Dear Valued Client,
The new year brings about many tax law changes, such as credits that have expired or tax breaks that may not be around much longer. This month's newsletter includes important updates that may apply to you.
If you still need to make your tax appointment, please call this office soon. You don't want to wait too long. The April deadline is just right around the corner.
This office can help you with all of your tax needs.
Sincerely,
Todd Baldwin, CPA
Make the Most of New Tax Incentives with Year-End Planning |
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The end of the year has historically been the time for tax planning and making strategic year-end adjustments to reduce your tax bite. 2008 adds a whole new meaning to year-end tax planning. Because of the downturn in the economy, falling home prices, failing financial institutions and the huge losses on Wall Street, Congress has provided a number of tax incentives in an effort to get the economy back on track. The following articles include details about the most significant changes and those that require action by year's end.
Year-End Tax Tips and Planning Strategies
Year-End Tax Strategies for Stock Investors
Tax-Free IRA to Charity Distribution Reinstated
First-Time Homebuyer Credit
Summary of Economic Stability Legislation Tax Changes
Almost everyone will benefit in one way or another from at least one of the many tax changes implemented by Congress. However, taxpayers who have one or more of the following conditions apply to them will probably benefit the most from some year-end tax planning.
• Large investment losses
• Home foreclosed upon or anticipating foreclosure
• Forgiven debt
• Over age 70½ and regularly contributing substantial amounts to charity
• Small business owners
• Disaster losses
• Abnormally high or low incomes for the year
• In the process of or planning for the installation of home energy-efficient or energy-generating improvements
• Substantial business losses
• Considering buying your first home
If you would like a year-end tax tune-up or need some multi-year strategizing, we encourage you to call for an appointment soon. As we get closer to the end of the year, there will be less time to implement strategies that could provide you with significant tax savings on your 2008 return.
Make the Most of New Tax Incentives with Year-End Planning |
|
The end of the year has historically been the time for tax planning and making strategic year-end adjustments to reduce your tax bite. 2008 adds a whole new meaning to year-end tax planning. Because of the downturn in the economy, falling home prices, failing financial institutions and the huge losses on Wall Street, Congress has provided a number of tax incentives in an effort to get the economy back on track. The following articles include details about the most significant changes and those that require action by year's end.
Year-End Tax Tips and Planning Strategies
Year-End Tax Strategies for Stock Investors
Tax-Free IRA to Charity Distribution Reinstated
First-Time Homebuyer Credit
Summary of Economic Stability Legislation Tax Changes
Almost everyone will benefit in one way or another from at least one of the many tax changes implemented by Congress. However, taxpayers who have one or more of the following conditions apply to them will probably benefit the most from some year-end tax planning.
• Large investment losses
• Home foreclosed upon or anticipating foreclosure
• Forgiven debt
• Over age 70½ and regularly contributing substantial amounts to charity
• Small business owners
• Disaster losses
• Abnormally high or low incomes for the year
• In the process of or planning for the installation of home energy-efficient or energy-generating improvements
• Substantial business losses
• Considering buying your first home
If you would like a year-end tax tune-up or need some multi-year strategizing, we encourage you to call for an appointment soon. As we get closer to the end of the year, there will be less time to implement strategies that could provide you with significant tax savings on your 2008 return.
Checking the Status of Your Federal Tax Refund is Easy |
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If you already filed your federal tax return and are due a refund, you can check the status of your refund online.
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Choosing the Correct Filing Status |
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Everyone who files a federal tax return must determine which filing status applies to them. It is important that the correct filing status is chosen as it determines your standard deduction, the amount of tax you owe, and any refund that may be owed to you.
(Read More)
The New Vehicle Sales and Excise Tax Deduction |
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If you purchased a new vehicle in 2009, you may be entitled to a special tax deduction for the sales and excise taxes on your purchase.
(Read More)
Time is Running Out for the Homebuyer Tax Credit |
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If you (or your spouse) are at least 18 years of age and plan on taking advantage of the liberalized homebuyer tax credit, time is running out. Unless extended by Congress, this refundable tax credit will no longer be available for homes purchased after April 30, 2010 or after June 30, 2010 when a binding contract to purchase was entered into prior to May 1.
(Read More)
2010 Brings Increased Deduction for Domestic Production Activities |
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The domestic production deduction was created to encourage manufacturing and production within the U.S., and it provides a substantial business deduction equal to 9% (up from 6% in 2009) of the lesser of: (1) the taxpayer’s net income from qualified production activities or (2) the taxable income (modified adjusted gross income for individual taxpayers) without regard to this deduction for the tax year.
(Read More)
Many Business Tax Breaks Expired at the End of 2009 |
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Although there is some talk of extension, unless Congress acts to retroactively restore them, the following business tax breaks that expired on December 31, 2009 will not be available in 2010.
(Read More)
Have a Financial Interest or Signature with a Foreign Financial Account? Better Read This! |
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Each U.S. person who has a financial interest in or signature or other authority over any foreign financial accounts (including bank, securities, or other types of financial accounts in a foreign country), if the aggregate value of these financial accounts exceeds $10,000 at any time during the calendar year, must report that relationship to the U.S. government each calendar year.
(Read More)
What to Do If You Are Missing a W-2 |
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Have you received your W-2? These documents are essential to filling out most individual tax returns. You should receive a Form W-2, Wage and Tax Statement, from all of your employers each year. Employers have until February 1, 2010 to provide or send you a 2009 W-2 earnings statement either electronically or in paper form.
(Read More)
New Limitation on Farm Losses |
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For tax years beginning after 2009, the farming loss of a taxpayer, other than a C corporation, is limited for any tax year in which any applicable subsidies are received.
(Read More)
Long-Range Tax Planning Clouded |
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Long-range income-tax planning for individuals has always been challenging, what with the steady stream of changes and last minute action by Congress. This year, it goes to an all-new level taking into account the sunset provisions for many current benefits – those provisions that were enacted with a specified ending date – and the President’s 2011 budget proposals.
(Read More)
Spring Cleaning: Personalize and Tidy Up Your QuickBooks Desktop |
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One of the reasons the QuickBooks line of desktop products has been so successful is because of its clean, simple appearance and efficient navigational tools. But there’s room for improvement and personalization.
(Read More)
Substantial Penalty for Late Partnership and S-Corporation Returns |
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Income from both partnership and S corporation returns passes through to the partners or stockholders. Therefore, filing these returns late creates hardships for the partners or stockholders to timely meet their own filing obligations.
(Read More)
First-Time Homebuyer Credit Documentation Requirements |
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Claiming the First-Time or Long-Time Resident Homebuyer Tax Credit on either your 2009 or 2010 return includes some complex documentation requirements. The IRS recognizes that the settlement documents can vary from location to location, so they have provided some clarification related to these requirements.
(Read More)
