Finally, the IRS has ruled that qualified residence interest, including acquisition indebtedness and home equity indebtedness—is deductible through the Home Mortgage Interest provision. Acquisition indebtedness includes debt from a home acquisition, construction or significant improvement, as long as the amount doesn’t exceed $1 million ($500,000 for individual filers). Home equity indebtedness is deductible, as long as the debt doesn’t exceed the home’s value, and can’t exceed $100,000 ($50,000 for individual filers).
Vehicle Owners
Under the Money Back for New Vehicle Purchases, taxpayers get a deduction for state, local and excise taxes paid on the purchase of a new vehicle, motorcycle or motor home. The vehicle can be valued at up to $49,500 and must be purchased by Dec. 31, 2009. Taxpayers can claim this deduction for 2009 only.
MicroMash
American Recovery and Reinvestment Act of 2009
This latest piece of tax legislation provided some tax relief to both individuals and businesses. For individuals, tax relief was given in the form of modifying existing personal tax credits, creating some new credits, extending the AMT provision, and providing some new incentives to conserve energy. For businesses, tax incentives appeared as extensions for a year or two, while other provisions are one- or two-year incentives.
This course focuses on those topics that appear applicable to the widest audience of taxpayers. In addition to the provisions mentioned above, the course will also discuss Making Work Pay Credit, First-Time Homebuyer Credit, Hope and American Opportunity Tax Credit, Plug-In Electric Vehicle Credit, Residential Energy Property Credit, and energy conservation and efficiency provisions.
Take a quick look at Gear Up speaker Dave Krebs teaching a 1040 Individual Tax seminar. If you don't catch a live 1040 seminar this year, this video is available as part of a Gear Up 1040 self-study package; click here for more information.
College Students
The American Opportunity Credit is a modification of the Hope Credit and is applicable for 2009 and 2010. This credit, for up to $2,500 per student for parents and students who qualify, is designed to help pay for college expenses. The credit was modified from 2008 to present in order to make the credit available to more taxpayers, including those with higher incomes ($80,000 maximum for individuals and $160,000 for married couples filing jointly), and also allows a broader scope of items to count as qualifying expenses. The credit may be applied to up to four years of post-education.
Mark the Win Column
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