The Federal Tax Credits Blog

Archive for June, 2008

Question: Will the proposed tax rebates be considered income for 2008, or is it an advance on next year’s tax refund?

My husband is self-employed and we don’t end up paying taxes because our credits offset the amount of tax that would need to be paid – we don’t get a refund, but we don’t have to pay the IRS either. I don’t want to spend a rebate check and then end up having to pay it back to the government next year come tax time. So… is the rebate a gift that we have to pay taxes on, or is it a loan that the government anticipates will be paid back with next year’s refund?

Answer: Since the legislation has not been passed yet, it’s impossible to say for certain what it will be, or even IF it will be. If I remember correctly from the last time they did something like this a few years back, I think the rebate was a actually a reduction in the income tax but instead of having to wait until filing a return the next year, they sent out the reduction as a check in advance.

As I understood that one, they determined based on your 2000 income what amount of a rebate you got in 2001. When you filed your return for 2001, they had already set up the tax rate tables to factor in the rebate so most people didn’t have to do anything different when they filed the 2001 return. For people that got less than they should have (because their income was higher in 2001 than in 2000), there was a way for them to claim the extra amount they were due. For people that got more than they should have, they were NOT required to pay it back.

The rebate was just that – a rebate, essentially an advanced refund check. It wasn’t a gift and was not taxable income. The nice thing was that even if they sent you a check and it turned out you didn’t really qualify for it because of low 2001 income, you didn’t have to pay it back.

Time will tell if this year’s version has the same rules – or if it even gets passed. In my opinion, the leaders of both political parties act like spoiled brats and insist on having things their way every time and are unwilling to compromise for the good of the country, so even though they currently say they’re working together to get this done, there’s still the chance that one or the other will see some political advantage in making it fall apart and blaming the other party (which seems more important to them than doing what’s good for the people of the country).

This link points to a detailed discussion about how the 2001 rebate worked: http://www.fool.com/taxes/2001/taxes010615.htm

Meet C-J’s Kansan of the Year

A month after Gov. Mark Parkinson took office earlier this year, some odd poll numbers emerged. Survey USA results showed 55 percent of Democrats supported him. But even more Republicans — 57 percent — approved of the new head of Kansas. read more

Bounds on McCain: MSNBC 10/30/08

Question: Can anyone give me any information about car and tax?

So if I go and buy a car for that I would use a lot for my job isn’t there some sort of tax credit thing that I can file when I do my taxes do they usually give back how much you paid or what? I researching into real estate and I need a better car to take clients to go see homes

Answer: If your employer “requires” you to use your personal vehicle for business, then you can claim mileage IF you have enough other deductions to itimize.

You need to keep a detailed log of how many business miles you have driven each day. You need to keep that long in case your tax return is audited, as this would be used to substantiate the mileage you claim. You needed to have MORE THAN $8,450 in deductions if you were single last year in order for it to benefit you to itimize (almost $17,000 if married filing jointly). If you exceed that in deductions, remember that the amount you get to claim for mileage is limited when you file. You take credit on Schedule A for the mileage amount that exceeds 2% of your adjusted gross income. You can also claim either state income tax OR sales tax, but not both. If the tax paid on a vechicle + the total of other sales tax you pay annually is more than the state income tax you pay, then you can claim the sales tax amount whether or not you use a car in your business.

If you are in business for yourself, then you can purchase a vehicle to use in that business and amortize the price over a number of years where you figure your profit/loss from your business. You can select a couple of methods to expense the car/mileage. You would probably need to read up on this in Publication 17 which is available on line from the IRS if you’re going to do your own taxes. The link below is for the tax year 2006. The new one that will be used when you file this year’s taxes (2007) has not been released yet.

Rust Belt, Las Vegas comparison premature — even with gaming in peril

Las Vegas may have more in common with Pittsburgh and Detroit than many people realize, says Mary Riddel, a UNLV economist and the interim director of the Center for Business and Economic Research.

Brown Supports Research Tax Credit

All water heaters use an energy source to heat water. Water which comes into your home from a well or city water system is cold and a water heater uses electric energy or natural gas to heat the water to a temperature of between 120 and 180 degrees Fahrenheit. Most conventional water heaters do this by storing the water in a tank which holds between 40 and 100 gallons of water. The energy source works on a thermostat which turns the energy on whenever the water in the tank falls below a certain temperature. The water is heated whether or not you are using it. Since cold water enters the tank when hot water is removed, the energy comes on more frequently when hot water is in use. Powerstar tankless heaters only heat water as you use it.

If you have ever had the experience of running out of hot water in the middle of your shower, you are aware of one of the drawbacks of tank style water heaters. It takes between 20 and 45 minutes for the heater to heat the water in the tank. If you use all the hot water in the tank, you have to wait for the system to recover and heat additional water. The larger the tank, the less often you will run out of hot water. Larger tanks take more energy to keep the water hot and therefore add to your energy usage and your electric bill. Water heaters that heat water continuously, like the powerstar tankless heater, only use power when you use hot water.

