The Federal Tax Credits Blog

Posts Tagged ‘$10000’

Question: First Time Home Buyer Tax Credit or any Credit (question of primary residence)?

I have been reading the IRS website and can not get a clear cut answer of how the IRS defines primary residence. In 2008, I purchased a home for my parents about 500 miles away in another town. My name is on the deed and the mortgage as well. I do not consider this place my primary residence since I have never lived there.

In Oct of 2009, I purchased a home for myself in which I consider as my primary residence. I am looking to file the First Time Home Buyer’s credit and was wondering if I would qualify? I am not sure if the IRS considers a primary residence as just simply owning a home, in the case I do or is it a place where you actually live?

If I do not qualify for the first time home buyer tax credit, I noticed that there was a second home buyer’s tax credit available as well for $6,500. Do I qualify for this? I closed my current property about a week before the extension in November 2009. Thanks!

Answer: If you owned a home in the last 3 years you normally do not qualify for the FTHB credit. There is a newer credit for folks who upgrade their home to a new replacement home. Your circumstances are too involved to get a good answer in this forum. See a local tax pro for solid advice based on your situation. Here is the IRS form:

http://www.irs.gov/pub/irs-pdf/f5405.pdf

Manitoba Telecom Services Inc. Reports Second Quarter 2010 Results

Manitoba Telecom Services Inc. , including its two primary operating units “MTS” and “Allstream”, today reported its financial results for the second quarter ended June 30, 2010.

First Time Home Buyer Tax Credit – 30 year Fixed FHA Financing – RealEstateMarketingThisWeek.com

Question: Am I entitled to working tax credit as a single person on a gross wage of £214p/wk? How much roughly?

buddha – I am on DLA at the lower rate

Answer: if you are over 25 and work 30 hours per week. you can claim..

it will be approx. £46 per week

Tax Incentives from Government End

The government’s tax incentive to get drivers into new cars ends Thursday December 31st. Most dealers said the Cash for Clunkers program took away much of this last week’s business.

Tips from the IRS-Making Work Pay Credit

Much has been said about the importance of being healthy. If you have been paying attention to your health, you probably would have a California health insurance coverage. If you don’t have one yet, there is no better time than now to get California health insurance quotes. There is indeed nothing more important than keeping healthy than protecting yourself from illnesses and its consequences. What consequences are we talking about?

Among many other things, an illness or degradation in your health can mean loss of your earnings if you are unable to work. It can also mean huge financial burdens as medical bills are getting extremely expensive. A serious illness not only cripples you of the normal life you are used to, but it also endangers you and your family from all security – financial or otherwise. A California health insurance coverage will help you avoid most of these problems. It can also help you lead a life that is healthier as it pays for various preventive measures including immunizations and regular checkups, among others.

Recent statistics reveal that more and more California residents have been neglecting health insurance, most especially in the recent years. This can be attributed largely to the growing global financial crisis that all of us seem to experience. Although one can live without a California health insurance, imagine how much more impact a health problem can bring you and your family to top off the existing crisis.

If you take a look at California health insurance quotes, there are certain things to pay attention to. There are various items included in a health insurance plan. Some of these include inpatient services, outpatient surgery, medical testing, office visits, prescription drugs, physical therapy and rehabilitation care, and mental health care. These items are usually included in your California health insurance quotes.

You should remember is that your insurance should serve its purpose, which is to protect you and your loved ones from financial burdens in the event of serious medical conditions. There are a couple of effective ways to get more affordable California health insurance quotes. You can, for example, ask your California health insurance agent to take out coverage that you think you don’t need and see how it can lower your premiums. You can also set a higher deductible which will be your out of the pocket threshold before the coverage kicks in.

The importance of having a California health insurance coverage should not be ignored or underestimated just because the economy of the country is hard-up these days. In fact, the rise in medical costs should be the exact same reason for you to get those California health insurance quotes now. Even the most routine of surgeries can cost you thousands of dollars. Governor Schwarzenegger may now have a universal health policy plan for California, but an affordable health insurance can be yours if you know the right place to find it. Get access to low California insurance health quotes and start living a healthy, more secure lifestyle.

‘Only tax breaks may not draw investors’

‘If I were in the Indian government, I would look at the growth projections in the next year. If it is a good and normal growth number, I would go for roll back.’

HomeBuyer Tax Credit Extension Video

Question: Can you write-off or deduct the convenience fee charged for paying property tax bills via credit card?

I live in Orange County, California. The tax assessor’s office is offering the ability to pay my property tax bill by credit card (thus earnings me miles) through a third party vendor who charges a “convenience fee” of 2.5%. If I can deduct the fee, then it is a good deal for me. However, I’m not sure if I can.

Answer: I doubt it. It’s not a tax and isn’t part of your property taxes. The county reports how much your taxes are.

Alliance California Municipal Income Fund Releases Monthly Portfolio Update

Alliance California Municipal Income Fund, Inc. today released its monthly portfolio update as of November 30, 2009.

Take Advantage of California’s $10,000 Tax Credit for Hom…

The 1031 exchange is a great instrument for property owners who wish to defer their capital gains tax. However, not all states treat 1031 exchanges equally. California regulations stipulate that any appreciation in property value accrued in California is subject to their state taxes, regardless of whether or not that property was exchanged for one in another state before its sale. This means that CA property owners cannot escape CA state taxes, even if they exchange their property for one in another state.

Most states conform to federal income tax treatment of like kind (1031) exchanges, where all capital gains taxes are deferred until the properties eventual sale. This is generally interpreted to mean that one is only subject to taxes of the state where the property is sold, discounting the state taxes of any state where the property was exchanged from. Meaning that if I owned a property in NV, exchanged it for one in ID and subsequently sold it, I would only be responsible for federal and ID taxes, not those from NV.

California is a notable exception to this. It employs a “claw-back” provision, entitling the state to tax any gain on property that occurs in California, regardless of where the property is eventually sold.

For example:

Say Mr. Newcombe bought a property in CA for $100. After appreciating to $200, he exchanges it for one in ID. While in ID the property further appreciates to $400. Feeling he has had enough of owning property, he sells it for $400, showing a total capital gain of $300. Mr. Newcombe would not only be liable for $300 of capital gains taxes in ID, but $100 of capital gains taxes in CA as well.

Note: The reciprocal of this situation does not come into effect. If Mr. Newcombe owned property in ID and exchanged for property in CA, he would only be subject to CA state taxes, not those of ID.

From the above example it is clear that owning property in California and exchanging it for property in another state leaves one open to double taxation. There is no way to avoid this situation unless one stays out of CA entirely or performs the final sale there. Being taxed in CA would of course be undesirable because it has some of the highest income tax rates, 9.55% and 10.55% for earnings over $47,055 and $1,000,000 respectively.

The claw-back provision really hurts people when they try to exchange out of California’s stringent tax system into a friendlier one such as Texas, which has no income tax. In situations such as this, the “claw-back” provision acts like a hand reaching out of the grave to grab and tax people one last time. Needless to say, before making an investment in CA, ensure it will be worth the high amount of taxes you will eventually pay for it.

Home Sales Surge in Markets across the Country

RISMEDIA, December 28, 2009—(MCT)—November 2009 was a positive month for the real estate industry as home sales surged in a majority of markets across the country. Spurred by low prices and the extended and expanded home buyer tax credit, home sales were up in Las Vegas, Nevada; Ohio, the Midwest; …

California “New Home” Buyer Tax Credit