#1 - IS IT A JUST A COINCIDENCE?
October was the final filing date for 2008 taxes.
October is National Disability Month.
Coincidence? Makes a person wonder.
Just my dry humor, Sorry
#2 - SALES TAX DEDUCTION FOR NEW CAR BUYERS WILL BE EXTENDED
UNTIL YEAR-END
Purchases of a new (not used) car, light truck, motor home or motorcycle could qualify you for a special deduction for the state and local sales and excise taxes on 2009 tax returns.
The deduction is only for purchases made by the last day of 2009, and is limited to the taxed paid on up to $49,500 of the purchase price of the new vehicle.
You can get this deduction whether or not you itemize your deductions. If you do not itemize, you add this additional amount to the Standard Deduction on your 2009 tax return.
#3 - WARNING: IRS PUTS A 'TRIPLE-WHAMMY'ON HOME-BUSINESS OWNERS
Driven by Washington's massive spending spree, auditors are under more pressure than ever to "bring home the bacon" - and it's YOUR bacon!
In the coming year, if you are a Schedule C filer (sole proprietor or LLC), your chances of being audited just doubled.
That’s whammy #1.
Whammy #2 -- And if they do audit you, they will try to prove that you are not running a "business with the intent to make a profit" (which would kill ALL of your home business tax deductions).
The third "whammy" is the careful look they will take at the deduction you took -- or didn’t take -- for business use of your home (i.e., home office).
The taxpayer's problem will NOT come from CLAIMING this deduction, but from NOT claiming it.
You see, auditors are being taught that every legitimate business must be "based" somewhere.
If you claim to be a home-BASED business (HBB), but you don’t claim a home office, where is it BASED?
Saturday, October 24, 2009
Saturday, October 17, 2009
Saturday Tax Advice
IS YOUR "TAX PREPARER" A "TAX PROFESSIONAL ?"
In most states anyone can hang out a shingle claiming to be a "Tax Preparation Service," without any licensing or certification of any kind.
Some of them are well informed and handle the task exceedingly well. But not all of them.
Congress is yielding to pressure from the IRS to implement a registration requirement of some kind.
Expect legislation later this year, but don't expect
it to take effect until AFTER the coming tax season.
E-FILING OR PAPER-FILING? SURPRISE: THE IRS DOESN'T WANT US TO HAVE A CHOICE
If you have my book and read my Tax Tips, you know I am NOT a fan of E-Filing of Tax Returns, because it robs you of audit-proofing options and increases your chances of an audit.
The BAD NEWS:
The IRS is pushing Congress to force all taxpayers to file returns electronically by 2011. But so far, it looks like the requirement will apply only to all tax preparers who process 100 or more tax returns.
The SOLUTION:
After our tax pro has finished his or her work for us, maybe we'll have to tell them: DON'T SIGN my tax return. That would still leave us the option of filing our OWN Tax Return as a PAPER return.
Lenisa
With Help for You Taxes
In most states anyone can hang out a shingle claiming to be a "Tax Preparation Service," without any licensing or certification of any kind.
Some of them are well informed and handle the task exceedingly well. But not all of them.
Congress is yielding to pressure from the IRS to implement a registration requirement of some kind.
Expect legislation later this year, but don't expect
it to take effect until AFTER the coming tax season.
E-FILING OR PAPER-FILING? SURPRISE: THE IRS DOESN'T WANT US TO HAVE A CHOICE
If you have my book and read my Tax Tips, you know I am NOT a fan of E-Filing of Tax Returns, because it robs you of audit-proofing options and increases your chances of an audit.
The BAD NEWS:
The IRS is pushing Congress to force all taxpayers to file returns electronically by 2011. But so far, it looks like the requirement will apply only to all tax preparers who process 100 or more tax returns.
The SOLUTION:
After our tax pro has finished his or her work for us, maybe we'll have to tell them: DON'T SIGN my tax return. That would still leave us the option of filing our OWN Tax Return as a PAPER return.
Lenisa
With Help for You Taxes
Saturday, October 10, 2009
Deadline Fast Approaching!!!
FINAL TAX-FILING DEADLINE IS JUST ONE WEEK AWAY. BUT, WHAT IF YOU ARE STILL NOT READY TO FILE?
If you filed for an extension to file your 2008 Tax Returns, your final deadline is one week from today, on Thursday Oct. 15.
If you miss that deadline, but THEY owe YOU money, don't worry, they are happy to keep it a little longer - but don’t expect them to pay interest.
But what if YOU OWE THEM?
That is a WHOLE DIFFERENT MATTER!
When you filed for an extension, that gave you more time to FILE, but it did NOT give more time to PAY. All underpaid taxes were due on April 15th.
Even if you DO file on or before Oct, 15, you will owe interest dating back to Aril 15, but if you ALSO FAIL TO FILE by Oct. 15, that's when they hit you with serious penalties -- on top of the interest!
Important questions you may have, are:
What if I just CAN'T BE READY by Thursday?
What if I DON'T HAVE THE MONEY I owe?
Can I get another extension for a little longer?
THOSE QUESTIONS ARE ANSWERED in a free one-page bullet-point summary. Just go to www.HomeBusinessTaxSavings.com to get it. You'll find the download link just TO THE LEFT of the box offering a free video that reveals:
"#1 Secret to Slashing Your Taxes in Half."
HAVE YOU COMPLETED YOUR 90-DAY VEHICLE-USE LOG? IF NOT, READ ON…
Without at least a 90-day log, you risk losing ALL deductions for business use of personal vehicles. Guess what? There are exactly 85 days left in 2009.
