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

Several tax facts about the American Opportunity Tax Credit

The new American Opportunity Tax Credit provides many benefits. One of the benefits of the credit is that many taxpayers will be able to apply the cost of qualified educational expenses at a qualified educational institution for the next two years under the American Opportunity Tax Credit. In addition, the credit is a refundable credit which means that even if the taxpayer has no tax liability, they may qualify to receive cash back. Below are several important tax tips about the American Opportunity Tax Credit.
1. The full credit is limited to $2,500. This is broken down by first $2,000 paid is applied as credit. Then extends to 25% of the next $2,000 up to $500 for qualifying expenses.
2. The credit is a refundable credit up to $1,000 per student.
3. The credit is available for qualified expenses for higher education in 2009 and 2010. Qualified expenses is defined as expenses related to tuition and related fees, books and other required materials for course.
4. The credit is dependant on the taxpayers income. It phases out for higher income taxpayers.
5. The credit is available for any of the first 4 years of post-secondary education.



http://www.irs.gov/newsroom/article/0,,id=213584,00.html

First Time Homebuyer Credit- expiring soon

With the market the way it is, the American Recovery and Reinvestment Act has placed several programs for taxpayers to take advantage. One of the popular one is the First Time Home Buyer Credit. This credit has provided tax benefits to over 1.4 million taxpayers and counting. Unfortunately, the First Time Home Buyer Credit is available for a limited time. As a result, the IRS has announced that in order to qualify for the credit, potential homebuyers must close on their new home by 11/30/09 and complete their first-time home purchase before 12/1/09.
Just a quick reminder about the First Time Homebuyer Credit- The Credit is available to US citizens or residents purchasing a qualified home in the United States. This credit is 10% of the purchase price or up to $8,000 maximum. In addition, homebuyers with qualifying income levels could not have owned a home in the past 3 years. Another added benefit is that this credit is a refundable credit, meaning the taxpayer will be able to receive the money even if they owe no tax or the credit is more than the tax liability.



source: http://www.irs.gov/newsroom/article/0,,id=213375,00.html

Several facts about New Vehicle Sales and Excise Tax Deduction

For 2009, there are special tax deductions for taxpayers who purchase new motor vehicles. The sales and excise tax may qualify for deduction for qualified taxpayers. For taxpayers in states where sales tax is not applied may be eligible to deduct other fees and/or taxes. Listed below are several facts about new vehicle sales and excise tax deduction-
1. Qualified vehicles generally include new car, motorcycles, light trucks that weigh $8,500 pounds or less and motor homes (not subject to weight limit)

2. Qualifying vehicles up to $49,500 of the purchase price may qualify to deduct the state and local sales and excise taxes on their 2009 returns.
3. Purchase of the qualified vehicle must be after Feb 16, 2009 and before Jan 1, 2010
4. Taxpayers who purchase new motor vehicles in states that do not have state sales taxes may be entitled to deduct other fees or taxes assessed on the purchase of those vehicles. Fees or taxes that qualify must be based on the vehicles’ sales price or as a per unit fee. These states include Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon.
5. This deduction applies to taxpayers who takes the itemized and standard deductions
6. The amount of the deduction is phased out for taxpayers after a certain income threshold




source: http://www.irs.gov/newsroom/article/0,,id=213200,00.html

529 Education Savings Plan- Extended

With rising tuition costs, 529 plans has been growing in popularity since it is an attractive way to save for college. 529 plans allow the taxpayer to contribute money in the plan and withdraw the money tax-free so long as it is used for qualified education-related expenses for a designated beneficiary. Qualified expenses include tuition, required fees, books, supplies, equipment and special needs services. In addition, it can be used to buy computer equipment and services for an eligible student. For 2009 and 2010, 529 plan benefits have been extended to expenses for computer equipment and technology or internet access and related services to be used by a qualified student while enrolled at qualified educational institution.

