by ronbell
After laboring over my extension, (really just a phone call), I thought I would share with you some tax changes for 2008. This is a mash up of changes I recieved from various sources. These changes should help real estate investors in Reno and other areas even more:
You have additional time to sell a property after your spouse dies.The law has been changed so that you have two years after death to take the Tax Changes for 2008maximum exclusion of $500,000 in gain on the sale of your PRINCIPAL residence. All other requirements for this exclusion must have been met before the passing of your spouse.
Less credit for a few hybrid cars.Unfortunately this tax credit has been phased out on many cars like Toyota Prius. The list you will want to look at is at www.irs.gov to determine which car you may want to purchase to qualify.Kids will be paying higher taxes.Children less than 19 years old or full time students less than 25 years old will pay taxes at the same rate as their parents for investment income over $1,700. This does not apply to the child’s income from wages.
Increase in cutoffs for Social Security
Now the maximum amount of earnings for Social Security tax increases to $102,000 in 2008
More money for fuel.The mileage deduction for business is now 50.5 cents per mile. Medical and moving purpose mileage drops to 19 cents per mile.Sales Tax breaks are gone.This expired on December 31, 2007.
Tax Breaks increased for retirement savings
If you earn less than $85,000, you will be able to deduct IRA contributions if filed jointly. Individuals can earn up to $53,000 for the deduction.
Higher standard deduction amounts
If you don’t itemize your tax return, you can now deduct $10,900 as a married couple filing jointly, and singles deduct $5,450.
Capital gains tax relief
If you file a joint return that doesn’t exceed $65,100, single returns at $32,550, you will not have to pay any tax on capital gains they receive in 2008. The rate for other taxpayers is still the same at 15 percent.
More contributions for retirement.Contribution amounts of $5,000 or, if you’re over 50, is now increased to $6,000.As usual; I am not an accountant, this is not tax advise and is to be deemed reliable but may not be accurate please consult your accountant for any tax needs or questions.
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