That's 5 days short of 90, but you can "recreate" your vehicle use for the past 5 days, and then keep accurate records for the next 85 days. Then, voila- you have a 90 day log, and thus get to claim vehicle deductions for the WHOLE YEAR. BUT if you wait a few more days to begin your log -- you will LOSE $3,000 to $5,000 or more in tax deductions.
WHEN YOU TRAVEL FOR BUSINESS -- ARE YOU USING "PER DIEM RATES" TO DETERMINE MEAL DEDUCTION AMOUNTS?
If so, could you stand some GOOD news?
PER DIEM rates are based on the Government Fiscal Year -- October 1 through September 30 -- NOT on the Jan.1 to Dec. 31 calendar-year and Tax-Year.
Technically, for travel between Oct. 1 and Dec. 31, 2009, you can choose whether you want to use the
"old" FY 2009 rates or the "new" FY 2010 rates.
I say "technically" because you COULD use the 2009 rates, but you'd be an idiot if you did, because they have INCREASED in the 2010 Per Diem schedule.
The amounts allowed for breakfast and lunch have remained unchanged, but Dinner rates have increased by $5.00, no matter where you are traveling in the U.S., and the deduction for Incidentals has increased from $3.00 to $5.00 per day.
"Incidental Expenses" include fees and tips to porters, baggage carriers, bellhops, hotel maids, and shipboard
stewards and stewardesses, according to examples the IRS provides.
The deductible rates for Meals and Incidental Expenses (M&IE) depends on your business travel destination, and
sometimes also on time-of-year.
For high-cost locations, the total daily M&IE rate is $71 for FY10. The rate for the lowest-cost locations rate $46. And there are in-between rates.
How do you know how much you can claim?
FIRST go to www.gsa.gov/perdiem to see the M&IE rate for the location you are traveling to.THEN go to www.gsa.gov/mie to see the breakdowns of Breakfast, Lunch, Dinner, and Incidentals deductions.
Get those deductions!!! It is legal and it is YOUR’S…
Lenisa Cooper
LenisasPersonalTouch.ning.com
If you filed for an extension to file your 2008 Tax Returns, your final deadline is one week from today, on Thursday Oct. 15.
If you miss that deadline, but THEY owe YOU money, don't worry, they are happy to keep it a little longer - but don’t expect them to pay interest.
But what if YOU OWE THEM?
That is a WHOLE DIFFERENT MATTER!
When you filed for an extension, that gave you more time to FILE, but it did NOT give more time to PAY. All underpaid taxes were due on April 15th.
Even if you DO file on or before Oct, 15, you will owe interest dating back to Aril 15, but if you ALSO FAIL TO FILE by Oct. 15, that's when they hit you with serious penalties -- on top of the interest!
Important questions you may have, are:
What if I just CAN'T BE READY by Thursday?
What if I DON'T HAVE THE MONEY I owe?
Can I get another extension for a little longer?
THOSE QUESTIONS ARE ANSWERED in a free one-page bullet-point summary. Just go to www.HomeBusinessTaxSavings.com to get it. You'll find the download link just TO THE LEFT of the box offering a free video that reveals:
"#1 Secret to Slashing Your Taxes in Half."
HAVE YOU COMPLETED YOUR 90-DAY VEHICLE-USE LOG? IF NOT, READ ON…
Without at least a 90-day log, you risk losing ALL deductions for business use of personal vehicles. Guess what? There are exactly 85 days left in 2009.
That's 5 days short of 90, but you can "recreate" your vehicle use for the past 5 days, and then keep accurate records for the next 85 days. Then, voila- you have a 90 day log, and thus get to claim vehicle deductions for the WHOLE YEAR. BUT if you wait a few more days to begin your log -- you will LOSE $3,000 to $5,000 or more in tax deductions.
WHEN YOU TRAVEL FOR BUSINESS -- ARE YOU USING "PER DIEM RATES" TO DETERMINE MEAL DEDUCTION AMOUNTS?
If so, could you stand some GOOD news?
PER DIEM rates are based on the Government Fiscal Year -- October 1 through September 30 -- NOT on the Jan.1 to Dec. 31 calendar-year and Tax-Year.
Technically, for travel between Oct. 1 and Dec. 31, 2009, you can choose whether you want to use the
"old" FY 2009 rates or the "new" FY 2010 rates.
I say "technically" because you COULD use the 2009 rates, but you'd be an idiot if you did, because they have INCREASED in the 2010 Per Diem schedule.
The amounts allowed for breakfast and lunch have remained unchanged, but Dinner rates have increased by $5.00, no matter where you are traveling in the U.S., and the deduction for Incidentals has increased from $3.00 to $5.00 per day.
"Incidental Expenses" include fees and tips to porters, baggage carriers, bellhops, hotel maids, and shipboard
stewards and stewardesses, according to examples the IRS provides.
The deductible rates for Meals and Incidental Expenses (M&IE) depends on your business travel destination, and
sometimes also on time-of-year.
For high-cost locations, the total daily M&IE rate is $71 for FY10. The rate for the lowest-cost locations rate $46. And there are in-between rates.
How do you know how much you can claim?
FIRST go to www.gsa.gov/perdiem to see the M&IE rate for the location you are traveling to.THEN go to www.gsa.gov/mie to see the breakdowns of Breakfast, Lunch, Dinner, and Incidentals deductions.
Get those deductions!!! It is legal and it is YOUR’S…
Lenisa Cooper
LenisasPersonalTouch.ning.com
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