As the housing market continues to struggle, Congress enacted a refundable credit allowing taxpayers to claim as much as $8,000 tax refund. The provision is set to expire on November 30, 2009. A recent article in The Wall Street Journal reports that tens of thousands of taxpayers have submitted potentially fraudulent home-buyer credit claims on their tax returns. There was not an age limitation on the credit. Thus, the Treasury Department reported that more than 500 people under the age of 18 have attempted to claim the credit. The main sponsor of the credit, Sen. Johnny Isakson (R., Ga) stated that he is cautiously optimistic that the credit will be extended. He stated that there will be additional safeguards in put into place. Currently, the credit is available to single filer taxpayers with AGI up to $75,000 and married couples with AGIs not exceeding $150,000.
Friday, October 23, 2009
Monday, April 20, 2009
After Tax Season
The storm has finally passed. It was a tsunami to say the least. There were many factors that directly affected tax season: President Obama taking office in January, the rocky road of the stock market, the banking credit crisis and real estate bubble burst. Oh, did Iforgot to mention the impeachment of Blagojevich, the proposed Illinois state tax increase and the recent local elections? It was a rarity to read the news and not see any of these items making the headlines. I don't have a crystal ball, but I believe that tax rates will increase in the next year or two. Will the estate tax disappear? Probably not. Will minority discounts be shot down by Congress? I don't think so either. There is a lot going on right now that the business owner should be aware of. Make it a point to sit down with your CPA and attorney to start addressing the direct or ancillary issues that could put your business in peril. Start tax planning now for 2009. There are many planning ideas that you can incorporate to reduce your potential tax liability.
