Tax hikes for the rich

Tax hikes for the rich: Can the economy afford them? http://money.cnn.com/2010/07/26/news/economy/Bush_tax_cuts/index.htm

Big help for condo buyers

F.H.A.’s new rules opens an important lending option to condo buyers. The FHA has relaxed their rules attracting more borrowers to purchase condos.
1. Borrowers don't need excellent credit. This opens doors to borroweres with weak credit
2. Borrrow amount increase from $362,790 to $729,750
3. More condos will be able to qualify for the FHA loans.
The downside if you qualify and take out a FHA loan is that borrowers must pay an FHA insurance premium which is similiar to the PMI.

$8K Homebuyer Tax Credit extended

President Obama signed the extension and expansion of the Homebuyer Tax credit. The credit amount is 10% of the the purchase price of the primary residence, up to a maximum of $8,000 for 1st time home buyers and $6,500 for repeat buyers who owned and lived in their home for at least 5 years. First time home buyers are taxpayers who have not owned a home in the past 3 years. Purchase agreements must be signed by 4/30/10, and closings must be finalized by 6/30/10. To qualify for the full credit,the income limitations for individuals are $125K and joint filers are $225K. To qualify for the reduced credit, the income limitations for individuals are $145K and joint filers are $245K.

1st Time Homebuyer credit extended

The 1st time homebuyer credit of $8,000 which has been set to expire in November has been extended to 2010. The tax credits would be available to home buyers who sign sales agreements by the 4/2010. Taxpayers would have until 6/2010 to close on their new homes.
In addition, the credit is now offered to taxpayers who already own a home for at least 5 years. Qualified taxpayers may qualify up to $6,500 for this credit.

Metropolitan Commuter Transportation Mobility Tax

Metropolitan Commuter Transportation Mobility Tax

Just a reminder that the 1st payment of the new Metropolitan Commuter Transportation Mobility Tax is due Monday, November 2, 2009. The New York State Department of Taxation and Finance has contacted more than 700,000 employers and self-employed individuals doing business in the Metropolitan Commuter Transportation District who may be required to pay this new tax. The District encompasses the five boroughs of New York City and the Counties of Dutchess, Nassau, Orange, Rockland, Suffolk and Westchester.
The Metropolitan Commuter Transportation Mobility Tax (MCTMT) is a new tax imposed on certain employers and self-employed individuals engaging in business within the Metropolitan Commuter Transportation District (MCTD). This department administers the tax for the Metropolitan Transportation Authority. (The MCTD includes the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island), Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester.) The tax applies to:
• Employers who are required to withhold New York State income tax from wages and who have payroll expenses exceeding $2,500 in any calendar quarter. The tax is retroactive to March 1, 2009 for employers.
• Self-employed individuals who have net earnings in the District that exceed $10,000 for the tax year. The tax is retroactive to January 1, 2009 for self-employed individuals

A couple of new tax laws for 2009

A couple of new tax laws for 2009

If you purchased a motor vehicle from 2/09 through the end of the year, you may qualify to deduct the sales tax on your income tax return up to $49,500 on the new car. If you were planning to purchase a new vehicle for home or business, this provides an excellent incentive for taxpayers to consider. You must be the 1st owner of the car. Tax benefit is subject to taxpayer’s adjusted gross income.

If you’re a small business owner, you may qualify to reduce your 2009 estimated taxes. The estimated payments are 90% of your 2008 or projected 2009 tax liability, whichever amount is smaller. In addition to lower estimated taxes, small business owners may take advantage of increased section 179 deduction for up to $250K. This deduction allows small business owners to deduct most tangible business property such as office equipment, computers and the vehicles.

Oct 15 Deadline

Reminder - The Oct 15 deadline approaches for taxpayers who:
1. applied for the 6 month extension for their 2008 tax return
2. it is also a special voluntary disclosures by taxpayers with assets in previously undisclosed offshore accounts