All Are Welcome to Attend
Join us on September 12, 2011 5:00pm – 7:00pm @Valley Forge National Park, by the Pavilion
You won’t want to miss out on this amazing Networking Opportunity and follow-up from the 2010 Career Cure Event. Come to hear success stories, network with pre and post transition experts, learn tips to tune up your resume, and hear transition tips from Transition Expert, Julie Brufke Wenger.
ABC Video Recap, Used with Permission.
In February 2010 Julie Brufke Wenger of JBW Enterprises hosted a night of hope for local Philadelphia job seekers. Julie envisioned an event to bring together industry experts in all areas of the career search to create an event called, “Career Cure.”
Host and mastermind Julie Brufke Wenger and this event, Career Cure caught the attention of the local media including media attention from the news stations, radio, and local papers. When most news stations were reporting negative news Julie saw this is an opportunity to bring hope to the Philadelphia area and decided to open the event to more than just the pharmaceutical professionals but to all to job seekers.
Julie’s vision was providing resources to all aspects of the career search in hopes for a cure. Now, in September of 2011 Julie Wenger is hosting a reunion. This is an opportunity to hear how those are doing that landed, assist those that still might be in transition or in a temporary situation and offer a chance to meet new people.
People helping people for a cure…
We like the IRS! They send out a weekly email blast with helpful links and resources that cover a wide range of topics. As your local tax specialist it’s our job to share information that we feel will benefit our clients and community.
Since it’s “back to school” and students are gearing up and applying for more loans we decided to share the College Tax Credits & Deductions from this week’s IRS newsletter. For the complete article visit: www.irs.gov
“The Internal Revenue Service wants to remind college students, whether new or returning, or parents who are paying for educational expenses, to keep receipts and to be aware of some tax benefits that can help offset these college costs. Here are four tax credit and deduction options that can be taken advantage of:
- American Opportunity Credit – This credit has been extended for an additional two years – 2011 and 2012. The credit can be up to $2,500 per eligible student and is available for the first four years of post secondary education. Forty percent of this credit is refundable, which means that you may be able to receive up to $1,000, even if you owe no taxes. Not a bad deal!*
- Lifetime Learning Credit -You may be able to claim a Lifetime Learning Credit of up to $2,000 for qualified education expenses paid for a student enrolled in eligible educational institutions. There is no limit on the number of years you can claim the Lifetime Learning Credit for an eligible student.*
- Tuition and Fees Deduction – This deduction can reduce the amount of your income subject to tax by up to $4,000 for 2011 even if you do not itemize your deductions.*
- Student Loan Interest Deduction – You may be able to deduct interest paid on a student loan used for higher education during the year. It can reduce the amount of your income subject to tax by up to $2,500, even if you don’t itemize deductions.*
*Check http://www.irs.gov for eligibility for each of these credits.
For each student, you can choose to claim only one of the credits in a single tax year. However, if you pay college expenses for two or more students in the same year, you can choose to take credits on a per-student, per-year basis.”
Students check out this YouTube Video
Parents check out this YouTube Video
Tax Benefits for Education
In the annals of Tax filings, a myriad of different strange deductions have certainly passed through the offices of the Internal Revenue Service. According to a list provided to CBS News from a published report on April Fool’s day 2010, here are 6 of them in no particular order…
Ostrich Depreciation – Surely it is up there with inventory depreciation of equipment and property, right? Apparently bizarre as it sounds livestock can be depreciated for their value if they are being used for breeding versus for producing food. So much for those Ostrich eggs, right?
Free Beer – Who’s throwing that party? It’s true and it stood up. A business owner listed the alcohol as part of a giveaway and although strange counted as a legitimate business expense. Where’s that business, again?
Navajo Healing Ceremonies – Maybe someone was trying to really alleviate the pain of tax time. Or maybe possibly ward of the fear of an Audit? Although strange as it may sound the Healing Ceremony was deemed tax deductible because it fit the criteria of “it was prescribed for a medical purpose or to alleviate a condition”.
Fallout Shelter – Apparently during the arms race of the 1980s, a man attempted and failed to claim his Shelter as a tax write off in terms of a “preventive medicine expense”. You have to wonder if he would have been successful had he chose to list it as a home improvement instead.
Cat Food – Meow Mix as a tax write off? Believe it. A couple owning a junk yard claimed that the cat food given to cats that warded off unwanted snakes and rodents as a business sustaining business expense and while it was challenged their write off was upheld and deemed a necessary deduction.
Breast Implants – Must you increase your bust as a deduction? Believe it or not, the implants of “Chesty Love” satisfied the IRS’s requirements for business expenses to be “ordinary and necessary” for someone’s profession. Strange but very true.
In history class, we read about the Emancipation Proclamation. As adults we are reminded of that history class as it is now honored as a holiday. This holiday will be observed on April 15, 2011 which is pushing back the tax deadline until April 18th, 2011.
A sigh of relief for those last minute filers. A friendly nudge… maximize your 2010 return and do not procrastinate. Take this time to make an appointment, gather your W2′s, receipts and other documents and file your return with a professional.
“The municipality of Washington D.C., celebrates April 16 as Emancipation Day. In 1862 on that day, President Abraham Lincoln signed the Compensated Emancipation Act for the release of certain persons held to service or labor in the District of Columbia. The Act freed about 3,100 enslaved persons in the District of Columbia nine months before President Lincoln issued his famous Emancipation Proclamation. The District of Columbia Compensated Emancipation Act represents the only example of compensation by the federal government to former owners of emancipated slaves.
On January 4, 2005, Mayor Anthony Williams signed legislation making Emancipation Day an official public holiday in the District.
