Tuesday, November 10, 2009

The End of the Year is Here- Tax Planning for Individuals

Here at McArthur & Company, we believe in providing our clients with proactive, current and valuable information that can maximize their understanding of tax planning opportunities and decrease their tax liability where possible. Part of that push for information can be found here weekly on our blog. We hope that you enjoy, learn, and follow regularly!!!

The end of the year is upon us and it is never too early to start the appropriate tax planning, especially in a year where Congress, the IRS, and the courts have flooded taxpayers and tax planners alike with significant tax developments. In such a year, we want to highlight a few new opportunities that exist for the taxpayer under these new provisions. We suggest you call our firm before implementing an tax planning techniques discusssed herein to confirm the tax implications for your personal situation.

Sales Tax Deduction on a New Car: Cash for Clunkers is gone, but a sales tax deduction on a new car may still be available to you for cars purchased between February 17, 2009 and December 31, 2009. This deduction can be claimed for the sales or excise taxes you pay on the purchase of a "qualified motor vehicle". If you itemize deductions, you may deduct the qualified sales or excise taxes. If you do not itemize, you may deduct the qualifies sales or excise taxes as an "additional standard deduction". Watch for the phase out limits. The deduction is limited to the sales or excise tax on the first $49,500 of the vehicle's purchase price. For Modified Adjusted Gross Income, you are phased out ratably from $250,000-$260,000 on a joint return or $125,000-$135,000 on a single return. An additional tax tip is that the IRS has allowed this sales tax deduction for more than one qualifying purchase.

Tune in next week for more tips on End of the Year Tax Planning for "Individuals" as we look into tax credits for making energy-efficient improvements to your home and the waiver of required minimum distributions for 2009.

Please contact us at 704.544.8429 or info@mcarthurco.com

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