Revenue Raisers Vex Lawmakers As They Debate Health Care Reform

  • November 2, 2009

Negotiations for comprehensive health care reform are moving into high gear on Capitol Hill. One of the most difficult questions for lawmakers is how to pay for health care reform. Every proposed revenue raiser (aka, tax increase) has generated controversy and it is unclear which ones will make their way into a final bill.

How Do I? Net Capital Gains And Losses For Year-End Tax Planning?

  • November 2, 2009

In order to effectively plan your investment transactions, you have to understand how, under federal tax law, you need to net or "offset" capital gains and losses that you experience. Netting your capital gains and losses can help achieve lucrative tax savings benefits and should be part of your year end tax strategy if you sell capital assets that result in gains and losses in 2009.

FAQ: Can I Prepay Mortgage Interest And Taxes To Maximize 2009 Deductions?

  • November 2, 2009

If you own a home, the interest you pay on your home mortgage may be one of your most valuable tax breaks available each year. The home mortgage interest deduction is a particularly important tax break in the early years of a home loan, when most of a homeowner's payments each month go toward interest. In addition to home mortgage interest, two other valuable home-related deductions include the "points" (also known as loan origination fees or loan charges) associated the loan as well as your property taxes.

Pending Legislation Complicates Year-End Tax Planning

  • November 2, 2009

As 2009 comes to a close, it's a good time to review your year-end tax planning strategies. Many traditional strategies are still effective for this year but you need to keep in mind the impact of pending federal legislation. Congress is debating health care reform, a possible second stimulus bill, extending many temporary tax breaks, and more.

Legislative Watch-House Bill Would Stave Off Estate Tax Repeal

  • October 26, 2009

A move is underway in Congress to stave off the sunset of the estate tax in 2010 and prevent a wholesale revision of the transfer tax rules in 2011.

Roth Conversions – Should You Wait For 2010, If At All?

  • June 30, 2009

There are a number of advantages for starting a Roth IRA account, the most important being that all the investment earnings grow tax-free, and qualified distributions are tax-free. Additionally, you can continue to make contributions to your Roth after you turn 70 1/2 and are not subject to the required minimum distribution rules. Currently, only individuals who have a modified adjusted gross income (AGI) of less than $100,000 and/or who do not file their return as "married filing separately" can contribute to a Roth IRA, or convert their traditional IRA to a Roth.

Will I be under withheld for 2009 Taxes?

  • June 5, 2009

Your federal tax withholding has recently been reduced and there may be a consequence come tax time. In all likelihood, the reduction is attributable to the Making Work Pay Credit.

FAQ: Can the first-time homebuyer credit be claimed in advance of a purchase?

  • May 1, 2009

No. Many individuals may be considering buying a new home in 2009 as home prices continue to drop in many areas across the country. They may also be wondering if they can claim the $8,000 first-time homebuyer tax credit before actually purchasing the home. Although this might generate a refund you could use as a down payment, the IRS will not allow you to claim the credit in advance of a purchase.

How Do I? Figure the first-time homebuyer tax credit?

  • April 13, 2009

The Housing Assistance Tax Act of 2008 (2008 Housing Act) gave a boost to individuals purchasing a home for the first time with a $7,500 first-time homebuyer tax credit. The credit was enhanced from $7,500 to $8,000 and extended for certain purchases under the American Recovery and Reinvestment Act of 2009 (2009 Recovery Act). This article explains how to determine the credit for eligible first-time homebuyers.