Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. You should review any planned financial transactions that may have tax or legal implications with your personal tax or legal advisor.Securities products are provided by Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as "MLPF&S", or "Merrill"), a registered broker-dealer, registered investment adviser, Member SIPC layer, and a wholly-owned subsidiary of Bank of America Corporation. MLPF&S makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation.Bank of America Private Bank is a division of Bank of America, N.A., Member FDIC and a wholly owned subsidiary of Bank of America Corporation. Trust and fiduciary services are provided by Bank of America, N.A. and U.S. Trust Company of Delaware. Both are indirect subsidiaries of Bank of America Corporation.Insurance Products are offered through Merrill Lynch Life Agency Inc. (MLLA) and/or Banc of America Insurance Services, Inc., both of which are licensed insurance agencies and wholly-owned subsidiaries of Bank of America Corporation.Banking, credit card, automobile loans, mortgage and home equity products are provided by Bank of America, N.A. and affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.
Yes, Mississippi imposes a tax on the sale of tangible personal property and various services. The general tax rate is 7%; however, there are reduced rates for certain sales and there are exemptions provided by law. The tax rate is applied against either the gross proceeds of sales or the gross income of the business, depending on the type of sale or service provided. It is the responsibility of the seller to collect the sales tax from the ultimate consumer or purchaser.
Real property is land, including all buildings and improvements on the land. Tangible personal property is property that may be seen, touched or is in any manner perceptible to the senses. Tangible personal property includes electricity, water, gas, steam, pre-written software, and digital and electronic goods. Tangible personal property does not include real estate, bank accounts, stocks, bonds, mortgages, insurance certificates or policies.
Unless specifically exempt or excluded, all sales of tangible personal property are subject to the sales or use tax. Here are some examples of sales or services subject to sales tax (this list is not all-inclusive):
No, churches must pay sales tax. However, churches may be exempt on the purchase of utilities if they qualify for a federal income tax exemption under 26 USCS Section 501(c)(3) if the utilities are used on a property that is primarily used for religions or educational purposes. In order to obtain the sales tax exemption, the church should complete an Affidavit of Church Utility Exemption. The completed affidavit should be provided to the utility provider. Also, churches are exempt from use tax on the use, storage or consumption of literature, video tapes and photographic slides used by religious institutions for the propagation of their creed or for carrying on their customary nonprofit religious activities, and on the use of any tangible personal property purchased and first used in another state by religious institutions.
Extended warranties, maintenance agreements, and service contracts sold in connection with the sale of tangible personal property are taxable as part of the gross proceeds of the sale even when the agreement is separately stated.
All real property and all personal property are taxable unless the property has been exempted by law. (O.C.G.A. 48-5-3) Real property is land and generally anything that is erected, growing or affixed to the land; and personal property is everything that can be owned that is not real estate.
Real property is taxable in the county where the land is located, and personal property is taxable in the county where the owner maintains a permanent legal residence unless otherwise provided by law. (O.C.G.A. 48-5-11)
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"The silver lining in this HMI report is that it is the smallest drop in the index in the past six months, indicating that we are possibly nearing the bottom of the cycle for builder sentiment," said the NAHB's chief economist, Robert Dietz. "Mortgage rates are down from above 7% in recent weeks to about 6.3% today, and for the first time since April, builders registered an increase in future sales expectations."
"In this high inflation, high mortgage rate environment, builders are struggling to keep housing affordable for home buyers," said NAHB Chairman Jerry Konter, a builder and developer from Savannah, Georgia. "Our latest survey shows 62% of builders are using incentives to bolster sales, including providing mortgage rate buy-downs, paying points for buyers and offering price reductions."
But Konter noted that with construction costs up more than 30% since the beginning of this year, builders are still having a hard time cutting prices. Roughly 35% of builders reduced homes prices in December, down from 36% in November. The average price reduction was 8%, up from 5% to 6% earlier in the year.
Collection issues that have been previously addressed during a balance due investigation by field personnel in the preceding 12 months will not be re-examined unless there is convincing evidence that such reinvestigation is absolutely necessary.
When analyzing expenses for a business taxpayer, ensure that business expenses are not included under personal expenses. Compare Form 433-A and Form 433-B to income tax returns to verify assets and income or analyze bank deposits.
Taxpayer claims the lease payment of an automobile for business. That expense will not be allowed as part of the transportation expense on Form 433-A. If a taxpayer claims a vehicle for both business and personal use, ensure that the allowable expense is not duplicated.
Generally, when determining ability to pay, a taxpayer is only allowed the expenses he/she is required to pay. There may be cases where a taxpayer lives with a non-liable person (i.e., spouse, domestic partner, boyfriend/girlfriend) and they have shared household expenses. In these cases, it may be necessary to review other income into the household and any expenses shared with the non-liable person in order to determine the taxpayer's allowable portion of the shared household income and expenses.
Although the assets and income of a non-liable person may be reviewed to determine the taxpayer's portion of the shared household income and expenses, they are generally not included when calculating the amount the taxpayer can pay. One notable exception is community property states. Follow the community property laws in these states to determine what assets and income of the otherwise non-liable spouse are subject to collection of the tax. The non-liable spouse can seek assistance from the Taxpayer Advocate Service.
Regardless of whether community property laws apply, secure sufficient information concerning the non-liable person to determine the taxpayer's proportionate share of the total household income and expenses. Review the entire household's information and:
One method for calculating the liable taxpayer's ability to pay is to determine the income percentages as stated in IRM 18.104.22.168(3). After determining the percentage of income of the liable taxpayer, that percentage is multiplied against the ALE standard amounts for the household. If the taxpayer's calculated percentage amount for National Standards for Food, Clothing and Other Items and for Out-of-Pocket Health Care Costs, is less than the standard amount for one person, the liable taxpayer will be allowed the standard amount. For the other ALE expenses (Transportation and Housing/Utilities), the liable taxpayer will be allowed the calculated percentage amount or the standard amount, whichever is less. The calculated percentage can also be applied to other shared expenses, such as family health insurance. Consideration should also be given to any separate expenses the liable taxpayer may be solely responsible for paying, such as alimony, child care, etc.
When the taxpayer can provide documentation that income is not commingled (as in the case of roommates who share housing) and responsibility for household expenses is divided equitably between co-habitants, the total allowable expense should not exceed the total allowable housing standard for the taxpayer. In this situation, it would not be necessary to obtain the income or expense information of the non-liable person(s). Verification of expenses the taxpayer pays should be requested if the expenses appear unreasonable. The investigating employees should exercise sound judgment in these situations to determine which approach is more appropriate, based on the facts of each case.
In the situation where the taxpayer is renting an apartment or room and the owner of the property is the non-liable person, the rental agreement or signed statement from the owner of the property should support the decision to not require the owner to divulge any personal information regarding income or household expenses. In these cases, the investigating employee should accept the information provided by the taxpayer and make a determination based on that information.
Taxpayer shares expenses with a roommate. In this situation the taxpayer receives the full National Standard for one person and the full Out of Pocket Health Care Standard for one person. The taxpayer would receive the amount actually paid up to the maximum amount of the Local Housing and Utility Standard and Local Transportation Standard. 2b1af7f3a8