TRKM News

CARS ACT OF 2009

2009-07-02T10:36:00.002-06:00

The CARS ACT OF 2009, also know as the Cash for Clunkers bill, provides consumers with an incentive (in the form of a $3,500 or $4,500 voucher) to trade in an old gas guzzler against the purchase or lease price of a more fuel-efficient new vehicle. The purchase or lease must be made between July 1 and November 1, 2009.

No Colorado gift tax

2009-06-18T09:48:00.000-06:00

Since January 1, 1980, the State of Colorado has had no gift tax on transfers of property by gifts.

Credit for Retirement Savings Contributions

2009-06-10T16:51:00.002-06:00

If you make eligible contributions to an employer-sponsored retirement plan or to an IRA, you may be able to take a tax credit. The Savers Credit (previously the Retirement Savings Contributions Credit), applies as follows:

Single with income up to $26,500
Head of Household with income up to $39,750
Married Filing Jointly, with incomes up to $53,000

To receive the credit you must be 18 or older, not a full-time student and cannot be claimed as a dependent on another taxpayer's return. If you qualify you may be able to take a credit of up to $1,000 or up to $2,000 if filing jointly. The credit is a percentage of the qualifying contribution amount.

HOMEOWNER AFFORDABILITY AND STABILITY PLAN

2009-05-18T10:08:00.003-06:00

If you owe more on your home than it is worth, you may be able to refinance if:

-The existing mortgage is owned by Fannie Mae or Freddie Mac
-The new mortgage balance will not exceed 105% of the home's current value
-The mortgage balance falls within conforming loan limits - $417,000 for single-family homes

The Homeonwer Stability Initiative is designed to assist responsible homewners who are struggling to make their mortgage payment. To qualify, a homeowner must:

-Have a current mortgage payment that exceeds 31% of monthly gross income
-Live in the home
-Have a loan that is within the conforming loan limits
-Apply within 3 years of the beginning of the program

Deductible Transportation Expenses

2009-05-07T10:08:00.002-06:00

If a taxpayer's residence is his principal place of business, he may deduct the cost of driving between the residence and another work location in the same trade or business, regardless of whether the other work location is regular or temporary and regardless of the distance.

ARRA Education Tax Credit for 2009 & 2010

2009-04-23T14:37:00.003-06:00

Under the American Recovery and Reinvestment Act (ARRA), more families will qualify for a tax credit to pay for college expenses.

For tax years 2009 and 2010 the new credit modifies the existing Hope Credit, making it available to a broader range of taxpayers, including many with higher incomes. It also adds required course materials to the list of qualifying expenses and can be used for four years instead of only two. The maximum annual credit is $2,500 per student. The full credit is available to individuals whose modified adjusted income is $80,000 or less, or $160,000 or less for married couples filing a joint return.

New withholding tables produce mixed results.

2009-03-28T12:02:00.001-06:00

Due to the enactment of the American Recovery and Reinvestment Act of 2009, employers will be using new withholding tables by April 1, 2009. As a result, some employees will be underwithheld and may incur underpayment penalties unless they submit revised Forms W-4.

First-Time Home Buyer Tax Credit

2009-03-12T16:04:00.003-06:00

A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid.

First-time home buyers who purchased a principal residence on or after April 9, 2008 and before January 1, 2009 may qualify for a $7,500 tax credit.
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NEW CAR DEDUCTION

2009-03-06T15:28:00.002-07:00

Purchasers of new cars bought after February 17, 2009 are allowed an above-the-line deduction for sales taxes paid on the purchase. The limits are 1.) The taxes can't exceed the portion of the tax attributable to the first $49,500 of the purchase price and 2.) The deduction will be phased out for individuals with adjusted gross income exceeding $125,000 ($250,000 for joint returns). Qualified purchases are cars, SUVS, light trucks or motorcycles that weigh no more than 8,500 pounds. Motor homes also qualify.

New Longer 2008 NOL Carryback

2009-03-03T08:57:00.001-07:00

The American Recovery and Reinvestment Act of 2009, signed into law Feb. 17, 2009, allows qualifying small business to choose a three- four- or five-year net operating loss (NOL) carryback period for certain losses instead of the usual two-year period.

