The Federal Tax Credits Blog

Posts Tagged ‘credit’

Question: Who is eligible for the 8000 dollar tax credit?

A co worker told me that only houses that is $100,000 and up are qualified for the tax rebate. Is it true or just a load of bull?
Thanks for all the answers. And I did not ask any tax advice from my co worker. He just brought that up to my attention. So I ask here to confirm.

Answer: totally untrue.

Since the credit is 10% of the purchase price, with a maximum credit of $8000, if you purchase a house for less than $80,000, your tax credit will be less than $8000. For a $60K house, the credit would be $6000.

End To Death Tax One Of New Oklahoma Laws

More than a dozen new Oklahoma laws are on the books for the New Year. Nine of the 13 new laws deal with changes to the tax code.

Burzichelli & Milam on Converting the Property Tax Rebate into a Direct Tax Credit (A-3308)

Hong Kong is a central hub for business in Asia. It is extremely popular for a variety of reasons, including political stability, economic freedom and tax benefits. Hong Kong has one of the lowest tax rates in the world for a developed country, and has an intricate and effective tax system that allows companies to conduct business without being overpowered by their tax liabilities. Indeed, Hong Kong is rated as the world’s 3rd friendliest tax system by Forbes (Tax Misery & Reform Index 2009).

Corporate Tax in Hong Kong

Given the large number of companies that operate in Hong Kong or have an offshore business in Hong Kong, an understanding of Hong Kong tax implications begins with corporate tax.

In Hong Kong, any company conducting business on or offshore can be liable to corporate tax. Profits sourced in Hong Kong are taxed at a low rate of 16.5%, and unincorporated businesses are taxed at 15%. Profits that are sourced overseas, also known as ‘offshore profits’, benefit from a zero tax rate, even when remitted back to Hong Kong. Profits derived from operating ships in Hong Kong are treated as ‘offshore profits’ and are not liable to tax, but profits derived by professional reinsurers for reinsuring offshore risks will be taxed at 8.25% -i.e. half the corporate tax rate.

To note: offshore payments for intellectual property usage are liable to tax at 4.95%, goods sold by Hong Kong consignment agents on behalf of non-residents are also liable to tax on 0.5% of gross proceeds. On the other hand, bank deposit interest, interest on Tax Reserve Certificates, interest income on long-term debt instruments, dividends and capital gains are free from tax.

With the low tax rates there are also other regulations that protect business from unjustified taxes. Hong Kong is fully committed to its double tax agreement with thirty three nations, including PRC, Thailand and Belgium, to relieve companies from having to pay two taxes on one set of profits, as a result of multinational enterprise and multiple jurisdictions. For full details on Hong Kong’s double tax agreements, see the website for the Inland Revenue Department of Hong Kong (IRD).

Companies that conduct business through a branch in Hong Kong or are incorporated in Hong Kong cannot offset losses against the profits of other members in a group of companies –through consolidated accounting systems, however the Hong Kong jurisdiction allows losses to be carried forward indefinitely. Assets are depreciated at authorized prescribed rates of depreciation, for example, computer equipment can be depreciated at 100% in the first year.

The general procedure for corporate taxation after incorporation in Hong Kong is straightforward. Typically a Hong Kong incorporated company will be tracked by the Hong Kong authority and sent a tax return at year end. Even when no tax return is issued to a company, they are responsible for notifying the government of any profits liable to tax. In standard practice, estimated tax assessments will be issued provisionally during the tax year based on historic profit information. A final assessment will then be released after filing of the tax return.

It should be noted that the Hong Kong tax year begins on April 1st. Also, companies liable to tax in Hong Kong are required to fulfill accounting and auditing standards i.e. be audited by a firm of Hong Kong accountants.

Other Taxes
In Hong Kong, people also benefit from zero sales tax, zero value added tax and zero annual net worth taxes.

Melissa Glotzer is a Marketing Assistant at Healy Consultants. She is a graduate of the University of Manchester Business School with a BSc (Honours) in Management with Accounting and Finance.

Top stories of 2009

In 2009, we watched struggles over state budgets, fights by companies to keep their doors open and keep up their payrolls, votes to bring casinos to Ohio, and high-profile convictions and acquittals in courtrooms. Read the astonishing year in review in Ohio and Kentucky news, sports and business.

Handyman Matters in CBC story about Canadian the 2009 tax rebate

Question: which water heaters qualify for the 2009 energy tax credit?

other than the tankless water heaters

Answer: Wow, does England have the same credits the USA does?

If this is a USA question, you posted it in the wrong area, but go to www.energystar.gov to get the guidelines.

Coloradans jump at state program to further energy efficiency

More than 26,000 homeowners and businesses have snapped up about $11 million in state rebates for energy-efficient appliances and home improvements since the “Recharge Colorado” program began April 19.

Eccotemp 40H Outdoor Tankless Water Heater

Question: Is it possible to claim credits for previous tax years?

My parents never claimed my tuition expenses on their taxes for the last four years that I attended college. I looked on the IRS website, and found that they could have claimed my tuition payments and received either the lifetime learning credit or the Hope Credit during those years. I am interested in knowing whether they can somehow file a claim for those four years of tuition that I paid (and hopefully I can get some of that money from them). I am planning on claiming the lifetime credit myself for 2006. If anybody knows how to claim for previous years, if it is possible, your help would be greatly appreciated. Thank you.

Answer: To add to Crystal’s reply:

1.You have until April 15th to amend 2003′s return. (3 years from the original due date)

2. The best way to figure out your qualified educational expenses for the years in question is to have the 1098-T your school issued for that particular tax year. If you don’t have them, then you may call the IRS at 1-800-829-1040 and ask that they send them to you.

3. You may find that taking the Lifetime Learning Credit for all three years will be of more benefit than the Hope Credit if your qualified educational expenses were high enough.

4. Be sure to use the right F 8863 for each year you are amending. Previous year forms can be downloaded from http://www.irs.gov.

5. Be sure you’re up on all the rules and you really do qualify. See the link to Pub 970 below.

The Top 10 of ’09

Change seems to be the common denominator for McPherson for 2009. Two colleges changed president, the city changed administrators and the K-61 highway began its massive change of course.

Tax Forms & Deductions : How Does Tuition Tax Credit Work?

Question: Residential Energy upgrade tax credits. Refundable or not?

Is the (up to) $1500 tax credit for residential energy improvements such as new windows a refundable tax credit or a regular tax credit. In other words, if I got the full credit for $1500 but only had a tax liability of $1000, would I get the other $500 refunded to me or would it just be lost.

Links would be very helpful.

Answer: The credit is not refundable. If you put enough improvements in service to get the full $1,500 credit and you owed $1,000 on your 2009 tax, the credit will pay for that tax. The remaining $500 may be carried over to 2010 and pay future tax.

The forms for this credit have not been published yet, but this is a reinstatement of a credit from 2007 which had carryover provisions.

See the old form here

http://www.irs.gov/pub/irs-prior/f5695–2007.pdf

Tax credit drives surge in home sales

Extraordinary government efforts to stabilize the housing market are paying off. What happens when the help runs out is anyone’s guess.

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