Stimulus Money to go Green at Home

06. April 2011 · Write a comment · Categories: General Tax · Tags: , , ,

If you have some home improvements ideas in mind you may be able to get Stimulus money to go green at home. Depending on how the money is spent,you could get help with things like getting an energy efficient fridge or putting in a solar water heater. With billion of the 7 billion Stimulus funding set aside for home energy improvements, now may be the time to get your Stimulus money to green at home.

New Tax Credits

Current tax law allows homeowners to deduct 10% of the amount paid for an energy efficient furnace, better windows or thicker insulation. But the new plan allows you to take up to 30%, but the tax credit can’t exceed ,500. Coordinate with your service provider and tax preparer to get the maximum credit on your tax return.

Save Your Reciepts

Make a point of saving receipts from any home improvement projects and the deductions can be taken on your income tax return. You’ll need a special form to claim the refund. You should be able to find them wherever income tax forms are distributed.

What Complies?

But be careful. The items have to meet certain efficiency levels to qualify for the credit. While almost all windows that get the government’s Energy Star efficiency seal of approval comply, not all Energy Star appliances comply. It’s recommended that you check manufacturers web sites to make sure your home improvement is covered.

Include Deductions on Tax Return

Once you’ve spent money to go green at home, just include the deductions on next years tax return. Follow these steps to get Stimulus money to green at home.

Read more: How to Get Stimulus Money to Green Your Home | eHow.com

New ?Stimulus? Tax Incentives For Buyers Of Electric Scooters

02. April 2011 · Write a comment · Categories: General Tax · Tags: , , , ,

Potential buyers of electric vehicles and electric powered scooters have an increased incentive to purchase these vehicles due to a tax credit buried in the recent Economic and Reinvestment Act of 2009. Incentives for plug- in hybrid vehicles take effect in 2010 but incentives for smaller electric vehicles take effect with the passage of the bill. The 7 Billion bill passed by the Congress, and signed by the President gives a tax credit incentive to purchasers of electric vehicles of different types.

All electric powered vehicles benefit from the new tax credit. Immediately benefiting are buyers purchasing a category of vehicles known as light electric vehicles or LEV’s. The LEV category includes four wheeled Neighborhood Electric Vehicles or NEV, and two and three wheel electric powered scooters.

The criteria for qulaifying are based on the electric energy storage capacity of the battery. For two and three wheel vehicles the minimum size battery storage that qualifies must be rated at a minimum of 2.5kwh of stored energy capacity. For a NEV type vehicle the minimum battery storage capacity that qualifies is 4 kWh. To determine if the vehicle you are considering qualifies take the amp hour capacity rating of the battery times the battery voltage and divide by 1000. If the result is 2.5 or greater, the scooter, or three wheel vehicle, will qualify for the credit. For example if the specifications on the scooter you are considering has a battery rated: 5X12V/50 Ah the calculation is as follows: (5X12v) 60 X 50 Ah = 3000 Divided by 1000 = 3 KWh, which exceeds the 2.5 kWh minimum criteria.

For vehicles that qualify there is a 10% tax credit on electric vehicles up to a maximum purchase price of ,000 which would result in a maximum credit of ,500 on a vehicle costing ,000.
This tax credit may be in addition to local tax or purchase incentives that may be in place in some local municipalities, and is effective for purchases made after the date the bill was signed The tax credit incentive will be welcome news to anyone considering purchasing an electric scooter.

Qualify for the First-Time Home Buyer Stimulus

25. March 2011 · Write a comment · Categories: General Tax · Tags: , , , ,

First time home buyers can now enjoy tax credit. The government is currently offering this. The home buyer can enjoy as much as ,000 tax credit. However, not everyone is qualified. If you have purchased a property this year, verify if you qualify for the said program. If you want to find out if you qualify, keep on reading.

The initial thing you have to keep in mind about this stimulus is that it is established for the first time home buyers. This is for those who have purchased their principal residence from January 1, 2009 up to December 1, 2009.

As stated earlier, this are for the first time home buyers who have purchased a principal residence during the period indicated. This means that home purchases made in 2008 is not covered by the program. The date of the purchase is the date of the date of the closing, which is the actual transfer of the property ownership. If you acquired the property in a different manner, consult a financial adviser to verify on how you can benefit from this arrangement.

You also have to be a first time home buyer in order to qualify. However, who is the first time home buyer? You are considered as one if you have not purchased a principal property in the last three years. You cannot be qualified as one if you have just purchased a principal property a year or two ago. You can still qualify though if the purchase you made concerns a vacation home or an investment property.

You should also take note of the income limit. The program has set limits as to who can qualify for the said program. For singles, the adjusted gross income should not be more than ,000. Couples on the other hand, who are joint filers, should not exceed 0,000 on their adjusted gross income.

