The Tax Preparation Blog

Archive for January, 2010

Is there a site that is free to prepare and e-file both state and federal tax returns for 2008?

or is free turbotax.com taxact.com for federal action, but must be paid in a file, but you can go to your state website to see if your state offers a free e-file your declaration of a state (the majority) in which state are you in? I'll check for if you like.

Houston CPA Tax Attorney Gives 5 Tax Preparation Tips

J.K. Lasser’s Your Income Tax 2011: For Preparing Your 2010 Tax Return $19.76 America’s number one bestselling and most trusted tax guide offers the best balance of thoroughness, organization, and usability. For over half a century, more than 39 million Americans have turned to J.K. Lasser for easy-to-follow, expert advice and guidance on planning and filing their taxes. Written by a team of tax specialists, J.K. Lasser’s Your Income Tax 2011 includes all the outstanding fe…

J.K. Lasser’s Your Income Tax 2010: For Preparing Your 2009 Tax Return $10.00 America’s number one bestselling tax guide offers the best balance of thoroughness, organization, and usabilityFor over half a century, more than 39 million Americans have turned to J.K. Lasser for easy-to-follow, expert advice and guidance on planning and filing their taxes. Written by a team of tax specialists, J.K. Lasser’s Your Income Tax 2010 includes all the outstanding features that have ma…

Ernst and Young Tax Guide 2010 (For Preparing Your 2009 Taxes) (Ernst & Young Tax Guide) $7.99 Now in its 25th edition, the Ernst and Young Tax Guide 2010 is completely updated and also includes access to a web site for purchasers, to find the latest tax alerts and tips. Ernst and Young also includes the use of a web site that will contain updated changes and important information for purchasers of the E & Y Guide. What the IRS doesn’t tell us, Ernst & Young does.Year after year, The Ernst …

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Paying property taxes to your city, town, or county is part of a home owner’s responsibilities. Property taxes are computed based on your home’s assessed value. Don’t get confused because the assessed value and appraised value are two different things. To make it simple, the appraised value is simply the market value of a property in today’s market while the assessed value is used by taxing authorities to put a dollar value in the property for taxing purposes.

Most states do offer a property tax reduction for Veterans.

Though each state has its own guidelines, most states measure property taxes by mils (one mil means $1 for every $1,000 value of a home). So for example, if you have a house worth $100,000 with a 3.5 mil property tax the owner will have to pay $3.50 for every $1,000 in value or simply $350. However, regardless of how these taxes are computed, a home owner owes this amount to the government. If you have a mortgage, some lenders require monthly property tax payments as part of the mortgage payments. If this is not your case, then your town will ask you to pay property taxes every 3-6 months wherein you have to pay in full on its due date.

Check with your local taxing authority to find out more.

However, under certain circumstances, more than 30 states have given local property tax relief to veterans. Though not all towns or cities participate, most of the time, veterans can receive a break on property taxes. Property tax relief may come in different forms – like exemptions, abatements, frozen assessment rates, or direct rebates on taxes. New York, for instance, has a number of property tax exemptions for veterans. In South Carolina, a veteran receives an exemption on the first $50,000 of the assessed value. In Maryland, veterans with service-related disabilities receive full exemption from paying property tax liability.

Since each state, town, or city’s guidelines on property tax exemptions for veterans vary, it is best to consult someone from your state’s Department of Revenue office to learn more.

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Nisar Pathan’s Services for Transfer of MSEB Name,Property Tax and shop Act Licence

The 1031 exchange is a great instrument for property owners who wish to defer their capital gains tax. However, not all states treat 1031 exchanges equally. California regulations stipulate that any appreciation in property value accrued in California is subject to their state taxes, regardless of whether or not that property was exchanged for one in another state before its sale. This means that CA property owners cannot escape CA state taxes, even if they exchange their property for one in another state.

Most states conform to federal income tax treatment of like kind (1031) exchanges, where all capital gains taxes are deferred until the properties eventual sale. This is generally interpreted to mean that one is only subject to taxes of the state where the property is sold, discounting the state taxes of any state where the property was exchanged from. Meaning that if I owned a property in NV, exchanged it for one in ID and subsequently sold it, I would only be responsible for federal and ID taxes, not those from NV.

California is a notable exception to this. It employs a “claw-back” provision, entitling the state to tax any gain on property that occurs in California, regardless of where the property is eventually sold.

For example:

Say Mr. Newcombe bought a property in CA for $100. After appreciating to $200, he exchanges it for one in ID. While in ID the property further appreciates to $400. Feeling he has had enough of owning property, he sells it for $400, showing a total capital gain of $300. Mr. Newcombe would not only be liable for $300 of capital gains taxes in ID, but $100 of capital gains taxes in CA as well.

Note: The reciprocal of this situation does not come into effect. If Mr. Newcombe owned property in ID and exchanged for property in CA, he would only be subject to CA state taxes, not those of ID.

From the above example it is clear that owning property in California and exchanging it for property in another state leaves one open to double taxation. There is no way to avoid this situation unless one stays out of CA entirely or performs the final sale there. Being taxed in CA would of course be undesirable because it has some of the highest income tax rates, 9.55% and 10.55% for earnings over $47,055 and $1,000,000 respectively.

The claw-back provision really hurts people when they try to exchange out of California’s stringent tax system into a friendlier one such as Texas, which has no income tax. In situations such as this, the “claw-back” provision acts like a hand reaching out of the grave to grab and tax people one last time. Needless to say, before making an investment in CA, ensure it will be worth the high amount of taxes you will eventually pay for it.

Question: India. Income Tax. Cost Inflation index. What is rate for FY 2008-09 and 2009-10 ? Calculate Longterm cap.gain?

Answer: F.Y. 2008-2009 = 582
F.Y. 2009-10 = Wait till August, 2009 will be notified by the Central Government.

The need to act now

“The Economist as a Saviour was the title chosen by Robert Skidelsky for his monumental biography of Keynes. The choice was deliberate. He wanted to distinguish Keynes from those economists who spend all their time on “diagnosis” and remain thin on “prognosis”.

AsiaBSDCon 2009: Internet Mail — Past, Present, and (a bit of) the Future

Question: For a basic tax return, how much would an accountant charge in Adelaide?

Answer: Hi! I work for an accountant and we charge $165.00. I think you can expect anything from $100.00 – $200.00. Try H & R Block if you want a cheap rate

Winds of change in Don’s heartland

THE bustling Parade in Norwood’s heart is lined with cool cafes, chic boutiques and old-fashioned grocers – a place where the trendy meets the traditional.

eChallenge 2009 – #2 The Need – Team chikpos