Important dates:

September 15 — All corporate taxes due
 

Help for hapless homeowners

With the housing slump, thousands of homeowners have had to reorganize their mortgages or enter "short sales", which usually means some forgiveness of debt.  In the past, IRS policy was to count the amount forgiven as taxable income!  

Congress recognized the scope of the problem, and passed the Mortgage Forgiveness Debt Relief Act of 2007.  It's a welcome relief for many strapped taxpayers.   Call us for details on how this affects you, and find out more here.
 

Are you tracking your business miles?

Good, because the IRS has announced an increase in the optional standard mileage rates. From July 1, 2008 through December 31, 2008, the deduction rate for business miles will be 58.5 cents per mile — up from 50.5 cents.

See more in the accompanying table.
 
 

Yes, there is a federal tax rebate!

Under the stimulus package that recently passed Congress, you could be entitled to a rebate, and a substantial one: the minimum payment will be $300 per person, $600 per married couple. Maximum payment will be $600 per person, $1,200 per married couple. And having dependent children in the home will entitle you to $300 per child.

How do I know if I qualify?

If you're a U.S. resident with a valid Social Security number, and your Adjusted Gross Income for 2007 is under $75,000 ($150,000 for married couples), you should qualify.

What do I have to do?

File a 2007 federal tax return. That will trigger the IRS action. They began distributing rebate checks in May 2008.

Find out more here. And for general information on federal taxes, visit www.irs.gov.
 

Watch out for that AMT!

The AMT (Alternative Minimum Tax) could affect you, especially if you make over $75,000 a year. The AMT was instituted in 1969 to make sure rich people couldn't use loopholes to avoid paying any income tax. Almost 40 years later, inflation has changed the definition of rich, but the AMT hasn't kept pace. As a result, millions of middle-income taxpayers are now eligible for the AMT. Your tax preparer will let you know if you're one of them, and how to deal with it.

The IRS has information on the AMT here. And for a straightforward, non-government explanation, try this article in Smart Money magazine.
 

Tax laws are always changing.

We can keep you up to date.