Here is something  to think about. Do you have a building, piece of land, stock or other capital investments that has increased in value?

If you are in the 25% bracket or higher, the tax rate on long term capital gains will be only 15% in 2010.  If you wait until 2011 to sell, the rate is scheduled to be 18% or 20% depending on your holding period.

If you are in the 15% tax bracket or lower, 2010 is your last chance to sell assets held long term a a gain and pay no federal tax.  State taxes may apply, however.

WHAT TAX BRACKET ARE YOU IN?

If your income including the gain is under $43,350 (single), $86,700 ( married-joint), or even higher if you can itemize or are over 65, you are in the 15% or lower tax bracket and a candidate for a free sale.

A little tax planning could save you a lot of tax.

Give us a call to review your situation.  We may never have this opportunity again in our lifetime.

Let us know what you thought of this article.

Here are some sites that talk about this opportunity.

• Long Term Capital Gains Tax Rates Increase in 2011 (bargaineering.com)
• Relief at lower-than-expected rise in capital gains tax (independent.co.uk)

If you bought a home in 2009 or early 2010,you may qualify for thousands of dollars of tax relief, thanks to a home buyer tax credit. The first home buyers credit which was originally offered back in 2008 has been updated to a tax reduction up to $8,000.  In addition, this credit has been extended to home buyers who have owned and lived in a home for at least five consecutive years of the eight years before the purchase of a new home.

This credit has been extended for contracts made before April 30, 2010 and closing on the purchase by June 30, 2010.  You can elect to take the credit for 2009 even though the transaction is in 2010.   If you close soon, you can take this credit on your 2009 tax return without amending the return or going on extension. There are certain requirements as far as income and the cost of the home that have to be met. Bottom line, if you are about to close on your new home, hold off filing your return.  We can help you figure what is the best way to get what is entitled to you.

As the economy keeps sputtering, you need to find ways to keep your household costs down. Below is a great article on finding help on paying for prescriptions that are not covered by your health insurance.  As with everything, it helps to look for ways to shop the costs and finding strategies to save. This is one Tax deduction you don’t need.  Enjoy and let me know if I should be looking for more user friendly articles.

Help for prescriptions is available if you qualify. Prescription medication could be awfully pricey and maybe more so if you don’t have health care insurance. Help with prescriptions can make your recovery go a lot faster. For those patients with cancer, this is especially true.

Let’s say you have been receiving chemotherapy, however it causes an upset tummy, therefore you are given a anti-nausea medicines to go along with it. You will perhaps need an iron supplement too since the chemo will cause you to become anemic. This list could go on and on. What it amounts to is that a cancer patient can very easy be spending more for prescription medicine than their house payment! At this point you need to turn to a prescription program assistance.

What are you to do when you need help paying for your medicine?

The one thing you don’t want to do is stop taking your medicine. There are quite a lot of programs accessible which offer free and reduced cost patient assistance.

• Social Worker- Most hospitals boast a social worker that may help you acquire grants and other plans aimed at assisting you with your health care needs. This can be your initial stop in searching for assistance. Always enlighten your doctor if you cannot pay for medicine or treatment. He or she possibly will know of a package firsthand to support you, also.

• PPA- The Partnership for Prescription Assistance is a society intended at serving those that can’t find the money for their medications. They have produced a database of over 200  programs and over 5000 prescription medicine offered for reduced or no cost aid. They help in determining what you are entitled for and applying for the assistance. The assistance is free and accessible online.

• Drug Companies- A lot of patients wouldn’t think drug companies provide assistance, on the contrary many will. Johnson and Johnson provides a prescription medication plan for persons taking their prescription medicine and can’t manage to pay for them. Locate the maker of your drugs by asking your doctor of medicine or pharmacist and check the website for medicines assistance programs.

You will find while running your business, having a printer is important component to your office. Below is an article on the pros and cons on some of the most popular printers out there.  By saving some costs here, you can better use your dollar to leverage your tax savings not only today but for the future. Enjoy and let me know if I should be looking for more user friendly articles.