IRS provides savings & retirement initiatives to help Americans save for the future

The Treasury and IRS has issued some initiatives for retirement and savings. Listed below are a few ways to help save for the future and retirement.
1. Automatic enrollment in retirement plans- The US Treasury and IRS has issued guidance for employers to add automated enrollment in their 401(K) or SEP IRA plans to boost up savings and retirement.
2. Receive your tax refund as a U.S. Savings Bond- For the 2010 tax season, taxpayers will be able to convert their income tax refunds into I Savings Bonds
3. Unused vacation days- The Treasury and the IRS have issued guidance where for those employees who receive cash payment for unused vacation days (or other similar leave) at the end of the year or at termination of employment. These guidelines addresses the amount the employee is entitled to receive for the unused days to be put in by the employer in employee’s retirement plan as employer contribution or elective 401(K) contributions.


Source: http://www.irs.gov/retirement/article/0,,id=212061,00.html

Did you have a child this year?.. You may be able to qualify for child tax credit and reduce your tax liability.

Did you have a child this year? You may be able to qualify for child tax credit and reduce your tax liability up to $1,000 per qualifying child. A qualifying child is someone who meets the following:
1. Was under the age of 17 by 12/31/08
2. The child is your son, daughter, step child, adopted child, eligible foster child, brother, sister or a descendant of any of these individuals
3. The child did not provide over 50% of their own support
4. Lived with you for more than 50% of 2008.
5. Is a US citizen, US national or a US resident
There are exceptions to the general rule and the credit amounts are phased-out after certain income levels.

Tax tips for sudents

It's back to school time and many students will be going back to school. Below are several of tax tips.
1. Scholarships may qualify to be tax-free if you are a candidate for a degree at an eligible institution and the scholarships are used for qualified education expenses. Expenses such as room, board and travel generally do not qualify.
2. Textbook Tax credit- The credit will give students up to $2,500 for their out-of-pocket expenses, focusing on textbooks. The first $2,000 in out-of-pocket expenses goes toward the tax credit and is returned.
3. The American Opportunity Credit is available and allows more flexibility for taxpayers to qualify for this credit. For 2009, the Hope credit has changed substantially. Prior to 2009, the credit would apply only to the first 2 yrs of college. Now, the credit applies to all 4 yrs of college. In addition, the credit increased to $2,500 (100% of the first $2K of qualified expenses plus 25% of the next $2k of qualified expenses for a total of $2,500). Any amount more than $2,000 will have 25% of the remaining expenses paid back up to $2,500. Another change to this credit is that up to 40% of the credit is refundable. This means that whether or not you owe taxes, you may still qualify to receive up to $1,000.

Importance of recordkeeping and documentation

It is very important to keep accurate records and documentations from all income and expense related to your tax returns for individuals and small businesses.

The following are the common areas where individual taxpayers should be aware of:
1. receipts
2. mileage logs
3. credit card and bank statements
4. broker statements
5. home purchase.improvement records
6. home rental records
7. other records that will support your deductions/credits

The following are common areas where small business taxpayers should be aware of:
1. employment/payroll tax records
2. supporting documentations related to expenses
3. supporting documentations related to income
4. bank statements, credit card statements, cash register, canceled checks, etc.

It is always good to have more than enough documentation. When your return gets selected for further questioning, having proper recordkeeping and documentation may avoid headaches when you can provide the items in question.



source: http://www.irs.gov/newsroom/article/0,,id=172250,00.html

Check your withholdings to avoid any surprise

If you're an employee, your employer is required to withhold taxes (FICA, FUTA, etc.) from your paycheck. The amount your employer withholds from your paycheck depends on how many exemptions you claim on your w4 when you started the job.

