Income Tax (Business and Personal)

Are you paying too many taxes? Are you risking penalties because you are paying too little?

SHANE FINANCIAL helps entrepreneurs and individuals to solve these issues every day of the year.
Our firm provides professional preparation of all federal, state, and local tax returns at competitive, affordable rates including: Individuals, corporations, LLCs, Non-profits, trusts, estate, gift, and sale tax. With our technology today, you may live anywhere in the U.S.A and we will be able to prepare your tax return right on line. Also, our firm would provide you with Tax compliances and tax planning to meet your needs. Tax planning is a valuable service that allows us to be proactive with minimizing your tax burden and take more control over the results of your tax return.
We coordinate with other practices and in full compliance with the requirements of the tax authorities to provide you with the most accurate tax return. We also continuously monitor federal, state, and local for and change in tax law to allow our clients to reduce current and future tax liabilities.

To create a trust, a person (the settlor) gives money or property to another person (the trustee), to be held in trust for the benefit of either the trust's beneficiaries, or a purpose recognised by law.
A grantor is a person who creates a trust. When a grantor retains substantial control of a trust, the grantor is taxed on the trust’s income, and the trust is disregarded for tax purposes. If the grantor retains control of only part of a trust, the grantor is treated as the owner of only the assets controlled; income from other assets is taxed to the trust or its beneficiaries.
Simple and Complex Trusts: Trusts are either simple or complex.
• Simple Trust: Trust that is required to distribute all accounting income in the year earned; has no charitable beneficiaries; and does not distribute principal in the current year.
• Complex Trust: Trust that is allowed to accumulate income, has a charitable beneficiary, or distributes principal. 

A trust may be simple one year and complex the next. A trust that is permitted but not required to distribute principal is a complex trust in years when principal is actually distributed, but may be a simple trust in a year when no distributions are made. A trust which can either distribute or accumulate income is always a complex trust even in years when all income is distributed. All trusts are complex in their final year because all principal must be distributed when the trust terminates.

• Grantor-Type Trust: Trust that occurs when a grantor retains the power to revoke the trust or in some other way retains sufficient control over the trust so that he/she is considered its owner for income tax purposes. With SHANE FINANCIAL, we are here to help you with  tax return needs. Please call or email to us and we will be more than happy to assist you.

The Estate Tax is a tax on your right to transfer property at your death. It consists of an The fair market value of these items is used, not necessarily what you paid for them or what their values were when you acquired them. The total of all of these items is your "Gross Estate." The includible property may consist of cash and securities, real estate, insurance, trusts, annuities, business interests and other assets accounting of everything you own or have certain interests in at the date of death.
The tax on gifts made upon death is the estate tax. The tax on gifts made while the giver is alive is the gift tax. In 2006, the estate tax rate is 46%

Gift Tax
Many of you are curious about the "gift tax exclusion" and how it really works. Some still believe that a gift is deductible by the person making the gift (the donor), and taxable to the person receiving the gift (the donee). This is absolutely not true. Gifts (not to be confused with charitable contributions, which have their own separate rules) are neither deductible by the donor, nor taxable to the donee.
Each person is allowed to gift a specific amount that will not trigger any gift or estate tax issues. This specific amount is called the gift tax Gifting money can be a very effective way to transfer substantial amounts from your estate, free from gift and estate taxes, to your children or other loved ones. This technique of estate tax planning can drastically reduce your taxable estate after your death, and could thereby reduce your associated estate taxes.

The amount of the annual gift exclusion (which was originally $10,000 but which is now $11,000) has been adjusted for inflation since 1998. However, the amount of the exclusion is always rounded to the next lowest multiple of $1,000, so the original $10,000 amount won't increase to $12,000 until the cumulative inflation adjustment is at least 20%. At current levels of inflation, it may be several years before the exclusion rises from $11,000 to $12,000. Just know that the $11,000 exclusion amount is in play for at least 2002 and 2003.