The Tax Preparation Blog

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Just recently the U.S. House of Representatives decided to pass a new bill that will grant an extension and expansion of the Federal Tax Credit for First-time Home Buyers. This extended tax credit will be good through April 30th, 2010 that now also includes a 60 day extension should there be a binding contract in place prior to the deadline.

The tax credit for first time home buyers will still stand at a tax credit of up to $8,000. Existing homeowners however, will receive a reduced credit of up to $6,500. In order to for existing homeowners to be eligible for the $6,500 tax credit, they have lived in their current residences for at least five years. Another change in the bill is an increasing of the qualifying income limits. Single tax filers’ income limits were once $75,000 and joint filers were once $150,000. The new qualifying income limits are $125,000 for single tax filers and $225,000 for joint filers. The purchase price of the home is capped at $800,000. These new changes are aimed to encourage existing home owners to sell their first homes in exchange for purchasing larger and more expensive homes, basically their dream homes.

Additional stipulations in the bill include the ability for taxpayers to claim the credit on purchases that are completed in 2010 on their 2009 income tax returns. The bill also maintains that the home buyers utilize the home as their primary residence for 36 months after its purchase; otherwise the credit must be repaid. However, for any active duty military personnel this requirement is waived should they need to move due to military order.

So far this tax credit has had great success. According to the California Association of Realtors, “nearly 40 percent of first-time buyers said they would not have purchased a home if the federal tax credit for first-time home buyers was not offered. This underscores the significance of the federal tax credit to the housing market’s recovery in California.”

For more information on the extended First-time Home Buyer Tax Credit contact the experienced and knowledgeable agents at Realty Executives Dillon. The agents at Realty Executives Dillon can offer you an expertise that is unsurpassed in the San Diego County real estate field. There are hundreds of property listings all throughout San Diego County and seasoned real estate agents are exactly what you are going to need to navigate your way. So for the best San Diego real estate services you could hope to find, visit Realty Executives San Diego.

Historic Print (L): [A cigar, Spain, and a mug of beer, United States, discussing tax increases on beer and $57.00 This is a museum quality, reproduction print on premium paper with archival/UV resistant inks. Date: [1898]Subject: Notes: Title devised by cataloger. (DLC/PP-1954:R4.77) Published in: Minneapolis Journal. mm / 860113. BAR updated record 1989-1994.Format: Editorial cartoons American 1890-1900.Drawings American 1890-1900.SOURCE: Library of Congress…

Historic Print (M): [A cigar, Spain, and a mug of beer, United States, discussing tax increases on beer and $37.00 This is a museum quality, reproduction print on premium paper with archival/UV resistant inks. Date: [1898]Subject: Notes: Title devised by cataloger. (DLC/PP-1954:R4.77) Published in: Minneapolis Journal. mm / 860113. BAR updated record 1989-1994.Format: Editorial cartoons American 1890-1900.Drawings American 1890-1900.SOURCE: Library of Congress…

Historic Print (S): [A cigar, Spain, and a mug of beer, United States, discussing tax increases on beer and $24.95 This is a museum quality, reproduction print on premium paper with archival/UV resistant inks. Date: [1898]Subject: Notes: Title devised by cataloger. (DLC/PP-1954:R4.77) Published in: Minneapolis Journal. mm / 860113. BAR updated record 1989-1994.Format: Editorial cartoons American 1890-1900.Drawings American 1890-1900.SOURCE: Library of Congress…

The Top 10 Stories Of 2009

1: Burbank Police’s year of problems: A barrage of outside investigations, lawsuits filed against the city by current and former officers, a police sergeant taking his own life on a residential street and a no-confidence vote in the police chief just days after he announced plans to retire made for a turbulent year at the Burbank Police Department.

California Tax Commission Seeks More Power

Question: Are we getting the right information about tax increases for the wealthy?

The media has been obsessing about President Obama’s plan to roll back the Bush tax cuts for the wealthiest Americans—from 35% to 39.6%—even asking if that makes him a socialist.

But do you know what tax rate the wealthiest Americans paid on the top portion of their earnings at the end of Ronald Reagan’s first term? 50%.

Under Richard Nixon? 70%. Under Dwight Eisenhower? 91%!

Shocking, right? And for all the whining about rolling back Bush’s irresponsible tax cuts, the truth is that Obama’s plan cuts taxes for 95% of working Americans. Further, it closes huge tax loopholes for oil companies, hedge funds and corporations that ship jobs overseas so that we can invest in the priorities that will get our economy back on track.

This chart from The Washington Monthly shows just how absurd Republican complaints about Obama’s budget are. Check it out for yourself:

http://www.washingtonmonthly.com/archives/individual/2009_03/017201.php

Answer: Republicans are swooning over top tax rate increases that are still lower than at almost any time in nearly a century.