Did you have a baby? Did you get a divorce? Did you get married? These are all occurances that happens but we do not think about the tax implications of these matters. Check your withholdings and adjust accordingly to reduce your chances any tax surprises at year end. Below is link to the IRS website with the withholdings calculator.
http://www.irs.gov/individuals/page/0,,id=14806,00.html


source: http://www.irs.gov/newsroom/article/0,,id=210152,00.html

Were you a victim of a natural disaster or theft this year? Here are some tax tips:

If you're a victim of a natural disaster or theft this year, then here are several things you should be aware of:

1. In order to qualify to claim deductions for casualty and theft loss, you must itemize your return on Schedule A.
2. Disaster damages are not minor wear and tear "damage" of the property. It must be substantial, sudden, unusual and unexpected.
3. Generally, casualty and theft losses covered by insurance is not deductable, unless the amount of loss is greater than the reimbursement by the insurance and the taxpayer files timely.
4. The deduction is generally the lesser of your adjusted basis or the decrease in value of the property.
5. If it's personal property, then your loss is subject to 10% AGI limitation and also further reduced by additional $500. If it's business property, then your loss is your adjusted basis, less salvage value, less reimbursement from insurance and the additional $500 reduction and 10% does not apply.
6. Different rules apply to "Federally-Declared Disaster" areas.

source: http://www.irs.gov/newsroom/article/0,,id=212012,00.html

Do you donate to charitable organizations? Here are some tax tips regarding chartibale contributions-

1. In order to receive charitable contribution deduction, you must itemize your deductions using Schedule A.
2. Make sure the organization is a bonafide qualified organization.
3. Keep good records, receipts and documentations.
4. Contributions of $250 or more must have a written acknowldgement from the organization.
5. If you contributed a non-cash item with a fair value of $500 or more, you must complete Form 8283 and attach with your return.

source: http://www.irs.gov/newsroom/article/0,,id=172936,00.html

UBS agreed to reveal 4,450 wealthy Americans holding offshore accounts. US will soon begin criminal prosecution of people using foreign bank accounts to evade income taxes.

A hedge fund bet millions that natural gas prices will triple by winter as commodity prices slides to a seven-year low.

Identity theft (stealing personal info) has been a hot topic.

Stealing people's identity has been a hot topic lately. Here are some tips tp avoid this issue:
1. IRS does not contact taxpayers via email.
2. IRS will usually contact taxpayers via mail. If you receive anything related to identity theft, respond immediately.
3. Do not disclose your social security number to people unless it is absolutely nexessary. Don't carry around your social security card.
4. Have you received a notice from the IRS that more than 1 tax return has been filed? If so, chances are your social security number was stolen and someone used your SS# to claim a refund.

source: http://www.irs.gov/newsroom/article/0,,id=211493,00.html

Do you have a hobby? Does it generate income? It may have tax implications.

We all have certain hobbies. Some we lose money and some we make money. Some are for fun and some are not. If you're consistently earning a profit from you're hobby, then there may be certain tax implications. The question is: is it a hobby or a business? Here's several questions to determine:
1. Is there an intent to make a profit? or it it just for fun?
2. Are you expecting income from your hobby?
3. Do you consistently make a profit from your "hobby"?
4. Have you re-structured your "hobby" to increase profitability?

There are different tax consequences if your hobby is actually a hobby or if your hobby qualifies as a business.

source: http://www.irs.gov/newsroom/article/0,,id=172833,00.html

Do you have or intend to have a home office soon? Here are some tax tips about Home Office deductions..

1. Measure the space you intend to use for your home office. Determine the percentage of this compared to the total square foot.
2. Your home office deduction is limited based on the amount of space you use to conduct business.
3. Make sure you use the space regularly and exclusvely for your business
4. Certain home office related expenses will be limited if you incurred a loss in your business for the year.
5. Different rules and deductions apply for self-employed and employees.

source: http://www.irs.gov/newsroom/article/0,,id=172239,00.html

Bank of America's Merrill Lynch is trying to rebuild after their financial advisors left with the "crowd" last year. Merrill's recruitment was heard of offering attractive signing packages.. such as 140% of past 12 months production and another 200% over the next 5yrs if the advisors reach their goals.

