The Federal Tax Credits Blog

Archive for October, 2009

There are a number of different factors that you have to consider when it comes to car insurance. Some things are unique to the state that you drive in, but in most cases, you can safely assume that the same rules hold good. If you keep most of these factors in mind when you go in for your car insurance, you can be assured of getting good rates for your premium. In the long run, getting a good price is very beneficial and will ensure that you don’t end up blowing a small fortune on your car insurance alone.

The first important factor that you need to know about is that the kind of car you drive matters a lot. Don’t misinterpret this as thinking that costlier the car is, the more expensive it is going to be for being insured. This is partially true, and you might need to keep in mind that other things like safety features installed in your car also have a say in California car insurance. Moreover, if you drive a car that has a higher chance of being stolen, then you are bound to pay a lot for your premium. Companies take notice of all these parameters before deciding on your premium.

Another thing about Los Angeles auto insurance that you ought to know about is that the premium is dependent on your credit rating as well. Hence, you would ideally want to maintain a good credit rating so that you don’t end up paying a higher premium simply because you were not careful with how spent your money. Increasing credit rating is not particularly hard and you can easily apply a number of different techniques in order to improve your rating. The best part is that once your rating increases, it is going to stay high for a pretty long time, maybe even for months together. Your premium will consequently fall down because of this.

The other factor that Los Angeles car insurance is that the insurance premium is dependent on things like how often you have been pulled over by the cop on the road and also if you are frequently involved in traffic incidents. These things matter even in other locations and hence, you should ideally strive to be a good driver. In all states, you should strive to be an ideal driver, which will help you get insurance at really good prices. After all, if you don’t make too many claims and drive in a safe manner, then the insurance companies will be more than happy to keep you as their customer.

Hence, make sure that you use all of these factors in helping you get good insurance rates in the future. You might be glad that you did all the groundwork before going in for the insurance, because the cost savings in the long run can be phenomenal.

My Personal 2010 Predictions

In an effort to save a lot of pain and suffering for those people who don’t want to read an incredibly long blog post, I have a nice little summary table.  The predictions run the gamut of my personal and professional interests, so they may not be 100% interesting to all people. read more

Question: Can I use the $8000 tax credit as part of a down payment to purchase a home?

I’m in NY and looking into purchasing a home. Can we use the $8000 tax credit towards the purchase of the home, say as a down payment?

Answer: Number 1: it’s only $7500 and that’s only if you’re a Couple. Number 2: That’s the maximum possible credit. It’s a “credit” against your income tax. If your adjusted gross income doesn’t mean that you owe more than that in taxes, you won’t get the maximum amount. Number 3: You don’t get the credit until after you buy the house. This is not a rebate you can spend as part of the down payment.

Well, Leanna, I’m only half-”confused” and you’re at least half-confused as well. Here’s some more information:

FOR HOMEBUYERS
Benefit: If you’re thinking about buying a home, the tax credit of 10 percent of the value of the home, up to $8,000, is meant to entice you to make the leap. If you live in the house for three years, you will not have to repay the money. To qualify, you must have bought a home between Jan. 1, and Dec. 1, 2009.
What you should do: If you bought a home in 2009 and you’ve already filed your taxes for 2008 and claimed the previously existing credit of $7,500, you can file an amendment to get the remaining $500. Otherwise, file for the benefit when you do your 2009 taxes next year.

The answer to your basic question remains: you canNOT use the tax credit as part of the downpayment, since it’s not cash you’re getting. Make sure you check the IRS site and comply with all the requirements before you make any decisions about the hosue purchase.

More families face debt blowout

The number of Kiwis vulnerable to high debt doubled in four years, the Treasury says, with one in five families spending almost a third of their income on debt repayments.

New tax credit good news for first-time home buyers.(Business)(Taxpayers may be eligible for up to $8,000 that does not have to be paid back): An article from: The Register-Guard (Eugene, OR) $9.95 This digital document is an article from The Register-Guard (Eugene, OR), published by The Register Guard on February 26, 2009. The length of the article is 655 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: New tax credit good ne…

8000 Tax Credit First Time Home Buyer – Tulsa Mortgage Lending – ZFG Mortgage – 918-459-6530

Question: How would solar federal tax credits benefit the owner of a S corp?

A business that puts in a solar energy system is entitled to a 30% federal investment tax credit. I am not sure if or how this could benefit owners of an S Corp.

I am also wondering the same about C corps and LLC’s?

I was told that solar tax credits would have no benefit for S corps and the like because they typically do not pay any corp income tax. I am not sure if this is true.

Thanks for any help with this.

Answer: This credit would benefit the owners of an S corp on their personal returns as their share of the credit would be passed to them on the Schedule K-1 that they would receive from the S corp.

In the case of a C corp, it would be a credit against their tax liability just like any credit.

As far as an LLC, the question doesn’t make sense since the term LLC is an adjective describing the company – it is not a form of business in itself. In other words, and LLC could be a sole propriatorship, a partnership, an S Corp, or even a C Corp.

In a nutshell, this credit, like all credits, would benefit whoever pays the taxes of the business – the C corp itself, or the owner(s) or the sole proprietorship or partnership or S corp.

Logansport couple plugs into the sun’s power

LOGANSPORT, Ind. (AP) – A northern Indiana couple who run a landscaping business are now plugged into the sun’s power with solar panels that have cut their monthly electric bills more than in half.

