On October 3, 2008 the Emergency Economic Stabilization Act is designed to help rescue the economy from the current financial situation. As part of this"bailout" there are $132.2 billion in tax braks. The law extends many tax breaks that had expired at the end of 2007 and adds a "patch" to the alternative minimum tax (AMT) to keep 23 million taxpayer from owing this tax in 2008.
EXTENDERS: You may benefit from the dozens of tax deductions and credits that had expired at the end of 2007. These include:
* Deduction for educators out of pocket classroom expeses of $250
* Deduction for tuition and fees up to $4,000 as an adjustment to gross income
* Option to deduct state and local sales tax or state and local income tax
* Tax-free transfer of IRA funds up to $100,000 to charity if over age 70
* Tax-free treatment for homeowners who have their indebtedness forgiven when their home is forclosed on or they work out their mortgage with lenders. This break sunsets in 2012.
* Homeowners who do not itemize deductions can deduct real property taxes up to $500 for singles or $1,000 for joint filers as an additional standard deduction.
GIVE OUR OFFICE A CALL
With the complexity of the tax laws, understanding what tax planning to use in your end-of-the-year tax planning strategy can be a daunting task. While this letter hopefully gives you a heads up on several strategies that you might like to use before year end, there are many more techniques that can be used depending on a client’s individual circumstances. For a more detailed plan, give us a call at (702) 642-8953 or write me at isueirs@aol.com.
Remember, we save you taxes and keep you invisible to the IRS. No Exceptions. No Time Limits, No Conditions. No IRS
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