The tax credit is usually 10% of the value of the purchased property or the ,000, whichever value is lower. Bear in mind that the tax credit is refundable. This means that you can claim it even if your tax liability is not that much. You should also remember that the said credit can be collected by the government back. This happens if you lose ownership of the property before reaching the third year mark. This means that you should have ownership of the property for at least three years. There are exempted cases though, such as health concerns and divorce.

Do not worry if you have filed your tax return early this year because you can amend it by filling up the 1040x form. It is best to talk to a tax adviser to ensure that all necessary steps are taken to amend your tax return.

As an added bonus, the HUD has authorized buyers with a mortgage insured by the FHA to avail of a short term loan amounting to as much as ,000. This way, they can make use of the tax credit even if they have not filed their tax return yet.

Now is the best time to purchase a home. The price of the properties and the interest rates are low. Additionally, there are programs like the tax credit offered by the government.

Stimulus for the First-Time Home Buyer

19. March 2011 · Write a comment · Categories: General Tax · Tags: , , ,

Are you a first-time homebuyer? Do you plan to purchase your home now? Then this is just the perfect timing. Aside from the getting the chance of purchasing affordable homes, you can also enjoy an added bonus provided by the government. Thanks to the stimulus bill, first-time homebuyers can now enjoy tax credit of as much as ,000. 

How does this work? 

For this to be applied, taxpayers should claim the tax credit using the 5405 form. The amount can be ,000 (as mentioned above) or 10% of the property’s purchase price. For married couples, who decide to file separately, the equivalent amount can be ,000 for each couple. 

The said amount can be paid back to the taxpayer, in the event their federal tax is less than the tax credit. For example, tax owed for the year is only ,000, the remainder ,000 will then be treated as a credit refund. The IRS shall then send a check to the taxpayer in order to pay back the difference. 

Who is eligible? 

As mentioned, this is for the benefit of the first-time homebuyers. They should have purchased their homes last January 1,2009 or until December 1, 2009. They should also have a Modified Adjusted Gross Income (MAGI) of ,000 for single applicants or 0,000 for married applicants with joint returns. The tax credit phase-out begins when their MAGI exceeds the limits and shall be equivalent to zero if the MAGI reaches ,000 excess. 

Properties purchased shall also be single-family homes, town houses or condominiums, mobile homes or boathouses, trailer homes and cooperative apartments. This property shall be treated as a primary residence within 3 years from the date of purchase. 

How is it different from the 2008 stimulus bill? 

Last 2008, a similar stimulus was created. This was enacted according to the Housing Recover Act of 2008. First-time homebuyers were granted a tax credit but the amount was only ,500 for singles or ,500 for couples with separate returns. Eligibility is no different from the 2009 tax credit. However, the 2008 tax credit was designed as an interest-free loan. Homebuyers would have to pay back the tax credit on 2010. This should be paid back within 15 years with 15 equal installments. Unlike the 2009 tax credit, it will only be repaid if the homeowner fails to maintain the home as their primary home within 3 years from the date of purchase. 

Tips for FHA borrowers 

The tax credit can now be monetized for the benefit of the FHA borrowers. The amount can now be added to 3.5% down payment required. This could help homeowners build more equity on the early stage of homeownership. On the other hand, it can also be used to pay the closing cost. This could help homeowners lessen their burdens in coming up with the fund to pay the huge amount involved. All of these advantages were made possible by the FHA loan bridging. However, there will be a nominal fee of as much as 2.5% or 0 maximum.

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How Will Obama’s Stimulus Package Work For You?

15. March 2011 · Write a comment · Categories: General Tax · Tags: , , ,

Don’t expect to get a check in the mail so you can purchase a large-screen television and you won’t immediately notice a difference in your taxes right away. President Barack Obama’s 7 billion stimulus package will not make an immediate difference in your life.

Even though this is one of the largest plans every passed by the United States Congress, it will not directly affect you unless you do not have a job or you are employed in telecommunications, construction or in a energy-efficiency industry. It is also helpful to first-time homebuyers and homeowners who are environmentally conscious.

You might notice an increase in your paycheck because of the “Make Work Pay” credit, in the amount of 0 for single people and 0 for those filing jointly. This will occur through reduced federal payroll taxes and is retroactive back to January 1 and lasts for all of 2009.

As with other tax breaks, there are some conditions. Only individuals earning less than ,000 or couples (filing jointly) earning under 0,000 are eligible.

This is really a small amount, no more than a week, that will help low and middle income families. Just like other tax rebates, it is hoped that these people will save the extra money or use it to pay off some debts. It will cost the government 6 billion and for what is will accomplish and that fact that it will not create any jobs, it seems like a lot of money meant just to satisfy supply-siders.

Those of fixed incomes, like retired people or those who are disabled, will fare even worse. They will get a one-time credit of only 0. Maybe they can buy a smart phone.

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