TAX TIDBITS

Marginal Tax (Texas Franchise) Update

The Marginal Tax (Texas Franchise) underwent substantial changes for this year.  This tax will affect any entity that has limited liability protection under Texas law.

                                  Corporations

                                  Partnerships

                                  Limited Liability Companies

                                  Professional Associations

The law excludes natural partnerships; a partnership that has no direct ownership other than natural persons and does not "enjoy" limited liability under state law; sole proprietors, not including single member LLC's. 

Passive entities must pass two tests to be excluded:

  90% of income must be passive (rent is not considered non passive)

  Must be a general partnership, limited partnership or trust other than a

  business trust.

Combined groups are treated as a single entity in determining the groups franchsie tax.

  Entities in a combined (affiliated or unitary) group must file a combined

  group report.

Exemptions available for religious, charitable, educational, conservation and other special activities.

There are three different caluclations used to determine the franchise tax due:

   Retail/Whole Sale Using Cost of Goods Sold

   Non Retail/Whole Sale

   EZ Tax Compution - not always is the less tax calculated.

The annual tax return date is May 15th but has been extended to June 16th.  Extensions may be requested until November 15th, however, 90% of the tax due must be paid with the extension before June 16th. 

A new taxable entity may only request a 45 day extension which is August 15th. 

 

Federal Tax Credits For 2008 Hybrid Vehicles

Expired:  Toyota Camry hybrid, Prius, Highlander

             Lexus RX 400 and LS 600h L hybrid

Phasing Out:  Honda Civic CVT:  $1,050 credit until June 30, then $525    

                    credit until Dec. 31, then zero

$3000 Credit:  Ford Escape hybrid, 2WD

                     Mazda Tribute, 2WD

                     Mercury Mariner hybrid, 2WD

$2200 Credit:  Chevrolet Tahoe hybrid, 2WD and 4WD

                     Ford Escape hybrid, 4WD

                     GMC Yukon, hybrid

                     Mazda Tribute, 4WD

                     Mercury Mariner hybrid, 4WD

$1550 Credit:  Saturn Vue Green Line

$1300 Credit:  Saturn Aura hybrid

                     Chevrolet Malibu hybrid