Hope Credit- Revised

For 2009, the Hope credit has changed substantially. Prior to 2009, the credit would apply only to the first 2 yrs of college. Now, the credit applies to all 4 yrs of college. In addition, the credit increased to $2,500 (100% of the first $2K of qualified expenses plus 25% of the next $2k of qualified expenses for a total of $2,500). Another change to this credit is that up to 40% of the credit is refundable. This means that whether or not you owe taxes, you may still qualify to receive up to $1K.

Telecommuters' tax- NY/NJ

Telecommuting has grown in popularity. It's cheap and convenient for both employers and employees. However, it can produce some significant and unpleasant income tax surprise. For states such as NY and NJ, all income earned from an employer are allocated to their respective state unless it is necessary for the non-resident to perform the work out of their state. There is a convenience vs necessity test. If work is being performed by the non-resident employee for their convenience rather than because it is necessary, then their income will be allocated and subject to income tax.

Do you owe money to the IRS?

Instead of receiving the refund that you were anticipating, did you get a tax bill from the IRS stating that you owe moeny to them? Here are some approaches to handle this matter.

1. You should consider taking out a loan and pay off the debt first rather than go into an installment plan with the IRS.
2. If you have a low rate on your credit card, it may be more feasible to pay the amount due with the credit card.
3. If you need to go on an installment plan with the IRS, you need to file all your respective tax returns and complete Form 9465- Installment Agreement Request form.
4. Once your request is approved, a payment plan is setup between you and the IRS.

source: http://www.irs.gov/newsroom/article/0,,id=172694,00.html

Gambled this summer and not sure how to report your winnings and/or loss?

1. All income received from gambling is taxable income
2. You should receive a Form W-2G which states your earnings form the payor> Regardsless of whether you receive a Form W-2G or not, it must be reported on your tax return.
3. You are allowed to deduct your gambling losses up to your winnings. You would need to have keep receipts and supporting documents of losses.

source: http://www.irs.gov/newsroom/article/0,,id=172190,00.html

Does the IRS owe you money?..

The IRS has about $1.3 billion in unclaimed tax refunds.

1. Some people made little income and did not file their tax return because of income threshold, they were not required to. However, if you worked for a company where taxes were withheld from you, then you should file and may be entitled to a refund.
2. Many people's refunds were mailed to incorrect addresses. Check if you are owed some money. https://sa2.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp

First Time Homebuyer Credit Fraud

Are you a 1st time Homebuyer?.. Beware of 1st Time Homebuyer Credit Fraud

http://www.irs.gov/newsroom/article/0,,id=211429,00.html

Several tax facts before selling a home

1. If you own your home and is your primary residence for at least 2 of 5 years, then you can exclude up to $250K for individuals and $500K for married filing jointly for any capital gains on the sale of the home.
2. If you don't meet the requirements for the full $250K or $500K capital gains exclusions, you amy still be able to qualify for reduced gain exclusions.
3. Loss on the sale of a home are not deductible.
4. For taxpayers who have more than one home, you can exclude the gain for only 1 home.

source: http://www.irs.gov/newsroom/article/0,,id=173359,00.html

NYC increased sales tax from 8.375% to 8.875% effective 8/1/09

The new sales tax of 8.875% is comprised of:
4.500% NYC local tax
4.000% NYS tax
0.375% Metropolitan Commuter Transportation District tax

Tarp banks awarded billions of bonuses to their employees with taxpayer funds

Yahoo and Microsoft agreed to a deal. Yahoo will hand control of its internet search technology to Microsoft.

Homeowners may qualify for energy tax credit if you make energy efficient improvements to your homes.

Home energy credits cannot be used for buying a new appliance. The energy tax credit is primarily attributable for insulation, an exterior door, exterior windows, hot water heaters, energy efficiant furnace and/or air conditioner, solar power, fuel cells, and certain types of roofs. Unfortunately, energy efficient washers and dryers do not qualify for the tax credit.

New house sales jumped 11% in June. Finally some good news coming out of the mortgage market which started the rapid deceleration of market.

