Buying a new house, don’t be rushing to file your 2009 tax return!

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.

2010 Mileage rates are released by IRS

The internal Revenue Service has released the standard mileage rates for deducting automobile  expenses in 2010. For business use, the rate will be 50 cents per mile, down from 55 cents in 2009. For medical or moving purposes, the rate will be 16.5 cents per mile, down from 24 cents per mile in 2009.   Please comment as to how this could impact you for your 2010 taxes.