Q: When the Budget Control Act of 2011 passed, were any tax provisions included within it?
A: A full read of the text has not revealed any new tax provisions within the law. However, it is apparent that this act will likely have effects on future tax laws in so far as requirements within the law must be reached.
Q: I am a business owner and I pay some personal expenses out of my business accounts from time to time. Must I include this amount in my income?
A: First of all, no matter how big or small your business is, it is not advised to follow this course of action. Intermingling funds is never a good thing in front of the IRS. However, if this is done from time to time, the amounts used for personal expenses cannot be deducted for business expenses as they do not come within the meaning of ordinary and necessary.
Q: What is the maximum that can be contributed to an IRA?
A: In 2011, the maximum contribution is $5000 in both Traditional and Roth IRA accounts. If the taxpayer turns 50 this year, then an additional $1000 contribution is allowed.
By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors