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Archive for August, 2009

Cash for Clunkers may be gone….but…..there are still write-offs

Aug 31

Posted by Teri in CREDIT, ECONOMY, TAX CREDITS, TAXES

Tax Refund

The Cash for Clunkers program, may have ended. However, the original Stimulus Act for Automobile purchases provided for a sales tax write off . Even if you do not itemize, you may write off sales tax, local tax, and excise tax for new vehicles, in an above the line deduction. This is particularly attractive for those individuals who have state income taxes, since this is ADDITION to the state income tax deduction.

According to  Edmunds Daily

In sum, state and local motor vehicle sales taxes and motor vehicle excise taxes are all deductible on any new car, light truck, recreational vehicle, or motorcycles purchased between February 17th and December 31, 2009. Individuals with a modified adjusted gross income of less than $125,000 or joint-filers making less than $250,000 a year in 2009 qualify.

There will also be significant tax credits for plug-in hybrids purchased beginning December 31, 2009 that will extend to the first 200,000 models sold by each automaker. For more details on the stimulus package and green vehicles, see the Green Car Advisor blog entry here.

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First Time Homebuyers Credit….Expiring Soon!

Aug 20

Posted by Hannah in CREDIT, HOUSING ASSISTANCE, TAX CREDITS, TAXES

Aug 20

HURRY! This credit expires November 30, 2009!


For more information on the first-time home buyers credit:

Federal Housing Tax Credit

IRS: Housing Credit

Things to Know
First Time Home Buyer’s Credit…
Greetings!

What makes a first time home buyer? You would be surprised, it does not have to be your first home, you just cannot have owned a personal residence for the previous 3 years.  This also applies to your spouse if you are purchasing a home together.

For those of you who would be considered a first time home buyer, you are eligible to receive a credit of 10% of the purchase price of your new home with a maximum at $8,000.  Pretty nice deal!

So how do you get this credit? One way is to claim a credit on your 2009 tax return.  Also, you can amend your 2008 tax return to claim a credit for a home purchased in 2009.  And then receive the credit now instead of with your 2009 return.  The last way to obtain the credit is that select lenders and the government are issuing interest free loans up the amount of your credit for the down payment on the home.  For  more details on short-term loans for this purpose go to US News- The Home Front.
Nitty Gritty Details….
Those who took the credit in 2008 for 2007 purchases do have to repay their credit over 15 years.

There is an income limit for the credit, $75,000 for single filers and $150,000 for married filing joint.

The credit is refundable, so if your tax liability is less than the credit, you will receive a refund.

If the home is sold within 3 years from purchase, the credit will have to be repaid.   Otherwise, it is not required to be repaid.
Written by Hannah Schoff for Maco & Associates, LLC

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Cash for Clunkers! How the Program Works!

Aug 12

Posted by Hannah in ECONOMY, RECESSION

Cash for Clunkers: How it Works

For those of you who have an old lemon, that goes through gas like crazy, and is not even worth the bother to sell, good news!  The president has signed and issued a new credit called “Car Allowance Rebate System” or CARS.  The program has been nicknamed Cash for Clunkers and seems to be a big hit!

Things to know if you are looking into this program include:

-Does your old lemon qualify?
Go to http://www.fueleconomy.gov to find out if your car qualifies.  This website will list the mpg of your vehicle; it must be less that 18 mpg to qualify.   You do not need to register your car before hand, just bring the car to a registered dealer.  A list of registered dealers can be found at http://www.cars.gov/dealer-locator where you can search for your location.

-How does the credit work?
If your car qualifies, then the price of the car must be reduced by either the $3,500 or $4,500 credit (depending on your car and the car you purchase).  So as a consumer, the credit will be taken off the price immediately.

-What car could you get?
For the credit to be applied, the car you purchase must be new and a 2008, 2009, or 2010 model.  The car also must be purchased before November 1, 2009 or sooner! Depending on how long the funding lasts.
To begin the process, go to the CARS website and you can make sure your car qualifies, find a new car that qualifies and be on your way to enjoying that new car smell!
Hurry before the program ends!
The program only lasts as long as there is funding and with growing popularity the funding is running out quickly! Some dealers are actually reporting shortages in cars, too!!
Written by Hannah J. Schoff for Maco & Associates, LLC

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