Expanded Home Tax Credit for Armed Service Members

admin — Wed, 23 Jun 2010 21:35:27 +0000

Our courageous armed service men and women now have until April 30, 2011 to take advantage of the home buyer tax credit. Although it expired a little over a month ago for most Americans, this extra year goes a long way for qualified service members.
Specifically, this extension applies to:
• Anyone who served on extended duty outside of the U.S. for 90 days or more between January 1, 2009 and April 20, 2010
• Any member of the uniformed services of the U.S. military, a member of the Foreign Service of the United States, or an employee of the intelligence community
Those who meet these qualifications have until April 30, 2011 to sign a sales contract, and until June 30, 2011 to settle and close on the home. This includes both the $8,000 first-time and $6,500 repeat home buyer tax credits.
Congress recognized that many service members may have been posted overseas, and therefore missed out on the home buyer tax credit. “It is only fitting that they be given another year to take advantage of this opportunity in appreciation of the sacrifices they have made serving our country,” says Bob Jones, Chairman of the National Association of Home Builders.
In addition to this expansion, Congress has made another adjustment for members of the armed service. Previously, a buyer was required to repay the credit if they moved out of their home within three years. This rule has been waived, however, for those that may have to sell their home due to receiving government orders for extended duty service.
Having another year to take advantage of this tax credit is a welcome (and much-deserved) opportunity for those who are serving our country around the world. To learn more about the home buyer tax credit, including eligibility requirements, please visit www.FederalHousingTaxCredit.com. Happy house hunting to those who qualify!

6 Overlooked Tax Breaks

admin — Wed, 18 Nov 2009 03:51:28 +0000

Whether you run a big corporation, a small start-up, or a busy household, your main tax concern is likely minimizing the amount you have to pay and maximizing the return you receive at the end of the year. One of the best ways to accomplish this is enlisting the services of a Certified Tax Professional, who can clue you into potential tax benefits. Below are just some of the breaks that are often overlooked by those who file their own returns:

Medical expenses: If your annual medical bills add up to over 7.5% of your income, they can be written off as a tax deduction. While you can’t count portions that were paid by an insurance policy, any non-covered costs are eligible, including associated expenses like insurance premiums and mileage to and from a treatment facility.
Property taxes: As of 2008, married couples filing jointly can enter a standard deduction of up to $1,000 for real estate taxes, and single homeowners can deduct up to $500—even if they don’t have enough deductions to file an itemized return on a Schedule A.
Moving costs: It’s one of the most stressful ordeals a family can go through, but at least you can reap a tax benefit if the move was related to a job transfer. Your CPA can identify which moving costs are eligible to serve as deductions, such as mileage, truck rental, and storage fees.
Child care: You’ve already resigned yourself to this inevitable expense—but did you know that any child care, preschool, or even summer day camp fees qualify as tax credits if your children attend during your work hours?
Working from home: Even if you don’t feel comfortable writing off the corner of the bedroom as home office space, you can deduct any purchases you make that support the work you do at home, such as a laptop, planner, pens and notebooks, business cards, and possibly even Internet access.
Job hunting: With rampant layoffs and longer periods of unemployment, this oft-overlooked tax break can mean considerable savings for workers who are seeking a new position within the same field. Keep track of printing costs, travel expenses, recruiters’ agency fees, and any expenses related to your job hunt.

When you work with a CPA, you’ll enjoy the peace of mind that comes with having a fresh (and highly trained) pair of eyes to evaluate your financial situation. After all, wouldn’t you rather be focusing on your business or family than crunching numbers? Let a professional chase down hidden tax deductions, saving you valuable time and money.

Gabrielle M. Luoma, CPA PLLC » Tax

Expanded Home Tax Credit for Armed Service Members

6 Overlooked Tax Breaks