Tuesday, December 29, 2009
Monday, December 28, 2009
Year end tax tips (part 2):
Consider maximizing your pretax contributions to your IRA. For an IRA you can contribute $5,000, or $6,000 if you are over age 50 or older.
Consider maximizing your pretax contributions to your IRA. For an IRA you can contribute $5,000, or $6,000 if you are over age 50 or older.
End of the year tax tips (part 1):
1. Consider year-end business purchases. Business owners with self-employment income can purchase up to $250,000 worth of business equipment and take a full tax deduction in 2009. To qualify, the equipment must be in service by year-end.
1. Consider year-end business purchases. Business owners with self-employment income can purchase up to $250,000 worth of business equipment and take a full tax deduction in 2009. To qualify, the equipment must be in service by year-end.
Wednesday, December 23, 2009
Sunday, December 20, 2009
From all of us at Strong Tower Group...Have a safe and Merry Christmas and a very successful 2010!!!
Wednesday, November 25, 2009
Ten Things to Know about the Extended First-Time Homebuyer Credit
There are ten things that the IRS wants you to know about the extended first-time homebuyer credit. Previously, the rule was that you needed to close on the home before December 1, 2009. On November 6, 2009, Congress voted to extend the credit program (however, the rules are slightly different).
Below is an article excerpted from the IRS website:
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If you are in the market for a new home, you may still be able to claim the First-Time Homebuyer Credit. Congress recently passed The Worker, Homeownership and Business Assistance Act Of 2009, extending the First-Time Homebuyer Credit and expanding who qualifies.
Here are the top 10 things the IRS wants you to know about the expanded credit and the qualifications you must meet in order to qualify for it.
1. You must buy – or enter into a binding contract to buy a principal residence – on or before April 30, 2010.
2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.
3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.
4. A long-time resident of the same home can now qualify for a reduced credit. You can qualify for the credit if you’ve lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009.
5. The maximum credit for long-time residents is $6,500. However, married individuals filing separately are limited to $3,250.
6. People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after November 6, 2009. The full credit is available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers.
7. The IRS will issue a December 2009 revision of Form 5405 to claim this credit. The December 2009 form must be used for homes purchased after November 6, 2009 – whether the credit is claimed for 2008 or for 2009 – and for all home purchases that are claimed on 2009 returns.
8. No credit is available if the purchase price of the home exceeds $800,000.
9. The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.
10. A dependent is not eligible to claim the credit.
For more information about the expanded First-Time Home Buyer Credit, visit IRS.gov/recovery.
Below is an article excerpted from the IRS website:
----------
If you are in the market for a new home, you may still be able to claim the First-Time Homebuyer Credit. Congress recently passed The Worker, Homeownership and Business Assistance Act Of 2009, extending the First-Time Homebuyer Credit and expanding who qualifies.
Here are the top 10 things the IRS wants you to know about the expanded credit and the qualifications you must meet in order to qualify for it.
1. You must buy – or enter into a binding contract to buy a principal residence – on or before April 30, 2010.
2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.
3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.
4. A long-time resident of the same home can now qualify for a reduced credit. You can qualify for the credit if you’ve lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009.
5. The maximum credit for long-time residents is $6,500. However, married individuals filing separately are limited to $3,250.
6. People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after November 6, 2009. The full credit is available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers.
7. The IRS will issue a December 2009 revision of Form 5405 to claim this credit. The December 2009 form must be used for homes purchased after November 6, 2009 – whether the credit is claimed for 2008 or for 2009 – and for all home purchases that are claimed on 2009 returns.
8. No credit is available if the purchase price of the home exceeds $800,000.
9. The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.
10. A dependent is not eligible to claim the credit.
For more information about the expanded First-Time Home Buyer Credit, visit IRS.gov/recovery.
Wednesday, November 11, 2009
Right On The Money - Issue One
Tax Planning
The year is nearly over and the focus is beginning to shift towards Christmas and holiday shopping. The end of the year is also an excellent time to plan for TAXES.
Most people don't want to bother until all of their paperwork is in and its time to file. This is a HUGE MISTAKE. Planning now may save you hundreds on your tax return and save time in getting your refund.
Steps to take with year-end tax planning:
1. Save your final paycheck stub(s): This will allow you to get your tax return started without waiting for W-2's.
2. Make an extra house payment: You can take a tax deduction on the interest portion of the extra payment.
3. Make an extra contribution to a QUALIFIED retirement plan or get one started: You can deduct the amount of taxable income on your return by the amount you contribute to qualified plans.
4. Use up your Flexible Spending Account: This has already saved you money on taxes. However, this is counter-productive if you don't use up the funds within the account (Not to be confused with Health Savings Account).
5. Charity Donations: Deductible if you itemize deductions.
6. Tax Preparation Fees: Deductible if you itemize.
7. Pay down medical debt: Medical expenses that surpass 7 1/2% of your Adjusted Gross Income are deductible.
8. Job search expenses: If you searched for a job within the same field, expenses such as resume preparation, career counseling, travel, and phone calls are deductible.
The year is nearly over and the focus is beginning to shift towards Christmas and holiday shopping. The end of the year is also an excellent time to plan for TAXES.
Most people don't want to bother until all of their paperwork is in and its time to file. This is a HUGE MISTAKE. Planning now may save you hundreds on your tax return and save time in getting your refund.
Steps to take with year-end tax planning:
1. Save your final paycheck stub(s): This will allow you to get your tax return started without waiting for W-2's.
2. Make an extra house payment: You can take a tax deduction on the interest portion of the extra payment.
3. Make an extra contribution to a QUALIFIED retirement plan or get one started: You can deduct the amount of taxable income on your return by the amount you contribute to qualified plans.
4. Use up your Flexible Spending Account: This has already saved you money on taxes. However, this is counter-productive if you don't use up the funds within the account (Not to be confused with Health Savings Account).
5. Charity Donations: Deductible if you itemize deductions.
6. Tax Preparation Fees: Deductible if you itemize.
7. Pay down medical debt: Medical expenses that surpass 7 1/2% of your Adjusted Gross Income are deductible.
8. Job search expenses: If you searched for a job within the same field, expenses such as resume preparation, career counseling, travel, and phone calls are deductible.
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