CCH TAX NEWS for May 9, 2008

FEDERAL NEWS

Farm Bill Negotiators Announce Final Agreement
http://tax.cchgroup.com/news/headlines/2008/nws5908.htm#1

House Approves Housing Tax Measure
http://tax.cchgroup.com/news/headlines/2008/nws5908.htm#2

Additional Guidance for Public Inspection of Form 990-T Provided
http://tax.cchgroup.com/news/headlines/2008/nws5908.htm#3

Clarifying Amendments to Rules on Transfers of Assets or Stock
Following Reorganization Issued (T.D. 9396)http://tax.cchgroup.com/
news/headlines/2008/nws5908.htm#4

IRS Adopts Final Regulations Regarding Assumption of Liabilities
Exception (T.D. 9397)http://tax.cchgroup.com/news/headlines/2008/
nws5908.htm#5

STATE NEWS

Iowa --Sales and Use, Property Taxes: State Sales Tax Rate Increased;
Local Option Tax Repealed
http://tax.cchgroup.com/news/headlines/2008/nws5908.htm#6

I am married, filed jointly, and have two young children. I thought
I'd get a stimulus payment of $1800. 600+600+300+300.

I actually only got $1200, and I'm wondering if someone can help
explain. What is net income tax liability?

We are a fairly standard family. (What exactly is a standard family?)
We paid taxes throughout the year, a little bit more than needed. And
we have the mortgage. We got a tax refund, so we got money coming in,
instead of having to pay out, to settle the tax bill.

But what part of that calculation is the 'net income tax liability'
and what would make a working family have a low one (under $1200?)

I like CD's and fixed-rate mortages because they are simple. I'm not
dumb, but I don't know fancy financials. Thanks for helping this
money-moron figure out about the net income tax liability.

DougB

===================================================

What are the pros and cons of registering stock certificates in both
husband and wife's names,
vs. only the husband's (or wife's) name?

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

In 2006 I started the process of starting a dog breeding business. I
purchased a couple dogs, built a large kennel area, and started the
process of training and showing the dogs. This obviously cost a lot,
including the vets, trainers, stud fees, food, supplies, licenses,
show fees etc. I did not include it on my 2006 or 2007 return because
I had not started earning income yet. I had already spent $40,000 by
2008.I am treating the whole thing like a business, separate accounts,
advertising, etc. Anyway,here are my questions:
1- Can I go back and ammend those returns? Business, vs hobbie
issues?
2- Schedule C for those years with no income?
3- Show fees are very large, but without the champion lable these dogs
will not produce much income.
4- Depreciation of my dogs, the purchased ones...

Need help clarifiying the rules here. My understanding with the
alternate valuation date was that it applied to everything in the
estate. Now I have an appraiser telling me otherwise.

Due to the drop in the stock market, we would choose the alternate
valuation date for all of the marketable securities. Now, there is
also jewelry, that, due to the rise in the price of gold, would be
worth more. Does the alternate valuation date apply to jewelry as
well?

Also, there is a note receivable. Payments have been made
continuously to the estate, so after 6 months, on the alternate
valuation date, the note is worth less. (Not worthless, worth less).
Is this note eligible to be valued on the alternate valuation date for
the lower value?

Thank you for your time.