Comments for IRS Tax Talk http://irstaxtalk.com This is not just another WordPress weblog - It's about your tax money! Thu, 29 Jul 2010 15:19:00 +0000 http://wordpress.org/?v=2.2.1 Comment on S Corp Conversion to LLC by admin http://irstaxtalk.com/2009/07/16/s-corp-conversion-to-llc/#comment-1514 admin Mon, 05 Oct 2009 16:53:10 +0000 http://irstaxtalk.com/2009/07/16/s-corp-conversion-to-llc/#comment-1514 No. It seems to be tax free. § 368-(a)(1)(F) allows it as long as the ownership percentage between the Sub S and the LLC remains the same. No. It seems to be tax free. § 368-(a)(1)(F) allows it as long as the ownership percentage between the Sub S and the LLC remains the same.

]]> Comment on Depreciation of Vehicle Depends on Gross Vehicle Weight (GVW) by wbnokrpz http://irstaxtalk.com/2009/02/04/depreciation-of-vehicle-depends-on-gross-vehicle-weight-gvw/#comment-165 wbnokrpz Mon, 23 Feb 2009 00:50:13 +0000 http://irstaxtalk.com/2009/02/04/depreciation-of-vehicle-depends-on-gross-vehicle-weight-gvw/#comment-165 <strong>wbnokrpz...</strong> wbnokrpz... wbnokrpz…

wbnokrpz…

]]> Comment on First Time Homebuyer Credit (as of 02.16.09) by What’s Buzzing? » Blog Archive » Time For a Million Tax Payer March on Washington « Spiney’S Notes … http://irstaxtalk.com/2009/02/16/first-time-homebuyer-credit-as-of-021609/#comment-12 What’s Buzzing? » Blog Archive » Time For a Million Tax Payer March on Washington « Spiney’S Notes … Mon, 16 Feb 2009 22:58:39 +0000 http://irstaxtalk.com/2009/02/16/first-time-homebuyer-credit-as-of-021609/#comment-12 [...] IRS Tax Talk » Blog Archive » First Time Homebuyer Credit (as of … [...] […] IRS Tax Talk » Blog Archive » First Time Homebuyer Credit (as of … […]

]]> Comment on Ask Questions or Comment by Lonnie Young http://irstaxtalk.com/2009/02/12/ask-questions-or-comment/#comment-11 Lonnie Young Mon, 16 Feb 2009 21:33:46 +0000 http://irstaxtalk.com/2009/02/12/ask-questions-or-comment/#comment-11 <p><strong>First Time Homebuyer Credit</strong></p> <p>We understand there are many questions about this new refundable tax credit. </p> <p><strong>How Much is the Credit</strong>?</p> <p><strong>AS CURRENTLY WRITTEN </strong>(this is the tax law today.. at least it was this morning!) the credit amount is the lesser of $7,500 or 10% of the purchase price of a principal residence ($3,750 if Married, Filing Separate).</p> <p>The closing date for the new home must be between April 9, 2008 and June 30, 2009. If the home is purchased in 2009 the taxpayer may elect to claim the credit on their 2008 tax return (either original or amended).</p> <p><strong>Who Qualifies</strong>?</p> <p>The credit only applies to taxpayer’s who have not had any ownership interest in a principal residence during the three year period prior to the purchase of the home. The three year period applies only to a principal residence. This means that a renter who owns a vacation home may qualify for the first time homebuyer credit if they meet the other criteria.</p> <p>There is no requirement that a taxpayer have any income to get this fully refundable credit. This means that taxpayer’s with only Social Security or Disability income may purchase a home and get this credit. The credit phases out for single taxpayers with income between $75,000 and $95,000. The phase out range for married taxpayers is $150,000 to $170,000. </p> <p>Property acquired from a related person does not qualify for the credit! Property acquired through gift or inheritance is not purchased and therefore does not qualify for the credit.</p> <p><strong>Do I Have to Pay it Back</strong>?</p> <p><strong>AS CURRENTLY WRITTEN</strong>, the tax law requires the credit to be recaptured (repaid on the tax return), interest free, over 15 years beginning the second year after the credit is claimed…. The payback is $500 per year; which actually makes it an interest free loan. </p> <p>There is a possibility the law may change and no repayment be required and that the amount of the credit may increase. </p> <p>If the house is sold or no longer the principal residence prior to this period, the remaining credit is recaptured (paid back to IRS) that year. There are some exceptions to the payback requirement (death of homeowner, divorce and involuntary conversion of the home).</p> <p>Overall, this First Time Homebuyer Credit appears to be a good incentive to help qualified taxpayers buy a principal residence.</p> First Time Homebuyer Credit

We understand there are many questions about this new refundable tax credit.

How Much is the Credit?

AS CURRENTLY WRITTEN (this is the tax law today.. at least it was this morning!) the credit amount is the lesser of $7,500 or 10% of the purchase price of a principal residence ($3,750 if Married, Filing Separate).

The closing date for the new home must be between April 9, 2008 and June 30, 2009. If the home is purchased in 2009 the taxpayer may elect to claim the credit on their 2008 tax return (either original or amended).