Cap and Trade and Carbon Credits: An Introduction (4th Edition, Jan 2012) $4.99 Expanded 5th Edition (April 2012). Over 13,200 words.The principles of Cap and Trade and Carbon Credit are introduced in these well-researched series of articles focusing on different aspects of the issue as well as the latest developments like the U.S. EPA ruling on emission standards for new coal-fired power plants.——————————————————– TABLE OF CONTENTSWhat is…

Platts: Financing Renewable Power Generation — Forecasting the Value of Renewable Energy Credits and the Role of the Production Tax Credit $35.00 This 5-page White Paper by Platts, a McGraw-Hill company, focuses on renewable power generation becoming an ever more important component of the U.S. power system and Platts renewable supply model. Topics include the renewable power supply model and Renewable Portfolio Standards (RPS) setting demand for renewable power and methodologies used to assess current and future available technology resour…

JK Lasser’s Guide for Tough Times: Tax and Financial Solutions to See You Through $0.44 While you may be concerned about the current state of the economy, there are things you can do to improve your situation, and J.K. Lasser’s Guide for Tough Times will show you exactly what they are. Filled with in-depth insights and expert advice, this practical guide details the essential strategies that will see you through the current market, and help you handle several key aspects of your pers…

TurboTax Home & Business Federal + State + Federal efile 2009 $42.89 TURBOTAX HOME & BUSINESS WITH…

Urban Re:Vision Director Eric Corey Freed talks energy efficiency tax credits with Fox Business News

Undisclosed Offshore Accounts are being hunted down with FBAR (Foreign Bank Account Reporting) information requests of U.S. Taxpayers suspected of hiding assets in the wake of the UBS AG fallout and IRS Offshore Settlement Initiative.

What is in store for undisclosed account holders?

In 2009, the IRS and U.S. Department of Justice commenced a highly publicized investigation into Swiss bank UBS AG and U.S. account holders who essentially hid their assets from the U.S. Government. However, the investigation did not conclude with UBS. To entice taxpayers to come clean and disclose their foreign assets in exchange for lesser penalties, the IRS instituted the Offshore Settlement Initiative Voluntary Disclosure Program (the Initiative). Although the deadline to participate in the Offshore Settlement Initiative is long gone, it is clear that offshore tax evasion will continue to be a top IRS enforcement priority. Now, what can U.S. taxpayers with undisclosed offshore accounts who did not make the October 15, 2009 Offshore Settlement Initiative deadline expect coming up?

The IRS will be ramping up their Information Document Requests or IDRs targeting offshore bank accounts.Taxpayers may receive a Form 6564, Information Document Request, to obtain necessary books, papers, and other information relevant to the IRS examiner inquiry into the truthfulness of a tax return. The Information Document Request is a proper and structured process for the IRS to request and get information from taxpayers, including information regarding offshore bank accounts. Although not as formal as a subpoena, an IDR carries with it consequences for failure to comply and can lead to further inquiry and possible sanction.

The IRS will focus Information Document Requests on U.S. taxpayers with offshore assets and accounts that failed to disclose these interests to the U.S. government on their Form 1040, U.S. Individual Tax Returns, and file a corresponding Form TD F 90-22.1, Foreign Bank Account Reporting FBAR. If IRS agents discover that a taxpayer has not reported an interest in an offshore account or income accruing on such accounts during the course of an audit, the IRS may impose steep penalties including the greater of $100,000 or 50% of the offshore account balance for willful failure to file an FBAR for each account. These penalties, compounded with interest and fraud penalties, can essentially wipe out the taxpayers foreign assets. Additionally, taxpayers could be subject to criminal prosecution and jail time for tax evasion.

The issues surrounding these IDRs are extremely delicate and should be approached with considerable caution. Taxpayers who have been sent an Information Document Request by the IRS are best served by getting in touch with a tax attorney who is experienced at resolving disputes with the IRS quickly. An attorney can direct the taxpayer how best to answer an Information Document Request and will be able to talk with his attorney the most appropriate course of action. Otherwise the Internal Revenue Service can seek formidable fines and possible criminal prosecution against those U.S. Taxpayers believed to be hiding assets in undisclosed offshore accounts.

Business briefs for July 2

State grant will help pay for youths’ jobs

High Gas Altenative Fuel Source

Question: Here’s Obama’s tax plan, What are your comments?

Raise income taxes on wealthiest and their capital gains and dividends taxes. Raise corporate taxes. $80 billion in tax breaks mainly for poor workers and elderly, including tripling Earned Income Tax Credit for minimum-wage workers and higher credit for larger families. Eliminate tax-filing requirement for older workers making under $50,000. A mortgage-interest credit could be used by lower-income homeowners who do not take the mortgage interest deduction because they do not itemize their taxes
We have seen similar plans in the past and they stifle economic growth.
Uh yeah…Personally I think this is a BAD idea….duh

Answer: I do not believe you have included everything, or what Obama deems to be “wealthy”. $60,000 year income is not wealthy if you are married and have a family. Furthermore, those incomes of the small business owner or small farmer would be included in Obama’s “wealthy”, when in fact they don’t actually SEE the majority of their income since it is put back into their business. I DON’T WANT MY HARD EARNED SAVINGS, IRA, HOUSE or anything else be taxed via Capitol Gains and given to those with their hands out. THIS STILL IS NOT A SOCIALISTIC COUNTRY!!!!! THERE WILL BE NO REASON TO ACHIEVE FOR YOUR AMERICAN DREAM when this guy takes your hard earned money and gives it to another.

WAKE UP AMERICA

Cape Coral mailbag: Obama for the people

I direct my comments to a recent letter by Maggie Culleton on health care.

Agreement reached on stimulus bill