Archive for Taxes

Recovery Rebate Credit

Notice: This credit is for those who did not receive the maximum Economic Stimulus Payment available. If you received the full amount of your stimulus payment, you most likely will not be eligible for this credit. For 2008, you generally can claim a recovery rebate credit of up to $600 ($1,200 if married filing jointly). […]

Use Like-Kind Exchanges to Defer Taxes

Whenever you sell business or investment property and you have a gain, you generally have to pay tax on the gain at the time of sale. However, the tax code provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a […]

Is Now the Time to Consider Rental Property?

Does the decline in real estate values present a business opportunity? Real estate rentals historically have been a popular long-term investment, and if you believe that this market eventually will rebound from its current slump, this may be the time to consider such an investment. This material will explain some of the tax ramifications of […]

Life After the Real Estate Bubble Burst

With lenders becoming more conservative, money tightening up, and the real estate market in decline, many homeowners and speculators find themselves faced with some unpleasant choices. One strategy is to wait until home prices rebound, but that could be some time and probably too far off for the owner with a variable rate or short-term […]

Lunch as a Business Expense

Many individuals spend time away from their offices while calling on customers and vendors. As a result, they end up having to buy their lunch and want to deduct the cost of that lunch as a business expense. Unfortunately, the cost of meals can only be deducted when you are away from home overnight. However, […]

Economic Stabilization Legislation

On October 3, 2008, Congress passed and the President signed into law the “Economic Stabilization” legislation, which included numerous tax law changes that are mostly pro-taxpayer. These changes will impact just about everyone, and you are encouraged to review them below. Please call this office if you have questions about any of the provisions or […]

Increase in Standard Mileage Rates

The Internal Revenue Service announced an increase in the optional standard mileage rates for the final six months of 2008. You have the option to use these optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes, versus keeping track of your actual expenses. The rate […]

Is your tax withholding enough?

Our “pay-as-you-go” tax system requires that you make payments of your tax liability evenly throughout the year. If you don’t, it’s possible you could owe an underpayment penalty. Some taxpayers meet the “pay-as-you-go” requirements by making quarterly estimated payments. However, when your income is primarily from wages, you meet the requirements through wage withholding and […]

Income Tax Document Roundup

If you haven’t begun to do so already, you will soon begin to sort through a year’s worth of accumulated cancelled checks and receipts to identify the items you need for preparation of your tax return. Bear in mind, however, that in some cases a cancelled check or other proof that you paid an expense […]