The Federal Tax Credits Blog

Posts Tagged ‘credit’

Question: Why do conservatives call welfare Socialism when a Dem is in office but not when a Republican is in office?

Obama extended unemployment benefits for the 10’s of thousands of workers who got lay offs, is giving tax credits for people to upgrade windows and doors, and is giving a credit for college students to offset some of their tuition cost in exchange for community service, and some how now our country is in full blown SOCIALISM!! according to conservatives. I say move to cuba if you are so unhappy.

Answer: “Why do conservatives call welfare Socialism when a Dem is in office but not when a Republican is in office?”

What are you babbling about? We have always called welfare socialism even when a Republican is in office.

City OKs second town center loan

Grove City Council on June 20 awarded its second loan to a town center business.

Window shopping 101: features and considerations – from Marvin Windows and Doors

Question: Regarding changes to the $7,500 tax credit, in the 2009 stimulus bill?

This is really confusing and a bit agrivating. My wife and I bought our first house last April so we claimed the $7,500 tax ‘credit’ on our 2008 returns we filed today. We then come to find out, this is not a credit at all but a 0% interest loan! So we are now indebted to the government $7,500.

Icing on the cake is that in the new stimulus signed this month, this tax credit provision will be updated to $8,000 and will NOT have to be repaid for home buyers that qualify for the credit.

Will the revision doing away with the repayment apply to my credit, or am I pretty much screwed?

Answer: You’re NOT getting “screwed.” You got an interest free 15 year signature loan with a 2 year deferment on the first payment. The imputed interest on that is between $7,000 and $8,500. I’ll happily take that off your hands and cover the payments with a $50 kicker for you if you wish!

You are not eligible for the new credit as it applies only to purchases in 2009.

WEEKEND ECONOMIST: Altered states

Economic analysis of the individual Australian states shows the Western Australian economy is surging again, while Queensland is still recovering from floods, and growth conditions in Victoria, NSW and Tasmania are less positive. 25 Jun 2011 11:08 AM

$8000 2009 Tax Credit Expiration COMING SOON!!!

Question: Is $140,000 annual salary “enough” for a family of 5?

I found this question interesting yesterday as most who answered it said “absolutely.” Let me make sure everyone understood the question. $140,000 per year gross will net you about $84,000 per year or $7,000 each month. Now let’s subtract:

$300 for 401K retirement contributions
$800 for family health ins assuming employer pays balance
$200 for family dental ins assuming employer pays balance
$1,400 for mortgage, homeowners ins & taxes
$750 for 1 minivan and 1 economical car
$200 for auto ins on both cars
$1,000 for food
$400 for gas in both cars
$75 for Christmas/Holiday fund
$300 for savings
$200 for electric
$200 for heating/air conditioning
$175 for phones/cell phones
$125 for cable/internet
$75 for trash pickup
$200 for entertainment
$200 for vacation savings
$75 for life ins on each parent
$150 for credit card debt

That leaves our family with $175 each month for emergencies! So get that college education and the best job you can. Money doesn’t go very far!

Answer: Interesting analysis. It certainly shows that even with what would be considered a “high” income, you have to watch where your money goes. I’d question some of your numbers ($200 for electric and $200 for heating/AC? Not even in expensive California — I pay about $100 for both per month)…but the point is well taken. Everyone needs to:
a) analyse where their money goes, and squeeze dollars where they can
b) make sure the “savings” part works hard, and doesn’t just sit in a bank account making 2%
c) pay off those credit cards and don’t charge any more!

Nice analysis.

America is Chugging Along

Sometimes, I think to myself, that I’d rather jump into a pool with live hair dryers than listen to another White House official or DC politician give another doom and gloom talk about how the U.S. is in the worst recession since the Great Depression.

Comfort Tech Heating and Air Conditioning Commercial

Question: Is their Quote on 2009 Toyota Tacoma FAIR?

HI all, I am an new regal immigrant in US and first time trying to buy a car.
I went to Toyota and get a quote 09 Tacoma D-cab long, TRD sports w/JBL. they said base 27,075 + TRD 3,375 + Manu/Delv/Proc/Hndle Fee 795 = MSRP + ADM Fee 579.50 + Tax 7% + Title 21 = 34,073.21. They reduced it on 33,500 out-door price as they expect the rebate for 09 will probably be 1,000, but they said it depends on the market situation nex year. They can’t guarantee it. it might be 1,000, 1,500, 2,000, or nothing. if nothing, price will be + 1,000.
Because it is special order, they needed to charge me 500 deposit that time to the factory to start assenble it, and I agreed to pay. it will be ready on mid Jan 09. Could I still have a space to nego on this at the time to finally get purchase? Or is it about fair quote?
We haven’t make any documents or sign at all but paid 500 by credit card.
Please advise me.

Answer: The deal itself is probably okay. It is hard to quibble over a $1000 on a $34,000 truck. I would be more concerned that this is your first vehicle and you are paying quite a bit. I don’t know your circumstances but can you afford the payments? A lot depends on what financing is being offered. Toyota has some good rates on some vehicles but not every model. If you can get your loan through your credit union, you may save money in the long run. You have to look at the total cost not just the vehicle price.

Michael Hudson: Free Money Creation to Bail Out Financial Speculators, but not Social Security or Medicare

By Michael Hudson, a research professor of Economics at University of Missouri, Kansas City and a research associate at the Levy Economics Institute of Bard College Financial crashes were well understood for a hundred years after they became a normal financial phenomenon in the mid-19th century. Much like the buildup of plaque deposits in human veins and arteries, an accumulation of debt gained …

Mathews Brothers Window Testing

Question: Accounting for Tax Refunds according to GAAP?

Hi Everyone,

I’m just wondering how a C-Corporation would properly record receiving a tax refund according to GAAP. I’ve heard some say that returned taxes should be included as the income statement as revenue, and others say that it should be recorded as a credit to the tax expense account.

In particular, the company has paid taxes on a certain type of revenue that, by law, it didn’t owe in the first place. The money was returned to the corporation a few years later by the Department of Revenue.

I don’t have access to GAAP itself or the FASB Codification. I tried to search through IRS guidelines, but couldn’t find anything that specifically cited that this type of returned tax should be classified as revenue on the corporation’s books or not. Could an experienced person please help out? If possible, please reference or at least point me in the right direction as to what your source is. Thanks so much and I appreciate your time!

Answer: In 45 years of accounting and taxation I’ve never heard of anyone treating a tax refund as revenue. You simply debit cash and credit the relevant account that was debited when it was originally paid.

Reforms to the Foreign Investment Real Property Tax Act Will Spur Investment, Create Jobs and Encourage Economic Growth

Contact: Scott Sherwood, +1-202-639-8400, sherwood@rer.org; Xenia (Ksen’ya) Jowyk, +1-202-639-8400, xjowyk@rer.org

$8000 Federal Tax Credit Explained (We Buy Houses Maryland DC VA)