Surviving spouse home sale exclusion liberalized
Before a change in the law late in 2007, an exclusion of up to $500,000 of gain on the sale of a principal residence was available only to taxpayers who filed a joint return and met certain other tests. Under the change in the law, effective in 2008, the surviving spouse now may use the full $500,000 exclusion as long as the sale occurs not later than two years after the date of death of the other spouse. (Summer 2008)

Electronic tax payment offers many advantages
The Electronic Federal Tax Payment System is a free system used by both businesses and individuals to pay their federal tax liability. While many employers hire an outside payroll company to take care of their payroll tax obligations, including the remittance of payroll taxes, it makes sense to enroll in the electronic system. When the employer enrolls, it should obtain a separate personal identification number (PIN). The payroll company may have a contractual obligation to make the payroll taxes on behalf of the business. However, it is ultimately the employer who is responsible to make sure that all payroll taxes are paid in the correct amount and in a timely manner. (Summer 2008)

Kiddie tax changes warrant re-examining portfolio
Until recently, the so-called "kiddie" tax was applicable to minors under age 14. Recent legislation expanded the scope of this tax for 2008 income tax returns to children under age 19, or under age 24 if a full-time student. The tax is assessed at the parents' tax rate on unearned income in excess of $1,800. (Summer 2008)