The Federal Tax Credits Blog

Posts Tagged ‘green’

During my initial consultations with new clients, I am frequently asked about setting up Corporations and LLCs. Here are a few common questions/misconceptions about forming a corporation or LLC in a different state than you live in:

Q: I am a New York resident and business owner. I have been told that I can save a great deal of tax each year if I establish my company in a tax-free state. Is it really this easy to avoid New York State income taxes?

A: No, it is not that simple. The way New York handles multi-state tax issues is by allowing a credit against NY income taxes equal to the amount of income taxes paid to other states. If you are a full-year or part-year resident of NY and if any part of your income was taxed by another state, local government, or the District of Columbia, you may claim a credit against your NY State tax. Therefore, if your income is not taxed by the other state, your credit against NY income tax equals zero and you end up paying the full NY income tax rate.

A: Though Nevada is heralded as a state that provides business owners anonymity, this only holds true for shareholders of a Nevada corporation, not a Nevada LLC. Members and managers of a Nevada LLC must be disclosed on annual reports that immediately become public information. Additionally, if you are involved in arms-length transactions with your clients and/or customers, they meet you face-to face and they know who you are. Therefore anonymity is only valuable in certain industries where that face-to-face contact is not prevalent. Further, by establishing your New York-based business in Nevada, you will have to undergo additional filing fees in order to do business and report your business activity in NY.

Unless you are operating a large business, most small and mid-size companies are better off establishing their business in the state that they plan to do business in. This ensures that you do not have to shoulder the burden of additional reporting requirements, administrative provisions, state filing fees, accounting fees, and legal fees. Consult with both your attorney and your CPA before going online to setup a company in a different state.

Environmental & Energy

Originally pubished in Focus Magazine , Hospitality Going Green section, July 2009.

NJ Install WaterFurnace Geothermal heating & cooling PART 1

Question: 1st Time Home Owner Tax Credit – Refinance?

We purchased our first home in June 2008. We are considering taking advantage of the $7,500 tax credit for 1st time home buyers, but also want to take advantage of the HUGE drop in interest rates and refinance this week. The federal guidelines stipulate that you can take advantage of the tax credit and repay the government over 15 years (interest free) unless the home is sold.
Would a refinance prevent us from taking advantage of the credit and would refinancing be considered as selling the house since a new bank note would be issued?

Answer: The refi won’t hurt your eligibility for the credit – it isn’t selling the house. Many lenders won’t let you refinance that soon, though.

Home prices likely fell in October vs. year ago

The Associated Press The latest reading on home prices is expected to show a decline from year-ago levels, but since June government programs to boost home sales have helped prices improve on a monthly basis.

Question: Green home rebates or tax credits?

We are considering the purchase of a green built home. They build homes with the highest quality, most enviro friendly and health conscious products available. They also use high effeciency appliances (f, s, w&d, dw, hwt, furnace), doors and windows. My question is – are there government rebates (ie they mail you rebate check, not related to taxes) or are there tax credits/deductions available to us for making such a purchase? BTW we live in Canada. Thanks
The website looks great, but I live in Canada, I need Canadian info!

Answer: the home would save you money many more years to come

North Haven: 2009 year in review

Byline:  Kyle Swartz Breaking News:  No With the decade coming to an end, The North Haven Citizen takes a look back at some of the biggest stories in our town in 2009. Photos Photo0101_YearInReviewGRADS.JPG Credit:  Citizen photo by Kevin Pataky Caption:  North Haven High School’s 2009 graduates throw their carnations in the air to celebrate their graduation at the June 23 ceremony. Photo0101 …

REP. JIM SENSENBRENNER: Green Building byMarket, Tax Credits

Question: can u get a tax credit for home improvements that save money and energy?

we added new windows and we going to make more improvements around the house to help save energy and money. ie replaceing old doors, new roofing etc

Answer: www.energystar.gov is a great resource.

Whatever you buy has to meet certain criteria. You cannot just get a credit for putting on any new door. It has to be an exterior door and meet the energy criteria.

Also the most credit you can qualify for is $1500 and then it’s only good if you actually owe that much in tax.

10 home-improvement projects for 2010

With a minimal budget and a little sweat equity, your home can go from a “so-so” to a “wow” in no time. Whether you want to update your existing living space or add value to a house you are trying to sell, investing in some basic home renovations can make a huge impact.

Sunlight Turn Into Solar Power

You can always save the amount of electricity you use in your home by correct usage of the electrical appliances you have and taking note of the energy saving tips supplied. But there is a simpler way you can save the energy you use. The best way to conserve energy at the moment is to invest in energy saving electrical appliances available in the market. This becomes both a cheaper and economical way to use electricity. Electrical appliances can easily be recycled hence you can always take them to a recycling centre that is responsible for environment friendly disposal of such items instead of throwing them about carelessly.

Energy saving appliances are marked hence whether you are starting to buy or replacing the appliances, go for the ones with an energy saving logo on them just to be sure. The best thing with such appliances is that they are not very expensive considering what you achieve in return. With energy saving electrical appliances, you will realize that your monthly electricity bill is significantly reduced and you save a large percentage of the electricity you use in a year. If you are aware of your total energy consumption per year, you can try comparing your use when you use energy saving appliances and notice the difference.

The other good thing with these appliances is the effect they have on the environment. They are known to be environmentally friendly and form part of the wide collection of products available that are eco-friendly. The rate at which the environment is being polluted has made a lot of people start thinking of ways to minimize this and this has resulted in the eco friendly products. Sooner or later everything you use will be green so you better start with the electrical appliances in your home which form a bigger percentage of your home appliances. You can also reduce the cost of electricity in your office by getting energy saving electrical appliances just like your home.

Washing machines, refrigerators, electric irons, fans, microwave ovens, dish washers are some of the electrical appliances that use electricity in the home that we can save energy with. Items such as the refrigerators consume electricity 24 hours and this weighs heavily on the electricity bill. The best thing is to go for the energy saving ones.

Energy saving electrical appliances also come in a variety of styles and designs hence you can always have your favorite design. Appliances are also available for all budgets it’s all about doing a through search to identify one you can afford. Be sure to check the energy saving ratings of the appliance you want before purchasing it. Make sure you buy your products from companies and manufacturers you are sure provide energy saving and environmentally safe electrical appliances.

Getting an energy saving electrical appliance is one step towards being responsible for the electricity you use as well as being part of the efforts towards providing an environment safe for everyone to live in.

Go Green, Jennifer Parrish, Jan. 2, 2010: Make some green New Year’s resolutions for 2010

Did I keep my green New Year’s resolutions from 2009? On the whole, I give myself a B+. Yes, I calculated my carbon footprint, used mesh bags instead of plastic for my produce most of the time, printed less, visited the farmers markets, installed a chlorine filter on my shower head and did my level best to avoid BPA, but I must admit that the native plant garden never did get planted.

Smart Money: Energy Efficient Appliances