Tax And Business Climate In Kentucky

This month we travel to the Bluegrass State of Kentucky. The nickname is based on the bluegrass found in many of its pastures due to its fertile soil.

The Red River Gorge is a canyon system on the Red River in east-central Kentucky. Geologically, it is part of the Pottsville Escarpment, a resistant sandstone belt of cliffs and steep sided, narrow crested valleys. The prevalence of sandstone allowed the Red River to cut a magnificent gorge through the mountains. It is a rock climber’s paradise and is some of the best natural areas around!

Kentucky is a land with diverse environments and abundant resources, including the world’s longest cave system, Mammoth Cave National Park and the longest of navigable waterways and streams in the contiguous United States. Lush forests, mighty rivers and quaint towns blanket the landscape of the state.

The Kentucky Derby is a renowned horse race held at Churchill Downs on the first Saturday in May in Louisville. It is preceded by a 2-week festival and is celebrated in the Kentucky Derby Museum year-round.

Business Climate

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Monika Miles

This month we travel to the birthplace of religious freedom in America, the state of Maryland. Formed by George Calvert in the early 17th Century, the state was intended as a refuge for persecuted Catholics from England. George Calvert was the first Lord of Baltimore and the first English proprietor of the then-Maryland colonial grant. Maryland was the seventh state to ratify the U.S. Constitution, and played a pivotal role in the founding of Washington D.C., which was established on land donated by the state.

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Larry Stolberg

The taxation of corporate income from the rental of storage facilities appear to be a common business under regular review just like the motel/hotel and rental management business.

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Most married taxpayers automatically tend to choose the Married Filing Jointly filing status, because they enjoy being taxed at the lowest rate, and also because there are certain tax breaks they might not be entitled to if they were to file separate returns. This, however, might not always be a wise decision.

If you and your spouse each have income, it might be wise to figure your taxes both on a joint return and on separate returns, and then choose the filing status that gives you the lower combined tax. Generally, you will pay more combined tax on separate returns than you would on a joint return, because the tax rate is higher for the MFS filing status. However, if both you and your spouse are high earners; and both of you also have large deductions, there may be a possibility that filing MFS could result in a lower tax bill, as Read More

More than 40 tax provisions, including the tax rate schedules, and other tax changes are adjusted for inflation in 2015. Let’s take a look at the ones most likely to affect taxpayers like you.

The tax rate of 39.6 percent affects singles whose income exceeds $413,200 ($464,850 for married taxpayers filing a joint return), up from $406,750 and $457,600, respectively. The other marginal rates–10, 15, 25, 28, 33 and 35 percent–and the related income tax thresholds are described in the revenue procedure.

The standard deduction rises to $6,300 for singles and married persons filing separate returns and $12,600 for married couples filing jointly, up from $6,200 and $12,400, Read More

To lower the corporate tax rate and perhaps also the individual income tax rate, in a revenue neutral rate means that revenue must be found to pay for the drop in taxes that would occur with a lowered tax rate. Tax preferences – special deductions, exclusions and tax credits would need to be eliminated or cut back. Some of the suggestions though, involve timing items. For example, making depreciable lives longer and methods slower just pushes more of the depreciation deduction to later years. It does not permanently raise revenue. It will show up though as a revenue raiser in a table that only shows the revenue effect for a limited number of years.

Where can permanent tax increases be generated to offset the desired permanent tax decrease generated from permanent lower rates? Read More