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5 Tax Moves to make NOW!
Posted Under: General Area in Florida, Quality of Life in Florida, Tech Tips in Florida | September 3, 2010 2:53 PM | 613 views | 1 comment1. Evaluate Capital Gains: The current long-term capital gains tax rate, with some exceptions, is either 0 percent or 15 percent depending on what ordinary income tax rate you fall into. But in 2011, these rates jump to 10 percent and 20 percent. That means if you have some investments that have done well, you may want to consider selling them in 2010 to take advantage of the lower tax rates. If you currently fall within the 0 percent long-term capital gains rate, the decision may prove to be an easy one. But even for those that fall into the 15 percent bracket, saving 5 percent over next year's higher rate is significant. Of course, the tax consequences of an investment are just one factor to consider when deciding whether to sell.
2. Make Money Now: As you've probably heard, some of the higher income tax brackets will get even higher next year. The top two rates for the 2010 federal income tax brackets are 33 percent and 35 percent, which will move to 36 percent and 39.6 percent in 2011. The effect these changes will have on lower tax brackets depends on what Congress does this year, but the lower tax brackets are set to increase as well. If you fall into a rising tax bracket, it may be in your best interest to accelerate income into 2010 if at all possible. This could be particularly helpful for small business owners and independent contractors who have some control over the timing of income.
3. Green Your Home: There are several energy tax credits that are set to expire at the end of the year. For example, you can get a tax credit up to 30 percent of the cost ($1,500 maximum) on certain qualifying home improvements, such as roofs, water heaters, and HVAC systems. Make sure to verify that the product you want to install qualifies for the tax credit. And get the work done this year before the tax credit expires.
[Visit the U.S. News Personal Finance site for more insight and money management tips.]
4. Get Organized: Every year on April 15th at about 8 pm I tell myself I'll be better organized the following year. While it's taken several years of last-minute tax return filings to finally motivate me into action, this year I'm actually organized. The key is not to wait until tax season. Keep records of your taxable investments to help you calculate gains and losses. Keep your business receipts organized and separate from personal expenses. If you've made home improvements that qualify for tax credits, keep your receipts in a separate file. Staying organized takes just a few minutes week, but it can save you a lot of headaches when it comes time to file your taxes and will reduce the risk that you'll miss a tax deduction.
5. Plan Your Tax Preparation: Many use online tax software to prepare and file their tax returns. For those folks, they have some time before the 2011 versions of the tax software are released. But if you plan to have a tax professional prepare your return, there are good reasons to hire them now. First, you can take your time to find the best tax professional for your needs, taking into consideration recommendations from friends and family. Second, they can further assist you with tax planning now in anticipation of the many changes to the tax code in 2011.
It's important to recognize that tax planning is specific to each individual's situation and can involve complex analysis. So if you think some of these tax moves may be right for you, consult with a tax specialist before making any decisions.
http://news.yahoo.com/s/usnews/20100902/ts_usnews/5taxmovestomakenowWe recomend the Ashton Group at www.ashtongroup.netfor tax preparation and planning!
Carl Ashton Mortgage Banker
Bright Green Home Loans
1605B Prosperity Farms Road
West Palm Beach, FL, FL 33403
Phone: 561-210-3000
Fax: 561-624-1764
Cell: 239-580-9977
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HUD Secretary Tiptoes Around Another Tax Credit, Pushes Balanced Housing Policy
Posted Under: General Area in Florida, Quality of Life in Florida | August 30, 2010 5:21 PM | 274 views | No commentsHUD Secretary Tiptoes Around Another Tax Credit, Pushes Balanced Housing Policy
by Jann SwansonIn the wake of a full week full of bad economic news, especially housing indicators, Secretary of Housing and Urban Development (HUD) Shaun Donovan appeared on CNNs Sunday morning news and interview program State of the Union. Host Ed Henry prefaced the interview with July housing numbers - a 27 percent decline in existing home sales and new home sales at their lowest levels since 1963. "Many analysts," Henry said, "believe that housing started this whole financial crisis. We saw some pretty grim headlines this week sparking some fears about a double dip recession." He asked Donovan, what he could say to reassure Americans that this will not happen.
Donovan said that the dip in house sales in July was not unexpected because it would mark the end of the homebuyers' tax credit that had been successful in spurring those sales. But, he said, the numbers were clearly worse than expected. The Secretary said, in response the Administration would be launching two additional critical tools in the next few weeks. The first will be an FHA refinancing effort to help borrowers who are underwater in their homes, the second is an emergency homeowners' loan program to help unemployed borrowers to in their homes.
Asked point-blank by Henry whether a nother housing tax credit was dead, the Secretary said that it was too early, based on just one month of post-credit housing numbers, to say whether it would be revived, but that the Administration would be watching where the market is moving going forward and would do everything possible to make sure it stabilizes and recovers.
The Secretary also sent another signal that the nation's ownership-centric housing policy may be undergoing review. Henry referenced the current cover story in Time magazine about rethinking home ownership which quoted Deputy Housing Secretary Raphael Bostic as saying, "There is this notion that being housed well is synonymous with being a home owner. That narrative has got to change." Henry said, "This is kind of a radical new idea that is being talked about, a debate throughout the country that maybe homeownership is not for everybody. Where does the administration come down on that?"
Donovan said he and the president have both been consistent about promoting the need for a more balanced housing policy. "For too long, our focus at the federal level was only on homeownership to the exclusion of rental. Homeownership is important, and we are going to continue to make sure folks have access to homeownership, but we need to make sure that we have decent, affordable rental housing in this country as well."
The Secretary was speaking from New Orleans where he was attending observances marking the fifth anniversary of Hurricane Katrina. He pointed to the 40,000 families who were in FEMA trailers at the beginning of his administration and now are mostly in permanent housing. This, he said, is a perfect example of the Administration's approach. "We have been focused on making sure the public housing residents can get back in their homes. That's why today there are more federally assisted rental units in New Orleans than there were before the storm. And so we're going to continue to focus on having a truly balanced housing policy in the country.
He said that a house may no longer be a homeowner's piggy bank it was in the past but it is too early to say whether home prices will now rise only in step with inflation. The key is "we've got to get back to basics on homeownership. We've got to have decent, safe, smart loans that help families not just get into a home but stay in a home. And look, the issue here is families can choose homeownership. They ought to be able to choose homeownership, but if they do that, they ought to get it with a safe mortgage loan that will keep them in that home long term."
http://www.mortgagenewsdaily.com/08302010_shaun_donovan_hud.asp