Monday, 22 Feb 2010

Individuals who make energy efficiency improvements to their principal residence may be eligible for a federal tax credit.  Things like exterior doors and windows, insulation, heat pumps, furnaces, central air conditioners, and water heaters that qualify as energy efficiency improvements and are installed in 2009 may claim the credit.  The credit is limited to 30% of the cost of qualified energy efficiency improvements for the tax year.  The amount of credit a taxpayer may claim is limited to a maximum of $1500.  This maximum credit is not limited to the $1500 for certain solar, wind, and fuel cell installations completed before 2017.  Please contact us if you have any questions.

Monday 15, 2010

Taxpayers who take the standard deduction in lieu of itemizing their deductions for their 2009 returns are eligible to take an additional standard deduction for property taxes paid in 2009.  This additional deduction is equal to the lesser of the amount actually paid for real estate taxes or $500 for single taxpayers or $1,000 for couples filing jointly.

Also, if you bought a new vehicle in 2009 after February 16th, you can deduct the amount of sales and excise tax on the first $49,500 of the purchase price, even if you do not itemize.  This deduction is phased out for higher income individuals ($125,000 for single and $250,000 for joint filers)

If you’re unsure as to whether a charity is qualified, IRS Publication 78 lists most organizations that are qualified to receive deductible contributions.  This publication is available online and in many libraries. Check the list at IRS.gov and click on Search for Charities.  In addition, most churches, synagogues, temples, and mosques and government agencies are eligible, even if they are not listed.  Contributions to individuals or trust funds set up to help families of individuals are NOT eligible for a deduction.

Monday o1, February 2010

The IRS is allowing taxpayers who donate cash or checks to qualified charities providing earthquake relief to Haiti, to claim the donation on either their 2009 or their 2010 tax return.  To get the tax benefit, the taxpayer must itemize deductions.  To be eligible for the deduction in 2009, the donation must be made after January 11, 2010 but before March 1, 2010.  If Jim Davis CPA is preparing your 2009 tax return and you wish to claim a contribution you made in 2010, please discuss it with us.