If you retire from the armed services based on years of service and are later given a retroactive service-connected disability rating by the VA, your retirement pay for the retroactive period is excluded from income… Read More »Special Limitation Period for Retroactively Excluding Military Retirement Pay
2009 Nonbusiness energy property credit. This credit, which expired after 2007, has been reinstated. You may be able to claim a nonbusiness energy property credit of 30% of the cost of certain energy-efficient property or… Read More »Residential Energy Credits
The “first-time homebuyer credit” isn’t just for first-time homebuyers anymore. Thanks to a new tax law change, longtime homeowners may also qualify. Under the new “Worker, Homeownership and Business Assistance Act of 2009,” you must… Read More »New homebuyer credit rules
Beginning January 1, 2009, the monthly exclusion for commuter highway vehicle transportation and transit passes increased to $120 and the monthly exclusion for qualified parking increased to $230. Beginning March 1, 2009, the monthly exclusion… Read More »Qualified Transportation Fringe Benefits
2008 Changes The amount you can deduct for each exemption has increased to $3,500 for 2008. You lose part of the benefit of your exemptions if your AGI is above a certain amount. The amount… Read More »Personal Exemptions
The new “Worker, Homeownership and Business Assistance Act of 2009” extends and expands the tax break for net operating losses (NOLs) created by the 2009 economic stimulus law. What’s more, some business owners may be… Read More »Double tax benefit for NOLs
Revocation of release of claim to an exemption. For tax years beginning after July 2, 2008 (the 2009 calendar year for most taxpayers), new rules apply to allow the custodial parent to revoke a release… Read More »New Rules for Children of Divorced or Separated Parents
2009 The limit on the exclusion for payments made on a per diem or other periodic basis under a long-term care insurance contract increases for 2009 to $280 per day. The limit applies to the… Read More »Increase in Limit on Long-Term Care and Accelerated Death Benefits Exclusion
Keeping detailed records of employee travel expenses is a hassle. But there’s a way your business can simplify matters without any tax downside: Use the IRS-approved “per diem rates”. This way, employees don’t have to… Read More »IRS raises per diems for 2010
Exxon Valdez litigation. If you received qualified settlement income made up of interest and punitive damages in connection with the civil action In re Exxon Valdez, No. 89-095-CV (HRH) (Consolidated) (D. Alaska), you may treat… Read More »Income Averaging for Farmers and Fisherman
Discharge of Qualified Principal Residence Indebtedness The Emergency Economic Stabilization Act of 2008 extended the exclusion from gross income for the discharge of qualified principal residence indebtedness by an additional 3 years. The exclusion now… Read More »Home/Residence-Related Tax Changes
The tax law permits generous deductions for mortgage interest paid in connection with “acquisition debt” and “home equity debt” of a qualified residence. Now a new ruling from the IRS says that you can combine… Read More »New mortgage interest break