Posted on 12/07/2008 6:44:28 AM PST by RKBA Democrat
Bump for later. Thanks!
>>A credit of up to $500 may be available for these improvements if made next year (but not this year). <<
May be? Does someone know for sure?
I’m not a tax advisor or accountant or anything of the sort but aren’t many of these suggestions directed at maximizing this year’s deductions and pushing income into next year when possible. How is this a positive in the face of anticipated tax rate increases next year?
I’m not a tax advisor or accountant or anything of the sort but aren’t many of these suggestions directed at maximizing this year’s deductions and pushing income into next year when possible. How is this a positive in the face of anticipated tax rate increases next year?
“I’m not a tax advisor or accountant or anything of the sort but aren’t many of these suggestions directed at maximizing this year’s deductions and pushing income into next year when possible. How is this a positive in the face of anticipated tax rate increases next year?”
It all depends on your personal situation. If you’re facing a significant loss of income next year due to say a pending layoff or retirement, it might well make sense to push income into the future to take advantage of lower marginal tax rates.
Anyone here know what “patch” was applied to AMT? I got slammed last year, and it has affected our lifestyle (had to write a check for $3500, and increase monthly deductions by $300). It was all AMT. It’s like buying a car, except you don’t get anything.
Every year, Congress has to act to raise the minimum income where the AMT applies from some ridiculous amount to a slightly less ridiculous amount. They did so. Unfortunately, though, if you got caught in the AMT last year, chances are you will this year as well.
Us also. The only check we wrote was for AMT.
Is the patch retroactive to 2008?
Exactly. You would defer income if the rates were going to be lower. But if they aren't, conventional wisdom was to try to bring income into the current, presumably lower year. (Now if the future diminishment in income is significant enough that deferred income would still not put you into a taxable income situation or a bracket equal to or higher than the current year, I can see that.)
I was caught with the AMT in 2006...we were unfortunate enough to have $20,000 worth of out of pocket medical expenses and in taking the medical deduction incurred $1200 of more tax due to AMT.
How is this a positive in the face of anticipated tax rate increases next year?
>>Postpone income until 2009 and accelerate deductions into 2008 to lower your 2008 tax bill, which may enable larger deductions, credits, and other tax breaks for 2008 that are phased out over varying levels of adjusted gross income (AGI). These include IRA and Roth IRA contributions, conversions of regular IRAs to Roth IRAs, child credits, higher education tax credits, the above-the-line deduction for higher-education expenses, and deductions for student loan interest. Postponing income is desirable for those taxpayers who anticipate being in a lower tax bracket next year due to changed financial circumstances.<<
This is one I strongly disagree with. Obama is going to raise our taxes so get ready to cut your income for the four years he’ll be in office. Take all you can this year.
bump
Look at this gobbledygook!
Fifteen paragraphs listing all sorts of schemes and plans to pay less taxes.
100% obliterated by passing the Fair Tax or a flat tax.
We are just incredibly stupid.
Flame away!
“100% obliterated by passing the Fair Tax or a flat tax.”
Which has 0% chance of becoming law anytime in the forseeable future. You work with the hand you’re dealt.
Thanks, again. This info was a helpful reminder to me.
*I asked my boss to defer my HUGE (not!) year-end bonus to 2009.
*I’ll put off getting additional new windows and other home energy efficiency items until 2009. Unfortunately, Husband just bought new Energy Star fridge and washing machine this past month. Grrrrr! (I’m going on-line to look for rebates for them, though, anyway.)
*I’m increasing my contribution to my HSA through work next month. That is one slick system; I’d encourage anyone that has it to USE it. :)
*I’m upping my percentage contribution into my 401K plan at work. Now is the time to buy, buy, buy!
*I’m paying of cc debt from a business start-up fast and furiously. That extra cash-flow each month will then go into investments for my future to ensure I’m not a cat food eatin’, Sterno-swillin’ Bag Lady, and a burden on the rest of you. :)
“Take all you can this year.”
Amen to that! :)
Hell, take/keep all you can EVERY year, no matter WHO is President. :)
P.S. Are Cabana Boys considered an ‘expense?” LOL!
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