There is tax relief for struggling home owners

There is tax relief for struggling homeowners. For homeowners where their mortgage was forgiven , there are some tax benefits:

1. Debt forgiveness is usually considered taxable income. However, you may qualify to exclude up to $2 million of debt forgiveness on your primary residence.

2. The mortgage forgiveness that may be qualified for income exclusion has to be used to buy, build or substantially improve your primary residence. Refinancing may also qualify.

3. You should receive Form 1009-C if your mortgage was forgiven. Keep this form when preparing your taxes. If you qualify for the income exclusion, you must also complete Form 982 Reductoin of Tax Attributes Due to Discharge of Indebtedness. This form must be attached to your Federal Income Tax Return.

source: http://www.irs.gov/newsroom/article/0,,id=184704,00.html

If you're in school or intend to go to school for further studies, you may qualify for some tax benefits to pursue higher education

There are 2 types of educational credits: Hope and Lifetime
Hope Credit
- Hope Credits applies for the 1st 2 yrs in post secondary educational schools for student senrolled in at least 1/2 time per academic year
- Taxpayer may qualify for up to $1,800 per qualified student per year
Lifetime Credit
- Applies to all years for undergrad, grad and professional schools
- Taxpayer may qualify for 20% for the 1st $10K and up to $2K

Deductible educational expenses include: tuition, books, supplies, transportation expenses to attend qualified educational activities, etc.

IRS provides several tax benefits for members of the military

1. Unreimbursed moving and travel expenses for may qualify for deduction
2. Income received while serving in a combat zone may qualify to be non-taxable.
3. Extensions for filing and paying taxes may be postponed

source: http://www.irs.gov/newsroom/article/0,,id=210896,00.html

Soda tax

Yesterday, Coca Cola attacked the proposal to create "soda tax"- which is tax on sugared drinks. Coke does not think consumers are ready for this tax. Any thoughts?

Several tax tips for taxpayers starting a new business

Below are several items the IRS wants taxpayers to be aware of when starting a new business:
1. Business formation- what type of entity are you going to form? Sole Proprietorship, LLC, Corp, etc.. ? The type of entity you form has significant tax ramifications.
2. After forming/structuring your business, understand which type of taxes you will be responsible for (ie: income, self employment, excise, etc.)
3. Determine if your business needs an EIN
4. Determine your calendar year
5. Determine your accounting method
6. Maintain good records

Please feel free to e-mail/contact me if you have additional questions.

source: http://www.irs.gov/newsroom/article/0,,id=172970,00.html

Several tax tips for students with summer jobs

During the summer months, students end up with various types of jobs. Listed below are several tax tips the IRS wants you to know about student income.
1. As student end up with many various types of jobs, make sure the withholdings are correct and consistent.
2. All income (incuding tips and self employment) greater than $400 are taxable and must be reported.
3. Exceptions may apply to students under 18 yrs old who are in the business of industries such as newpaper delivery.

source: http://www.irs.gov/newsroom/article/0,,id=210802,00.html

There's several basic tax tips for newly married couples.

1. Notify the Social Security Administration of the name change. This would avoid any confusion when you file your next tax return.
2. Make any address changes with the IRS and US Postal Service.
3. Name and address changes should be made to your HR. Check your next paycheck to make sure the correct name, SS# and address is properly reflected. This would advoid any confusion with the W2 at year-end.
4. If you are an employee, check your Withholdings. If you and your spouse work, then there is a chance you will be bumped up to a higher tax bracket.

source: http://www.irs.gov/newsroom/article/0,,id=210762,00.html

House Democratic leaders introduced a healthcare bill that would charge significant tax increases to high income individuals.

