Posts Tagged ‘taxes’

Oct 15 2014 extension deadline date

Tuesday, September 16th, 2014

Hi Gang! Just a reminder that the deadline for the Oct extension is coming up and if you have not filed your tax return for 2013, guess what? You will need to do so soon.
Please give me a call and or shoot me an email and let me help you.
Have a great cool, autumn – especially since in the San Fernando Valley here in Southern California we are over 105 degrees F.

Stay sane!

Sincerely,
Kim Greenblatt

Oct 15 2014 extension deadline date

Happy New Year 2013 and Thanks to My Team

Wednesday, January 2nd, 2013

Happy New Year, gang! Special thanks to my Rose Parade team (in no particular order) – Steve, Luis, James, Thomas, and the lovely Diana.

Team7

Pictured above are: Steve, Diana, me, James, Luis, Thomas (behind Luis boo hiss), and my leader, Ralph.

Photograph is by Steve. If a man is defined by the people around him, thank you guys and gal for making me look so good.

Hope everybody is doing well with the New Year. Apparently, Congress is trying to earn their money by getting the fiscal cliff flattened out. Here is hoping we don’t get flattened in the process.

Now is the time to start getting all your receipts together gang as well as anything that created income or a tax related document to bring in to the office – yep, it is tax time.

I would expect that e-filing will probably be delayed and the state income tax processing will be pushed out even further in terms of getting the e-filing procedures updated. I guess will shall wait’n see. Now is the time if you have questions to give me a call.

Also start the new year right and start volunteering with something. It doesn’t have to be doing first aid – anything that helps make the community better around you is a great resolution for the new year.

What else in my stream of consciousness —oh yes, if you are in the market for buying a new home or in process, please remember to save all closing documents and papers so your tax pro (hopefully me) can go through the stuff with you and see what is and what isn’t deductible. If you are getting a home – congrats!

Don’t forget that you can take charitable miles if you drove to help volunteer for an event. They go on Schedule A and if you don’t use Schedule A it may not make a difference but it is always a decent move to track mileage for any volunteering you do. Good habits stay forever and one day you may need it.

Be safe, people.

January 02 2013

Kim Isaac Greenblatt

Upcoming Changes to Sch C for 2011 – 2012

Friday, August 19th, 2011

I just came back from Las Vegas from the IRS Tax Forum that they had there and like a lot of seminars, you find that you can get some good information from some sessions and you take that with you going forward or for your tax practice. One thing coming down the pike from the IRS is that there will be changes coming for people who receive EFT or electronic payments for goods and services that they sell. This will affect business people and especially people who do a lot of ebayish transactions like with paypal and the like. The IRS has not had a way to match up the electronic debits going on and they are starting the process to keep track of it. Can people still be profitable if they are including their monies that they didn’t before? Please! The folks who didn’t report this as income were not in compliance with tax code which states that you are taxed on all worldwide income. Sales from websites fit the bill and if I can put aside money from my book sales and any transactions retailers can to. The impression is that most legitimate retailers do track all of their transactions and it is the borderline pssst come here buddy wanna buy something neat with cash retailers (not my clients) who the IRS wants to talk with.

Look for either changes to the Schedule C and/or changes to the Form 1040 later on for more information or through the IRS website.

Las Vegas was a nice 101 to 106 degrees while I was there and I had a good time at the convention. I am not defending or criticizing the IRS but I have to compliment them because the sheer volume of work that they have to get done for a thankless job is pretty impressive so thanks for being there guys (and ladies).

There were a decent number of software vendors and sales reps at the show and some of their products were interesting. If I have the time I will post more later on.

Stay cool and comfortable gang!

Aug 19 2011

Kim Isaac Greenblatt

Upcoming Changes to Sch C for 2011 – 2012

Taxes and Your Wedding

Monday, May 30th, 2011

If you are getting married, congrats! I hope you have been taking to heart some of the suggestions I have been posting recently (scan my last few posts if you are just landing here) and I just wanted to remind you that you and your spouse need to plan for your first year filing Married Filing Jointly (or Separately) together.

Most couples when they first get married might end up owing taxes because they didn’t plan accordingly. Remember that as of the end of the year – the very last day – Dec 31st, you and your beloved are considered as a couple. That means what is yours is hers and what is yours is his as well. That means that your income is considered combined for income tax purposes.

If you check out my post (look on the side of the page or go to the home page and look on the side there if you are viewing this as a single post) under one of my “Bad Tax Idea, Good Tax Idea” notes, you can see that you should both have changed your W4s from work to reflect that you need to have a little more money possibly withheld for taxes. What has happened in the past is that both couples change their withholdings from Single 1 to Married 4 or stuff like that and they both end up owing at the end of the year.

