Diamond Tax Consultants Blog

October 20, 2009

Diamond Tax Consultants wants to BAIL you OUT!

Filed under: Contests and Events — sempson @ 8:25 pm

Due to the economic conditions, all we have been hearing is words like bailout, economic relief, and stimulus plans. Folks are still being laid off, down sized, right sized, or what ever the politically correct terminology is these days. Bottom line, everyone in some way has been affected from these recessionary times and can use some extra cash in their pocket.

 In view of the foregoing, we have decided to use our resources to help bail you out!  

There are 3 ways we can help you put cash in your pocket today. They are:

  • A Free Tax Return Review
  • Home Based Business
  • Free Tax Return Preparation

We consistently find errors and overlooked deductions when we review tax returns. If Diamond Tax Consultants has not prepared your tax return, we will for a limited time review your tax return free of charge. 

If we learn about tax deductions you could have qualified for in any (or all) of the past three years, you can file Amended Returns (Form 1040X) and not only get a second refund on tax returns you’ve already filed, but also collect 4% interest on the amount of time the IRS held your money.  Follow the link to our website to find out what you need to do to take advantage of this limited time FREE offer. REVIEW MY TAX RETURN

 Do you have a home-based business? If so, congressional law now gives home-business owners — and only home-based business owners — between $300 and $600 cash every month, all year long, just for running an active part time business from home. Why? Because it’s good for the economy and will help in a big way to bring America back to prosperity. Do you know anyone who has a part time home-based business? If so, this information is for them. If they are currently working and have a home-based business, we can help them receive these bailout funds on a weekly basis without the need to file a tax return to receive it. Contact our office by visiting our website or call us directly at 888-456-0800

 

As a final bail out incentive, we are conducting the FREE tax return turn drawing in the month of November.  This will allow the winners to claim their FREE tax return services at the beginning of the tax season vs. our annual February drawing.

 

 To participate, all you need to do is submit your name in the drawing. A winner will be selected on each Friday of November, beginning November 6, 2009. This could be your winning notification! SUBMIT your name now and suggest your friends, relatives, or work mates do the same. 

 As many of you probably know, both my business and my passion is all about helping average hard-working tax payers qualify for these benefits and how to claim them.

October 8, 2009

Top 10 Ideas for Your Tax Refund!

Filed under: Tax tips — sempson @ 4:09 pm

Even if your tax refund isn’t as large as you’d like, it is a lump sum, one that can do so many wonderful things for you! Why not use it to make your life just a little bit easier?

1. Invest in Yourself

Maybe you’ve been wanting a new career, but haven’t had the money to get started. Training costs money. Perhaps you’re wanting to learn medical transcription and work from home some day soon. Bank this return and use it to fund your training.

2. Open a Car Account

If your car decides to call it quits, will you be forced back into the car payment merry go round? Tucking away each refund over the next 5-7 years could nearly pay for your next car.

3. Donate to Charity

Making a charitable contribution is always a smart way to spend your tax refund. By helping others in need you can do a great thing and lower your taxable income. 

4. Begin a Home Repair Fund

If you’re a home owner, you’ll eventually have to replace your roof. Why not save up now for the money you’ll need? Build up your fund by depositing $10 or so from each paycheck. Also tuck into this fund any miscellaneous cash gifts you receive.

5. Open a Vacation Fund

The trick here is to allow yourself only a set amount to spend each year on your vacation, always leaving the majority of the money in the bank. Aim for spending only one-fourth of it each year, or a set amount like $500. Keep funding it with your refunds each year.

6. Save for a rainy day

This one technically is not a way to spend your refund, but it is a good rule of thumb is to have at least 3 to 6 months worth of living expenses saved in case of emergency. You never know what will happen tomorrow, so you should always be prepared. 

7. Upgrade appliances 

By upgrading to energy efficient appliances such as air conditioners or refrigerators, you can actually save money on your energy costs, which is also tax deductible. Additionally, these improvements can also increase the value of your house. 

8. Use Your Refund to Pay Down Debt

Yes, you’ve heard this one before, over and over. A word of caution, though. If you constantly have credit card debt, it’s likely you’re still living beyond your means. What will keep you from spending more than you make after this year’s return has paid off your credit cards?

Why not split your refund? Pay off your higher-interest cards, learn to live within your means, and put some of the refund into an emergency account.

9. Set up an Expense Fund Just for Your Car

Let’s face it. We need to keep our vehicle running in order to go about the business of living. Remember the last time you had to quickly buy new tires? How did you pay for them? Cash? Credit card? How about replacing a broken headlight? Even small repairs can tap into money we don’t have set aside.

10. Hmmm… To Spend, or Not to Spend

Torn between saving your $1700 refund — or buying something wonderful? Calculate how many hours or weeks you’ll work to make that $1700 again. Remember, you’ll lose about 30% in taxes, etc. Would tucking it away help you feel more secure?


