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Take Advantage of New Tax Breaks for 2008 |
Tax planning is something that has to be done BEFORE tax season, something that I try teach all of my clients.
After completing the current year tax return, I always look ahead and try to anticipate any problems that will come up in the next year. Will your withholding be enough? Are there losses that can offset income?
If you are a small business owner, the need for tax planning is much more important. Many business owners feel overwhelmed by the difficulty of understanding the tax laws. Our tax office is open all year and we offer a wide range of services, including individual tax analysis that can pinpoint ways of saving on your tax bill.
2008 changes that affect everyone are the increase to $3,500 for each personal exemption and increased standard deductions. A special new law will benefit homeowners who do not itemize. An additional standard deduction of $500 ($1,000.00 for a joint return) will be allowed for property taxes paid on residences and vacation homes.
Limits on contributions to IRA’s have been raised, allowing taxpayers to save $5,000 ($6,000 for those over 50). Taxpayers have until April 15th to fund their IRA’s, so it is possible to use your refund to contribute to your retirement. That’s good tax planning!
A new law provides for a credit for first time homebuyers who purchased a home after April 9, 2008 or who will purchase a home before July 1, 2009. This credit is limited to the lesser of $7500 ($3750 for a married person filing separately) or 10% of the purchase price of the home. Taxpayers must be cautioned that this credit is actually a loan and must be paid back ratably over 15 years.
We offer fast, friendly service and can help you with a wide range of tax and financial services. We have been helping both businesses and individuals since 1988.
