SaveMoreTaxes.com » Taxation

How Planning Can Save you $1000+

admin — Sun, 12 Jun 2011 18:51:35 +0000

Looks like summer is finally right around the corner. That means the year is almost half over and before you know it’s over.

Too many clients (almost all of them) wait until the winter before they look at their tax obligations. Even worse, they wait until that season before they speak with their professional in any kind of proactive way.

Image via Wikipedia

That’s a problem, and it could be costing you some serious savings.

Here’s an example:

Let’s say that you were considering taking money out of a pension (401k) to finance the down payment on a house. It’s quite a common maneuver. But let’s say next that you do this withOUT discussing it ahead of time with a professional. That could be a four (or five) figure mistake.

If you were to come into our offices or contact us before such a move, I would ask you a few easy, but very important questions, and then (depending on the answer) likely advise you to first roll the money ($10,000) into a Traditional IRA. You could then withdraw the money at a savings of $1,000.00. This is because money used for a first home, up to $10,000, is penalty-free when taken from an IRA, but NOT a 401K.

Would you be pleased by that move? I’d guess “yes”, especially if you knew about other clients I know of who failed to plan. This couple just learned of the $41,000.00 penalty they had to pay for doing the same thing, but from their 401k.

Ouch.

There is no guarantee that you will save by speaking to us in advance. But this I CAN guarantee: If you don’t speak with us, we won’t be able to save you a dime.

Let us know if this was helpful. Do you have a situation that might create a tax issue. Be proactive and contact a tax professional. Hopefully us.

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

admin — Sun, 28 Feb 2010 05:58:10 +0000

: Image by Getty Images via Daylife

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.

Beware of Tax Preparers

admin — Tue, 05 Jan 2010 02:43:53 +0000

Hi!

: Image by Anomalily via Flickr

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