If you are in doubt, drop me a line or consult with your favorite tax pro. Have a great time as a couple and please make sure that you have your taxes covered so you don’t start planning for divorce several months later!

May 30 2011 Later In the Day

Kim Isaac Greenblatt

Taxes and Your Wedding

Spring Cleaning for your Taxes and Finances

Tuesday, May 3rd, 2011

Ah with tax season over for most of us it would seem this is the time to shift back to coast mode, right? Wrongo. Hopefully you will take some of the tax ideas and understanding that you discovered this last season and apply it to fixing and improving the financial situations of your life. Here are some suggestions:

If you ended up owing a lot of money and haven’t been able to pay it, please make sure you contact the IRS and any state agencies to set up a payment plan with them. The interest that will be accuring will not go away and if you are between jobs it will only get worse. Once the IRS also hits your credit report that will be a possible showstopper if you are applying to firms that run credit checks (and a lot of them are these days).

If you have too big of a refund, you need to ask yourself if you are comfortable with it or do you want to go ahead and try to just tweak it down a little bit. Be careful because you don’t want to swing it from receiving a refund of $4000 to owing $5000. I have seen it happen and you are playing Russian Roulette when you start tweaking your W-4 at work and realize by Sept that you haven’t had enough money withheld. If that does happen, think about making quarterly tax payments.

Try to save money – with the financial situation being in a state of flux, despite indications that the economy may be better, the economy may not be specifically better for you. Cash is still the monarch of the financial system and the currency to have for day to day living.

The ideal is to have enough to last at least 6 months if you are out of work but the cold hard reality is that most people are paying their bills and living hand to mouth.

Be safe and try to hang onto your money. For more information check out some of my books for sale at
www.kimgreenblatt.com.

May 03 2011

Kim Isaac Greenblatt

Spring Cleaning for your Taxes and Finances

New Low Price For Bad Tax Idea Good Tax Idea Kindle

Thursday, March 3rd, 2011

Hi gang.  To help out those in financial need  I have lowered the price of my Kindle version of my popular book, Bad Tax Idea, Good Tax Idea to $3.00 in US Currency.  The book has been selling fairly well and has some great advice that I have gathered over the years of some really bad tax suggestions and how to avoid them with really good ones.  Check it out through Amazon if you have a Kindle or a Kindle reader app.  If I get enough interest in it from you guys I might release the book in an ePub format for the iProducts.  Let me know what you guys (and gals) want.

Be safe and if you haven’t filed your income taxes here in the United States the clock is ticking and we are coming down to the last six weeks before April 18, the Federal deadline hits.  Let me know if you want me to do your taxes.

By the way, we are past the deadline for receiving W2s so if you need to generate a substitute W-2 to file your taxes, you can go ahead and file creating one in case your former employer can’t get you a new W2 or went completely out of business (yucho).  Later, gang!

Mar 03 2011

Kim Isaac Greenblatt

New Lower Price For Bad Tax Idea Good Tax Idea Kindle

Open for Business for 2011 for Doing 2010 Tax Returns

Wednesday, January 5th, 2011

I am ready, willing and able to help you with your 2010 tax returns.  Please be ready to provide me with a copy of last year’s return, your information, income, investment info and expenses.  You can contact me through this blog by either a post or an email and I will get back to you within a day. 

Be aware that any tax returns that will require a Schedule A for Itemized Deductions cannot be filed until mid February.  The tax forms will be ready than by the IRS. 

 I do all kinds of tax returns including corporate, partnerships, sole proprietorships, farming, investments and foreign income.  I love people and helping them get their taxes done right. 

If you are getting IRS letters and are in the State of California and want me to help you take a look at them, please drop me a line.  Be aware that the clock is generally ticking when you get an IRS letter and you have to respond before the due dates on the returns or else the IRS will assume that their decision is the correct one and take appropriate action at their end. 

Have a great year and keep me in mind.

Kim Isaac Greenblatt, Enrolled Agent

Open for Business for 2011 for Doing 2010 Tax Returns

1099s for Interest and Dividends Are Coming Out

Friday, February 12th, 2010

If you were waiting for your interest statements they are coming out now. Log in and check with your banks and brokers. You should be able to complete your taxes now. For any tax help and if you want me to do your returns, please drop me a post.

Kim I. Greenblatt

1099s for Interest and Dividends Are Out

Tax Time – Come On In

Friday, January 8th, 2010

Just a quick reminder that in the next few weeks (if not now), W-2s will be coming out and for those of you that are out of work, you still need to at least look at your tax information to see if you need to file or not.

