The Federal Tax Credits Blog

Posts Tagged ‘taxes’

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)

Question: Adoption tax credit is refundable this year?

Okay…please don’t slam me or tell me I’m stupid.

I guess I’m in disbelief.

But, I have been told for 2010, that the adoption tax credit is now a refundable credit.

What I have been told is that if anyone has the credit and/or still qualifies for a carry-forward, we will get our carry-forward paid to us.

Anyone know if this is truly correct? Everything I’ve been seeing says “yes”…but the cautious side of me wants to make sure that I haven’t mis-read anything, or if there are any stipulations.

Answer: Hi,
This is from the IRS:

Topic 607 – Adoption Credit

In 2010 and 2011, you may be able to take a refundable tax credit for qualifying expenses paid to adopt an eligible child (including a child with special needs). This means that you could qualify for a tax refund even if you did not have federal income tax withheld. For tax years prior to 2010, the adoption credit is not refundable.

Under new Adoption Credit Rules for the 2010 tax year, you must attach one or more adoption-related documents (identified in the form instructions) with the completed Form 8839 (PDF), Qualified Adoption Expenses, and attach the form to your Form 1040 or Form 1040A return, to claim the adoption credit or income exclusion. The required documents are different if the adoption is foreign, or domestic, final or not final and if the adoption is for a special-needs child.

A tax credit, including the adoption credit, reduces your tax liability. For expenses paid prior to the year the adoption becomes final, the credit generally is allowed for the year following the year of payment. For expenses paid in and after the year the adoption becomes final, the credit is allowed in the year of payment. The adoption credit is not available for any reimbursed expense. In addition to the credit, certain amounts paid by your employer for qualifying adoption expenses may be excludable from your gross income.

A taxpayer who paid qualifying expenses in the current year for an adoption which became final in the current year, may be eligible to claim the credit for the expenses on the current year return, in addition to credit for expenses paid in a prior year.

For both the credit or the exclusion, qualifying expenses include reasonable and necessary adoption fees, court costs, attorney fees, traveling expenses (including amounts spent for meals and lodging while away from home), and other expenses directly related to and for which the principal purpose is the legal adoption of an eligible child. An eligible child must be under 18 years old, or be physically or mentally incapable of caring for himself or herself. The adoption credit or exclusion cannot be taken for a child who is not a United States citizen or resident unless the adoption becomes final. In the case of an adoption of a special-needs child, you may be eligible for a certain amount of credit or exclusion regardless of actual expenses paid or incurred. A child has special-needs if (1) the child otherwise meets the definition of eligible child, (2) the child is a United States citizen or resident, (3) a state determines that the child cannot or should not be returned to his or her parent’s home, and (4) a state determines that the child probably will not be adopted unless assistance is provided. The credit and exclusion for qualifying adoption expenses are each subject to a dollar limit and an income limit.

Please read more:

http://www.irs.gov/taxtopics/tc607.html

Michigan’s adoptive parents report trouble with state tax returns, too

Adoptive parents still waiting for tax refunds have created a Facebook page to share their experiences.

Some families due to get big return

Tad, I read with interest

In reply to The Carbon Tax We Had To Have : Tad, I read with interest both your responses and the Drum article. Clearly I’m no match for your academic expertise, so I offer comments to you with great trepidation. The problem I have with both Ben’s and your comments is that both of you are from fixed perspectives. Ben’s perspective must by purpose encompass the “political” perspective i.e. one …

Question: Can you get Home Access Grant if you get BOTH child tax credit and Working Tax Credit?

On the form it asks you to tick which benefits you are receiving and the one that I receive is the child tax credit. But then next to it in brackets it says (but not working tax credit).
This is a tiny bit confusing! Is it saying that you cannot claim if you’re receiving them both or is it just to say… we only need to know whether you are receiving child tax credit and you do not need to let us know if you are also receiving working tax credit?
Please help!!!

Answer: you need to be on child tax credit and on free school meals to get the grant.You also have to send a original letter from child benefit dated after december 2008 with your application form.hope this helps

Lawmakers mull overhaul of business Energy Credits

Nearly a dozen tax credits will go away, others will shrink and the controversial BETC will be replaced with a new, significantly smaller program under a compromise plan advancing in the Legislature.

Cynthia Strickland Talk About the First Time Home Buyer $8000 Tax Credit