Tax Whammies

#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?