aged 8 and 10 live with their mom and have periodic visitation with their dad. The divorce decree calls for the couple to file a joint return for 2005 and for each party to pay ½ of any tax due, or to split any refund equally. The decree also says that Andre will be entitled to take the dependency exemption for the two children on his tax returns for as long as he pays child support.
I noticed an article today on the Discovery Channel online that illustrates how technology can cause major changes in the way things are done: GIANT MACHINE DESIGNED TO PRINT HOUSES.
Today, it's impossible to read through a newspaper or news website without seeing at least one or two discussions of the evils of one technology or another ... For as long as we have any freedom of choice in how to live our lives, our choice regarding technlogical advancement is not whether or not to allow it to happen but, rather, how to deal with it.
I recently viewed a video called Forty-Five Days. It was about the short, hellish life of broiler chickens that have been genetically engineered to put on weight much faster than normal chickens. The poor creatures had trouble standing on their spindly little legs, whose growth does not keep up with their bloated bodies.
During the 20 years I´ve worked with start-up businesses, I´ve seen too many that were rather like those poor chickens. Take as an example two fictional, but representative business owners, Misty and Julie, both of whom have been working as real estate agents for four years. Both
It´s getting to be that time of year when business owners become concerned with the mechanics of getting tax returns completed — or at least getting a close enough estimate to file an extension without worrying about substantial penalties (an extension only extends the due date of the return, not the deadline for payment of the tax).
As long as I keep getting questions from readers, I´ll answer them here if the question and answer might be of general interest.
MW writes that she and her son run a business together. They incorporated the business two years ago.
MW´s Question:
A reader writes: I have a two year old "c" corp. with a lot of deductions, but I do not [have] enough personal deductions. Is there a way to use some corp. deductions on my personal tax return?
You can´t directly carry corporate deductions to your personal return, but in some cases there are things a shareholder can do to decrease the corporation´s net operating loss while decreasing the shareholder´s individual taxable income.
Here´s an example: Ed owns 100% of the shares of Infinite Wisdom Consulting, a C Corporation that has a net operating loss of $5000 for 2006. Ed also