Please relax and don’t worry.  I am available to help you with your tax needs.

Just drop me a line and at the very least we can talk about what is unique in your case.

I have been doing returns for a long time and I have a good idea of where you might be coming from.

Have a Great Weekend!

Kim Isaac Greenblatt

Tax Time, Come on In

Tax Changes You Need To Know for 2009, 2010 and Beyond

Thursday, January 7th, 2010
Hi Gang. It’s me, Kim Isaac Greenblatt, with the incredibly dry (but highly accurate and useful) tax law changes that affect doing your 2009 tax returns (being done in 2010) and some other tax changes that will affect you for the upcoming years.

2009 PROVISIONS (tax year 2009—tax season 2010)

1) American Opportunity Tax Credit

Forms or Tax Laws Affected:

§25A

Form 8863

2009 and 2010

The maximum credit has been increased to $2,500 (100% of first $2,000 expenses, 25% of next $2,000 expenses). This applies to the first four years of post-secondary education and is 40% refundable unless claimed by a child subject to kiddie tax. Your phase outs are as follows: Phases out at $80,000-$90,000 MAGI ($160,000-$180,000 MFJ). Other particulars are that students in Midwest Disaster Area may instead claim an enhanced Hope credit of up to $3,600 for 2009. For this and all the other specific changes check out the irs website.

 

2) AMT patch

Forms or Tax Laws Affected:

§§ 55 and 26

Form 6251

For 2009 only, the AMT exemption increased to $46,700 ($70,950 MFJ). Also you will see that Nonrefundable personal credits allowed for AMT. Thank heaven for small favors, huh?

 

3) Bicycle commuting fringe benefit

Forms or Tax Laws Affected:

§132(f)(1)

For those of you fortunate enough to be able to bike ride to work and for their employers.

2009 and later years

Qualified tax-exempt transportation fringe benefit; NOT a tax credit-This means that it will help employers specifically.

The allowance is up to $20/month (maximum $240/year) to reimburse employees who regularly commute to work via bicycle. Keep on pedal pushing, people!

4) Casualty losses

Forms or Tax Laws Affected:

§165

Form 4684

Change for 2009 only

The $100 per casualty floor for individual casualty losses is temporarily raised to $500 per casualty. I think that is because there has been too darn many floods, hurricaines, tornadoes, etc.

5) Child Tax Credit

Forms or Tax Laws Affected:

Form 8812

2009 and 2010

The Additional Child Tax Credit (ACTC) earned income threshold decreased to $3,000 (was $8,500 in 2008). That means you have a better shot for qualifying for it if you hit all the other marks for getting ACTC.

§24

 

6) COBRA subsidy

Forms or Tax Laws Affected:

§§ 139C and 6432

Beginning with COBRA premiums paid after 2/16/09

COBRA premiums are 65% subsidized for up to 15 months

Jobless taxpayers who were involuntarily terminated 9/1/08 through 2/28/10

Recaptured dollar-for-dollar for taxpayers with MAGI over $125,000 ($250,000 MFJ)

7) Conversion kits

Forms or Tax Laws Affected:

§30B(a)(5)

2/18/09-12/31/11

 

Nonrefundable credit equal to 10% of the cost of converting to a plug-in electric drive motor vehicle. Make sure that the juice is flowing, party people.

 

Maximum credit is $4,000 and it may be claimed for a vehicle that also qualifies for the hybrid vehicle credit.

8) Depreciation

Forms or Tax Laws Affected:

 

179

Form 4562

For property placed in service in 2009, there is a

Generally, any original use machinery used in farming business other than grain bin, cotton ginning asset, or other land improvements qualifies.

§§168(k), 168(e)(3)(b)(vii),50% bonus depreciation extended through 2009. Enhanced §179 deduction up to $250,000 extended through 2009. Qualified farm machinery eligible for 5-year MACRS depreciation – how many of you out there are farmers? Let me see by a show of hands, one, two, three..

9) Economic Recovery Payment (ERP)

Forms or Tax Laws Affected:

 2009 only

 

One-time payment of $250 for recipients of SS, SSI, VA, or RRB benefits paid directly by the SSA, VA or RRB

 

Must have received a benefit 11/2008, 12/2008, or 1/2009

 

Reduces the Making Work Pay Credit

 

IRS will not provide verification regarding whether a taxpayer received the ERP but will reject return if ERP is missing. Basically a “bad news/good news” scenario for e-filing. The bad news is your return rejected, the good news is when we refile you will be getting back more money! Whoo hoo.

