A tax year
may be either a calendar year, which is a period of 12 consecutive months ending on Dec.
The tax year
end falls on April 5th, but the majority of the public (69%) either doesn't know or thinks it's a different date.
Qualified Dividends: This type of income generally consists of dividends received during the tax year
from domestic corporations and qualified foreign corporations--subject to holding period requirements and certain exceptions.
In certain circumstances, revenue procedure 71-21 allows accrual-method taxpayers to defer inclusion of payments received (or amounts due and payable) in one tax year
if attributable to services to be performed by the end of the next.
The most significant changes in the 2002 tax year
for small businesses are an increase in the maximum contribution to retirement plans, a section 179 depreciation increase to $24,000 for equipment and property purchases, and a special depreciation allowance for companies that purchased equipment and property after September 10, 2001.
In effect, once a tax year
is included in a global netting computation, the netted interest amount would be reflected and would generally not be subject to future adjustment.
You and/or your spouse participate in the operation of your woodland activity for more than 500 hours during the tax year
Months of deferral are counted by going forward from the proposed LLC year end to the members' year ends, using the information available at the beginning of the current tax year
. After testing each proposed tax year
, the year producing the least aggregate deferral of income is the required year.
Do you need a tax year
summary or want to keep track of a client's account?
In addition, a 6% excise tax applied to excess contributions to an education IRA, under code section 4973 (that is, contributions for the tax year
that exceeded the allowed limit--$500--or that were also contributed to a QSTP program for the same beneficiary).
The IRS does not, however, permit interest to be computed on a net basis where a taxpayer realizes an overpayment in one year that overlaps a deficiency that the taxpayer has already paid for a different tax year
. Similarly, the IRS will not net interest where an unpaid deficiency in one tax year
overlaps with an overpayment that the IRS has already paid for a different tax year
Determine the "required year." Even if the LLC's required year is not used as its tax year
, several rules and limitations are based on the required year, such as the allowable year end when making an election to use a tax year
other than the required year under Sec.