To qualify, a binding contract must be
signed by Apr 30, and settlement must
take place no later than June 30, 2010.
This credit also applies to buying a boat
-- IF the boat will be your primary place
of residence. (Live-aboard is the term
boaters use.) Also, to qualify the boat
must have at least one stateroom
(bedroom), at least 1 head (bathroom)
and a full galley (kitchen).
The maximum homebuyer credit is
$8,000 if you have not owned a primary
residence in the past three years, or
$6,500 if you have.
By the way a Tax CREDIT is waaaay
BETTER than a Tax DEDUCTION.
A tax credit reduces your taxes
dollar-for-dollar. That's worth about
four-times as much as a tax deduction
Sunday, November 29, 2009
Monday, November 9, 2009
CLARIFICATION ABOUT HOME-OFFICE DEDUCTION
If you claim a home-office deduction (and
why wouldn’t you?) there are several "personal"
expenses that can become partially deductible.
The deductible amount depends on the Business
Use Percentage (BUP) of your home.
One of the qualifying "personal expenses" is
"repairs." BUT, only repairs that apply to the
entire home are deductible.
For example if the dish washer was repaired,
that expense would NOT qualify because it
applies to only one room of the home.
But if a new roof were installed, that expense
WOULD qualify because it applies to the entire
home.
In fact, if you replace worn out carpeting in the
home-office, the cost is 100% deductible, because
the repair applies only to one room, and that one
room is the home-office.
Important note -- There is a difference between
"repairs" and "improvements."
REPAIRS fix something broken, worn out or
wearing out.
IMPROVEMENTS on the other hand, add to
the value of the home, so the cost is not included
in home-office deductions.
why wouldn’t you?) there are several "personal"
expenses that can become partially deductible.
The deductible amount depends on the Business
Use Percentage (BUP) of your home.
One of the qualifying "personal expenses" is
"repairs." BUT, only repairs that apply to the
entire home are deductible.
For example if the dish washer was repaired,
that expense would NOT qualify because it
applies to only one room of the home.
But if a new roof were installed, that expense
WOULD qualify because it applies to the entire
home.
In fact, if you replace worn out carpeting in the
home-office, the cost is 100% deductible, because
the repair applies only to one room, and that one
room is the home-office.
Important note -- There is a difference between
"repairs" and "improvements."
REPAIRS fix something broken, worn out or
wearing out.
IMPROVEMENTS on the other hand, add to
the value of the home, so the cost is not included
in home-office deductions.
CELL PHONE DEDUCTION WILL GET MUCH EASIER
Currently, if cell phones are provided to employees the business must require logs of personal v. business use, and the personal-use portion is considered to be taxable income. That recordkeeping requirement is totally impractical, and even Congress agrees.
Expect that recordkeeping requirement to be repealed by Congress very shortly.
Expect that recordkeeping requirement to be repealed by Congress very shortly.
Sunday, October 11, 2009
ARE YOU ABOUT TO MISS THIS THURSDAY'S DEADLINE TO FILE "EXTENDED" 08 RETURNS?
Don't blow it off, no matter how good your excuse
or reason is, without at least being aware of the
consequences.
If you are thinking:
I just CAN'T BE READY by Thursday.
I DON'T HAVE THE MONEY I owe.
I need another extension for a little longer,
you HAVE to read the FREE one-page bullet-point
summary I've written SPECIFICALLY FOR YOU.
Just go to www.HomeBusinessTaxSavings.com
You'll find the download link just TO THE LEFT
of the box offering a free video that reveals the
"#1 Secret to Slashing Your Taxes in Half."
or reason is, without at least being aware of the
consequences.
If you are thinking:
I just CAN'T BE READY by Thursday.
I DON'T HAVE THE MONEY I owe.
I need another extension for a little longer,
you HAVE to read the FREE one-page bullet-point
summary I've written SPECIFICALLY FOR YOU.
Just go to www.HomeBusinessTaxSavings.com
You'll find the download link just TO THE LEFT
of the box offering a free video that reveals the
"#1 Secret to Slashing Your Taxes in Half."
E-FILING OR PAPER-FILING? SURPRISE-THE IRS DOESN'T WANT US TO HAVE A CHOICE
If you have my book and read my Tax Tips, you
know I am NOT a fan of E-Filing of Tax Returns,
because it robs you of audit-proofing options
and increases your chances of an audit.
The BAD NEWS:
IRS is pushing Congress to force all taxpayers to
file returns electronically by 2011. But so far,
it looks like the requirement will apply only to
all tax preparers who process 100 or more tax returns.
The SOLUTION:
After our tax pro has finished his or her work
for us, maybe we'll have to atell them: DON'T SIGN
my tax return. That would still leave us the option
of filing our OWN Tax Return as a PAPER return.
know I am NOT a fan of E-Filing of Tax Returns,
because it robs you of audit-proofing options
and increases your chances of an audit.
The BAD NEWS:
IRS is pushing Congress to force all taxpayers to
file returns electronically by 2011. But so far,
it looks like the requirement will apply only to
all tax preparers who process 100 or more tax returns.
The SOLUTION:
After our tax pro has finished his or her work
for us, maybe we'll have to atell them: DON'T SIGN
my tax return. That would still leave us the option
of filing our OWN Tax Return as a PAPER return.
IS YOUR "TAX PREPARER" A "TAX PROFESSIONAL"
In most states anyone can hang out a shingle claiming to be a
"Tax Preparation Service," without any licensing or certification of any kind.
Some of them are well informed and handle the task exceedingly well.
But not all of them.Congress is yielding to pressure from the IRS to implement a registration requirement of some kind. Expect legislation later this year, but don't expect it to take effect until AFTER the coming tax season.
"Tax Preparation Service," without any licensing or certification of any kind.
Some of them are well informed and handle the task exceedingly well.
But not all of them.Congress is yielding to pressure from the IRS to implement a registration requirement of some kind. Expect legislation later this year, but don't expect it to take effect until AFTER the coming tax season.
WITH UNEMPLOYMENT NEARING 10%
Congress is about to approve an extension of Unemployment Benefits by an extra 13 weeks.
If your business has employees, you will help pay for that. The current 0.2% unemployment surtax will be extended through 2010. In dollars, the cost to you will be about $13-$15 per employee
If your business has employees, you will help pay for that. The current 0.2% unemployment surtax will be extended through 2010. In dollars, the cost to you will be about $13-$15 per employee
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