Who Qualifies?

The credit only applies to taxpayer’s who have not had any ownership interest in a principal residence during the three year period prior to the purchase of the home. The three year period applies only to a principal residence. This means that a renter who owns a vacation home may qualify for the first time homebuyer credit if they meet the other criteria.

There is no requirement that a taxpayer have any income to get this fully refundable credit. This means that taxpayer’s with only Social Security or Disability income may purchase a home and get this credit. The credit phases out for single taxpayers with income between $75,000 and $95,000. The phase out range for married taxpayers is $150,000 to $170,000.

Property acquired from a related person does not qualify for the credit! Property acquired through gift or inheritance is not purchased and therefore does not qualify for the credit.

Do I Have to Pay it Back?

AS CURRENTLY WRITTEN, the tax law requires the credit to be recaptured (repaid on the tax return), interest free, over 15 years beginning the second year after the credit is claimed…. The payback is $500 per year; which actually makes it an interest free loan.

There is a possibility the law may change and no repayment be required and that the amount of the credit may increase.

If the house is sold or no longer the principal residence prior to this period, the remaining credit is recaptured (paid back to IRS) that year. There are some exceptions to the payback requirement (death of homeowner, divorce and involuntary conversion of the home).

Overall, this First Time Homebuyer Credit appears to be a good incentive to help qualified taxpayers buy a principal residence.

]]> Comment on Health Insurance for Greater than 2% Shareholder of Sub S by Irs Tax Talk » Blog Archive » Health Insurance For Greater Than 2 … http://irstaxtalk.com/2009/02/13/health-insurance-for-greater-than-2-shareholder-of-sub-s/#comment-10 Irs Tax Talk » Blog Archive » Health Insurance For Greater Than 2 … Sun, 15 Feb 2009 19:16:33 +0000 http://irstaxtalk.com/2009/02/13/health-insurance-for-greater-than-2-shareholder-of-sub-s/#comment-10 [...] Per IRS Notice 2008-1, Special Rules for Health Insurance Costs of 2-Percent Shareholder-Employees, health insurance must be included in the shareholder employee’s 2008 Form W-2 in order to take the self-employed health insurance …More [...] […] Per IRS Notice 2008-1, Special Rules for Health Insurance Costs of 2-Percent Shareholder-Employees, health insurance must be included in the shareholder employee’s 2008 Form W-2 in order to take the self-employed health insurance …More […]

]]> Comment on Ask Questions or Comment by LizinDC http://irstaxtalk.com/2009/02/12/ask-questions-or-comment/#comment-9 LizinDC Fri, 13 Feb 2009 19:53:42 +0000 http://irstaxtalk.com/2009/02/12/ask-questions-or-comment/#comment-9 I’m 25 years old and thinking about buying a home. I’ve heard a lot of buzz about this “housing credit.” Is this for first time home buyers only or does anyone qualify and how much IS the credit exactly? I’ve heard everything from $3,500 - $15,000.00. Thank you for your time. Liz I’m 25 years old and thinking about buying a home. I’ve heard a lot of buzz about this “housing credit.” Is this for first time home buyers only or does anyone qualify and how much IS the credit exactly? I’ve heard everything from $3,500 - $15,000.00. Thank you for your time.

Liz

]]> Comment on Sales Tax Deduction by LizinDC http://irstaxtalk.com/2009/02/07/sales-tax-deduction/#comment-8 LizinDC Thu, 12 Feb 2009 15:56:36 +0000 http://irstaxtalk.com/2009/02/07/sales-tax-deduction/#comment-8 <p><p><p>I'm 25 years old and thinking about buying a home. I've heard a lot of buzz about this "housing credit." Is this for first time home buyers only or does anyone qualify and how much IS the credit exactly? I've heard everything from $3,500 - $15,000.00.</p><br /><br /> <p>Thank you for your time.</p></p></p> <p><p>I’m 25 years old and thinking about buying a home. I’ve heard a lot of buzz about this “housing credit.” Is this for first time home buyers only or does anyone qualify and how much IS the credit exactly? I’ve heard everything from $3,500 - $15,000.00.</p><br />
<p>Thank you for your time.</p></p>

]]> Comment on Hello World! by Mike http://irstaxtalk.com/2009/02/03/hello-world/#comment-7 Mike Wed, 11 Feb 2009 21:47:31 +0000 http://irstaxtalk.com/2009/02/03/hello-world/#comment-7 I like the looks with the book. I like the looks with the book.

]]> Comment on Hello World! by admin http://irstaxtalk.com/2009/02/03/hello-world/#comment-6 admin Wed, 11 Feb 2009 21:47:28 +0000 http://irstaxtalk.com/2009/02/03/hello-world/#comment-6 Thank you sir... Thank you sir…

]]> Comment on Hello World! by Mike http://irstaxtalk.com/2009/02/03/hello-world/#comment-5 Mike Wed, 11 Feb 2009 19:04:07 +0000 http://irstaxtalk.com/2009/02/03/hello-world/#comment-5 Great to see your blog up and running! Great to see your blog up and running!

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