March Newsletter
First time homebuyer credit expanded and extended
People who have not used a CPA in the past for preparing their tax returns may find it cost effective this year because the qualifying provisions for this credit are complex and there is more than one filing option available.
First time homebuyers, long-time homeowners buying a new principal residence, and certain members of the military who buy a qualifying home may benefit from new provisions that went into effect Nov. 6.
Call us to ensure that you receive the most benefit from this credit based on your overall tax situation. To learn more about this credit use the following link to the IRS website:
http://www.irs.gov/newsroom/article/0,,id=204671,00.html
California crackdown on use tax
The use tax is not new but the Legislature has enacted strict new use tax registration and reporting requirements and the Board of Equalization (BOE) has stepped up compliance on the use tax.
Qualified Purchasers, including businesses and individuals with $100,000 or more in gross business receipts, are required to register with the BOE and e-file a use tax with the BOE- not the FTB. Gross receipts from business operations are defined as all receipts of the business operation, from in-state and out-of-state, and include: gross rental income, personal service income, all income reported on a business entity return (including portfolio income).
If you have not kept track of purchases that are subject to the use tax, look at all purchases from another state and online retailers like Amazon, eBay, and Craigslist, and go through depreciable assets placed in service in 2007, 2008 and 2009.
For more information use the following link to the BOE website (the Frequently Asked Questions under Resources is helpful), or simply call us.
http://www.boe.ca.gov/sutax/sutprograms.htm
Save time and money with our Tax Organizer
This form makes it easy to list events and transactions that pertain to your tax situation. Please complete it and return it with your records so we can do the most accurate and efficient job of preparing your return.
Tax Organizer form and engagement letter
Please click here to download this PDF.
