Archives
All posts for the day January 3rd, 2013
Transocean, the drilling company that owned the oil rig implicated in the catastrophic Deepwater Horizon oil spill in the Gulf of Mexico, will plead guilty to violating the Clean Water Act and pay a $1.4 billion fine, the Justice Department said Thursday.
How did this happen? No one else wants the job… THATS WHY
By passing legislation to avert at least part of the so-called “fiscal cliff,” the combination of tax increases and spending cuts that was set to take effect at the beginning of the year, Congress avoided income tax increases on households that make less than $450,000 a year. The deal still raises taxes on 77 percent of American households, though, because Congress did not include an extension of a temporary payroll tax cut meant to stimulate the economy.
What Congress did manage to extend, however, was a set of corporate tax breaks that benefit NASCAR, the professional stock car racing circuit, as well as breaks for filmmakers and Puerto Rican rum producers:
– SEC. 312. EXTENSION OF 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS ENTERTAINMENT COMPLEXES.
– SEC. 317. EXTENSION OF SPECIAL EXPENSING RULES FOR CERTAIN FILM AND TELEVISION PRODUCTIONS.
– SEC. 329. EXTENSION OF TEMPORARY INCREASE IN LIMIT ON COVER OVER OF RUM EXCISE TAXES TO PUERTO RICO AND THE VIRGIN ISLANDS.
The legislation also extended two provisions — known as “active financing” and “look-thru” — that make it easier for corporations to shelter profits overseas. Overall, the package of corporate tax breaks extended in the legislation cost $40 billion a year, and corporate tax breaks in total cost the government more than $100 billion a year.
The New York City-area newspaper that incited controversy in publishing an interactive map of gun permit holders while advocating for strict gun control laws has absorbed the backlash with a touch of irony: it reportedly hired armed security guards at its office due to thousands of angry emails and phone calls.
(Time Magazine 1/2/13)
The bill retroactively extended this benefit to cover all of 2012, plus continues it through 2013. Qualified borrowers who pay private mortgage insurance premiums or guarantee fees on conventional, low down payment home loans, FHA, VA and Rural Housing mortgages will be able to write off those premiums along with their mortgage interest on federal tax returns. The retroactive feature is crucial because Congress had allowed this deduction to lapse at the end of 2011. There are limitations: The write-off is available only to borrowers who have an adjusted gross income below $110,000.
The most common home-related tax deduction or credit claimed by home owners? The mortgage interest deduction, and [he deduction for real property taxes
Which tax provision do home owners often overlook? In a new home purchase, the points can be deducted [in the tax year you paid them]. But typically in a refinancing, you have to amortize and deduct any points you paid over the life of the mortgage, and people tend to forget that after a couple of years.
What’s the No. 1 mistake home owners make when filing their taxes? Forgetting to include real estate tax bills include other items besides pure real estate taxes It could be trash collection fees; it could be snow removal fees that the state or county is assessing on the real estate tax bill. Since the items are included in the same bill, home owners sometimes deduct [those fees] regardless of whether the items are actually taxes.
What’s the single most important piece of advice for people filing their taxes as a first-time home owner? Take a look at your closing statement from when you bought the house. Occasionally, there are fees such as prepaid taxes or interest at closing that can be deductible.
What tax advice do you have for someone who’s owned their home for 10 or 20 years? If you’ve been a longtime home owner and you’ve been through refinancings. A lot of people who’ve refinanced have sizable equity lines. The maximum outstanding home equity debt that’s deductible is $100,000; the maximum deductible amount of interest paid on mortgage debt is $1 million.
What home improvement-related records should home owners keep? Absolutely keep your receipts for couple of reasons: 1. You want to make sure — if there are any warranties attached to the work that was done; 2. If you’ve added value to the home — you’ve added a deck, you’ve added a room, you’ve added something new to house — you’ll need to know what the gain is on that capital improvement when you sell the house.
How do I tell the difference between a capital improvement and a repair? Typically a repair is [done] to allow an item, like a home furnace or air conditioner, to continue. But if you were to replace the heating unit, that’s not a repair.
Does taking any home-related tax benefits, such as the home office deduction, make a taxpayer more likely to be audited? Taking the home office deduction in and of itself doesn’t usually generate an audit. However, if you claim nominal income and significantly higher expenses in an effort to create artificial losses, the IRS will see that there’s something else going on there.
Once filing season is over, when should home owners start thinking about next year’s taxes? Yes, If any major improvements are scheduled, if you’re planning on moving, and how to organize any expenditures for fixing up the home before sale. If you’re planning to do any of those things, talk with your CPA so that you’re prepared with documentation and so that the [tax pro] can help minimize your tax situation. (Houselogic 12/31/12)
New Jersey Gov. Chris Christie (R) — a rising star within the GOP — tore into the Republican-controlled House of Representatives for failing to vote on a Hurricane Sandy aid package before the end of the 112th Congress on Tuesday night. “Our people were played last night as a pawn,” Christie said, adding that residents of New Jersey and New York have been treated as second-class citizens.
(Think Progress; 1/2/13)
danetteoneal1
Danette O'Neal, PhD 