Tax News — Required Minimum Distributions Waived for 2009
The Worker, Retiree, and Employer Recovery Act of 2008 waives 2009 Required Minimum Distributions (RMDs) from Individual Retirement Arrangements (IRAs), 401(k), Profit-Sharing, Money Purchase Pension, 403(b), and certain 457 retirement plans. The Act does not waive any 2008 RMD due by April 1, 2009.
If your retirement accounts are set up to automatically calculate and distribute the RMD, you should contact your provider to waive the 2009 amount. If you receive an RMD for 2009, you can roll-over the amount received to avoid paying tax on the distribution. Make sure you designate it as a rollover and remember this must be done within 60 days of taking the distribution.
First $2,400 of Unemployment Benefits Tax Free for 2009
Under the American Recovery and Reinvestment Act of 2008, every person who receives unemployment benefits during 2009 can exclude the first $2,400 of these benefits when they file their tax 2009 tax return. For a married couple, the exclusion applies to each spouse. Therefore, if both spouses receive unemployment benefits during 2009, each may exclude from income the first $2,400 of benefits they receive.
Last Day to File Your 2008 Taxes Is Rapidly Approaching
October 15th is the final filing deadline for 2008 personal tax returns. All returns not filed by that date will be subject to late filing penalties. Each of our client's whose 2008 return is incomplete because of missing information will be receiving an e-mail listing the items we need to complete the return. Once you have all of the needed information please call or e-mail to schedule an appointment to complete your return.
Enhanced Tax Enforcement by the IRS
On May 7, 2009, the Obama administration unveiled a budget that would provide the IRS $12.126 billion in fiscal year 2010. This incudes $4.904 billion for tax enforcement. Budget documents show a request for $890 million for "enhanced tax enforcement activities." It is unclear whether this is a new audit technique.
This is the latest indication that the Administration is serious about enforcing existing laws and closing the tax gap. This is seen as being much more doable politically than raising taxes.
Important Dates
July 6
Accountability office closed for 4th of July
July 21
Seminar: So you want to be a landlord
Aug 11
Seminar: Corporation, LLC or Partnership — which entity structure is best for you?
Aug 15
Last day to file Non-profit 2008 tax return
Sept 7
Accountability office closed for Labor Day
Sept 15
Last day to file Corporation and Partnership 2008 tax returns
3rd Qtr Estimated Tax Payment Due
Seminar: Compliance and accounting for LLC's, Corporations, S-Corps and Partnerships
Oct 15
Last day to file 2008 personal tax return
Tax Seminars: Knowledge Is Power
Accountability hosted the first of our tax education seminars last month. We had a full house for our discussion of tax issues related to self-employment. Along with the presentation, each attendee received a notebook containing reference materials and an Excel workbook containing spreadsheets they can use to track business income and expenses and mileage.
Based on the level of interest for this seminar we are considering a second presentation on this topic. If you or someone you know would be interested in attending, please e-mail info@accty.com.
July 21, 2009
So you want to be a landlord ...
Reporting rental income and expenses: An overview of tax issues related to owning rental property.This seminar targets two groups of taxpayers:
- Those who own rental property and want a better understanding of the applicable tax laws.
- Those that are thinking about purchasing rental property or renting property they already own.
Topics to be covered include:
- Tax advantages of rental property, cash flow vs.net rental income
- Reporting rental income
- Depreciation deduction (and recapture)
- Recording and reporting rental expenses
- Improvements vs. repairs
- Capital gain and other tax implications when you sell rental property
- How to qualify for a loan to purchase rental property
- Tips on using a management company vs doing it yourself
Note: We will have a real estate agent as guest speaker to address the reality of purchasing forclosures/shortsales, current loan qualifying requirements and the state of the real estate market.
Seminars will be held in our office and will begin at 7pm. All seminars are open to the public. Seating is limited, so please e-mail info@accty.com to reserve your seat. See our seminars page for more dates and topics.
Food For Thought
We can rejoice, too, when we run into problems and trials, for we know that they are good for us-they help us learn to endure. And endurance develops strength of character in us, and character strengthens our confident expectation of salvation. And this expectation will not disappoint us. For we know how dearly God loves us, because he has given us the Holy Spirit to fill our hearts with his love. ( Romans 5:3-5)
— Karen Spencer
President