Tax Law Changes That Will Impact Your 2007 Tax Return2

By: Tom Wheelwright
What changes are in store for your 2008 taxes?

Kiddie Tax: The kiddie tax is expanded to apply to any child who is 18 years old or is a full time student over the age of 18, but under age 24. However, the kiddie tax will not apply to such individuals if their earned income exceeds half of their support for the year. Does not apply until 2008.

Passive Investment Income of S Corporations: S corporation capital gain from the sale or exchange of stock or securities is no longer characterized as passive investment income. Gross receipts from more regular income streams (those derived from rents, royalties, dividends, interest and annuities) remain subject to the passive investment income limitations. Becomes effective for tax years beginning after May 25, 2007.

Tom Wheelwright is not only the founder and CEO of Provision, but he is the creative force behind Provision Wealth Strategists. In addition to his management responsibilities, Tom likes to coach clients on wealth, business, and tax strategies. Along with his frequent seminars on these strategies, Tom is an adjunct professor in the Masters of Tax program at Arizona State University. For more information, visit http://www.provisionwealth.com.com .

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