10) EITC modifications

Forms or Tax Laws Affected:

§32

2009 and 2010

 

Higher EITC for families with three or more children

 

Additional marriage penalty relief (phaseout threshold for MFJ increased an additional $5,000 over the range for unmarried filers)

11) First-Time Homebuyer Credit (FTHC)

Forms or Tax Laws Affected:

§36

Form 5405 plus substantiation

—May not e-file 2009 return with FTHC, but may e-file without the credit and later amend!Changes effective 2009

 

Refundable credit equal to 10% of home purchase

 

$8,000 ($4,000 MFS) for taxpayers who did not own principal residence in previous 3 years

$6,500 ($3,250 MFS) for long-term homeowners who owned and lived in their principal residence 5 consecutive years out of 8 and who purchase a replacement home after 11/6/09

Maximum credit

 

No repayment unless the home is sold or not used as principal residence within 3 years of purchase

 

Must close on or before by 4/30/10 (or on or before 6/30/10 if there is a binding contract by 4/30/10)

 

Claim on current or prior year tax return

 

For purchases before 11/7/09—MAGI $75,000-$95,000

($150,000-$170,000 MFJ)

For purchases after 11/6/09—MAGI $125,000-$145,000

($225,000-$245,000 MFJ)

Purchase price capped at $800,000 for homes purchased after 11/6/09 only

Phaseout

 

Special provisions apply to military

 

12) Government Retiree Credit (GRC)

Forms or Tax Laws Affected:

§36A(c)

Schedule M (new)

2009 only

 

One-time refundable credit of $250 ($500 if both spouses eligible)

 

For recipients of government pension based on employment that was not covered under Social Security

 

May not claim if taxpayer received Economic Recovery Payment Reduces the Making Work Pay Credit

 

13) Home sales

Forms or Tax Laws Affected:

§121

Schedule D

2009 and later years

 

Gain on sale of principal residence may not be excluded for a period of

nonqualified use 

Does not apply to any period before 2009

Does not apply (up to 5 years) to periods after taxpayer moves out of the home

Non-excludable gain equals the ratio of nonqualified use over total use multiplied by gain on the sale

A period in which taxpayer owns home but does not use it as principal residence (e.g. uses it as a rental or vacation home)

 

14) Making Work Pay Credit (MWPC)

Forms or Tax Laws Affected:

§36A

Schedule M (new)

2009 and 2010

 

Refundable credit equal to 6.2% of earned income

 

Maximum credit $400 ($800 MFJ)

 

Advanced to most taxpayers through reduced payroll withholding

 

Phases out at $75,000-$95,000 MAGI ($150,000-$190,000 MFJ)

 

taxpayers who both work) may be underwithheld for the year

Some taxpayers (those with more than one job, and married

 

Credit (GRC) reduce the MWPC – the IRS will reject returns if the taxpayer received an ERP and does not report it on Schedule M

Economic Recovery Payment (ERP) and the Government Retiree

15) Net operating loss (NOL)

Forms or Tax Laws Affected:

§172(b)(1)(H)

Form 1045 or 1040-X

New for 2008; rules

modified for 2009

 

provision)

NOL for year beginning or ending in 2009 may be carried back 3, 4, or 5 years instead of the default 2 years (extension of 2008

 

2009 election is not limited to small business

 

Extended carryback election is limited to one tax year

 

Certain NOL elections (such as waiving carryback period) may be amended

 

2009 NOL carried back to 5th preceding year is limited to 50% of taxable income for that year

 

16) Nonbusiness Energy Property Credit

Forms or Tax Laws Affected:

§25C

Form 5695

2009 and 2010

 

principal residence is reinstated for 2009 and 2010 (no credit for

2008)

The nonrefundable credit for energy efficient improvements to a

 

Credit equal to 30% of cost of improvements

o

No dollar cap for any type of improvement

 

Maximum credit is $1,500 for 2009 and 2010 combined

 

Not reduced by any previous credit claimed in 2006-2007 

See www.energystar.gov for all specifications

 

17) Plug-in Electric Drive Motor Vehicle Credit

Forms or Tax Laws Affected:

§30D

Form 8936

New for 2009, modified

for 2010

 

2009 rules

o

from a battery with at least 4 kW hours of capacity and is

rechargeable from an external source

Newly purchased vehicle with which draws propulsion

o

For use on public streets or highways

o

on the gross vehicle weight rating (GVWR)

Credit maximum ranges from $7,500-$15,000 depending

o

Phaseout triggered at sale of 250,000th vehicle

 

Low speed vehicles (LSVs) qualify for credit in 2009, but not 2010

LSVs qualifying for credit can be found at the IRS website.

