Crystal Tax

02/10/2013

08/11/2012

Options don’t qualify for a tax break on sales of small business stock

An employee exercised options and sold the stock right away. He claimed that he could exclude 50% of the resulting gain because he sold stock in a small business that had been held for more than five years. But the Court ruled that the five-year holding period is determined by counting the time that the shares were owned, not the time the stock options were held.

08/11/2012

UBS client sentenced for failure to file FABR
Another U.S. client of Swiss banking giant UBS AG has been indicted for failing to report more than $4 million in an undisclosed account, the U.S. Attorney for the Southern District of Florida said on July 25.
Luis Quintero, 64, of Miami Beach, Florida was sentenced to four months in federal prison for his willful failure to file TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR).
See more details on Newsletter on my website.

07/21/2012

NAVIGATING THE FOREIGN STUDENT FILING REQUIREMENTS

Each year, tens of thousands of foreign students studying in the U.S. face a task more terrifying than any mid-term or final exam—unraveling their U.S. tax filing requirements. The potential consequences of failing this task are horrendous. Students who do not file correctly can be fined, reclassified as U.S. residents, or in extreme cases even deported. Unintentional errors haunt foreign students for years if they apply to remain in the U.S. as residents or apply for citizenship.
Many foreign students do not know where to turn for advice. University counselors struggle to make sense of the filing requirements and frequently dispense incorrect advice. Tax advisors can provide an extremely valuable service to foreign students by providing straightforward guidance and by unraveling the complex web of rules governing foreign students. See more detail on Newsletter on my website.

07/21/2012

SAVING FOR COLLEGE

The continuing increase in the cost of higher education has made early planning for college a necessity for many families. According to a recent CNN Money article, college costs have risen 130% in 20 years, far surpassing the growth in household incomes over that period. 1 The College Board reports that for the 2011-2012 academic year, the average total costs, including room and board, to attend a public university for in-state students rose 5.4% from the prior year, to $21,477. 2 For private colleges, the average total annual costs are $42,224, a 4.3% increase from last year. To encourage young people to attend college, the government provides several tax incentives for pursuing higher education. Many of these incentives pertain to the college savings process. If parents allocate a portion of current income to college savings, the earnings on those savings can accumulate tax-free, or with a reduced tax rate.
Many factors should be considered in deciding on an educational savings strategy. Tax professionals are in an ideal situation to help clients plan for these future expenses because they know the clients' financial situation. This additional service can be offered in combination with yearly tax planning. See more detail on my newsletter at my website.