The only times the top rates were lower is the decade of the Depression and the recession-heavy 1980’s. Hmmmmm….

All States Tax Handbook (Tax Charts abd Calendars Covering Income, Sales and Use, Property, and Other Taxes, 2009 Edition) …

All States Tax Handbook (Tax Charts and Calendars Covering Income, Sales and Use, Property, and Other Taxes, 2009 Edition) Get access to quick state-by-state comparisons of different tax rates and structures for all 50 states and the District of Columbia. Organized by tax type, this compact reference charts all major taxes imposed by states for easy reference so that you can make the best informed decisions and give the best advice possible. The All States Tax Handbook features: Tax systems in graphic form. For yo…

Airgas Believes Air Products’ Tactics Designed to Deprive Stockholders of Value

RADNOR, Pa.—-Airgas, Inc. today announced that it has commenced mailing of a letter to all Airgas stockholders regarding the tactics employed by Air Products & Chemicals, Inc. over the past ten months.

Tax Day Tea Party High Interest in ALIPAC and Illegal Immigration

Question: Where can I file for a “Doing Business As” form (DBA)?

Hey guy,

I have no business license, and I don’t have a Tax ID, but I heard I can still file for a DBA form. My aim is to at least have a professional business name I can use when I fill out forms for affiliates, and other such business matters. I’m from NYC, where can I fill out a DBA form? And if I’m wrong about what I’ve said, please correct me.

Thanks.

Answer: In NY, dba certs are filed with the County Clerk’s office.

Restaurant Openings, Sustainable Planning

New Restaurants Chip Matthews, owner of the nightclub Fire, wants to bring spice to downtown every day of the week.

NYC Tax Dollars at Work…

Question: Do I have to claim my services on my taxes?

Suppose I started my own little county-wide computer repair business and I go to the customer’s home to install wireless networks, repair computers, etc. Would I need to claim these services and the money made from them on my taxes? It’s not really even a business. I don’t own a building or anything. I made my own little flyers and business cards and I just use my own computer experience and knowledge as a self-aid. I recently considered putting the paypal option on my website to give customers the option to pay with credit instead of cash/check. Let me know. I don’t see it any different than running my own little lawn cutting business as a child or even babysitting. Someone please shine some light on my situation.

Answer: Income is income. You probably didn’t declare the income from babysitting or lawn cutting because it wasn’t enough to require filing. The IRS is also a little shy about the publicity auditing a 12-year old kid would generate.

Not only is the income taxable, but since you are now self employed you have to pay income tax and self-employment tax of about 15%.

Now for some good news. You have flyers, business cards, a web site, etc. You are a business. If you don’t make money this year, at least you have demonstrated that your intention is to make money. Under the “hobby-loss” rules, you are presumed to be in business only if you make a profit in three out of five years. If you lose money too often, the IRS will disallow the losses unless you demonstrate that there is a profit motive and that you are taking steps to run the business properly.

Keep good records of everything you spend on your business. That includes records on the miles you drive to each home. Also record your odometer at the beginning and end of the year so that you can keep track of your business portion of your car expenses. If you start making a significant amount of money, you may need to pay estimated taxes on a quarterly basis. This is a good time for you to meet with a CPA for tax and general business advice.

I hope this helps.
Gary

I hope this helps.
Gary

Current developments in employee benefits. (part 2): An article from: The Tax Adviser $5.95 This digital document is an article from The Tax Adviser, published by American Institute of CPA’s on December 1, 1996. The length of the article is 8329 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.From the supplier:…

The Pulse: Election-night blog

Follow all the action from tonight’s crucial count here.

America’s Next Lady Liberty – Whitney Johnson

Question: any good book/article regarding difference in income tax/vat tax laws of u.k & india?

as am trying to get uk accounting job work.

Answer: im not sure

Company Taxation in the Asia-Pacific Region, India, and Russia $96.73 The Asian-Pacific countries as well as India and Russia offer multinational companies all the benefits of booming economies in a world of recession. However, the investor must be aware of the tax regime under which he will operate. This survey presents the rates, definitions of taxable income and the incentives available in a complete, yet concise form. It goes on to review tax minimisation strate…

Income tax reform in India …

The corporation income tax in India, 1950-1965 …

Let them eat credit

Raghuram G Rajan located the fault lines beneath the economic crisis. Jahangir Aziz peers into the chasm

Tea Party March In Washington

Oil, blood and lower taxes: the billion brothers’ battle against Obama

Oil billionaires David and Charles Koch are among the world’s richest men. Staunch advocates for radically lower corporate and personal taxes, they are bankrolling a concerted and largely under the radar effort to oust Obama and “take back America,” writes Jane Mayer .

Tax Revolt 2009, Fullerton California