Photo printer cartridges can be very expensive and knowing which printer to use will help. A lot of consumers ask us, ” Which is the best printer for me?” Inkjet printer ink cartridges come in various sizes and prices. The reply is, ” What do you need your laser printer to do?” The type of printer you buy will determine the type ofcartridge for printer that you will use. Do you need an all in one printer, a very minimal single function inkjet printer or a tiny photo printer?  What is your budget? Also, do not fail to remember that the purchase price isn’t the only cost you will have. There is the expense of the replacement photo printer cartridges. We have reviewed four printers across all categories to satisfy your interest. This starting point should assist you in your search. If you’re interested in individual categories or products, you should at least possess a base level of data with which to start.

Canon Pixma MX330- The Canon Pixma MX330 is not the top printer of high quality prints, nevertheless it is most likely the most multipurpose printer in the under 0 category. A 1.8 inch LCD screen, simple to use features, plus an auto-document feeder makes this printer an exceptional choice for individuals and families that are on a strict budget.

Brother HL 4070CDW-Printing text at 20 pages per minute, this Brother printer is fantastic for office use and it moreover has wireless networking capabilities. This is a printer that should deliver high quality output in a efficient case for under 0. The directions are simple enough to grasp. This is a very consumer friendly laser printer and the color indicators are pretty straightforward and easy to grasp making it one of the easiest laser printer models to use. Like nearly all Brother Printers, the setup for this model was also incredibly trouble-free.

Brother HL 2040-If you are on a tight budget and can not spend much, this particular version may meet your requirements. You may be able to acquire a laser printer for less than 0  that will work just fine for both office and domestic use. It works on both Windows and MAC as a result there is no need to agonize on the subject of set up or compatibility issues. This printer is especially lightweight and does not use up a lot of room. It has an interface that is pretty clear-cut and exceedingly user responsive.

Brother HL-5250DN- This Brother printer is network ready and promises high-quality graphic and text prints for your small firm or home use. There is a good characteristic called a duplexer that allows you to save paper and the simple to grasp setup directions make putting in place a snap. At 30 pages per minute output for text, the printer’s speed is respectable. There is merely one little catch and that is the paper tray. It can merely hold 300 pages which is rather small and barely suitable if you’re using it for family purpose or running a really small enterprise operation.

The Education tax credits to be taken on 2009 have been greatly expanded. There is now three types of credits. New this year is the American Opportunity Credit.

Income limits have been expanded to include adjusted gross income for married filing jointly up to $180,000 for the American Opportunity Credit.   The Hope credit and the Lifetime Learning Credit have also been expanded.  Also new this year are special rules for students in Midwestern Disaster Areas.   Purdue University falls in this area.  The rules are complex and  you need to determine which credit and what expenses qualify to give you the best benefit.

Many tax software programs are not able to calculate the best method.  Thousands of dollars are at stack. Don’t leave money on the table.   See us as we will be able to take the pain out of  tax filing  for this year as well as help you plan for future college costs and its affect on your retirement.

The author of a blog submission I came across about an IRS challenge seemed to be a woman. She writes:

“I used to owe the IRS about 25,000 dollars, that’s with fees and penalties and with no hope of getting the bill down.”

This gal should think about that we have a right to sustain our lives by our labors and the government can’t tax rights; or our very right to exist. Most of the community doesn’t know this though, including IRS personnel. She continued:

“First we tried monthly payments and that did not work out. Then the IRS levied our pay check from work leaving us with 400 dollars to live on.”

This could have never happened if this woman had known about my IRS Terminator package. She could have studied up on how to request and succeed at a CDP Hearing (Collection Due Process Hearing), implemented what she learned, and all tax collection action would have come to a standstill; including the garnishment of her wages. The writer continued:

“At that time we had seen an ad in the paper for Harrison Grave that will help people get rid of the IRS problems. We went to see them, not knowing that this was not even their official office but a temporary leased office. They told us it would cost total of 2,000 dollars to help us. We were so scared and had no idea what to do, so we accepted and began making payments to them to help us talk to the IRS.”

