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September 2006 Newsletter continued |
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EDITOR'S NOTE: Should you have questions with respect to the information contained in this newsletter or need help with your personal or business financial, tax and accounting activities, please call. |
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E-Mail Halliday@hallidaycpa.com |
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This newsletter offers factual and up-to-date information on the subjects discussed, but should not be regarded as a complete analysis of these subjects. No party assumes liability for any loss or damage resulting from reliance or use of this material. |
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● Corporate extended tax returns due in 15 days, September 15, 2006 ● 3rd quarter individual & corporate estimated tax payments due September 15, 2006
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subject to the alternative minimum tax (AMT). Such bonds yield a bit more than other municipal bonds.
EE bonds may work as well. Owners can cash them in tax free to pay for college costs for children. The bonds must be registered in the parent’s name and there is an income limit on how much a taxpayer can make (couples $94,700, singles $63,100). |
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Roth Conversions Eased |
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The tax bill recently signed o May 17, 2006 eases the restrictions on Roth IRA conversions. Previously, a taxpayer could only convert a traditional IRA to a Roth IRA if their income was under $100,000. Beginning in 2010, there is no income restriction and taxpayers can spread the tax due over two years (half the tax due in 2011 and half in 2012).
This also implies that beginning in 2010 there will be no income restriction on making contributions to a Roth IRA. |