Facts and Figures - Timely points of particular interest
No Tax Love Lost-In a new case, a taxpayer received $160,000 from the owner of her company. She claimed that the payment was a gift reflecting the owner's romantic interests. But gifts to employees are often scrutinized by the IRS to ensure that they are actually personal. To qualify as a gift, the payment must stem from generosity, affection, respect, admiration, charity, etc. Result: The Tax Court determined that this "gift" was an enticement for the taxpayer to stay with the company. Therefore, it constituted taxable income.
Political Aspirations-The upcoming elections could provide an impetus for the types of services your business can provide. For instance, the needs of local or national campaign offices may run the gamut from printing and advertising to office furniture to courier services. If your firm is able to provide valuable services before November, it could lead to increased business opportunities in the future as well as government contracts. Caveat: Budget-conscious campaigns may ask for donated services or reduction in your regular prices.