Zero Capital Gains Rate Through 2010 Requires Careful Planning |
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One of the greatest benefits of the tax code is the special tax rates that currently apply to gain recognized from the sale of capital assets held for more than a year (long-term). The special tax rates apply to virtually all capital assets including land, improved real estate, your home, and business assets in excess of the accumulated depreciation previously deducted. Beginning this year, 2008, these special rates, which apply to net long-term capital gains (LTCG)(1) and qualified dividends drop to zero percent to the extent that your regular tax rate is less than 25% and 15% for all other capital gains. These rates, which apply only to non-corporate taxpayers, also apply for the alternative minimum tax and are available through 2010 barring any future tax law change.
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Reap the Benefits of Recent Tax Law Changes |
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It is rather difficult to stay on top of your taxes these days, considering all of the limited period changes being made by Congress to stabilize the economy. Each year, some provisions expire, some are extended, there are new provisions and some are available for only a limited period of time. There are still additional changes in the works as outlined in President Obama’s proposed changes. Here is a rundown of some of these provisions that affect individuals and small businesses in 2009 and 2010.
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Possible Big Auto Deductions in 2010 |
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When you use a vehicle for business purposes, the business portion of the operating expenses can be deducted on your self-employed business or, if you are an employee, as a miscellaneous itemized deduction. The tax code provides two possible options: using the standard mileage rate or using actual expenses. For vehicles purchased and placed into service during 2010, the 2009 Economic Stimulus legislation and inflation adjustments substantially increased the first-year write-offs for business use. The following is a summary of these changes for vehicles purchased in 2010.
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Will You Get a Cash Rebate? |
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As part of the economic plan to stimulate the economy, the government will be sending rebate checks to most taxpayers. As with most tax issues, it is not simple and, in fact, somewhat complicated. There are many factors to consider, such as who qualifies for the rebate, how is it calculated, what does a taxpayer need to do, if anything, to get the rebate, and how does the rebate affect a taxpayer’s return for 2008.
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