It's Better When the Legislature is Out of Session

The Maryland Chamber of Commerce had an eye-catching headline on its website:

"Special Session Results in $800 Million in New Business Taxes"

When you hear your governor call for a "Special Session", grab your wallet! Here is the Chamber's summary of what the legisalture did to Maryland businesses and citizens.
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Michigan Backs Down on Service Tax -- Increases Income Tax Instead

According to CCH, the surcharge is to be based on a percentage of the taxpayer's liability before credits. For all taxpayers, other than financial institutions, the surcharge would be:

-- 32.9% for tax years ending after 2007 and before 2009; and
-- 27.3% for tax years ending after 2008.
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You Own a Farm/Ranch and Want to Deduct the Losses?

The question of "hobby-losses" come up frequently in income tax. So this issue is always an interesting one to watch. In this case, a couple in Alabama won their case at the administrative level against the AL DoR. Even though both of them had full-time jobs off the farm, they were able to show they were operating it for a profit. Here is the analysis performed by the ALJ considered in ruling for the taxpayer:
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