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.
Subscribe to:
Posts (Atom)
