The Tax Preparation Blog

Posts Tagged ‘tax hike’

Question: What do you think of California’s new tax on hybrid vehicles?

The California legislature has been wrestling with signing a budget for months now. They had to either cut must needed programs or raise taxes. Since the price of gas is draining the pocketbooks of many Californians it was decided that those least affected by a gas tax hike would be hybrid car owners. So effective January 1, 2008 all owners of hybrids will be taxed an additional quarter a gallon. Actually the way it will work is that when you buy gas at the pump the quarter per gallon will be included in the price. When you file your state income tax for 2008 in 2009 you will be given a credit for all the extra gas tax you paid in 2008 (with proper documentation) except for those who have a hybrid registered in their name.
I would like your opinion on this bill SB98556. Thank you

Answer: yeah kill the car that cleans the air.

States Covet Illinois Jobs After Its Tax Hike

Governors in New Jersey, Indiana and Wisconsin, angling to steal jobs from Illinois after its record tax increase, may find that employers consider a broader range of concerns as they decide their future in the Land of Lincoln.

Illinois Lawmakers Approve Tax Hike

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.

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