Tuesday, May 25, 2010
Come Out, Come Out Wherever You Are...
Have you read the new 2409-page health reform
bill, passed a few short months ago? Well, if you haven't,
you might just want to now, because much of what is in the bill,
has nothing to do with health reform, and everything to do with
eliminating tax cheats and making money.
The subject of this post specifically
addresses the grossly expanded requirements for businesses to
file 1099-Misc tax forms. Starting in 2012, all business
payments or purchases that exceed $600 in a calendar year will
need to be accompanied by a 1099-Misc. No longer will
corporations be exempt. At the end of the year, any vendor
having billed you $600 or more, must receive a 1099-Misc.
That includes utilities, big box stores, or airlines.
Think about it. Every vendor in your vendor list (and
hopefully you have an accounting package like QuickBooks that
will track these things for you), will have to be set up exactly
as they are registered with the IRS, no abbreviations, or
incorrect addresses. Also, you will have to obtain an EIN
for every vendor. For all of you who have sent out W-9s
and had to beg and plead for responses, multiply that
frustration by 10.
But here's the clincher! The 1099 must
now accompany any sizeable business
transaction or purchase, made. So you could be filing
multiple 1099s for a single vendor during the year. And of
course, if you don't file the 1099 when the purchase is made,
you face IRS penalties.
Look on the bright side. At least
individuals don't have to provide 1099-Misc - YET!
It's not all bad news though. The
administration is looking forward to an approximately $345
billion increase in new federal tax revenues annually.
Posted by: Leslie Fisher @
9:02 AM
Monday, November 23, 2009
First-Time Homebuyer Tax Credit
On the subject of home
ownership, there have been recent adjustments to the First-Time
Homebuyers Tax Credit. This has left many people wondering who is
eligible for the credit. Some key points of eligibility are:
this does not have to be your first home purchase, the deadline
for entering into a contract is now April 30, 2010 with a
closing date of June 30, 2010, and the credit is fully
refundable (you get money back if you do not owe that much in
taxes). For more information, you can follow the link below to
view the IRS specifications.
http://www.irs.gov/newsroom/article/0,,id=204671,00.html?portlet=7
Posted by: Emily Iris @
8:50 AM
Wednesday, November 11, 2009
Getting Ready For The Holidays
With Thanksgiving fast approaching, many of us
are dreaming of a new kitchen in which to cook our holiday feasts. If
you are lucky enough to upgrade your kitchen with new
energy-efficient appliances, make sure you save your receipts.
This year, the IRS has increased the energy credit to 30% of
cost, with a $1,500 credit limit. This limit also includes
improving the efficiency of your home by replacing old windows,
insulation, heating systems, etc. This is just one way to "go
green" and save green this holiday season.
Posted by: Emily Iris @
12:41 PM
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