Tax News
First–time Homebuyer Credit Extended And Expanded
Congress enacted legislation this month that will extend and expand the first-time homebuyers credit which was scheduled to expire at the end of November. Homes must be purchased by April 30, 2010, and closing must occur by June 30, 2010. Income limits have been raised to $125,000 for individuals and $250,000 for couples.
The credit is also being expanded to include some taxpayers who already own a home. This new provision would allow homebuyers who have owned their current residence for at least 5 years to receive a credit of up to $6,500.
Those buying homes valued at more than $800,000 will not qualify for the credit. Also, if you sell your new home or stop using it as your main residence within 3 years you will be required to repay the credit.
If you are considering the purchase of a new home please call Karen or Gary to ensure that you fully understand the requirements to qualify and that you receive maximum benefit from the credit.
IRS 2010 Inflation Adjustment Amounts Released
Tax rate brackets and various benefits will remain unchanged or change only slightly in 2010 because of the -1.3% inflation rate for 2009. Key provisions affecting 2010 returns to be filed in 2011 include the following:
- Personal and dependency exemptions remain at $3,650.
- The new standard deduction for head of household is $8,400, up from $8,350 in 2009. For other taxpayers, the standard deduction remains unchanged at $11,400 for married couples filing a joint return and $5,700 for single and married individuals filing separately.
- Various tax bracket thresholds will see minor adjustments. For example, for a married couple filing a joint return the taxable income threshold separating the 15% bracket from the 25% bracket is $68,000, up from $67,900 in 2009.
IRS Guidance on Barter Transaction Reporting
In its simplest form, bartering is the trading of one product or service for another, often with no exchange of cash. With the economy in its present state there has been an increase in bartering exchanges between businesses. Trading goods and services with another business can be useful to businesses trying to stretch limited cash.
It is important to remember that the fair market value of the goods and services exchanged must be reported as income. The exchange is still taxable even if no money changes hands.
For more information go to the Bartering Tax Center page at the IRS website.
Accountability News
Get a Head Start on Your 2009 Tax Appointment
We're revamping and upgrading our Getting Ready page, adding tools and information to assist you in preparing for your 2009 tax appointment.
Along with printable organizers, we're adding these Excel worksheets that you can download and use to organize your records and receipts:
- Business income and expenses
- Vehicle expenses
- Mileage log
- Travel, lodging and entertainment expenses
- Office in home expenses rental property income and expenses
Attention Business Owners — Are Your Books Up To Date?
Let Accountability help you get your 2009 accounting done now so you'll be ready to file your taxes early. As a business owner, your time is very valuable. Why spend it doing your books when you could be expanding your business — or enjoying time with your family?
Through November, all new accounting clients will receive a credit of $350 towards their initial setup fee. We work with both QuickBooks and Peachtree, and offer a wide variety of accounting services to meet your needs.
To schedule a no-cost consultation call us at (909) 627-5927.
The Treasure Box
A week of food — a world of savings
A recession is a difficult time for everyone and tough economic times make it challenging to figure out where to cut costs and stretch finances. A family’s food bill can put them over budget in no time, especially as the cost of food continues to rise, forcing them to choose between paying bills or going hungry. Bethany Baptist Church in Montclair has joined with many other local churches working with The Treasure Box to meet this need.
The Treasure Box cultivates relationships with more than 500 major food manufacturers across the country to purchase and provide top quality, nutritious food at sizeable volume discounts to the general public. Thus, they can provide families and individuals with a substantial box of grocery store–quality food that would retail between $65 and $100 — for just $31 each.
If you or someone you know is in need, or if you would like to learn how you can help, visit thetreasurebox.org for more information.
Enjoying the holidays
Accountability will be closed on the following dates:
- November 26-27 — Thanksgiving
- December 23-25 — Christmas
- December 30-January 1 — New Years
Food For Thought
O come, let us sing unto the Lord: let us make a joyful noise to the rock of our salvation. Let us come before his presence with thanksgiving, and make a joyful noise unto him with psalms. For the Lord is a great God and a great King above all gods. (Psalms 95: 1 - 3)
— Karen Spencer
President