A&K
Averson & Klinetop, LLP
Certified
Public Accountants
Averson &
Klinetop, LLP provides you with tax planning suggestions; read the summary of
recent legislation below as it affects current and future year tax planning. As
another year end approaches, don’t miss the opportunity for last minute tax
planning opportunities; click this underlined link for a site we have provided
for 2010 Year
End Tax Planning. We continue to present the 2009 Tax Planning
Guide, but since it’s never too soon to start thinking about taxes for
next year, we have also provided a link to 2010 Tax Planning
Guide. Contact us for a planning consultation.
November, 2009 Worker,
Homeownership and Business Assistance Act of 2009:
Extends the up to $8,000 first time homebuyers credit into 2010, raises the income limits that phase out the credit and provides a credit up to $6,500 for some existing homeowners who buy a new primary residence. Check the IRS website for details.
Extends unemployment
benefits
Permits up to five year
carryback of net operating losses for qualifying small businesses.
February, 2009 “Stimulus
Bill” tax related provisions:
Tax deduction (whether
itemizing or taking standard deduction) for sales tax on new vehicle and for
real estate taxes paid. New Schedule L for expanded standard deduction. Energy
credits reinstated for 2009 & 2010, with changes to qualifying acquisitions
(go to energystar.org website for details). Credit for qualified fuel efficient
vehicles, but some manufacturers and models have already filled their quota, so
check IRS website for qualifying vehicles.
First Time Homebuyers Credit
— $8,000 credit for homes acquired before December 1, 2009 (and as extended by
November, 2009 Act)
Alternative Minimum Tax thresholds extended to provide relief to more taxpayers
“Make Work Pay” Tax Credit
via reduced withholdings or tax credit ($250 for seniors)
Retirees: No Required
Minimum Distributions for 2009
Old “Hope” Credit renamed
“American Opportunity Tax Credit”, now $2,500 for first four years on incomes
joint ($160,000- 180,000) or single ($80,000-$90,000); 40% up to $2,500 for qualifying
expenses but still must be at least halftime.
For businesses: Extended to
2009 Sec 179 and 50% bonus depreciation: Sec 179 writeoff on qualifying assets
up to $250,000 (reduced once capital expenditures exceed $800,000). 2010 goes
back to lower limits unless new legislation is passed.
New York State — rates have been increased
and itemized deductions limited for high income individuals in order to reduce
the budget gap. Go to the NYS Taxation website for details.
2010 Planning:
Expiration year for “Bush
Tax Cuts” and unless there are changes put forth in new legislation, the rates
(higher brackets for regular tax and dividends and capital gains) and estate
rules will go back to pre-2001 levels. Watch the news for 2010 legislation.
In 2010, limits on itemized
deductions and personal exemptions do not apply to higher AGI limits.
Health Care Reform: at this time, no legislation has been passed on health care reform but several proposals call for taxing health care benefits or adding a tax surcharge for higher income individuals.
ROTH IRA 2010 opportunity:
Generally, Roth conversions are limited to those with AGI under $ 100,000;
however, in 2010, anyone who has IRAs can convert balances to Roths, pay
whatever tax is due either in 2010 or elect to spread the tax in 2011 &
2012. You should contact your financial planner or investment advisor to
evaluate whether this
Provisions of previous
legislation that are still applicable:
Extension of sales tax
deduction in lieu of income tax
Qualified tuition deduction
Classroom expense deduction
of $250
Tax free IRA distributions
to charity for 2009
Deduction of up to $500
($1,000 for joint) of real property taxes for those who do not itemize.
Businesses: the Domestic Production Deduction is 6% for 2009 & 9% for 2010
Energy
efficient commercial buildings deduction extended through 2013
2007
legislation broadened the kiddie tax to include students under age 24
Starting with 2006 tax year, all gifts to charity must be supported by documents, acknowledgements, cancelled checks, etc. and gifts of clothes and household items must meet stricter standards.
We at Averson and Klinetop, LLP are prepared to explain and implement
the new compliance strategies. Contact us for a review of how these changes may
affect you. Click one of these
links we have provided for:
The 2010-Year End Tax
Planning
Telephone: 315-463-8522
To E-mail, click on akcpa@a-znet.com
AVERSON & KLINETOP, LLP
6320 Fly Road
Suite 108
East Syracuse, NY 13057
315-463-8522
Email: akcpa@a-znet.com
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