Q: I am operating a business. As of last year, the company had a loss or no income at all. Do I have to file a tax return this year?
A: It is absolutely best to file a tax return each and every year that a business is operating or existing. If a tax return is not filed, not only are red flags raised for audit, but also net operating losses can be lost if the tax returns are not timely filed. It is always in your interest to file a return no matter what the income or activity of a business is.
Q: I missed setting up estate planning last year. Can I still take advantage of 2008’s gift tax exemption of $12,000 this year?
A: No. Unfortunately, once a year lapses the gift tax exemption opportunity lapses along with it. Fortunately, the gift tax exemption increases to $13,000 in 2009 and the estate tax exemption increases from $2,000,000 to $3,500,000.
By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors