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TODAY at RRS CPA
Monday February 22, 2010
We're finding there's some confusion regarding the residential energy efficiency tax credits availalbe this year. The credit is 30 percent of the cost of qualified home improvements and some heating appliances. Exterior doors and windows and insulation are the most common improvements that qualify, but high-efficiency boilers (90% or greater efficiency rating) and efficient wood and pellet stoves (75% or greater efficiency) qualify. Some clients have been bringing us receitps for kitchen appliances thinking that these qualify. Unfortunately, the federal tax credit does not apply to such appliances. However, there IS a rebate program for such appliances that begins this month. Each state is sponsoring its own version of the program. Here is the link to obtain more information about Maine's program: http://www.efficiencymaine.com/residential_programs.htm. Money for the rebates is federally funded and limited, so if you do purchase a qualifying appliance this year, do not delay in submitting the rebate application!
Monday February 8, 2010
It's been a busy fall and early "tax season". You will note we have provided some new informative articles on our "information" page. We answer many questions via email but post information here you may find helpful and interesting.
Haiti Earthquake Relief Donations
Contributions of money intended to help Haiti earthquake victims made between now and March 1, 2010 can be used as itemized deductions on your 2009 income tax return. It is rare for Congress to permit a donation made in one year to be deducted in an earlier year. This change in the law is an attempt to encourage donations by enabling donors to obtain an immediate tax benefit. To qualify, donations must be monetary - cash, check, or credit card. They must be made to a qualified charity that is assisting in the Haiti relief effort. Be aware there are many "Haiti" scams circulating on the internet. High profile charities such as the Red Cross are a safe bet, but there are many other legitimate charities as well. Remember that in order to substantiate your deduction you must obtain a written acknowledgement from the charity for any donation of $250 or more. And, keep in mind your donation - though doubtless appreciated -- saves you no taxes if you don't itemize.
Saturday November 14, 2009
Maine Tax Changes Postponed
A referendum forcing a vote on tax changes enacted this past spring will result in a delay, and possible reversal of those changes. The law dramatically expanded Maine's sales tax, while reducing the top income tax bracket to 6.5% (from 8.5%). The changes were an attempt to stabalize Maine's tax base. Maine's Secretary of State announced this week enough signatures were gathered to send the issue to the voters in a referendum scheduled for June 8, 2010. Among the items that would be subject to sales tax under the new law: Entrance to entertainment venues such as amusement parks and theaters, labor costs for many types of repairs (vehicles, yard and garden equipment, furniture, jewelry), and many types of leases.
Saturday November 7, 2009
Homebuyer's Credit Extended and Expanded
Time Limit Extended for First-Time Homebuyers
A tax credit up to $8,000 is now available to first-time home buyers (those who have not owned a principal residence for three years prior to a home purchase) for homes purchased on or before June 30, 2010. In order to qualify a signed sales contract must be in place by April 30, 2010. Without this new law the credit would have expired November 30.
New Credit for Current Homeowners!
A credit of up to $6,500 is also now available for those who currently own a home and who are purchasing a new principle residence. To be eligible, buyers must have lived in the home they are selling for five consecutive years, out of the eight years prior to the sale. Unfortunately the law is not retroactive and only purchases closing November 7, 2009 through June 30, 2010 will qualify. As with the $8,000 credit - a signed sales contract must be in place by April 30, 2010. Also note that the new residence cannot be a vacation or investment property. You must use it as your principal residence.
There are limitations on the cost of the home that can be purchased, and the credit is reduced for higher income taxpayers so be sure to check with us, or with your existing tax advisor, before signing a contract.
In addition, because IRS has uncovered many fraudulent credit claims, it will now require buyers to submit a substantial amount of documentation in order to certify the legitimacy of their claims. Again, check with us or with your existing tax advisor on the documents you'll need to provide.
Thursday October 15, 2009
Tax trap! Maine Suspends NOL Carryover
Tax law permits individuals and businesses to use excessive losses sustained in one year to offset income earned in a different year. Federal law permits these losses to be both carried back to years earlier than the year the loss was sustained, and carried forward to years after the year the loss occurred. Several years ago Maine permanently prohibited loss "carrybacks", and permitted only the use of these losses to offset future income. Effective May 28, 2009 the Legislature suspended the right to offset future income as well. The practical effect of this legislation is that if you or your business (or both) suffered losses in the recent past, and you have been anticipating using those losses to offset Maine taxable income this year, think again. Beginning this year, and for three consecutive years, Maine law prohibits the use of losses sustained in prior years to offset current taxable income.
We have several clients - individuals and businesses - carrying forward losses sustained in the recent economic downturn. Unfortunately, we now must inform them they will have to think about making estimated tax payments to the state of Maine before the end of this year. The state legislation is effective for tax years beginning in 2009, 2010 and 2011. Businesses with non-calendar fiscal years ending in 2009 will be affected next year. Loss carry forwards can resume in 2012. Thankfully the carry forward limitation period has been extended three years.
If you believe you may be affected by this legislation we suggest you check immediately with your accountant on steps you may need to take before year-end.
Monday March 2, 2009
The American Recovery and Reinvestment Act of 2009 has been signed into law by President Obama. The bill contains some $300 billion dollars of tax incentives. Here are some highlights:
Business Tax Incentives
Bonus depreciation - permitting the up front write off of 50% of many business assets, has been extended for all of 2009, retroactive to the beginning of the year.
Sec. 179 writeoffs - The law continues the more generous Sec. 179 writeoffs - permitting businesses to write off purchases of up to $250,000 for 2009, as long as the business has not purchased more than $800,000 of qualifying property.
Loss carrybacks - Businesses suffering losses in 2008 may carry them back five years to recapture taxes paid in earlier years. The carryback rule applies only to businesses with average annual gross receipts of $15 million or less. This extends the carryback provision for 3 years The extended carryback is permitted only for losses sustained in 2008. At least at the moment, the less generous 2-year carryback rule will return for losses sustained this year and beyond.
Employment tax credits - The Work Opportunity Tax Credit, which permits employers to take a tax credit on wages paid to certain targeted groups will now apply to two new groups - unemployed veterans and disconnected youths. The credit applies for wages paid in 2009 and 2010. Employers interested in these credits should check with the state labor department. There is a certification process for qualifying an employee for this credit.
S-Corporation built-in gains - There is a window of opportunity to obtain a shortened 7 year built-in gains period for C corporations converting to S status in 2009 and 2010. This is an interesting opportunity for C corporation shareholders who were thinking of converting to S status. We will be reviewing our corporate clients to determine if any may wish to take advantage of this opportunity.
Estimated taxes - It will be easier for business owners to avoid an underpayment penalty for 2009. Individuals whose incomes are derived primarily from a business they own avoid underpayment penalties as long as they pay estimated taxes equal to 90 percent of their 2008 tax. To qualify, an individual's 2009 adjusted gross income must be less than $500,000 and more than 50% of their income must be derived from a business employing 500 or fewer employees.
Individual Tax Incentives
Two-year "payroll" tax credit - The new law provides a tax credit for 2009 and 2010 of up to $400 for individuals and $800 for joint filers. To qualify for the maximum credit you must earn at least $6,452 in wages or self-employment income during the year. For married-joint filers, each must earn at least that much to receive the $800 credit. People who may be claimed as dependents do not qualify for the credit. High earners are also excluded. The credit will begin to phase out for singles with adjusted gross incomes of $75,000 and joint filers with adjusted gross incomes of $150,000. Since credits are dollar-for-dollar reductions in your tax, this means $400 to $800 more in your pocket if you qualify.
Residential energy credit - For 2009 and 2010 the cost of insulation, exterior doors and windows and certain other energy efficiency modifications and purchases for the home will qualify for a credit of 30 percent of the purchase price. Maximum credit is $1,500. People who received the $500 maximum credit under the "old" credit which expired at the end of 2007, DO qualify for this credit, as Congress eliminated that limitation. Also the credits for purchasing certain types of "green" energy generating property such as solar, geothermal and wind have been enhanced. If you are considering such an installation call us fur further details.
New car deduction - How do you stimulate the purchase of new cars? Give people a tax deduction for part of the purchase price. That is what Congress has done with this law. The deduction applies to NEW vehicles only, and only for purchases occuring after the law was signed by President Obama. The deduction is equal to the larger of the sales or excise tax calculated on the first $49,500 of the purchase price. It is "above the line" meaning you don't have to itemize to benefit from it. It is also limited to singles earning $75,000 or less or joint filers earning $150,000 or less. If your income is above that you may be entitled to a percentage of the deduction. Taxes paid on leases of new vehicles don't qualify.
Education credit - The HOPE credit has received a steroid injection and has morphed into the American Opportunity Tax Credit. The new credit is now $2,500, can be claimed for all four years of a child's education, and course materials (as well as tuition net of scholarships) are added to the calculation base. The full credit also will be available to singles with adjusted gross incomes of no more than $80,000 and joint filers with adjusted gross incomes no more than $160,000. You'll need $4,000 of qualifying expenses (tuition net of scholarships, plus course materials), to earn the maximum $2,500 credit. Finally, up to 40% of the credit is now refundable, meaning you'll get money back even if you owe no tax. Qualifying education expenses are those that are paid during 2009. We're not sure yet whether it'll be extended beyond that date.
Child tax and earned income tax credits - For 2009 and 2010, a larger percentage of these credits will be refundable to relatively low income individuals and families.
Unemployment compensation - The new law will permit the exclusion of the first $2,400 of unemployment compensation from federal tax.
Alternative minimum tax "patch" - once again this relieves a tax burden from middle income taxpayers that Congress never meant to impose in the first place (scroll down to see earlier posts regarding this issue). Once again, it's only good for one year - 2009.
In Summary:
These are just the highlights of the provisions we believe will have the biggest impact on our clients. If you hear about other provisions that interest you or want additional details about the above please phone us. Also, please keep in mind that most if not all of these provisions will not apply to Maine income taxes. It is likely the state will not conform to federal tax law for most of these special tax breaks, meaning the deductions will get added back, and the credits ignored, for Maine tax purposes.
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Saturday January 24, 2009
Note that people who did not receive a stimuls check in 2008, or who perhaps received less than the maximum, have another chance at the brass ring this year. In order to properly calculate whether or not you are qualified to receive more, you need to know how much you actually received in 2008. Check out our "Stimulus Information" button. We elaborate a bit more about this subject there, and also provide an IRS link you can use if you need to refresh your memory about how much you actually received in 2008.
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Friday January 23, 2009
Update on our December 30 post regarding waiver of the 2009 required minimum distributions -- The new rules apply to distributions from IRAs, 401(k) and 403(b) plans and also state-sponsored Sec. 457 plans. The law creates a one-year "holiday" from taking your required minimum distribution. If you are already 70 and one-half and were scheduled to take a distribution, you can still do so if you wish, but you can also waive it. If you decide not to take it, there is no requirement to make it up in a later year. If you are turning 70 and one-half in 2009 and were scheduled to take your first RMD this year, you can decide not to take it, in which case required minimum distributions simply begin one year later. Note that the new law does NOT apply to 2008 required minimum distributions that were delayed until 2009. People who turn 70 and one-half in one year have until April 1 of the following year to take their first minimum distribution. If you turned 70 and one-half in 2008 and delayed your first distribution to April 1, 2009, the new law does NOT waive this distribution. If you fail to take it, IRS will assess a 50% penalty. The potential cost of a mistake here can be significant so be sure to check with your financial advisor (or if you are our client - with US of course!) before making a decision.
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Monday January 19, 2009
Here are a couple of ideas for benefitting from the sour economy and stock market:
1. Consider converting your traditional IRA into a ROTH IRA. If the value of your traditional IRA has declined the tax implications of converting it are reduced. Once the funds are reinvested in a ROTH IRA they will grow (once the market recovers of course) tax-free. Other advantages of the ROTH - withdrawals are tax free, you can continue to contribute to the account past age 70 and one-half and required minimum distribution rules don't apply. Since the withdrawals are tax free ROTH IRA distributions don't increase your adjusted gross income and don't trigger taxation of social security benefits. We will be talking during the course of this tax season to clients who we believe might benefit from this strategy.
2. Consider taking a loss on your child's Qualified Tuition Program (Sec. 529 plan). If you started a QTP for your child but the account is now worth less than your original contributions, you can liquidate the account and deduct the capital loss. You can reinvest the funds into a new QTP, but you must wait 60 days before doing so, otherwise the loss is not deductible. In order to deduct the loss, the QTP account must be in your name. The loss is subject to the limitations of the capital loss rules, meaning it is limited to capital gains, plus an additional $3,000. Any loss not used in the current year carries over and can be used in future years. Again, we will be discussing this strategy with our clients during the course of this tax season.
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Tuesday December 30, 2008
We have updated our selection of informative articles. Click on our "Information" tab to check these out.
New- Temporary - IRA and Pension Plan Withdrawal Rules Enacted:
The Worker, Retiree and Employer Recovery Act of 2008 was enacted December 11, 2008 and applies to distributions in 2009. The law permits individuals who are 70 and one-half years old or older to suspend mandatory withdrawals from their retirement plans. This law is intended to benefit individuals who wish to avoid liquidating retirement plan investments at a loss. Those who wish to continue withdrawals may certainly do so. If you have been receiving minimum distributions from your IRA, 401(k) or other retirement plan, you will likely be hearing from the plan custodian regarding how to waive the 2009 withdrawal.
We understand that the Obama administration may have other pension "relief" provisions in the works. Stand by - 2009 promises to be an interesting year for tax legislation!
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Monday October 20, 2008
New Tax Legislation Included in Financial "Bailout" Bill
On October 3 Congress enacted and the President signed into law the widely-publicized bill aimed primarily at resolving the credit crises. The legislation included tax provisions that will extend several tax benefits that were set to expire. We expect our clients will be happy with the following provisions included in the new law:
Alternative Minimum Tax Patch
This is not really a "new tax benefit". Congress has been "patching" the AMT annually for several years now. Because the AMT exemption amount was never indexed for inflation, the AMT would, except for the "patch" force many middle income taxpayers to pay higher taxes. The AMT calcuation - required for everyone who itemizes and has certain tax deductions - disallows certain deductions and assesses a "flat" tax at a higher rate. You pay the higher of the AMT or tax calculated in the traditional way. Congress has been increasing the amount of taxable income exempt from the AMT calculation, and that is what the "patch" accomplishes, once again, for 2008. As in past years it is only a one-year fix so we will face this issue again for 2009.
Debt Cancellation
Homeowners facing foreclosures may benefit from these provisions, first enacted in 2007 and set to expire in 2009. This bill extends the tax relief through 2012. This provision benefits those who, under prior law, might have had to pay taxes on mortgage debts forgiven in foreclosure.
Sales Tax Deduction
First enacted in 2004, the ability to deduct sales taxes is extended through 2009. The sales taxes are only deductible if they exceed state income taxes, so in a state like Maine, this provision benefits a relatively narrow range of individuals. If you pay a substantial amount of sales tax in a given year, such as on the purchase of a vehicle or in other cases, such as on materials used to renovate your home, you may derive a benefit.
Tuition Deduction
The popular college tuition tax deduction of up to $4,000 has been extended through 2009. The deduction is still available only to taxpayers below certain adjusted gross income thresholds. But since those thresholds are higher than the phase-outs that apply to the Hope and Lifetime learning tuition tax credits, this provision will benefit some higher income individuals who might otherwise receive no benefit whatesoever from college tuition payments.
Real Estate Tax Deduction for Non-itemizers
See our August 5 post. This tax benefit enacted just this year only for 2008, is now extended through 2009.
Teachers' Classroom Expense Deduction
This extends the popular $250 above-the-line deduction for teachers who purchase materials for their classrooms. Set to expire in 2007, the deduction is now extended through 2009.
Tax-Free Distributions from IRAs for Charitable Giving
Individuals can give up to $100,000 per year from their IRA accounts to charity. The IRA withdrawal is tax free to the extent it is donated to a qualified charity. The law primarily benefits wealthy individuals who may be facing estate-tax problems. Originally set to expire in 2008, it is now extended through 2009.
Rapid Writeoffs for Certain Business Expenses
This provision extends a tax benefit given to restaurants and certain other retail establishments. Qualified leasehold improvements - normally subject to 39-year straight line depreciation, can be written off over 15 years. Originally set to expire at the end of 2007, the law extended the benefit through 2009.
As always, we are available to provide additional information on all of the above tax law changes, and we will take these provisions into account when tax planning for our clients this year.
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Wednesday August 6, 2008
Maine solar hot water rebates for 2009 eliminated
Re-Vision Energy of South Portland, a major Maine installer of domestic solar hot water systems, informs us that the state of Maine has decided to apply funds set aside for 2009 solar rebates to pay rebates to people who had committed to installations this year but who would have been denied the $2,500 rebate because all of the 2008 funds were consumed within six months. Although IRS still offers a tax credit for these installations, an additional $2,500 from the state obviously helps. Unless changed by the Legislature, no Maine rebate will be available on domestic solar hot water installations until 2010.
Tuesday August 5, 2008
NEW TAX LEGISLATION ENACTED!
Congress has enacted and the President has signed the Housing and Economic Recovery Act of 2008 (H.R. 3221) which includes the Housing Assistance Tax Act. This new legislation includes good and bad news, as follows:
GOOD NEWS
>First time home buyer's credit - (Amended and expanded - see our post dated November 7, 2009) First-time home buyers (defined as someone who has not owned a principal residence within 3 years of the date the purchase of their new residence closes) can receive what amounts to an interest free loan of up to $7,500 on homes purchased after April 8, 2008 and before July 1, 2009. Those who qualify (there are adjusted gross income limitations) can receive a tax refund on their 2008 or 2009 federal tax returns. The refund must be repaid over 15 years. If you were considering purchasing a home - this is great new tax legislation that might make that decision a lot easier. As with all tax legislation, there are a lot of twists and turns. Call us or schedule an appointment if you want to know more.
> Property tax deduction for non-itemizers - Up to $1,000 for married couples and $500 for single filers can be deducted for 2008 and 2009. Note that if you paid less than the threshold amount this year, your deduction will be limited to the lower amount. The solution: maximize the deduction by paying some of next year's tax bill on or before December 31. Example: Married couple has an annual tax bill of $750 ($375 billed twice a year). If they do not pay their first 2009 installment during 2008, their deduction is limited to $750. If they pay the 2009 installment by December 31, 2008, the deduction will be $1,000. Approximate tax savings: $50. This deduction is currently available only for 2008 and 2009. Note that this law provides no benefit to people who already itemize their deductions. Their property taxes continue to be fully deductible and the limitations described above do not apply to them. This new law applies only to people who do not itemize. It is an increase in the standard deduction.
BAD NEWS
> Home sale gain exclusion limitations - The very generous gain exclusion on the sale of a principal residence will be limited in the future on sales of properties that were also used as vacation or rental properties. The bottom line: It may no longer be possible to convert your vacation home or rental property into a principal residence and completely avoid the gain. All sales after December 31, 2008 will be subject to the new rules. Any "non qualified use" (rental or vacation use) of the property occurring in 2009 and later will cause at least part of the gain on sale to be taxable. If you own a vacation home or rental property you wanted to convert to a principal residence you may want to act sooner rather than later. Contact us for additional details.
Special note - You may be able to combine the home sale exclusion rules with the "like kind exchange" rules of IRS Code Section 1031 in order to offset the part of the gain that cannot be excluded using the home sale exclusion. The key to successful tax planning in this area: Contact us BEFORE you sell!
>Credit card information reporting - Processors of credit and debit card transactions will, beginning in 2011, report to IRS the amount of gross payment receipts processed for each business receiving more than $20,000 annually via credit or debit cards. This essentially amounts to receiving a 1099 for your credit and debit card sales. Who else might be interested in this information? Why, Maine Revenue Services sales tax auditors of course! Even if you have no concern about this information being reported it is likely to increase the fees that processors charge for each transaction.
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Tuesday July 1, 2008
We have learned that the state of Maine has cut off its $2,500 rebate program for installation of solar heating systems. Apparently solar installers have been swamped with requests for installation of these systems and the state has used up the amount it had budgeted for rebates. Note that a federal tax credit of up to $2,000 is still available. If your installer tells you there are still state rebates available our advice is to check with Maine Revenue Services before you sign your contract, or perhaps withhold payment of $2,500 to the installer until you actually receive your state rebate.
Internal Revenue Service has increased the cents per mile reimbursement rate to 58.5 cents per mile for all business travel. This rate will apply for all miles traveled between July 1, 2008 and December 31, 2008. The rate was 50.5 cents from January 1, 2008 through June 30, 2008. Employees reimbursed at these rates during 2008 do not have to declare the reimbursement as taxable income. Employers deduct the reimbursement as travel expense. If your employer reimburses you less than the allowable amount you may be able to deduct the difference between your reimbursement and the allowable rate on your tax return. You must be able to itemize, and the deduction will have to exceed certain dollar thresholds before you derive any tax advantage. Note that the itemized deduction for mileage may also be limited by the alternative minimum tax. If you have questions call us.
The mileage rate for moving and medical expenses is 27 cents per mile. The rate for charitable work is still 14 cents.