This year the tax deadline will be extended to April 18, 2011, since the observed date for the holiday will be April 15, 2011.”
Excerpt from Wikipedia.com, http://en.wikipedia.org/wiki/Emancipation_Day
Family Matters: The Dependent
Dependants are described by the Internal Revenue Service as “…a qualifying child or a qualifying relative.” and by this definition there can only be two categories of qualifying individuals that rank for the dependency exemption described by the IRS: children and/or any relative of qualifying exemption. The exemption credit through the IRS allows Taxpayers to claim for credit for every dependent they list. Each credit lowers the monetary sum of taxable income and therefore decreases an individual’s taxable liability.
Knowing the broad definitions of dependants can be a certain benefit for taxpayers in their desire for lower tax liability. In regards to children under the Dependent qualification, they can be children (under the age of 19, or fulltime students under the age of 24): through birth, adoption or foster care, step siblings, or those of a descendent of a family member. The child is considered a descendent even under the circumstances of vacation, illness, military obligation, obligation of business or even education.
In terms of qualifications for Family Members who fall under the category of dependants, it varies in relation to those defined for children. Relatives in the qualifying definition need not live with the filing taxpayer, nor is there a specific age restriction. The filer needs to provide for more than 1/2 of the Relative’s support (and their income cannot exceed 3,650 for 2010). Relatives under this definition can be through birth (or adoption), ancestry, a descendant, foster children (but not parent), or through marriage
An important thing to note for those filing joint federal tax returns: a taxpayer or spouse can meet the criteria described for filing dependents. But when the taxpayers choose to file separately, the dependent is then placed on the side of the taxpayer who met the criteria aforementioned. Know who your dependents are, and you will save money in the long run.
Avoiding the IRS? Is it Possible?
It’s not a good idea. Don’t risk it. You’ve see the number of recognizable celebrities such as Red Foxx, and Wesley Snipes with thousands if not millions owed to the IRS. No one can fly under the radar. It’s not worth the risks involved. As the adage goes there’s nothing more certain than death and taxes. The IRS encourages and attempts to aid the public to spot and avoid tax schemes that they deem abusive through the use of a variety of educational literature. Taking part in a illegal tax scheme can potentially lead to fines, including interest on taxes owed with penalties, and even imprisonment. Know and avoid what may seem like the easy route, it sure isn’t. Be responsible, pay your taxes.
2010 Homebuyers Beware
Buying a Home is an exciting prospect and an important decision, but like all important decisions it should be measured with gainful knowledge for informed decision making. An educated buyer can avoid the pitfalls from predatory lending practices that promise short term gains. Remember important dates, know your facts and do your due diligence. Ask lots of questions and do your research beforehand. Find a lender who has your best interests in mind, and know the facts that will help you make a wise decision. An ounce of Prevention is worth more than a pound of regret, as always.
Remember the Important dates. Keep in mind, the last day that both first-time and move-up/repeat homebuyer credits was available during 2010 was September 30th; homebuyers who had a qualifying home contract in place on or before April 30 2010 had to make closing on 9/30/10 if they wished to claim the homebuyer tax credit on their return.
Although, there is a large majority of people who file their taxes electronically, individuals who wish to claim a first-time home buyer tax credit will need to do so by filing a paper claim. The vast number of tax fraud connected to home buyer tax credits, has caused the IRS to increase compliance checks along the way. Home buyers who wish to benefit from this type of claim should do it early. The early bird gets the worm remains to be true. Late filers can expect delays.
Are you a realtor? Did you see our Realtor Assistance Program?
Information Source: http://www.becausetheworldisnotflat.com/?p=704
Our Realtor Assistance Program provides a resource for real estate professionals to distinguish themselves from other realtors. Become your client’s hero and realize more sales by partnering with us to answer questions like these for your clients:
- How will a home purchase impact your client’s tax return?
The deductions realized by home ownership may improve cash flow for the buyer and even impact the decision they make on the price of the home the can afford. We can simulate a tax return and provide a clear picture of this.
- My client wants a financial planner that understands real estate as an investment.
We are very unique in that we often discuss adding a real estate investment as an adjunct to our client’s traditional investment portfolio. We can explain the use of leverage and how it can generate returns for the client.
- Who can my client turn to navigate the record keeping and tax documents associated with owning a home or investment property?
We specialize in taxes and bookkeeping for property owners.
- How do clients free up funds to purchase property?
We can review a client’s portfolio and discuss things like using a self directed IRA of Roth IRA for first time homebuyers.
- What is the right mortgage for the purchase?
This is impacted by many variables. We can review this with the client and make recommendations.
- My client is new to the area and needs tax & financial services.
Our firm has been a mainstay in the community since 1990. We specialize in taxes including relocations and out of state returns. We also provide wealth management including 401K plan rollover options for individuals with new employers.
- My client is retiring or elderly.
We can help your client convert the proceeds of the sale into retirement income or assist families with estate planning issues.
- New homebuyers may not be able to afford the mortgage payment individually.
Life insurance can be used to protect the family and pay off the mortgage in the event of unforeseen circumstances.
- Should my client use some type of entity to purchase their property?
We can provide entity planning and prepare taxes for corporations and LLCs.
- How can my client minimize paying tax when real estate is sold?
Timing of the sale, 1031exchanges and TICS are just of few of the things we can discuss with your client.
DOWNLOAD our PDF for the Realtor Assistance Program for FREE. We look forward to helping you grow your business with our Realtor Assitance Program.
Phoenix Tax Consultants, LLC | 300 Bridge Street | Phoenixville | PA | 19460
610-933-3507 p | 610-933-6263 f | www.taxtacklers.com
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