UNEMPLOYMENT BENEFITS - 2009

2009-03-03T08:45:00.002-07:00

The new Stimulus law temporarily excludes up to $2400 of unemployment compensation from a receipient's gross income for 2009. The balance of unemployment compensation is fully taxable.

Capital Gains Tax Rates

2009-01-29T08:57:00.001-07:00

For tax years 2008-2010 there is a zero-percent capital gains rate for taxpayers in the 10% and 15% tax brackets. In 2008 the 15% threshold is $65,100 for married taxpayers filing jointly and $32,550 for single filers. This tax reduction allows certain taxpayers to pay zero federal taxes on long-term capital gains and qualifying dividend income (usually dividends from stock).

Business Losses

2009-01-09T17:34:00.002-07:00

If a business sustains an operating loss, you may be able to benefit from carrying the net operating loss (NOL) into a different tax year - a tax year in which you had or will have taxable income. This will allow you to take a deduction for the current loss against the different year's taxable income. Generally, an NOL can be carried back two years and foward 20 years. The NOL first offsets taxable income from the previous two years and the balance carried forward.

Standard mileage rates for 2009

2009-01-08T15:51:00.000-07:00

The optional mileage allowance for owned or leased autos is 55¢ per mile for business travel in 2009. The rate for using a car to get medical care or in connection with a move that qualifies for the moving expense deduction is 24¢ per mile.

2008-12-22T12:06:00.002-07:00

PENSION RELIEF

The new pension recovery act passed recently suspends required minimum distributions (RMDs) from 401(k) plans, IRA's and similar retirement accounts for 2009.

This also applies to beneficiaries receiving benefits after the death of an account holder.

COLORADO MINIMUM WAGE

2008-12-04T19:40:00.001-07:00

Effective January 2009, the minimum wage rate will go from $7.02 to $7.28 per hour.

2008 Housing Act

2008-11-25T12:28:00.000-07:00

The 2008 Housing Act tightened the home sale exclusion rules. After 2008, gain potentially eligible for the home sale exclusion will be reduced proportionately for the period of time a home was not used as a principal residence.

2008-11-18T13:37:00.002-07:00

Taxpayer Advocate Service

The TAS is an independent organization within the IRS. If you are experiencing economic harm or seeking help in resolving tax problems that have not been resolved through normal channels, you may be eligible for assistance.

Contact the TAS at 303 603-4600 or 1 877 777-4778.

Social Security Limit for 2009

2008-11-14T14:39:00.002-07:00

For 2009, Social Security tax of 6.2% is computed on the first $106,800 of employee wages. Medicare tax of 1.45% is computed on the employee's total wages (no ceiling).

Economic Stimulus Payment

2008-10-24T09:05:00.001-06:00

If you did not file a 2007 tax return by October 15, you can still obtain your economic stimulus payment when you file your 2008 tax return. Your payment will be based on your 2008 income and personal situation rather than on your 2007 information.

2008 IRA Contributions

2008-10-17T13:00:00.002-06:00

The contribution limit for IRA's rises to $5,000 in 2008. The catch-up contribution for those age 50 and older stays at $1,000.

FDIC INSURANCE

2008-10-03T18:22:00.003-06:00

Bank deposits are protected by the Federal Deposit Insurance Corporation (FDIC), an indepedent agency backed by the United States Government.

The most commonly quoted coverage amount is a maximum of $250,000 per depositor per insured bank. This amount is set to expire December 31, 2009.

It is very important to check with your banks to make sure that you are within the FDIC limits.

Colorado Tuition Deduction

2008-09-22T16:33:00.002-06:00

You can deduct on your Colorado income tax return the contributions you make to certain "qualified state tuition programs." A qualified state tuition program is a 529 College Savings Plan administered by CollegeInvest.

Section 179 Expense

2008-09-08T11:26:00.002-06:00

All of our business clients take note: the "Section 179" expense deduction for capital assets increases to $250,000, for 2008 only. The phaseout threshold increases to $800,000. This will make many more businesses eligible for a full writeoff. Please call our office if you have questions concerning any asset acquisition plans.

MILEAGE RATE INCREASES

2008-08-22T08:57:00.004-06:00

Effective July 1, 2008, the mileage reimbursement rate increased to 58.5 cents per mile.