Powerstar electric water heaters can be an excellent supplement to a solar heaters. Solar heaters use storage tanks where the water is heated. Powerstar water heaters are a tankless systems which heat water on demand. If the water from the solar heater is not hot enough, the system will heat the water to the desired temperature with electricity. The heating unit only comes on when the water is not hot enough. The warmer the water entering the system, the less power it will use. Powerstar electric water heaters are energy efficient and will produce a continuous supply of hot water regardless of weather conditions.

The powerstar tankless heater doesn’t use a tank, but heats the water as it enters the house. Tankless heaters provide a steady, continuous source of hot water. The amount of hot water produced depends on the capabilities of the system. Powerstar tankless heaters produce more than two gallons of hot water per minute. Installing a tankless water heater will save homeowners money on an appliance that accounts for a significant percentage of the total energy used in their home.

Los Angeles Plumber Advises Only Weeks Remaining for LA Home Owners to take Advantage of Energy Efficiency Tax Credits

The federal tax credits of up to $1500 on high efficiency tankless water heaters expire on 31 December 2010. Los Angeles plumbing contractors Schuelke Plumbing advises that only weeks remain for LA home owners to upgrade the energy efficiency of their home and claim the credits. (PRWeb December 14, 2010) Read the full story at http://www.prweb.com/releases/losangeles/plumber …

Best tankless water heaters

Many individuals have been accustomed to fireplaces in their homes for decades. However, only a few numbers of individuals can say that they know how to operate a fireplace. It is very essential to know and understand how to operate and give proper maintenance to a fireplace. This is to ensure the safety of your home and your family as well. Though for some individuals this is a very simple endeavour, it really helps to have the basic knowledge when it comes to fireplace maintenance because of the safety hazards involved. A little mistake could end up into a one huge mess.

Always teach the children how to properly use a fireplace. Using the fireplace and providing it with the proper maintenance should be taught to older children while smaller children should be advised to stay away from fireplaces. Older children should be closely monitored as they are still prone to commit errors. Adults should not take any risks or chances when it comes to their children dealing with fireplaces as working with fireplaces are at the same time dealing with fire. Maximum caution should always be followed when dealing with a fireplace.

The best piece of advice is perhaps giving simple and understandable instructions. However, this is not always workable for some hard headed individuals who just have the urge of using a fireplace. Perhaps it would be best to post some safety guidelines near the area of the fireplace to be certain that those who wanted to use the fireplace will be properly guided.

Unnecessary mistakes in the operation and usage of a fireplace is very costly and life threatening. It is very important to know the fundamentals to keep fireplace accidents from happening. There are numerous things in the internet that can be use and that can provide people with the proper knowledge in using a fireplace.

Fireplaces spark interest

When the weather gets colder, the interest in adding a fireplace heats up with homeowners. And for good reason: Fireplaces are aesthetic and energy-efficient, according to Kevin O’Malia, vice president of O’Malia’s Fireplace Shop in Carmel.

Zoobler.com Demo, 4700tec wood insert

Knight Frank’s London Residential Review (Autumn 2009)[1], highlights that today’s average London tenant signs for less than a year – standing at 11.5 months.

In response to the figures, upad, the UK’s marketplace for property rental, is encouraging landlords to ‘think outside the box’ in their bid to attract and retain tenants.

The report cites numerous reasons for the shift, but upad founder and CEO, James Davis, believes it is possible for landlords to reverse the trend, provided they are willing to ‘go the extra mile’.

He comments: “Renting is a lifestyle choice, and people choose to do it because they want the flexibility. Your tenants are usually in a transitional period of their lives, and looking to move on at some stage soon.

“When you become a landlord, your primary aim is to make sure the property is occupied, and for as long as possible. Good landlords should have no problem securing above average tenancy agreements but may need to look at novel ways of encouraging tenants to stay put.

“Offer to decrease the rental charges, redecorate the property, or install a dishwasher. You could even offer to pay for a weekend away, if tenants agree to renew. Each of these options make good business sense in the long-run, and would help to engender a good landlord/tenant relationship. What you need to remember is that the cost of these items would be easily offset against a long void period – something no one can afford in the current climate.

Davis continues: “I’d always advise that landlords monitor the competition on the property portals, and ensure their property remains as competitive as possible.”

[1] http://resources.knightfrank.com/GetResearchResource.ashx?id=11629

2009 in western Queens

Events of 2009 have put western Queens in the spotlight. State Sen. Hiram Monserrate (D-Corona) hit city and state headlines repeatedly, both for assaulting his girlfriend, and for helping instigate a coup that left the state Legislature gridlocked for a month.

2009-12-6 LBNH Energy Pros & Habitat Restore.flv