| Jackson Hewitt cited for tax schemes
The government said it is trying to shut down more than 125 Jackson Hewitt tax-preparation stores in four states for systematic "tax-fraud schemes." The Justice Department accuses the franchises of bilking the government out of more than $70 million through fraudulent practices such as using phony W-2 forms, bogus deductions and fuel tax credits and false claims regarding the earned income tax credit. The franchises were either totally or partially owned by Farrukh Sohail, the Justice Department said, and involved "a pervasive and massive series of tax-fraud schemes," according to court filings.Accredited Home Lenders gets fundingThe same day fellow subprime mortgage lender New Century Financial Corp. filed for bankruptcy protection, Accredited Home Lenders Holding Co. said late Monday it arranged $1.1 billion in financing that might help the company avoid the same fate.
Base rate held at 5.25 per cent
Homeowners briefed a sigh of relief as the Bank of England's Monetary Policy Committee (MPC) held base rate at 5.25 per cent, although most economists believe a 0.25 per cent rise is highly likely in May. In March, MPC members voted by 8 to1 to keep rates on hold, with David Blanchflower voting in favour of a rate cut. The drop in the consumer price inflation in January - to 2.7 per from per cent - was seen as a key factor in keeping rates unchanged at the March meeting. However, March saw inflation edge up to 2.8 per cent, well above the government's inflation target of 2 per cent. As well as strong retail figures last month, other data for the month showed annual house price inflation across the UK hitting nearly 10 per cent, according to the Nationwide Building Society, while the Halifax index showed property price inflation at 11.1 per cent in March.
Stepped-up basis good for inheritors
DEAR BOB: I am fascinated with the topic of "stepped-up basis" to market value for inherited properties, which often comes up in your articles. Now I see why you constantly advise parents not to add their adult children to their home titles because doing so would deprive them of the new stepped-up basis. Two questions: (1) does stepped-up basis apply to properties held in a revocable living trust, and (2) is there a limit to the number of properties that can be inherited with a new stepped-up basis? --Marvin G. DEAR MARVIN: (1) Stepped-up basis to market value on the date of the decedent's death applies to inherited properties and other assets held in a revocable living trust. Purchase Bob Bruss reports online. (2) There is no limit to the number of inherited properties where the heirs will receive a new stepped-up basis.
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