One of President Obama's prized reform has been proposed by the Democratic House on Tuesday. This bill is suppose to help "fix" our health system by reducing costs and covering approximately 97% of Americans with health care benefits. How will this be reached? Part of the answer is to signigicantly increase taxes to the high income individuals:
- Additional 1.0% tax increase for couples earning > $350K
- Additional 1.5% tax increase for households earning > $500K
- Additional 5.4% tax increase for individuals earning > $1 million

Microsoft responds to Google's free online version of "Office" which allows users to create, edit documents, spreadsheets and presentations.

마이크로소프트 - 구글, 이번엔 오피스프로그램 무료경쟁

Medical expenses are expensive. There are many strategies to use for deducting medical expenses.

미국의 의료비는 비싸지만 텍스를 줄일수있는 여러방법들이 있다.

Child care tax credits

There are several tax credits available for qualified individuals for child care expenses. Listed below are three scenarios where child care expenses may qualify for tax credit:
1. If your childcare provider is a day care center or a baby sitter, you may qualify to get some tax credit.
2. Costs related to day camp may qualify for tax credit.
3. Unreimbursed expenses of up to $3K may qualify for tax credit per child.

아래 차일드케어 텍스 크레딧이 가능한 몇 가지를 예를 들어보았다.
1. 자녀를 데이 케어에 보내거나 베이비 시터가있을경우
2. 자녀를 캠프에 보냈을 경우
3. 자녀에게 든 비용이 $3,000 이내일 경우

For those searching for jobs this summer, you may be able to deduct some of those expenses on your tax return.

현재 구직 활동을 위하여 들어간 비용은 텍스리턴때 적용이 가능하다.

Dreier who was arrested in Dec 2008, pleaded guilty to defrauding hedge funds more than $400 million and is expected to be sentenced 145 yrs.

2008년 12월 Dreier 변호사는 구속되었고 그는 헤지펀드 $400 밀리언 이상의 횡령 죄를 인정하였다.이 사건은 145년 이상의 구속형을 받아야한다고 예측하고있다.

Google announced today they will compete against Microsoft's Windows by launching their Chrome Operating system.

Google's Chrome OS system is suppose to solve most of the frustrations from Windows users such as the slow start-up process. Though the announcement was made today, it is expected to hit the markets as early as mid next year 2010.

구글사는 "Chrome OS" 이라는 시스템으로 그동안 마이크로 소프트의 Windows 사용자들의 불만(시작화면의 시간소요 등...)을 조금은 해소 하였다. 이 프로그램은 빠르면 내년 2010년 중반경 시판이 가능할것으로 발표했다.

Unemployment benefits

Unemployment benefits increased $25/week for 2009. In addition, unemployed workers may qualify for an additional 13 weeks of unemployment benefits.

2009년 실직자 중 일부는 수당을 주당 $25 상향조정 그리고 13주를 추가로 실업수당을 신청 할 수도있다.

Financial concerns

The IRS realizes that many people are financially struggling through various ways- ie: loss of jobs, unemployment compensation, declining income and withdrawing monies from retirement plans. There may be potential credits for certain individuals during these tough economic times.

미 국세청(IRS)에서는 많은 사람들이 경제적으로 어려움에 처해있다고 더욱 실감하고 있다.(실직,실업수당,연봉삭감,퇴직금 선불지급 등....) 하지만 힘든 경제 상황에도 불구하고 아직도 어떤분들에 한에서는 텍스 베네핏이 가능하다.

Interest rates to reach new lows in July.

After 7/1/09, interest rates are expected to reach new lows. For those individuals who have been looking to consolidate their students loans, this is the time to lock in the low rates for the remaining life of the loans. There are certain terms and conditions that must be met in order to qualify.

2009년 7월1일이후 새로운 최저 금리에 이를 것으로 기대된다. 학자금 대출 통합을 찾던 학생들은 지금이 남은 대출금을 통합할 적기이다. 하지만 각각의 대출마다 약간의 다른자격 조건들이 있다.

US economy reported 467,000 jobs cut in June, which brings the unemployment to a 26 yr high at 9.5%

US economy reported 467,000 jobs cut in June, which brings the unemployment to a 26 yr high at 9.5%. Last month's unemployment numbers were 322,000 which was supposedly good news at the time, since economists suspected that the rapid deceleration was slowing down. However, the 467,000 job cut in June was unexpected and brought more uncertanties to the market.

