To be a C or not to be a C – That is the question

When forming an entity, do you know the pros and cons of a C corporation versus an S corporation? What about the advantages and disadvantages of a partnership, LLC or sole proprietorship?

These classifications may not seem important now, but they can have significant tax and liability consequences depending on your future plans for your business, especially if you are looking to sell.

For an overview of how entity type can affect your business, we invite you to view the August issue of Smart Business Cleveland, “Entity Selection.”

 

Ohio to no longer accept paper monthly sales tax forms

Please note that Ohio’s sales tax filing requirements have changed. Starting with January 2009 sales tax (due 2/23/09), the state will no longer accept paper monthly sales tax forms. You will now need to file electronically using Ohio Business Gateway. To view the complete notice, click here.

You can find more information about electronic filing methods at www.tax.ohio.gov.

Emergency Economic Stabilization Act of 2008

On October 3, 2008, President Bush signed into law the Emergency Economic Stabilization Act of 2008. Along with the much publicized financial markets rescue plan, the bill also contains $150 billion in tax relief. 

Other highlights of the Act include:

• Over 290 Changes to the Tax Code
• 2008 AMT Patch
• Tax Extenders
• Disaster Relief
• Energy Incentives
• Revised Preparer Penalty Standard
• Enhanced Child Tax Credit
• Broker Basis Reporting 

For a complete summary of all of these highlights, we recommend that you review this Emergency Economic Stabilization Act summary.

The American Housing Rescue and Foreclosure Prevention Act of 2008

As you may have heard, the American Housing Rescue and Foreclosure Prevention Act of 2008 became law on July 30, 2008. What does this mean to you?

The three changes most likely to affect taxpayers include:

• Temporary tax credits for first-time homebuyers

• Temporary property tax deductions for non-itemizers

• Unfavorable new rule for properties converted into principal residences

There were also a number of other important changes, including:

• Corporations can use R&D and MTC carryovers instead of claiming bonus depreciation.
• Required information reporting for credit card and third-party payment network sales.
• Favorable changes to low-income housing and rehab credit rules.
• Interest from some tax-exempt bonds no longer added back for AMT.
• Interest from FHLB-backed state and local bonds can be tax-exempt.

If you would like to receive our recently issued comprehensive email report on the Act, please email information@skodaminotti.com, with the subject line: Housing Act.