Replacement of Underground Storage Tanks at Retail Gasoline Stations

Under regulations issued by the Environmental Protection Agency, petroleum companies and independent marketers owning and operating gasoline stations are required to remove and replace leaking underground storage tanks and to clean up any related contamination. The question arises as to whether the substantial costs of removal, replacement, cleanup, and monitoring are capital expenditures or are currently deductible expenses.

Tax Issues of Limited Liability Companies

Compared to the other forms of business organization, a limited liability company (LLC) is a fairly new statutory creation in most states. An LLC is usually formed under the law of a state when its owners (called members) file articles of incorporation as an LLC. When a business is structured as an LLC, the members have limited personal liability for the debts and actions of the company similar to the situation found in a corporation. Unlike a partnership, the members are not personally liable for the debts of the business.

Workers' Compensation Benefits

If you are an employee who receives benefits under a workers' compensation act for personal injuries or sickness incurred in the course of employment, you do not have to include those benefits in your gross income for federal income tax purposes. In addition, if you are the survivor of an employee who died of injuries sustained during the course of employment, you are not required to add the benefits paid to you under a workers' compensation act to your gross income. Benefits are excludable even if the injury to an employee is not permanent and the employee is not totally disabled.

Taxation of Commissions

Generally, commissions are taxed in the same way as other forms of compensation. They are taxable in the year that they are credited to your account and you are entitled to draw on them. The question of whether or not you actually withdraw them is irrelevant so long as they are subject to your withdrawal.

Long-Term Care Contracts and Expenses

Premiums paid for a qualified long-term care insurance contract are a medical expense, but the deductible amount of the premium is limited by the age of the taxpayer at the end of the tax year. The deductible portion of premiums paid increases with the age of the taxpayer. The limit on premiums is for each person.