Tax Tips For Those Filing Last Minute.
April 9, 2009
April 17, is this years deadline for submitting taxes and it is only next week. For those who for whatever reason are running late here are some tips that can help you. If you not for sure that you will not make to file by April 15, 2009, ask for an extension which give you until October 15 2009. However if you owe the IRS, interest and penalty will start to kick in April 15 2009.
The IRS Website also has great tips for last minute filers. You can even call volunteer tax help sites at 1-800-906-9887. To fully maximize the deductions allowable use a tax professional. However for those who use tax computer software or paper return, here are some tips It is important to double-check the accuracy of your math, and make sure you’ve included your Social Security number, all W-2 attachments and other schedules, and signed and dated the return.
If you owe taxes, you should not attach your payment to your tax return; instead, enclose the payment with a form 1040V Payment Voucher and send it to the appropriate address. For people who earned less than $56,000, you may be able to prepare and file your return for free. Go to the IRS Web site here and click on Free File. Also remember electronic filing will save you time. To optimize on all deductions that you are allowed see http://www.trulia.com/blog/the_desert_home_specialist/2009/03/overlooked_tax_deduction for a complete in exhaustive list.
Great Tax Deductions Easily Overlooked
March 30, 2009
Who knows how many people forgot — or never knew about — a deduction that could save them money? As the end of tax season is within sight, it is easy to overlook some tax deductions. For those who have not filed they may look into including the following tax deduction. However even if you have filed one can also file an amended return if they omitted certain deductions. Financial guru Jean Chatzky with Arielle McGowen talked of these incredible deductions
You filed early. Congress is notorious for making changes that don’t make the preprinted forms. Keep your eye on the newspaper and check out the IRS’ surprisingly readable website at IRS.gov.
You’re a business owner who’s not diligent about receipts. Fear of the audit police leads many people to overpay. “They don’t have the paperwork and receipts, so they don’t take what they’re entitled to,” Weltman said. “It’s absolutely worth the trouble.”
You are reinventing yourself: Education breaks are among the most missed. Check out the Lifetime Learning Credit and the Tuition and Fees deduction. If you’re improving your work skills or job hunting in the same field, you may also be eligible to claim deductions.
The depressed stock market makes it a very good time to give away money. You can give up to $12,000 a year to any person you like (a couple can give $24,000) without running into lifetime gift restrictions or gift tax.
Three Important Things To know About Investment Property
March 25, 2009
Three Important Things To know About Investment Property
The current increase in foreclosures has forced most home owners to be renters. This has also opened opportunities for many investors to be landlords. While being a landlord can be quite profitable it is not cut out for everyone. This blogs looks at some of the issues you need to know before diving in.
Decide on the length of the ownership.
For many small investors, long-term ownership makes the most sense, said Pat Callahan, an attorney, landlord and founder of the American Association of Small Property Owners. You’ll have plenty of time to ride out any swings in the market, and rental income can make a nice supplement to your day job. Find enough rental properties, and being a landlord may become your day job.
However the longer you plan to own the property, the more you’ll probably need to invest in maintenance, repairs and improvements,
Utilize Networks
Experienced landlords find their properties in a variety of ways. Some hunt for foreclosures, making friends with city hall clerks or bank employees who know which properties are about to be sold. Some run ads in local newspapers. Others work with real estate agents who keep their eyes peeled for possible buys.
Tax issues.
There’s a big difference in how repairs and improvements are treated for tax purposes. You can typically deduct the cost of a repair, such as patching a roof or fixing a leaking pipe, on your tax return for the year in which the repair is made, Berning said.
Replace that roof or those pipes, however, and it’s typically considered an improvement, which means the cost can’t be deducted. Instead, it’s added to the amount you paid for the property to determine your tax basis when you sell. The higher the basis, the lower your taxable profit.
The key is extensive research, know your real estate market as the real estate markets are different. Get a thorough inspection before you purchase a property. If all this factors are considered chances are you will get a good stream of residual income.
How to Determine Your Returns Of Investments
March 22, 2009
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Every investor wants to know the returns on their investment. So how do they measure this returns?
They are varies ways of measuring this returns this blog will focus on two main ways that most business use. The purpose of measuring returns should not only focus on profits but should focus on areas that can be improved which ultimately lead to profits
A. Return on Investments.
Return on Investment (ROI) is a traditional financial measure based on historic data.ROI is a backward-looking metric that yields no insights into how to improve business results in the future.In education organizations, ROI has been used primarily for self-justification rather than continuous improvement.
Return on investment isn’t necessarily the same as profit. ROI deals with the money you invest in the company and the return you realize on that money based on the net profit of the business. Profit, on the other hand, measures the performance of the business. Don’t confuse ROI with the return on the owner’s equity. This is an entirely different item as well. Only in sole proprietorships does equity equal the total investment or assets of the business.
B. Internal Rate of Return
You can think of IRR as the rate of growth a project is expected to generate. While the actual rate of return that a given project ends up generating will often differ from its estimated IRR rate, a project with a substantially higher IRR value than other available options would still provide a much better chance of strong growth.
IRRs can also be compared against prevailing rates of return in the securities market. If a firm can’t find any projects with IRRs greater than the returns that can be generated in the financial markets, it may simply choose to invest its retained earnings into the market.
Obama On Capital Gains Income Tax
February 13, 2009
As the stimulus debate continues what is the new administration view on capital gains income tax?
There is not yet a precise outcome on how and what will change. However some of the suggestion that have been voiced includes:
The idea has been raised of cutting federal corporate income tax rates from 35 percent to 25 percent and easing or lifting investment and capital gains taxes to help spur now dormant business investment. That would trickle down into capital spending, expansions and eventually job growth, advocates contend.
According to Phoenix business journal there have been pushes at the federal level to use portions of the remaining $350 billion in Troubled Assets Relief Program, or TARP, funds to rework mortgages, impose foreclosure moratoriums and allow bankrupt homeowners to rework mortgages like other debt in bankruptcy court. The line of thought being that economic troubles started in the housing market and that is where the fix needs to start.
My view on all this is something needs to be done. If the new administration focus on jobs creation and on laws that will stimulate investment they we are headed on the right track
How The Economic Stimulus Will Affect Investors
February 6, 2009
As an Investors my interest in the stimulus is how it will affect investors. How will the president’s stimulus stimulate investing in the recession period? This blog looks at some of the areas where business and investors will benefits from the Economic Stimulus.
First time home buyers are in for a treat. This is because tax credit has increased to $15,000. This tax credit will apply to all purchases within a year after the bill has been passed into law. This homes have to be a principal residence. The tax credit would induce many Americans who don’t own a home “to at least take a look at what’s out there,” However Taxpayers would have to repay the amount of the credit to the government over 15 years essentially making it an interest-free loan from the government.
Small businesses would continue to be able to deduct up to $250,000 of certain expenses the 2008 stimulus bill offered that amount and the stimulus would extend it temporarily.
A five-year carry back of net operating losses, up from two years currently. “If you have a loss in the current year, you can go back up to five years and if you’ve had income in the previous five years … you could go back and offset that current year loss and get a refund,” said Mark Luscombe, a principal analyst with CCH Inc., a Riverwoods, Ill., tax publisher.
Other areas that could boost the economy and have an impact on investors are expansion of unemployment insurance benefits. Various measures to address rising energy costs, help increase energy efficiency, and create green jobs.
How this will actually boost the economy is a wait and see situation. However l think they are some positive changes for investors in the stimulus. Thus investor need to be on the look out for more may come out in the continuing economic stimulus debate.
