Archive for Taxes

UPDATE! Tax Credit to Aid First-Time Homebuyers

To stimulate home sales, Congress established the first-time homebuyer credit in 2008 and then modified it for 2009, resulting in two significantly different sets of rules for each.  Besides increasing the credit to $8,000 for 2009 ($7,500 for 2008), the most significant change is that the credit in 2008 was actually an interest-free 15-year loan, […]

Home Energy Credits-Favorable Changes

The “American Recovery and Reinvestment Act of 2009” (the 2009 Economic Stimulus Act) expanded the residential energy improvement credit for 2009 and 2010 (this credit was last available in 2007) and extended and expanded the tax credit for residential solar and fuel cell equipment through 2016.  This gives taxpayers who want to “go green” a […]

2009 Economic Stimulus Act

On February 17, President Obama signed into law the “American Recovery and Reinvestment Act of 2009” (the 2009 Economic Stimulus Act).  This new legislation was passed with the purpose of aiding our ailing economy and includes a wide variety of tax provisions, many of which will affect both individuals and small businesses.  Included below are […]

Tax Benefit to Aid First-Time Homebuyers

Now may be a good time to purchase a home as a lot of good deals are awaiting those with a down payment to facilitate a purchase.  If you are a first-time homebuyer, you can benefit from a limited-time tax break designed to help first-time homebuyers afford the down payment on a home. For home […]

Some Extension Due Dates Earlier for 2009

The extended due dates for returns of calendar year trusts and estates (1041), partnerships (1065), and certain other returns that generate form K-1s have historically been the same as for individual returns (1040).   Since these returns generally include information that is required to complete the individual returns of beneficiaries or partners, having the same extended […]

A New Twist for Home Sales

With the advent of the home sale gain exclusion back in the 1990s, taxpayers have been using that provision of the law in a popular strategy to exclude gain, not just from their primary residence but from rentals and second homes as well. They do that by moving into and making the rental or second […]

It’s Important to Pay Taxes in Full

As the April 15 deadline approaches, we begin to receive calls from taxpayers who do not have the ready cash needed to pay their tax liability. There are significant penalties for failing to pay your tax liability by the April 15 due date. Whether paying with a timely filed tax return, or filing and paying […]

RMD’s Suspended for 2009

A new law passed late in 2008 allows taxpayers age 70-½ and over and those who have inherited IRAs (beneficiaries) to forego their required minimum distribution (RMD) from 401(k) plans, IRAs, and similar retirement arrangements for 2009.  Thus, these individuals can take a distribution less than required, even none, and avoid the 50% RMD penalty. […]

Business Changes for 2009

Over the past several months, Congress has been enacting legislation to stabilize the economy.  At the urging of the incoming administration, Congress is working on yet another stimulus plan.  As they make temporary changes to the tax code and extend expiring provisions, and with the phase-in phase-out provisions of earlier legislation, it becomes more difficult […]

Tips for Recently Married or Divorced Taxpayers

Newlyweds and the recently divorced taxpayers should ensure the name on their tax return matches the name registered with the Social Security Administration (SSA). A mismatch could unexpectedly delay a tax refund. • For recently married taxpayers, the tax scenario begins when the bride says “I do.” If she takes her husband’s last name, but […]