미국 경제 뉴스에서는 올해 6월에만 467,000명이 직장을 잃었다고 밝혔다. 그 숫자는 26년동안에 9.5%라는의 최고의 실업율을 보여주었고 경제학자들은 5월에만 발생한 실직자가 322,000명으로 이전보다는 실업율이 천천히 내려가 희망적이라고 추측하였으나 그 추측과는 달리 6월 한달동안에만 467,000명이 직장을 잃은사실은 예상과는 달리 더 불확실한 경제상황임을 말해주고있다.

Madoff sentenced 150 years.

For 2005-2007, the income earned and reported is not really “income”, however, it is a return of capital. Income reported for those years can be removed by filing an amended tax return in 2009. For losses dating earlier than 2005, to the extent that the taxpayer has basis, they will be allowed to deduct their losses as a theft loss in accordance with the IRS guidelines subject to terms and conditions.

COBRA health insurance

For eligible employees who have lost their jobs during 9/1/08 - 12/31/09, may qualify to continue their COBRA health insurance for themselves and their families by paying only 35% of the premium; with the remaining 65% being subsidized. The COBRA benefits are phased-out after the income reaches a certain threshold.

2008년 9월1일 부터 2009년 12월31일 이 기간동안에 실직한 사람에 한하여 COBRA 건강보험을 연장하는 신청을 할수있다. 대표적으로는 본인 혹은 가족을포함 하여 35% 실직자가 부담하여야 하고 전 직장에서는 65% 부담하는 방식이 있으나 개인의 연 소득에 따라 차등지급된다.

Various student loan programs allows for student loan forgiveness without the taxpayer having to pay the tax consequences

The first scenario is if you hold a position in certain national health service corps, then the balance of the debt may qualify to be forgived aftert 10 years of service. The 2nd scenario is if you hold a job in a national helath service corps, the you may qualify for loan repayment for up to $35K/yr subject to certain terms and conditions.

Tax incentives for individuals who are saving or paying for higher education

There are a variety of tax incentives for those who are saving for higher education. In addition, there are also tax incentives for those who are currently paying their education expenses and for those who are paying their student loans. Hope and Lifetime credits are available to those who are enrolled in a qualified institution. You can only pick one of the two- either Hope or Lifetime. In addition, an individual can also qualify to claim a tuition deduction of up to $4K for qualified education expenses. For those individuals who are finished with school and currently repaying their student loans, the interest on a qualified student loan may qualify as a deduction subject to certain provisions

Additional tax breaks for small businesses

The government responded to the ailing economy for small businesses. There are additional tax breaks relating to capital expenditures. Small businesses may qualify to deduct up to $250K for new machinery, equipment, vehicles, furnitures, and other qualifying products that is place in service during 2009. The bonus depreciation has also been extended for 2009 returns.

Federal law provides tax benefits for commuters who ride their bicycle to work

The federal government is responding as part of the Energy Act in 2009, to provide tax benefits for commuters who ride their bicycle to work. If your employer offers this benefit, you can receive $20/month for each month you use your bicycle as your primary source of transportation to work so long as you do not accept any other transit benefit. The difference between this tax benefit compared to the normal transit/parking benefits is that is is not a pre-tax benefit; rather, the $20 received is an employer paid benefit.

$8K First-time home buyer tax credit

First-time homebuyers in 2009 may qualify for the $8,000 tax credit that was proposed as part of the Govt stimulus plan. This is different from the 2008 $7,500 tax credit which had to be paid back over the course of 15 years.

Unemployment tax benefits

Unemployment benefits for the first $2,400 received in 2009, can be excluded from income.