(How about a Bonus Tip?)

11. Expand Your Hobby into the Profit Zone

Do you have a hobby you love but haven’t had the money to turn it into a profitable venture? Set this refund aside to purchase supplies on sale so you’ll be ready to go.

Join the blog to post your ideas on what can be done with your tax refund! 

Time’s Running Out for First-time Homebuyers

Filed under: IRS News & Updates — sempson @ 3:16 pm

Looking to take advantage of the First-time Homebuyers Credit this year? We’ll if you haven’t found your perfect starter home yet, it’s time to get cracking.

The current First-time Homebuyers Credit is for homes purchased on or after Jan. 1, 2009, and before Dec. 1, 2009. (There is a different tax credit for homes bought in 2008.) So, in order to get this credit, you must close on your home by Nov. 30. Factor in that the closing of a home can take on average 30 to 45 days, and this means that the home needs to be under contract by mid-October.

Yes, it’s confusing, but because of the 2009 Economic Stimulus that was signed into law on Feb. 17, 2009, there are effectively ‘two’ first-time homebuyer credits, and both can impact your 2008 federal return.

First-Time Home Buyer Credit 2008
As part of the Housing and Economic Recovery Act of 2008, eligible first-time homebuyers can receive a refundable credit of up to $7,500.

The credit:

  • Applies to home purchases made after April 8, 2008, and before January 1, 2009
  • Is equal to the lower of 10% of the purchase price of the home or $7,500 for most taxpayers ($3,750 for married filing separate filers)
  • Is phased out based on modified adjusted gross income (MAGI). For a married couple filing a joint return, the phaseout range is $150,000 to $170,000 of MAGI. For other taxpayers, the phaseout range is $75,000 to
    $95,000 of MAGI
  • Reduces a taxpayer’s tax bill or increases his or her refund, dollar for dollar
  • Is fully refundable, meaning that the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax that they owe.
  • Is claimed on the 2008 return

Eligible taxpayers must not have owned a home at any time during the three years prior to the purchase. Eligible taxpayers claim the credit by filing IRS Form 5405 on their 2008 tax return. Form 5405, along with instructions on using the form to claim the first-time homebuyer credit, is available on the IRS website. If you may be eligible for the credit, you may wish to speak first to your tax professional for assistance in preparing your return.

For a home purchased in 2008, the credit must be repaid, making it more of an interest-free loan than an actual tax credit. The maximum repayment period is 15 years, but this period applies only if the property remains the taxpayer’s main home and is not sold, foreclosed on, or converted to business or rental property during that 15-year period.

If such changes take place, the buyer may have to repay the outstanding credit amount back to the government right away. Fortunately, the recapture of the credit in this situation cannot exceed the gain realized from the sale or other disposition.

Taxpayers who purchased their homes in 2008 must begin repaying it as an additional tax added to their returns beginning in 2010. The credit repayment amount is added to the taxpayer’s tax liability each year of the repayment period as an additional tax.

Taxpayers should consider the credit recapture amount when computing estimated income tax payments or withholding taxes to avoid underpayment penalties.

First-Time Home Buyer Credit 2009
There’s better news for first-time homebuyers in 2009!

For eligible first-time homebuyers who purchase a home on or after Jan. 1, 2009 and beforeDec. 1, 2009, the first-time homebuyer credit is increased from $7,500 to $8,000 and, and. . . this is BIG, . . .the individual no longer has to repay the credit unless the home owner sells or moves out of the home within 3 years of purchase.

As under prior law, the $8,000 credit begins to phase out for individuals with MAGI over $75,000 ($150,000 for married couples filing jointly). It is fully phased out for individuals with MAGI of $95,000 ($170,000 for joint filers).

Tax Year 2008 Return Filing
The IRS has modified the 2008 Form 5405 to incorporate the new law as it applies to individuals who purchased a home in 2009 and want to take the credit on their 2008 return. As of 2/24/09, the new Form 5405 is not able to be electronically filed. So, you can go ahead and postal mail your form and tax return, until the IRS has enabled the electronic filing of this form.

If you’ve already filed your 2008 tax return and qualify for a credit greater than $7,500, We recommends that you file an amended return (Form 1040X) to claim the additional credit, up to $500.

  • If you haven’t yet filed your 2008 return, you may file a paper return now or wait to e-file your return until Form 5405 may be electronically filed.
  • If you purchased your home in 2009, you may wish to wait until you file your 2009 return (in 2010) to claim the credit. Generally, it would be financially wisest to claim the credit on the 2008 return so that you can receive this credit as soon as possible.

The best advice is to always talk with your tax professional to determine a course of action that may be best for your individual financial situation.

Remember that our affliate company Innovative Real Estate Investing, LLC has several resources that may benefit those looking to buy, sell, or fix up their home.  Visit the website for more details: www.innovativerealinvest.com

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