In Houston, Texas on July 12, 2005, Steven T. Miller, Commissioner TE/GE gave a speech to IRS Tax Forums saying the following:

“I want to salute our partners who have been such a big help at these forums. I want to thank, in alphabetical order, the American Bar Association, the American Institute of Certified Public Accountants, the National Association of Enrolled Agents, the National Association of Tax Professionals, the National Society of Accountants, and the National Society of Tax Professionals.”

Mr. Miller told the CPAs and other tax professionals in attendance that he wanted to be of assistance to them  and that the help he was was assuring them of would take the shape of continuing to upgrade the IRS’s electronic and information services, updating the Service’s computers, and energetically enforcing the law against the dishonest few who are a threat the integrity of their/our industry.

This looks like compelling evidence that orgainizations like Harrison Grave are really the IRS’s collaborators in collecting taxes. Maybe this is why no actions were taken by them to bring to a halt the levy. The writer continued:

“We submitted the information they needed to began the process and after nine month and still did not hear anything from the Harrison and Grave people we called them asking for an update on what was going on. Needless to say they gave us the run around. I even drove to their office in NC to see them and still no results. They took our 2,000 and did nothing for us. When I called them at that time and told them the IRS is Levy our pay check they said “We have a special team working on your case to stop the Levy’s.” That was all a lie. The IRS levied our second pay check… I knew Harrison Grave was a joke…”

Sad stories such as this are why folks in a position of having outstanding taxes, unfiled returns, or returns filed under what is considered by the mainstream as  an unusual theories of law such as a Cracking the Code return should prepare by preparing in advance how deal with a notice of levy.

Follow me on Twitter.com/legalbear See you there.

Did the IRS Levy Your Bank or Employer?

When your work place notifies you that they have a Notice of Levy from the IRS instructing them to keep most all of your next paycheck is one of the worst feelings. Equally bad, is when your financial institution  gets a Notice of Levy from the IRS and notifies you that they intend to deliver the funds in your bank account to them. Sometimes the IRS doesn’t comply with the law and send the required notice. Usually when that happens, a Notice of Levy is a nasty surprise. 26 USC § 6330 provides in pertinent part:

(a)  Requirement of notice before levy
(1) In general
No levy may be made on any property or right to property of any person unless the Secretary has notified such person in writing of their right to a hearing under this section before such levy is made. Such notice shall be required only once for the taxable period to which the unpaid tax specified in paragraph (3)(A) relates.

26 USC § 6330 provides this respecting the timing and manner of service of the notice:

(a)(2)  Time and method for notice
The notice required under paragraph (1) shall be-
(A) given in person;
(B) left at the dwelling or usual place of business of such person; or
(C) sent by certified or registered mail, return receipt requested, to such person’s last known address;
not less than 30 days before the day of the first levy with respect to the amount of the unpaid tax for the taxable period.

When you receive the aforementioned notices and look at them timely, you should see that 26 U.S.C. § 6330(e) provides that as soon as a Collection Due Process Hearing (CDPH) is timely asked for “the levy actions which are the subject of the requested hearing…shall be suspended for the period during which such hearing, and appeals therein, are pending…” This provision renders the request for a Collection Due Process Hearing (CDPH) a extremely efficient means to halt an IRS levy on a bank account or paycheck.

On an occasion in which a levy was received by an employer but the notice had not been served as required by the above statutes, I have seen the IRS fax a release of levy to an employer in as little as two days subsequent to CDPH hearing request being sent. Now, employees knowledgeable about these provisions in the Internal Revenue Code will be able to get their full paycheck while the hearing is pending. Almost anyone can bring a halt to an IRS levy by timely requesting a CDPH hearing as provided in 26 U.S.C. § 6330(b)(1). I make available the forms to competently request a CDPH hearing in a situation where the statutorily required notice has not been sent at www.irsterminator.com.

