The Federal Tax Credits Blog

Posts Tagged ‘money’

Question: How long do short sales typically take? We’re trying to get in a house before the tax credit ends.?

Crap! Thanks anyhoo…

Answer: It can take up to 4 months from what my friends have been going through. Don’t rush the sale for $8,000. That is WAY too little money to jump into something you cannot afford or will regret down the road.

Connecticut House Sales Surge

A research firm says sales of single-family homes in Connecticut jumped 74 percent in November from a year earlier, the biggest increase in monthly home sales year-over-year in two decades. READ MORE

8000 dollar tax credit screws short sales

Question: $7,500 First Time Homebuyer Tax Credit?

I qualify for the $7,500 first time home buyer tax credit. I have already done my taxes through Turbo Tax. I did not enter the credit because Turbo Tax did not have the credit info or fields, or at least I did no see them. Can I Still get the tax credit, and if so what forms do I need?

One thing, I cannot get into my TurboTax file for 5 weeks since I did my taxes at my in-laws and I will not be back there for a while. I did however print out my 1040 if I can mail the info in.

Thanks!

Answer: Well turbo tax does have it, the problem with it is that you have to search for it on the search bar. You just type first time home buyer credit and it comes up right away. I had the same problem even after it asks if you bought a house in 2008 it doesn’t give you the option to do it unless you search for it. I’ve been using turbo tax for years and this is the first time i had a problem with it. Either way your 1040 will be completely different so i would just wait until. you got back to your in-laws. Good luck

Specht Retires from Marilla Government

It comes down to free time. That section on a clock where no one requires help, no work has to be done and responsibilities are limited. What will happen at that given moment is up in the air, something Fred Specht can take advantage of soon. The councilman from the Town of Marilla will be leaving public service after 26 years.

Zoobler.com Tax, 30% tax credit info on wood & pellet stoves

Question: Can the interest you pay on a credit card, if you are a small business owner be used as a tax deduction?

I am a small business owner and was told buy another that the interest that I have paid from a credit card, used only for that business can be used as a tax deduction. My tax person has told me know that you never can use the interest from a credit card to be used as a tax deduction. Does anyone know the correct answer?

Answer: the instructions for schedule c clearly ALLOW the deduction of any interest paid such as in your example as a business expense on schedule c.(to be deducted against business income) the IRS calls credit card financing “revolving credit” (just like the credit reporting agencies) and specifically addresses this issue in the instructions for schedule c (as well as in the general pub 17) i would be real cautious of a tax preparer that tried to dissuade you from deducting this as a bona fide interest expense.the issue of used exclusively for business expense does not apply in this particular case. i can say that the other answerer’s misconception on this issue stems from their confusion with the rules for credit card interest expense deduction for student loans and not a self employed person’s use of a credit card in the normal course of their business (think entrepreneurship and the fact that most business start ups are begun on none or very little resources) cash

the next answer if i read it correctly, it states that either way it is an expense….. and if that is correct? then i must ask where is the distinction or relevance to the question at hand,

Pratt & Whitney closing Cheshire, East Hartford plants was 2009’s top business story

Pratt & Whitney’s decision to shutter its engine repair and overhaul operation in Cheshire and East Hartford was the biggest local business news story of 2009, and its impact will be felt in years to come.

R&D Tax Credit and Small Businesses – 9

Question: If you trade stocks in the U.S. stock market do you have to pay taxes if you live overseas the entire year?

If I trade stocks do I have to pay taxes on the earnings of my stocks if I live outside of the U.S. for the entire year? The way I interpret the foreign tax credit is that as long as I am outside the USA I don’t have to pay taxes on my earnings so long as I am outside the USA for 330 days out of the year.

http://www.irs.gov/businesses/article/0,,id=183263,00.html

http://en.wikipedia.org/wiki/Foreign_tax_credit

Answer: foreign tax rules apply to earned income. stock trading gains/losses, diviidends, etc are not earned income.

Blaska’s Blog hopes for change

Can’t watch television without some upcoming program being ballyhooed as a television “event.” Nor any sales, whether for automobiles or bath towels, being heralded as a sales “event.” Now prepare yourself for the Blaska’s End of the Year Blog Event!

Office of the Public Auditor- Special interest tax credits

Investing for retirement in IRAs is a good idea, especially right now when there are so many bargains in the stock market. A Roth IRA allows a contributor to have more flexibility in their plan when it comes to choosing stock in which to invest. Unlike other IRAs that do not allow the trading abilities and operate more like a savings account; the Roth IRA invests in stocks, commodities and some conservative investments. 

Starting a Roth IRA means finding a broker that will be able to open the account. As is the case whenever opening any kind of brokerage account, the fees should be checked. While some brokers charge reasonable fees, others are way over the top. One of the first things a person who wants to start an IRA account with a broker should look for is the fee to open the account and maintain the account. 

Contributing to the IRAs means fewer taxes on earnings. All of the capital gains earned in an IRA account is deferred until the time when the individual begins drawing out of the account. Currently, those who invest in IRAs can start to remove any of the money in the Roth IRA or other retirement vehicles, at the age of 59 ½. By the time the individual is 70, however, they must start taking some of the money out. 

Unlike other IRAs, the Roth IRA does not allow for tax deductible contributions. The reason that many people choose this vehicle is because they want to have the greatest flexibility with earnings and are looking for high yield. Other IRAs tend to be more conservatively invested, whereas Roth IRAs involve more risk. This risk usually ends up paying off by the time the person is able to start drawing out on it as the stocks continue to rise in value. Someone opening up a Roth IRA today may want to look into getting some solid, blue chip stocks in which to invest in their IRAs as the drop in the stock market over recent months has lowered the cost of purchasing stocks, even those that are traditionally big earners. This is a break that those who are looking towards investing should take advantage of to purchase stocks at a lower rate and watch them climb over the years. 

IRA brokers can help an individual open up their account and make it easy to make trades in the investment when desired. Those who are seeking to open up these type of retirement accounts should look towards the broker as well as the fees involved for trading and maintaining the account and choose one that will offer low fees and reliable service. 

Pletschet: New decade’s resolutions for every investor, Part 1

Steps that you should take and stumbles you should avoid in order to preserve capital for retirement.

Home Buyer Tax Credit