What's New In Tax Services

Our goal is to work with individuals and businesses to minimize your taxes. Together with our investment advisors we will build a total investment plan designed to retain and grow your assets. We stay on top of tax law changes so you don't have to.

Here are some 2008 tax changes to consider:

Economic Stimulus Act of 2008
The Economic Stimulus Package was signed by the President on February 13, 2008 with the purpose of boosting the economy.  The Act provides qualifying taxpayers with a one time “tax rebate”.  This rebate is an advance tax payment on a 2008 tax credit. An individual taxpayer will receive between $300 and $600 (between $600 and $1,200 for married couples).  The calculation for the rebate will be based on the taxpayer’s 2007 tax return.  A reconciliation will be done after the 2008 tax return has been completed.  In addition, qualifying families may be eligible for an additional $300 for qualifying children.  Contact the tax department for more information.

Tax Free Capital Gains & Dividends
Starting in 2008, capital gains and qualified dividends are tax free to individuals in the 10% and 15% tax brackets-which cover taxable income up to $65,150 on a joint return and $32,550 on a single return.  Total income can be larger when taking personal exemptions and standard or itemized deductions into account.

Direct Roth IRA Conversions
Retirement plans, such as 401(k)s and 403(b)s, are now required to allow participants to make a direct rollover of their distributions to a Roth.  Prior to 2008, those who wanted to convert plan account assets to a Roth IRA had to first transfer funds to a traditional IRA and then make the conversion.  It is however; up to the participant to determine eligibility to convert (making sure modified AGI does not exceed $100,000).  Remember, if the participant takes a distribution rather than making a direct conversion, the distribution will be subject to a 20% withholding tax.

Standard Mileage Rate Increases for 2008
Effective July 1, 2008 through December 31, 2008  the standard mileage rates have been increased and are as follows:
-Business use of an auto- 58.5 cents per business mile,
-Charitable use of auto- 14 cents per mile may be deducted for charity related driving
-Medical use of auto- 27 cents per mile may be deducted when driven to obtain medical care
-Moving expense deduction- 27 cents per mile may be deducted when an auto is used for work related move to a new home

The tax department is always available year round to discuss these and other tax issues that may be of importance to you or your business.