December 2009

 

	Must report all foreign bank accounts
	First time homebuyers’ credit $8,000 extended to April 3, 2010 for home purchases not to exceed $800,000 (must closed by June 30, 2010). Current homebuyers’ credit $6,500, November 6, 2009 to May 1, 2010. Dependent cannot claim the credit. Unmarried co-purchasers can apportion the credit.
	An additional standard deduction of $500 - $1,000 may be claimed for real estate tax paid in 2008 and 2009 by a taxpayer who is a real property owner and does not itemize.
	A sales tax deduction is available on any new vehicle costing up to $49,500 purchased between February 17, 2009 and December 31, 2009. This sales and excise tax paid may be added to the standard deduction for those who do not itemize.
	HAS contribution limit 2009 for family $5,950, individual $3,000.
	PMI mortgage insurance is deductible. Limits apply.
	The annual gift exclusion rises to $13,000, up from $12,000 in 2008.
	The current estate exemption of $3.5 million per individual was permanently extended.
	For 2009 and 2010 the standard mileage rates for the use of a car or truck are:

	No income tax on the first $2,400 of unemployment benefits in 2009.
	Energy savings up to 30% on certain systems raises maximum credit to $1,500 for 2009 and 2010 combined.
	Many new breaks for college costs, up to $4,000, if you meet the income limits.
	Hope credit renamed “American Opportunity Tax Credit” increased to $2,500, income limits apply, refundable.
	Plug-in electric vehicle credit up to $2,500.
	Street legal electric golf carts $4,000 - $6,000 credits available.
	Dependent children under age 17 at year-end get a credit of $1,000 through 2010. AGI limits apply.
	Net stock losses limited to $3,000.
	A theft loss (Ponzi-type loss) claim is considered a loss from a sole proprietorship and allows a 5 year carryback.
	Long-term capital gains are still 15%.
	Paying interest on another person’s home mortgage can be tax deductible.
	You may be able to claim a relative you support as a dependent even if the relative doesn’t live with you. And you may be able to deduct a non-relative you support who lives with you all year. The dependent can’t earn more than $3,650 per year in 2009 and 2010.
	If you live away from home while on temporary assignment you may be able to deduct your living costs even if the job lasts more than one year.
	Need proof for charitable deductions, cancelled checks, appraisals.
	Living expenses incurred at distant job sites are not always deductible.
	Gift from foreign person may require reporting on Form 3520.
	You may want to convert your IRA to a ROTH in 2010. The upper AGI income limit has been repealed.
	Adoption credit available up to $12,150.
	Part B Medicare is going up again for high incomes.

 

	S Firms with profits must take a reasonable officer salary or face IRS recharacterization of distributions as salary with severe penalties up to 100% of social security tax not paid.
	S Firms and Partnerships that file late will be fined $195 per owner, or partner, per month for up to 12 months. S Corp due March 15, 2010, Partnerships due April 15, 2010.
	An LLC member may be subject to self-employment tax. The member agreement should define.
	Businesses with losses in 2008 or 2009 can carry them back 5 years (some limits apply).
	Home office rules expanded.
	Invest in your business, the Section 179 Equipment (including trucks of 6,000 pounds or more) write off for companies with profits is up to $250,000 for new or used equipment purchased in 2009.
	Domestic production credits available for some.
	Homebuilders may claim a credit of $2,000 per certified energy-efficient home they build.
	Business gifts: $25 limit per gift.
	Those who have receipts of more than $10,000 in cash (includes 2 or more related transactions) must file form 8300 with the IRS within 15 days of transactions.
	You are required to keep 4 years copies of W-2 and 1099 forms you tried to deliver but could not.
	Foreign earned income exclusion for 2009 is $91,400.
	Federal and Florida minimum wage is $7.25/hr; minimum for tipped employees is $4.23.
	If your inventory declined in value you may be able to write off the decrease.
	Responsible persons are personally liable for corporate payroll taxes.

  However, our top tax "tip" for 2009 and years forward is to keep and maintain your records in an orderly and detailed manner. Organization can save you money, time and stress when it is time to prepare your tax return.