There cannot be enough emphasis given that when you receive the notice, you must request the hearing timely. 26 USC § 6330(a)(3) specifies that the information included with the notice the IRS sends you shall include:

“The notice required under paragraph (1) shall include in simple and nontechnical terms-
(B) the right of the person to request a hearing during the 30-day period under paragraph (2);”

However, if the IRS never served you with a notice, it is impossible to establish when the 30 day period begins and ends. The free videos at www.irsterminator.com explain how to inform the IRS that their failure to serve you with the statutorily required notice makes your request for a hearing timely and entitles you to the suspension of collection activities including the levy at your bank or employer. Plans I have come up with to keep collection activity suspended permanently are discussed on those videos. Keeping collection activity suspended permanently is the challenging part.

Follow me on Twitter.com/legalbear See you there.

Several weeks ago, I published an article on what to look for when hiring a tax preparer. Today, I found an updated article on the subject. Check out this great article.

Don’t Mess With Taxes

Here are some interesting statistics. Baby boomers  start turning 65 in 2011 and the number of older people will increase dramatically during the 2010 to 2030 period. The older population in 2030 is projected to be twice as large as in 2000, growing from 35 million to 71.5 million. [Source: 2009 Long Term Care Insurance Sourcebook, American Association for Long-Term Care Insurance]

Between 2000 and 2040 the number of older adults with disabilities will more than double, increasing from about 10 million to 21 million. [Source: 2009 Long Term Care Insurance Sourcebook, American Association for Long-Term Care Insurance]

More that two-fifths (42%) of people age 65 and over reported a functional limitation. Eighteen percent had difficulty with 1-2 Activities of Daily Living. Five percent had difficulty with 304 ADLs. And three percent had difficulty with five to six ADLs. [Source: 2009 Long Term Care Insurance Sourcebook, American Association for Long-Term Care Insurance]

An estimated 10 million Americans needed long-term care in 2000. [ Rogers, S., & H. Komisar. Who needs long-term care? Fact Sheet, Long-Term Care Financing Project. Washington, DC: Georgetown University Press, 2003. ]

Most but not all persons in need of long-term care are elderly. Approximately 63% are persons aged 65 and older (6.3 million); the remaining 37% are 64 years of age and younger (3.7 million). [ Rogers, S., & H. Komisar. Who needs long-term care? Fact Sheet, Long-Term Care Financing Project. Washington, DC: Georgetown University Press, 2003. ]

The lifetime probability of becoming disabled in at least two activities of daily living or of being cognitively impaired is 68% for people age 65 and older. [ AARP. Beyond 50.2003: A Report to the Nation on Independent Living and Disability, 2003, (11 Jan 2005). ]

By 2050, the number of individuals using paid long-term care services in any setting (e.g., at home, residential care such as assisted living, or skilled nursing facilities) will likely double from the 13 million using services in 2000, to 27 million people. This estimate is influenced by growth in the population of older people in need of care. [U.S. Department of Health and Human Services, and U.S. Department of Labor. The future supply of long-term care workers in relation to the aging baby boom generation: Report to Congress. Washington, DC: ]

Of the older population with long-term care needs in the community, about 30% (1.5 million persons) have substantial long-term care needs (three or more ADL limitations). Of these, about 25% are 85 and older and 70% report they are in fair to poor health. [The Henry J. Kaiser Foundation. Long-term Care: Medicaid’s role and challenges [Publication #2172]. Washington, DC: Author, 1999 ]

40% of the older population with long-term care needs are poor or near poor (with incomes below 150% of the federal poverty level). [The Henry J. Kaiser Foundation. Long-term Care: Medicaid’s role and challenges [Publication #2172]. Washington, DC: Author, 1999 ]

I consider having Long Term Insurance as being critical for  your financial protection.  Do you know anyone who had to go to a nursing home? Both my parents required assistance and it was not pretty.  Don’t become a burden to your family. If you want to discuss this, let me know.

Happy Holidays and hope you have a Healthy  New Year!  Now that we are about ready to begin a new tax year, its time to start planning for 2010. Here is a link to a great article on looking at your w-4 to make updates  on your tax withholding for 2010.   Follow  the link below and  let me know what you think.

http://trishmc.typepad.com/mac_tax_talk/2009/12/your-w4.html