WISCONSIN TAXES

• Wisconsin estate tax no longer applies for deaths occurring in 2008, 2009 and 2010. The Wisconsin tax remains linked to the federal credit for state death taxes; under current federal law, no state death tax credit is allowed on federal returns for deaths before 2011. Therefore, Wisconsin will not impose an estate tax unless either federal or state tax laws change.
• Wisconsin will no longer tax social security benefits beginning in 2008. A deduction on the Wisconsin return will eliminate the amount of social security benefits taxed by the federal government.
• For retired individuals, it is important that you provide to us any amounts that you pay for health insurance. Health insurance includes the amount subtracted from your social security check for Medicare. For 2008, 66.7% of this health insurance is a subtraction from income for Wisconsin. Beginning in 2009, 100% of the health insurance paid can be used as a subtraction.

MILEAGE AND AUTOMOBILE DEDUCTIONS

As of January 1, 2008, the standard mileage rates for the use of a car are as follows:

• 50.5¢ per mile driven for business purposes.
• 19¢ per mile driven for medical or moving purposes.
• 14¢ per mile driven in service of charitable organizations.

For our clients claiming a business miles deduction, please remember that you need to give us the following information for your tax return:

1. The make and model of your vehicle and the date you started using it for business purposes;
2. Total miles driven for the year;
3. Commuting miles; and
4. Business miles.

You should keep accurate written records of this mileage.

MISCELLANEOUS TAX TIP

Calculating a mutual fund’s return after fees and sales charges can be a challenge. There is a tool that can help. Go to the Financial Industry Regulatory Authority’s (FINRA’s) website at www.finra.org and click on Mutual Fund Expense Analyzer in the Investor Tools section.

EMPLOYMENT REFERENCES

Is an employer liable for employment references? Many business owners are hesitant to provide information about former employees because of a fear of potential lawsuits. It is possible for a former employee to bring an action if defamation has occurred.

The April, 2008 edition of the Wisconsin Lawyer, the Wisconsin Bar Association official publication, contained an article with advice for employers. The following were tips to help reduce the potential for defamation claims:

1. All statements should be truthful and in good faith.
2. Make certain an inquiry for a reference is legitimate. The legitimacy of a phone request may be difficult to determine. An employer should consider implementing a policy that replies will only be made to written reference requests.
3. Information obtained from an applicant’s references, i.e., information obtained from an application, should be kept confidential. This information should be shared only with people directly involved in the hiring process.
4. An employer should limit the individuals in the company who may give employment references.
5. Avoid accusations that an employee engaged in illegal or improper conduct.
6. Avoid exaggerating an employee’s misconduct.
7. 7. Obtain a release from the employees for whom it provides references. If an employee leaves a company, the employer should bring up the issue of future references. Tell employees that references will not be given unless they sign a release.

DISPOSAL OF YOUR REMAINS

Although it may be difficult to believe, there are often disputes about the disposal of the remains of a deceased individual. Unfortunately, these disputes often defeat the intended wishes of the deceased. Wisconsin Act 58 was enacted March 5, 2008 which allows for the execution of a power of attorney-type document that appoints a representative who has clear authority to dispose of your remains. This law sets up a statutory line of authority in the event you do not have such a directive. Our office will have this form for our clients to complete in the event you want to designate a specific individual.

NEW ASSOCIATES

Stuart Gilgannon, a 2007 graduate of Duquesne University Law School, joined our firm as an associate in 2008. During law school, Stuart served as Executive Articles Editor of the Duquesne Business Law Journal and received the CALI Excellence for the Future Award in administrative law. Stuart is a member of the American, Wisconsin and Milwaukee Bar Associations. Stuart concentrates his practice in the areas of lifetime and estate planning, which includes guardianship, probate, wills and trusts, and tax planning and preparation. Stuart is also active in counseling business clients.

Stephen Lasky, a 2007 graduate of Marquette University Law School, joined our firm as an associate in 2008. Prior to entering private practice, Stephen served as judicial clerk to the Honorable Michael J. Dwyer of the Milwaukee County Circuit Court, 1st Judicial District. Stephen is a member of the American, Wisconsin and Milwaukee Bar Associations. Stephen concentrates his practice in lifetime and estate planning, which includes elder law, probate, wills and trusts, and guardianship. He also counsels clients in the area of real estate.

SEMINARS

May 7, 2008 – “Myths of Estate Planning.” Attorney Elizabeth Ruthmansdorfer will be presenting. Location: The Regency - New Berlin, 13750 W. National Avenue, New Berlin. Time: 8:30 am.

June 10, 2008 – “Power of Attorney.” Attorney Elizabeth Ruthmansdorfer will be presenting. Location: Meadowmere, 2330 S. 54th Street, West Allis, WI. 2:30 pm.

June 11, 2008 – The firm will be participating as an exhibitor in Senior Fest at Serb Hall.

June 12, 2008 – Attorney Terry L. Campbell will be speaking on elder law, gifting and Title 19 and the firm will be participating as a session sponsor at the 6th Annual Ozaukee County Senior Conference at Grafton High School, 1950 Washington Street, Grafton, Wisconsin. This conference is designed to educate and empower the older adult population by promoting health, wellness and community and service awareness.

SPEAKING ENGAGEMENTS

May 9, 2008 – Attorney Elizabeth Ruthmansdorfer will be one of the presenters for the Second Annual GAL Seminar sponsored by the Milwaukee Bar Association. The event will be held at Marquette University Law School.

June 24, 2008 – McQuillan Education Seminar on "Estate Administration Procedures: Why Each Step Is Important." Attorney Elizabeth Ruthmansdorfer will be one of the presenters. The seminar runs from 8:00 am to 4:40 pm and will be held at the Milwaukee Bar Association. The program has been approved for 8 hours of CLE credits, including 1 ethics credit, 8 hours CPE credits, 8 PACE credits, .7 CEUs, 8 hours CFP credits.

September 4, 2008 – Attorney Terry L. Campbell will be the featured speaker for the National Association of Insurance and Financial Advisors in Fond du Lac, Wisconsin. He will be presenting a summary of the new Medicaid laws and how these changes will affect individuals who are facing nursing home care.

TAX SEASON

Thank you again for a very successful tax season. While we got a little breather, planning for next year has already started. If you do not receive a guide or organizer and wish to receive one for next year, please let us know. Typically, we mail this out by the end of January.

E-MAILS

Just another reminder. It is a good idea to ask for a “read receipt” when sending us an e-mail. This way you know we have received it. Another recommendation is identify the “subject” area – this better ensures that your e-mail will not mistakenly be identified as spam.

HAVE YOU RECENTLY MOVED?

If you have recently moved, please give us a call at 414-937-5019 or an e-mail at www.lawmwc.com with your new address and phone number so that we can keep our records up to date.

WEBSITE

We keep working to improve our website. Check it out – www.lawmwc.com.