Tag Archives: Tax Planning
IRS Reminds Homeowners About New Energy Credits To Help “Winterize” Your Home
Two expanded home energy credits are available to help homeowners lower both their winter heating bills as well as their 2009 tax bill, the IRS is reminding taxpayers. The nonbusiness energy property credit and the resident energy efficiency property credit can both be claimed by eligible homeowners when filing their 2009 federal income tax return. The credits are available when you itemize your deductions or take the standard deduction Continue reading
Congress Has Busy Tax Agenda As 2009 Comes To A Close
December is poised to be an important month for federal tax legislation as members of Congress work to finalize heath care reform, a possible jobs bill and more before the new year. Their ambitious agenda may keep lawmakers in Washington, D.C. beyond their scheduled mid-December holiday recess. Continue reading
How Do I Make A Catch-Up Contribution?
Employees can elect to make voluntary contributions from their salary to certain retirement plans. The type of plan may depend on your employer. Many employers maintain cash or deferred arrangements — 401(k) plans — as part of their defined contribution retirement plan. State and local governments can maintain “457″ eligible deferred compensation plans. Continue reading
Working With The New Loss Carryback Tax Break
The Worker, Homeownership, and Business Assistance Act of 2009 (2009 Worker Act), enacted November 6, 2009, gives all businesses (or their owners in the case of pass-through entities) an opportunity to obtain a quick refund from the IRS using net operating losses (NOL). A company has an NOL when its business deductions for the year exceed its business income. Normally, a business can only carry back an NOL two years. But the new law allows any business to elect to carry back its NOLs from 2008 or 2009 for up to five years, regardless of form (corporation, individual, estate or trust) and size. (Partnership and S corporation NOLs flow through to partners and shareholders and can’t be carried over by the entity.) Continue reading
Last Minute Strategies For Year-end Tax Savings
2009 is quickly coming to a close but there is still time to possibly maximize your federal tax savings for the year. Many year-end tax planning techniques can help you save money. Because of the recession, some of the year-end strategies take on added urgency for individuals affected by a job loss or a reduction in income. Continue reading
Opportunities And Challenges Presented by 2009 Roth IRA Rollovers
There is an interesting new rollover opportunity that’s coming up in a few months. After 2009, you will be able to roll over amounts in qualified employer sponsored retirement plan accounts, such as 401(k)s and profit sharing plans, and regular IRAs, into Roth IRAs, regardless of your adjusted gross income (AGI). Currently, individuals with more than $100,000 of adjusted gross income as specially modified are barred from making such rollovers.
Posted in Employee Benefits, Tax, Tax Planning
Tagged Individual Tax, ROTH IRA, Tax Planning
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Revenue Raisers Vex Lawmakers As They Debate Health Care Reform
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. Continue reading
How Do I? Net Capital Gains And Losses For Year-End Tax Planning?
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.
Posted in Tax, Tax Planning
Tagged Capital Gains/Losses, Individual Tax, Tax Planning
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FAQ: Can I Prepay Mortgage Interest And Taxes To Maximize 2009 Deductions?
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. Continue reading
Businesses Should Consider Asset Purchases Before 2009 Tax Incentives End
As the economic downturn took a toll on businesses, small and large, Congress reacted with legislation aimed at stimulating business investment. The Economic Stimulus Act of 2008, Emergency Economic Stabilization Act of 2008, and American Recovery and Reinvestment Act of 2009 all provide tax incentives for businesses, including additional 50 percent bonus depreciation, higher limits for first-year expensing, and shorter recovery periods for asset depreciation. Continue reading
Posted in Tax, Tax Alerts, Tax Planning
Tagged Business Tax, Tax Alert, Tax Planning
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