E-File Tax Services of Nevada, INC
Telephone – (702) 696-9549 or
(702) 696-7291 Fax – (702)
699-8131
website – www.efilenevada.com
Services Provided:
Income Tax Preparation – Bookkeeping – Payroll - Insurance – Other
Business Services
Client
Newsletter
December 2008 Issue Date
IT’S THAT TIME OF YEAR! All of us at E-File Tax Services of Nevada, Inc, once again want to thank you for your continued friendship and loyalty. As always, our clients are #1 to us!
A LOT OF CHANGES THIS YEAR – SOME GOOD SOME NOT SO GOOD: 2008 has been a challenging year for many and a growing year for others. With the stimulus package adding to the tax refunds, we all got to enjoy a little extra income from Uncle Sam only to be slapped down by threat of foreclosures, short sales, and bankruptcies. In this newsletter, I will try and cover some of the new rules and exceptions for 2008 taxes. Hopefully any questions you might have will be answered.
STIMULUS PAYMENT RECEIVED IN 2007 – Will NOT be taxable income to be reported on the taxpayer’s 2008 federal income tax return. GOOD NEWS!
WEBSITE: www.efilenevada.com – Our new website is finally up and running! Log on and check us out! Listed under “Get Started Tax Forms” are worksheets that will help you organize for the 2008 tax seasons. Please click on 2008 Tax Form. Print out the form and fill it out prior to your appointment. Everything needed to do your 2008 taxes will be included on that form. In addition, there are worksheets geared for specific jobs whether you are an independent contractor, a business, or a W-2 employee who incurs costs due to the job. Please print and fill those out as well and bring all forms with you when we do your taxes. These new forms will help you gather all expenses and information needed as well as provide ease in preparing your taxes.
NEW SERVICE: We can now download all your receipts, categorize them under specific expenses, and save them on a disc that is approved by the IRS. For a minimal fee, this will save time and effort on your part, taking the stress out of the night before your tax appointment. This service will take away the issue of your receipts fading in the event you must prove your expenses a year or two down the road. Call us and get more details on this great new service!
AUDIT INSURANCE: For just $28.50 you can purchase our new audit insurance extended service plan and gain extra confidence. If you owe penalty, interest & additional taxes due to our error in the preparation of your return, we will pay up to $2,500 if you are audited. For more information, please give us a call today.
BOOKKEEPING SERVICES AND PAYROLL: Every small business needs to know what their bottom line is on a monthly or quarterly basis. We can help you in this area. We have expanded our bookkeeping services to help our clients who operate a small business control their future and their tax liabilities. In addition to bookkeeping we now offer payroll services and quarterly tax returns for all our small businesses. Call and set up an appointment so we can explain how we can help you in this area.
Corporation Returns & Extensions are due before March 15th and Individual
Returns & Extensions are due by April 15th
EXTENSIONS: Every year during tax season, we file extensions for our corporations who miss the filing deadline. We do this free of charge for all our corporations. Extensions hit us during our busiest time of the year. Occasionally, a corporations falls between the cracks and we fail to get them filed. We need your help! We will continue to file them free of charge but you must let us know if you need an extension. Some of our clients do call us to make sure we put them on extension, but many more don’t.
Payment is due at time of service.
We accept VISA, MasterCard, check and cash
LEGISLATIVE UPDATE:
CANCELLATION OF DEBT – 1099A AND 1099C – Due to Foreclosure or a Short Sale, Cancellation of Debt (COD) occurs when the loan is higher than the sale of the house and the bank ‘forgives’ the home owner that difference. That difference must then be reported on your tax return as income. A 1099C will be issued in the home owners name showing the ‘fair market value’, loan amount due, and actual price of the sold home. In 2007, a bill was passed by Congress called 108 Relief – Income from Discharge of Indebtedness or better known as the Cancellation of Debt Forgiveness Bill. This bill allows for homeowners who have suffered bankruptcy, loss of income, divorce, or other unforeseen circumstances that has hampered their abilities to make mortgage payments to not claim the 1099C as additional income. Another words, it will not be taxable income. Unfortunately, the 108 Relief does not help the investor in regards to rentals or other mortgage investment. However, loss of business property does have other expenses that may reduce taxable income from the 1099C, so make sure you bring to your tax appointment the HUD sheets for all properties at time of purchase. Please bring all 1099As and 1099Cs to your tax appointment.
NEW - HOUSING AND ECONOMIC RECOVERY ACT OF 2008 – A taxpayer who is a first-time homebuyer is allowed a new refundable tax credit equal to less of $7,500 ($3,750 for a married individual filing separately) or 10% of the purchase price of a principal residence. The credit is allowed for the tax year in which the taxpayer purchases the home. The credit phases out for individual taxpayers with modified AGI between $75,000 and $95,000 ($150,000 - $170,000 for joint filers) for the year of purchase. The credit is then recaptured ratably over 15 years with no interest charge beginning in the second taxable year after the taxable year in which the home is purchased. The way to look at this credit is that it is an interest free loan from your Uncle Sam! Payable in 15 years.
KEEP ALL YOUR RECEIPTS(!) that back up your expenses on your tax returns for at least 5 years. The IRS is also demanding that if you are going to claim your cell phone, your car, and laptop you must keep a log on all business usage. Don’t wait till you are audited to form that log, do it now!
CHARITABLE CONTRIBUTIONS must have appraisals if they are over $5000.00. $500.00 or more will need a receipt of proof but do not need an appraisal. Cash donations, church including, must have a receipt from the non-profit institution stating the exact amount of donation or a cancelled check..
BUSINESS/MEDICAL/CHARITY MILES that you deduct on your schedule A or C is now 50.5 cents from 01/01/08-06/30/08 and 58.5 cents a mile from 07/01/08-12/31/08. Medical and moving standard mileage has also increased to 19 cents from 01/01/08-06/30/08 and 27 cents a mile from 07/01/08-12/31/08. Charity miles remain the same at 14 cents a mile.
CREDIT FOR HYBRIDS – Honda Hybrids are being phased out in 2008 and will be fully phased out by January 1st, 2009. Toyota Prius can no longer be credited on the 2008 tax return. Qualified heavy hybrid vehicles, which are hybrid vehicles with gross weight rating of over 8,500 lbs. can have an allowable credit up to $12,000.
TAXATION ON SOCIAL SECURITY BENEFITS – taxable if: you are single and make over $25,000 or married filing jointly – and make over $32,000.00.
CAPITAL GAINS – New for 2008 – 2010, if you are in the 10 – 15% tax bracket you will pay 0% on capital gains. If you are in the 25% and above – you will pay 15% on capital Gains.
OTHER WAYS WE CAN HELP – Through our affiliation with HD
Vest Investment Services (a subsidiary of Wells Fargo) we are able to provide
additional financial services. Need a
retirement account or a college savings account for that child or
grandchild? There may be some tax
savings for you! Give us a call to find
out more.
See you in 2009!
HAPPY HOLIDAYS!
