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Archive for December, 2010

Contributed by Jill Johnson, Director of Marketing, Central Bancorp
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There is no such thing, this year anyway, as a quiet holiday season for accountants. The hard-working crew over at Stockman Kast Ryan & Co. have been busily sorting through all of the recent legislation regarding tax relief. They have put out a series of 3 articles covering various aspects of the act, which we have linked below for you to access.

The first article serves as an overview of how the act affects individuals. You’ll learn about the expansion and extension of valuable tax breaks and also find several useful tips.

The second article covers the business provisions of the new legislation.

The third article discusses the impact on gift giving and estate planning.

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Contributed by Jill Johnson, Director of Marketing, Central Bancorp

Especially with recent press regarding across-the-board higher education tuition hikes, sending your kids (or yourself) to college means a lot of things, but it doesn’t mean SAVING money. Right? Well, some friendly, local accountants would like you to know that there is, in fact, a smarter way to fund a valuable education.

The CPA firm Stockman Kast Ryan and Company has some good advice regarding a nifty tax tool, the Section 529 College Savings Plan.  This plan can be used to reduce your Colorado income tax and offers a variety of benefits, including:

  • Freedom from the AGI (Adjusted Gross Income) limitations imposed on tuition payment deductions.
  • Control of the account, which allows the custodian to ensure it is used by the beneficiary for educational purposes.
  • The income earned in a §529 plan is tax-free as long as it is used for educational purposes
  • Distributions from a §529 plan can be used for a wide range of educational expenses, including college or graduate school tuition, fees, books, supplies, computers (2010 only), and room and board.
  • In addition, contributing to a Colorado §529 plan entitles you to a Colorado Income Tax deduction with tax savings equivalent to 4.63% of the contributions made.

Even if a current college tuition or room and board payment is due in January, 2011, a contribution into a Colorado approved §529 plan today can be withdrawn immediately thereafter resulting in a Colorado income tax deduction. With spring semester college costs potentially as high as $25,000, the resulting Colorado income tax savings could be meaningful. Of course, there are certain compliance requirements. Contact SKR to learn more by visiting their website at www.SKRCO.com.

SKR also provides a tax planning resource guide, which you can access by clicking here.

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