Rich Guys » Taxes

Tax Rebate 2008 FAQ

Dante — Tue, 12 Feb 2008 21:43:05 +0000

Yahoo published a very informative article on the Tax Rebate of 2008 frequently asked question and answers.

Tax rebate FAQs

Will I get a check?
How much will I get?
Will I get more for my child?
Who won’t get a rebate?
What do I need to do?
When can I expect my money?
Will a refund affect my rebate?
Rebate boosting tax moves

Should answer almost about all the question that you have on the 2008 tax rebate.

Investors in Low 10% or 15% Tax Brackets are Tax Free in Capital Gains

Dante — Thu, 07 Feb 2008 15:37:40 +0000

From 2008-2010 investors that fall in the low and gifted 10% or 15% tax brackets will have great capital gains benefits.

For the next three years from 2008 to 2010 in the tax brackets of 10% or 15% will not have to pay anything on qualified long-term capital gains and qualified dividends. In the above tax brackets to familiar 15% rate will still apply. For the short-term capital gains and disqualified dividends you will pay the marginal tax rate just like other ordinary income.

That means extra money in your pocket and a major tax relief if you do qualify.

Easy Common Tax Deductions

Dante — Thu, 07 Feb 2008 14:23:09 +0000

While consulting a tax adviser I was given some pointers on some common tax deductions that can be made but sometimes are over looked. Some need to be itemized while others do not need to be itemized.

Common Federal Tax Deductions that needn’t be itemized

Capital losses which are realized losses that can offset unlimited capital gains or $3,000 in income.
Retirement contributions such as Traditional or SEP-IRA, 401(k), etc.
Student loan interest that are up to $2,500 per year and only on qualified student loans.
Business expenses which are for business owners and employees with certain un-reimbursed expenses.

Common Federal Tax Deductions that need to be itemized

Home equity loan deduction in which you can deduct interest paid during the whole year.
Home mortgage deduction in which you can deduct interest paid during the whole year.
Medical expenses where you can deduct those in excess of 7.5% of your AGI and I recommend getting help on this one.
State and local taxes or sales tax.
Charitable contributions such as cash and property donated to qualified organizations.
Personal casualty and theft losses where you deduct your loss minus insurance payments.

IRA Changes for 2008

Dante — Thu, 07 Feb 2008 12:04:33 +0000

2008 is here and along with a new year, there are changes. IRA-related legislative changes for 2008 are now as follows:

You can now roll assets directly from a 401(k) to a Roth IRA – In the past you first had to through funds into a traditional IRA and then convert it into a Roth IRA. It makes the whole deal a little simpler but the same taxes still apply. You cannot get over good Uncle Sam. This can be done right away considering that you make less than $100,000. However in 2010, this limit goes away.
IRA contribution goes to $5,000 - if your under 50 you can now add $5,000 and if your older you can now add up to $6,000. Also, starting in 2008 contribution limits will now be indexed to inflation in $500.00 increments.
Income limits for deductible IRA contributions go up - now your entire IRA contribution will be tax deductible if your modified adjustable gross income (MAGI) doesn’t exceed $53,000 for a single filer or $83,000 for joint filers.
Income limits for Roth IRA contributions go up - Now you can make the maximum Roth IRA contribution if your modified adjusted gross income (MAGI) doesn’t exceed $101,000 for a single filer or $156,000 for joint filers.