THIS YEAR'S (2010) TAX BREAKS ARE GIGANTIC!!

1. ENERGY TAX CREDITS- Back after a one year absence. For existing homes, tax credits are with 30% of the cost up to a maximum of $1500; i.e. that's $1500 in your pocket for exterior windows and doors, skylights, insulation, furnaces, boilers, and hot water heaters. Heat pumps, solar panels, wind energy systems, geothermal and fuel cells qualify for 30% credit with no upper limit.
2. UP TO $8000 FIRST-TIME HOMEBUYER EXTENDED TO APRIL 30, 2010 refundable credit (if you did not own home within the last three years). Can amend 2008 return or take on 2009 return. Buyers getting FHA mortgages are eligible for advance of tax credit which can be used to make down payment or pay closing costs.
3. ALSO!- Up to $6500 refundable credit if owned a home for 5 years and purchase a new home before April 30, 1010.
4. Sales tax deduction for purchase of new motor vehicle or motor home not exceeding 8500 pounds or $49,500. You get deduction even if you do not itemize.
5. Unemployment insurance payments up to $2400 tax free in 2009. Applies to each person of a married couple.
6. Tuition (HOPE credit) increased to $2500, per eligible student with a portion being refundable. Available for first four years of higher education.
7. Child tax credit refundable portion increased for 2009 and earned income tax credit increased for 2009.
8. New 10% credit, up to $2500, for electric vehicle. Increases credit for alternative fuel vehicles.
9. Meal & Miles- regardless of which method is used to deduct vehicles expenses, good records must be kept; i.e. you must keep a log, diary, or calendar and mark business trips taken and mileage for them or you will lose mileage write-offs if you should be audited. MEAL EXPENSES for travel & entertainment recorded in same log.
10. Non-cash contributions! Donate clothing to Salvation Army or other charities. Use 1/4 to 1/3 original value; list clothing items with values on sheets of paper. Get charity to stamp the paper work when making these donations. We'll deduct on your tax return. YOU GET A DEDUCTION WITHOUT WRITING A CHECK or contribute appreciated STOCK instead of cash. You get full value as a charitable write-off & don't pay on the gain. ALERT!!! Write "Very Good Used Condition" on your receipt.
11. Sell stock before December 31st - losses can be used to offset gains on other sales; they can also produce an additional $3000 dollar write-off against other income.
12. Pre-pay State and local taxes (prior 12/31/2009)-and get a deduction on your federal 2009 return. Pre-pay deductible expenses-on or by December 31 (use credit cards if need be) and deduct on the year's return.
13. Extensive lists of deductible items by occupation/profession (law enforcement, teachers, sales persons, firemen, etc.) can be obtained in our office.

* Alert!! REFUNDS WILL INCREASE this year due to Tax Law Changes!! *

It's possible to get up to $14,500 in tax credits and savings this year!!

** Don't forget to choose a FREE GIFT when picking up your tax return or check!! **

Happy Holidays!

Frank