The Web is growing and so is the SOHO market; Kiplinger's Tax Letter misses the point but so does the Washington Post; IRA's and Pensions are coming next.
1. The Web is growing fast says the N.Y. Times.
800M pages worth, and growing, with one in five pages less than 12 days old or younger. Has anyone visited a Web Site for serious stuff lately, like where the next ZERO CAPITAL GAINS ZONE may be, or where the San Diego Enterprise Community is located or the Santa Ana Empowerment Zone? Or, how about old The Taxman86 Speaks? What a surprise to see someone wants to bring order to The Taxman86 Speaks [the Newsletter is carried by others to the world--Enjoy]
Apple, Bigstep.Com, and Working Solo are going on the road to show off their stuff to the small office/home office market. What cities did they pick? Las Vegas in August, WOW! Did they know that the Southern Nevada Enterprise Community ["SNEC"] would be a ZERO CAPITAL GAINS ZONE on or about that date?
By the way we like the new Apple print ads "Rock'n Roll Machine" in the N.Y. Times Magazine, showing off their Desktop Movies potential so that every band can now e-mail the real stuff from their home-based business location or on their Web site. How about the article The Venture Capitalist in My Bedroom, which confirms that the home-based business is growing.
2. The Kiplinger's Tax Letter is one of the greatest.
Big tax incentives are coming to 80 poor neighborhoods this summer says the latest Kiplinger's Tax Letter. What does that mean? 40 Empowerment Zones and 40 Community Renewal Zones, as of January 2001 is the answer, but is that correct? We do not think so, if our information is correct that IRC Section 1045 and 1202 will apply to ALL Enterprise Zone Businesses, as of the signing of the Distressed Communities Tax Bill [expected on or before July 15, 2000]. Does that mean that Qualified Small Business Stock of Enterprise Zone Businesses get special treatment? Yes, 60% exclusion instead of 50% if held five years or more.
Does that mean IRC Section 1045 Roll over applies to all Enterprise Zone Businesses and the interests therein, such as the capital gains from the sale of common stock, partnership interests, etc., after 12 months? We think so. [We believe that the IRC Section 1045 will be as common place as IRC Section 1031, with lawyers and accountants doing their thing]. The Washington Post did not do much better [the Distressed Communities Compromise came days before the China Vote and at the White House before the South Africa State Dinner].
3. 35 days and counting to finish all the tax legislation.
There are only 35 more legislation days left before the August Recess and Congress is pushing with IRA's and Pension Reform on the top of the list.
The Pension Reform has been passed by both Houses and is sitting in the Small Business Tax Cut Bill and the Bankruptcy Reform Act, and apparently is coming up again, as did estate and gift tax repeal with strong bi-partisan support. This is the sleeper since it will allow full funding of defined benefit plans with $160,000 normal retirement benefit at age 62. That could involve funding of over $1.5M at age 62.
Jim Schneider, LL.M.
The Taxman86 Speaks... is copyright 1998-2010 by James E. Schneider, LL.M. Inc.