 

18) Plug-in Electric Vehicle Credit

Forms or Tax Laws Affected:

§30(a)

Form 8834

2/18/09-12/31/11

 

Nonrefundable credit equal to 10% of cost of a “neighborhood” vehicle manufactured for use on public streets

 

Maximum credit is $2,500

 

Low-speed 4-wheeled vehicles with maximum speed 25 mph

 

For 2009, LSVs may qualify for §30D credit plug-in electric drive motor vehicle credit

 

2- and 3-wheeled vehicles

 

Must be powered by electric motor that draws electricity from battery that is rechargeable from an external source

19) Residential Energy Efficient Property Credit (REEP)

Forms or Tax Laws Affected:

§25D

Form 5695

Available through 2016

 

Nonrefundable credit for residential energy and hot water generated via alternative sources

 

Includes certain solar, small wind, fuel cell, and geothermal energy property

 

Credit equal to 30% of the cost of the equipment

o

$500 per 0.5/kW of capacity for fuel cells

o

No credit caps and no credit maximum

 

See www.energystar.gov for all specifications

20) RMD waiver

Forms or Tax Laws Affected:

2009 only

§401(a)

 

2009 at taxpayer’s option

Required minimum distributions from IRAs, 401(k)s, etc. waived for

 

4/1/10 (but a taxpayer turning 70½ in 2008 must take the 2008

RMD by 4/1/09)

Taxpayer turning 70½ in 2009 need not take the 2009 RMD by

 

21) Section 529 plans

Forms or Tax Laws Affected:

§529(e)(3)(A)(iii)

2009 and 2010

 

Computer technology and equipment allowed as qualifying expense

22) UDC modifications

Forms or Tax Laws Affected:

§§ 152 and 24

First effective in 2009

Also see “EITC” and

“Child Tax Credit”

 

Age requirement modification: Qualifying child (QC) must be younger than taxpayer (exception if QC is totally and permanently disabled)

 

Child tax credit modification: QC must be taxpayer’s dependent (Form 8901 now obsolete) in order to claim the CTC

 

Tie-breaker modification: If parent is eligible to claim QC, but does not do so, another taxpayer may claim the child only if the other taxpayer’s AGI is higher than that of any parent eligible to claim QC

 

23) Unemployment benefits

Forms or Tax Laws Affected:

2009 only

 

First $2,400 of unemployment benefits paid in 2009 are tax-exempt

 

Form 1099-G will show gross unemployment benefits paid

 

24) Vehicle sales tax deduction

Forms or Tax Laws Affected:

§164(a)(6)

Schedule L (new)

2/17/09-12/31/09

 

Deduction for state and local sales and excise tax for new vehicles purchased 2/17/09 through 12/31/09

 

May be claimed as an itemized deduction or added to standard deduction

 

Maximum per vehicle deduction is the tax on a vehicle costing $49,500

2010 Provisions (tax year 2010—tax season 2011)

1) Estate tax repeal

Note: It is very likely that these statutes will be modified some time this year

 

Estate tax and generation skipping tax (GST) are scheduled to be repealed for 2010

 

Gift tax exemption is $1 million

 

Limited step-up basis (to $1.3 million)

 

After 2010, gift, estate, and GST rules schedule to return to pre-2001 law

2) Expiring provisions

Unless otherwise noted, all provisions expire after 12/31/09; may be extended by new legislation later this year

a) AMT patch §55

b) Casualty losses in federal disaster area not subject to 10% of AGI

limitation §165

c) Educator’s expense deduction §62(a)(2)(D)

d) Qualified charitable distributions from IRAs §408(d)(8)

e) Standard deduction for federal disaster losses §63(c)

f) Standard deduction for real property taxes §63(c)

g) State and local sales tax deduction in lieu of income tax

deduction §164

h) Tuition and fees deduction §222

i) COBRA subsidy (must be involuntarily terminated by 2/28/10)

j) Depreciation incentives (bonus depreciation and enhanced §179)

k) RMD waiver

l) Tax-free unemployment up to $2,400

m) Economic recovery payment

n) Government retirees credit

o) First-time homebuyer credit §36 (generally, expires after 4/30/10)

p) New vehicle sales tax deduction §164(a)(6)

3) Roth IRA conversions

Forms or Tax Laws Affected:

§408A(c)(3)(B)

First effective in 2010

 

IRA no longer applies

$100,000 MAGI limitation on converting traditional IRA to Roth

 

Tax on 2010 conversion is spread over a two-year period (2011-2012)

Taxpayer may elect to tax all in 2010

No other elections available

Drop me a line if you have more questions and as I get California changes I will try to get them up.

Thanks!

Kim Isaac Greenblatt

Tax Changes You Need To Know for 2009, 2010 and Beyond