Tax breaks for new car purchases

There are additional tax breaks for taxpayers this year. With the dreadful financial markets, the IRS has responded to stimulate consumer spending. The IRS has allowed taxpayers to be entitled to tax breaks for new car purchases on their 2009 returns. In addition, for states that do not have sales tax, there are tax breaks for those states as well.

Gamblers are not a sure bet for tax purposes

Can a gambler claim business activity for tax purposes? Maintain excellent records, be able to prove that's the trade of business and be ready.

GM to file for Chpt 11 bankruptcy tomorrow

On Thursday, April 30, 2009, Chrysler filed for Chapter 11 bankruptcy protection. Tomorrow, Monday, June 1, 2009, GM is expected to file for Chapter 11 bankruptcy protection in New York. This marks the largest bankruptcy filing in the history for an industrial business. This can have catastrophic effects in our financial markets as GM employs 230K people and builds over 20K vehicles per day. Just as when investors thought the market was turning itself around, this can eventually end up testing new lows in our financial markets.
As mentioned in my earlier posts, the auto industry needs to re-structure themselves. It was only a matter of time until the "big" companies fall under. The theory of "too big to fail" no longer exists in today's global market.

Hedge Fund Transparancy Act

Today, 2 senators, Charles Grassley an Iowa Republican and Carl Levin a Michigan Democrat introduced the Hedge Fund Transparancy Act. This act requires certain private equity funds to register with the SEC. Hopefully, the SEC will be more attentive of any red flags that come in their way unlike the Madoff incident where there was numerous red flags for many years. All the regulation wouldn't mean anything if the SEC doesn't react to any suspicious acts.
I think this act would benefit the public and it is better for overall for the market. Hedgefunds have got so big over the course of the years that they do have the ability to shake the financial markets. Regulating this industry is beneficial not only for the industry but for the investors who invests in the hedge funds. Investors should know what kind of assets the funds are interested in and what is the fair value of these assets.
If this act gets passed, then this would amend the current act of U.S. Company Act of 1940. 2009 will turn out to be a substantial shake-out in the hedge fund industry. This is just the beginning of the process.

Economy hitting the professional service industry

We all hear what's going on the news and it's pretty dreadful out there. The economy is in the shambles. We all hear what's going on in the financial, retail and auto industries. Banks like Citi are breaking up. Bank of America has issues of their own with their "toxic" assets on their balance sheets requesting for government financial bailout. Layoffs are happening everywhere in the almost every industry.
With the way the economy is going, the professional services industry is getting hit hard. Yesterday, KMPG sent out an e-mail to all their staffs with the following 2 options: the first is to voluntarily take a leave of absence anywhere from 4-12 weeks for 30% of their pay and the second is to move to a 4 day work week with the 5th day being unpaid. Other large accounting firms such as BDO and Grant Thorton also had to re-structure based on the current economic conditions- Grant Thorton announced that they will lay off 225 staffs and 40 partners and BDO said that they will lay off 250 staff members. Law firms and other service providers are also getting hit hard from the serious economic conditions.

Will there be more?

We all heard about Madoff and his ponzi scheme. The biggest reported ponzi scheme in the history of our financial markets. The basic theory behind a ponzi scheme is when the investment manager takes the new investor funds to pay out the existing investors who wish to redeem a portion or all of their capital. The fund reports a substantially high unrealized gain which in turn results in a high performance.

In a way, don't most funds that invest in illiquid securities act the same? They have investors coming in and out of the fund but they hold these securities that are not readily marketable and tradable. How do they pay out the investors that wish to redeem if they do not have a large cash position and they invest primarily in illiquid securities? Unless the fund is a plain-vanilla long short hedge fund that invests in readily marketable securities that trades at a primary market, it appears that most funds does not operate that much different from Madoff. It would be interesting to see if in 2009, how many more hedge fund fraud cases would come out.

When Bear Stearns (world's #3 investment house) failed, it was only a matter of time until Lehman failed and Merill got bought out by BoA; then, soon after, the $700 billion federal bailout. Usually when a large event occurs, it's only a matter of time until several others will eventually surface.