| Traditional Individual Retirement Arrangements |
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| In an attempt to encourage personal savings for retirement, Congress has established a plan that gives you tax advantages for setting aside money for retirement. When you contribute to an individual retirement arrangement (IRA), you may be entitled to deduct some or all of the contribution, and the amounts in the IRA, including earnings, are usually not taxed until they are distributed. The advantage to delaying taxation is that many people are in a lower tax bracket after retirement, thereby reducing the amount of tax paid on the contributions and earnings. More... |
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| Amortization of Goodwill and Other Purchased Intangible Assets |
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| It is not unusual for a taxpayer to pay more for a business than the fair market value of its tangible assets would seem to command. So why does a taxpayer pay more? The answer is that he or she has actually bought more than hard assets. More... |
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| Life Insurance Proceeds |
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| If you receive the proceeds from a life insurance policy after the insured died, you do not include those amounts in gross income for the purposes of federal income taxation. The proceeds are properly excluded no matter whether they represent a return of paid premiums, the increased value of the policy due to investment, or under a death benefit feature included in the terms of the policy. It is also immaterial whether the beneficiary is a family member or another individual, or a corporation or a partnership. More... |
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| Use Tax |
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| States that impose a sales tax on the sale of tangible personal property or services frequently impose a use tax for the privilege of using, storing, or consuming goods or services within the state. Goods become taxable upon delivery to the buyer within the taxing state and after the buyer's use of the goods begins. The use tax is a non-recurrent tax; thus, once paid, an owner can use the goods repeatedly. It is usually imposed on the purchaser, user, or consumer of goods and services. More... |
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| Section 527 Political Groups |
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| A political organization subject to Section 527 of the Internal Revenue Code (usually called a 527 organization) is a party, committee, association, fund, or any other type of organization run primarily to directly or indirectly accept contributions and/or make expenditures for an exempt function. The exempt function of a political organization is influencing or attempting to influence the nomination, election, or any other type of selection of an individual to any public office or to an office in a political organization. More... |
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