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Wednesday June 4, 2008
Congress is at it again, recently enacting some new tax legislation and working on a bundle of other bills that may be enacted later this year. Here's a quick summary of what was recently enacted and what may be on the horizon:
Enacted: The Food, Conservation and Energy Act of 2008
This is the "Farm Bill" that you may have heard about. We don't see much in this bill that will have a direct impact on many of our clients. Perhaps the most significant provision is an extension of an enhanced charitable contribution deduction in connection with the granting of conservation easements. The provision permits someone granting a conservation easement on part or all of their land a larger charitable contribution deduction than was available under existing law. If the individual granting the easement is a farmer, an even larger deduction is available.
The rules surrounding conservation easements are complex and beyond the scope of this discussion, but suffice to say that if you are considering a conservation easement, now is a good time to explore it. Several organizations in town, notably the Androscoggin Land Trust http://www.androscogginlandtrust.org/ and similar organizations are familiar with the rules and can assist in guiding you through the process. The enhanced deduction is available through December 31, 2009. These transactions involve property appraisals and drafting of detailed legal documents, so if you are going to pursue it, don't delay.
There is a provision in this bill that limits losses that can be deducted by farmers on Schedule F, but the limititation applies only to losses above $300,000, so we doubt it will impact many Maine farmers. Farming losses of less than $300,000 will continue to be allowed without limitation.
Enacted: The Heroes Earnings Assistance and Relief Tax Bill of 2008
This bill extends a variety of tax breaks to veterans and their families, including the ability to use tax free combat pay to enhance the earned income credit, the ability to withdraw from retirement plans penalty free (but not tax free!), and the ability to use up amounts set aside in flexible spending accounts. If you are an active or retired veteran be sure your tax preparer is aware of that fact so that you will receive all of the tax breaks provided by law.
This law also includes a new tax credit for businesses employing 50 or fewer employees, for voluntary "differential pay" paid to military personnel on active duty. The maximum credit is $4,000 per employee (20 percent of $20,000). Differential pay is the difference between the employee's regular salary and his/her active duty military pay. If this works like other credits we've seen, note that you'll probably have to reduce the wage deduction by the amount of the credit (still a good deal), and you'll also have to beware the Alternative Minimum Tax (not such a good deal). If you think you might qualify for this credit contact us and we'll help you answer any questions you may have.
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Friday May 9, 2008
Looking to boost your charitable contributions? Did you know that the extra dollars you pay for a vanity license plate might be deductible? The IRS has ruled that if the extra dollars (above the normal registration fee) are used to advocate a legitimate charitable cause (a wildlife fund for example) the excess can be claimed as a charitable contribution. The registration fee will be reflected on your vehicle registration so be sure to point out the "vanity plate" fee when your accountant is reviewing your registration for excise tax.
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Selected posts prior to May 9, 2008
It's Tax Time - Do you know what your children are up to? You'd be surprised at how many parents don't know whether their college-age children are filing a tax return, and if so, whether they are claiming themselves. With the ease of filing taxes online now, many parents are simply letting their kids, away at school, file their own tax returns. But without proper communication the family is risking thousands $$ in tax savings and perhaps hassles later on with IRS. In most cases your college-age child should be claimed as your dependent. Claiming the child as a dependent entitles you not only to the dependency exemption, but also to the tuition tax credit or deduction, and the deduction for student loan interest. These deductions and credits can easily be worth $2,500 or more in tax savings. Children who file their own returns may inadvertently fail to check the box indicating that their parents are claiming them as dependents. They may also neglect to pass along the 1098-T form they received from the school, indicating how much was paid in tuition. Parents may claim the child, unaware that the child already claimed themself, and may also neglect to claim the tuition, thinking that since the statement is in their child's name, the child is entitled to the tuition tax benefit. The situation may get much worse a year or two later when both parent and child receive a letter from IRS informing them that the child was claimed twice. So, communicate with your college-bound students. Better yet, talk to us before giving your child the green light to file online!
Is your company taking advantage of the Domestic Production Deduction? This special deduction is available to a wide range of businesses, and this year has doubled from 3 percent to 6 percent of qualified net income. This is potentially a very valuable deduction. One of our clients this year received a deduction exceeding $50,000, which will save the shareholder nearly $20,000 in tax. That'll bring a smile to just about anyone's face! Companies engaged in manufacturing, construction trades, and even some "service" trades such as engineering can benefit. If you think you may qualify contact us.
Is your company taking advantage of this credit?
There is a fuel tax credit of 50 cents per gallon of propane used in propane-powered forklift trucks. If your business uses propane powered forklifts - call us. We'll tell You how to obtain this potentially very valuable credit.
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