The American Recovery and Reinvestment Act provides for new incentives for the purchase of new cars in 2009. This applies to vehicles purchases after February 16, 2009 and before January 1, 2010. Taxpayers who qualify may deduct the sales tax (state, local, and excise) on the purchase of new cars, light trucks, motor homes, and motorcycles. You may claim the deduction for as many vehicles as you would like - there is no limit. The deduction per vehicle, however, is limited to the tax on a purchase price of up to $49,500 and does phase out for taxpayers at higher income levels. The nice thing about this sales tax deduction is that it is available regardless of whether or not a taxpayer itemizes deductions on Schedule A.
For all you working parents out there - here is what you need to know about the Dependent Care Credit when it comes to Summer Day Camps. If your child is under 13 and you need to arrange for additional care for them during the summer months then summer day camps are one way to accomplish this while still qualifying for the Dependent Care Credit on your federal tax return.
The cost of day camp counts as an expense towards the child and dependent care credit, however, overnight camps do not qualify. If you have other childcare expenses during the year, then the cost of the summer camp gets added to this expense. The actual credit can be as much as 35% of your qualifiying expenses - depending on your income. You can use up to $3,000 of expenses per year for one child or $6,000 for two or more qualifying children.
So remember when it comes to tax time that those summer camps you are paying for right now may be deductible on your tax return if your child is under 13.
Fifty six percent of new businesses fail in the first four years. For a decade, I’ve been contacting new business and helping them avoid failure by implementing quality accounting systems and adopting a structure that will preserve cash flow for growth rather than taxes. However, this is clearly not enough to insure success. New businesses need assistance from many disciplines including law, marketing, web development, computer systems, software development, workflow efficiencies, etc. Small business owners should be aware of and interested in all the disciplines that will help them to become successful. Often, owners will not have established relationships with the professionals that deliver these services. Unless the need is urgent, owners hesitate to hire such professionals when the only information they have is an advertisement or recommendation. Sometimes owners can provide these services themselves with some basic guidance. Other times, business owners need a professional to do the entire job or large part of it. One place to obtain that guidance and to establish vital relationships is The Seattle Business Institute, http://seattlebusinessinstitute.com.
Through the Seattle Business Institute, professionals, who are leaders in their various fields, will provide continuing education to small business owners. Initially this education will take place through free webinars. This maximizes ease of access, to needed information, for the small business owner. Other classes will include in person workshops, maximizing the relationship between the small business owners and the instructor. The classes are not sales pitches. Classes will provide quality information for small business owners. Business owners will be able to implement the ideas presented in class, for their business, themselves. Some small business owners will decide their time is better spent doing what they already know well, and may want an instructors expertise beyond the classroom. Whether it is through the knowledge acquired or the relationship established, small business owners will get the multidiscipline assistance they need through http://seattlebusinessinstitute.com.
This site also provides small business owners with increased marketing exposure and networking opportunities. Anyone can establish a free profile for their business. Links back to the business owner’s website will improve the business owners Google search results. The site also includes capability for commenting, blogging, photo and video sharing.
The Seattle Business Institute implements the contribution networking philosophy. Instructors provide valuable information for free. Small business owners can return from time to time, to learn various topics needed for their businesses success. Often, business owner will implement this knowledge on their own. From time to time, business owners will need to hire course instructors to implement this knowledge. Either way, the small business owner will have more tools to insure their success. Instructors who are experts in their field will have an opportunity to give back to the small business community and to share their expertise. At the same time, it will present instructors with opportunities for a unique business to business marketing model.
Classes begin late Fall 2009. This is the beginning of a brand new community. More instructors will be added in the future. No doubt, additional features will be added in the future. Watch it grow at http://seattlebusinessinstitute.com.
The American Recovery and Reinvetment Act put in place in 2009 gives taxpayers a new credit for energy-efficient improvements made to their homes in 2009 and 2010. A similar credit was available in 2007, but not in 2008. Home improvements qualifiying for this credit include the addition of insulation, energy-efficient exteriors windows and energy-efficient heating and air-conditioning units.
The credit is equal to 30% of the cost of the improvements, with a maximum credit available of $1,500. This is a non-refundable credit and is only available to the extent that you have tax due.
Feel free to contact us to find out if your home improvement qualifies for this new tax credit.
The first-time homebuyer credit is a new tax credit that was created by the Housing and Economic Recovery Act of 2008. If you purchased a home in 2008, the credit acts like an interest free loan. This credit must be paid back on your tax return over the course of 15 years. For homes purchased in 2009, the amount of the credit increased and the requirement to repay the credit was removed, unless the home ceases to be your principal residence within the 36-month period beginning on the purchase date.
The amount of the credit for 2008 is 10% of the purchase price of your home with a maximum credit of $7500. For 2009, the maximum credit is $8000. This is true for both single taxpayers and married filing jointly taxpayers. For married filing separately taxpayers they credit is half of the total.
To qualify for the credit for either year you need to have purchased a principal residence in the United States between April 8, 2008 and December 31, 2009. You also need to have not owned a princed residence at any time during the 3 years prior to the date of purchase of your new home. For example, if you owned a home and sold it in 2004 and started renting and then decided to purchase a new home in 2009 you would qualify for this credit as a first-time homebuyer.
This credit is claimed on your tax return using form 5405 and can be filed with either your 2008 or 2009 tax return. For help claiming the credit on your 2008 or 2009 tax return feel free to visit our website at http://www.huddlestontax.com/.
