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Tax Planning Excel

Question: New computer?

I am getting a new laptop this weekend because of the tax free weekend. I ama university student, so will it be classified as school supplies in order to recieve the no tax discount?
Also, I need some advice on what kind of computer. I want a Mac, but is it very difficult to learn? Is it useful at the collegiate level? I plan on getting Microsoft office for it so that I can have word and excel for assignments. Is it worth it? Or should I go with a PC such as Dell or HP. If you say PC please tell me which brand and model and why. Thanks for your help!

Answer: First of all congrats on getting the new laptop idea. Ok here are the answers to your many questions,

1. Yes it should qualify as a school supplies.
2. Ok some people love MAC and some love PC. I was a PC fan for long time until now when I bought the new macbook air. If you are using MAC for first time, then yes it will be little difficult to get acquainted with the MAC interface. But hey once you know the game, its all fun. Best part is you dont need to worry about any VIRUS on MAC.
3. I think both MAC and PC can be used same at college level . All depends on how much money you willing to spend. MAC are more expensive then PC in general.
4. Yes its is worth to buy MS office for MAC or PC.if your plan to use excel or word or powerpoint etc.
5. If you plan to buy PC, my recommendation is to get HP or DELL. But this is really depend on what you are comfortable with. Some ppl go for style, slickness, color etc in addition to the specs. Why i say PC or DEll is that I also own an HP and its super. Keys are really soft, screen is very durable, and ofcourse HP customer support is awesome. Good luck.

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Tax Planning Opportunities

Question: Obama’s American Opportunity Tax Grant does any one know when he plans to start this?

He is offering college and most students $4,000 in exchange for 100 hours of volunteer service.

Answer: It's not a grant, it's a tax credit. After you (or your parents) pay for your education, you may claim a tax credit of up to $4000 of the costs for that school year, provided that you've completed 100 hours of volunteer service.

The IRS still has to write the regulations on how this will work, so I don't think you (or your parents) should expect to be able to use this credit right now. Maybe when filing your 2009 taxes.

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Tax Planning For 2009

Question: Getting married and I own a house. Does my fiancee qualify for the $8000 tax credit?

We plan on closing prior to the wedding but I will still be a co-borrower on the mortgage. I am selling my house before the wedding as well. Can she still get the credit? We will be married by the time we do 2009 taxes.

Answer: As long as you close on the sale prior to the 11/30/2009 deadline AND prior to your marriage AND your fiancee claims the credit by amending her 2008 return she will be able to claim the entire $8,000 credit.

You will NOT be able to claim it on your 2009 return since you will be married by then. When the buyers are married to each other, BOTH spouses must qualify for the credit.

The financing details are irrelevant to the issue of eligibility for the credit in this case.

Edit: From the TD ratings it's pretty obvious that there are plenty of clueless folks lurking in the background. When 2 unmarried persons purchase a home they can split the credit any way that they wish. If only one of them is eligible for the credit, that person may claim the ENTIRE credit on their return.

As a deviation from normal policy the $8k credit for purchases in 2009 CAN be claimed on the taxpayer's 2008 return as long as they close on the purchase BEFORE claiming the credit. If they have already filed their 2008 return they can amend by filing Form 1040-X and attaching Form 5405.

Edit 2: For your benefit and that of the mullet heads who seem to think that this is a bad answer, please see the following link: http://www.irs.gov/pub/irs-irbs/irb09-06.pdf Scroll down to page 446 (it's about half way down) and it will explain it all to you in excruciating detail. This is an IRS bulletin that proves that this is a CORRECT answer.

Luscombe: Year-end Tax Planning for 2009

Tax Planning India

As the name suggests ELSS (equity linked savings scheme), invests primarily in equity shares of companies. As per financial regulations, the scheme Fund manager has to invest 80% of the total amount in the equity shares and the remaining 20% per cent can be invested in other instruments like bonds, debentures, government securities and others. When you invest in ELSS your money is locked for a period of three years (minimum). Once you invest in tax saver funds you cannot withdraw the amount for three years, this acts as a blessing in disguise as tax saving funds generally yield high returns during a 3year period. The common man is basically afraid of investing his money in equity shares as he is afraid of loosing money. But a look at the recent past shows that investors who have invested in tax saver funds have never lost out on their money, rather tax saver funds have been the front runners in terms of returns to investors. A small illustration will clarify comprehensions.

If you make an investment of Rs 1,00,000/ ( 1 lac), then under section 80c this complete amount is deducted from your gross income for that particular year. If your annual income puts you in the highest tax paying zone, i.e -34%, then the investment of Rs 1,00,000/ will ensure that you get an annual tax deduction of Rs, 34,000/. So logically speaking you invest Rs 66,000/ considering the deduction. Assuming that the Mutual Fund declares an annual dividend of 10% then your total return on Rs 66,000 is [(10,000/66000)* 100] = 15.15%. This particular dividend earned is also tax-free, hence more profit. Another profitable venture out of this investment is that after a period of 3 years the capital gain that you obtain out of the investment is also tax-free. This is what makes ELSS the most attractive investment for those who have the appetite for moderate risk. However, prior to making an investment selecting a good fund house based on its reputation and track record is important. Elss are considered to be the best tax saving mutual funds in India.

ELSS is a good option to save tax and generate long term capital gains. These gains are obtained from the equity market only if you are investing in a long time horizon. Adding money in a disciplined manner creates a good corpus. The basic confusion that the average investor could have is that they consider Equity Mutual Funds and ELSS to be the same, which in true sense isn’t correct. Normal equity funds could be purchased today and disposed off tomorrow. Incase of ELSS there is a compulsory 3 year lock in period. As per the rules related to long-term capital gains, profit from equity MFs after one year becomes tax-free. As per latest sources the top 5 ELSS schemes are 1) Principal Personal Tax-saver, 2) DSP ML Tax Saver Fund, 3) Taurus Libra Taxshield, 4) Lotus India Tax Plan, 5) Franklin India Tax Shield ( FIT). Going by the current volatile market trends and with the current fiscal year approaching an end, investing in a good ELSS fund is a clever option to save taxes.

About the Author:

Investment and Financial Planner for a leading Mutual Fund House in India. To read more about tax saving with ELSS click here.

Article Source: ArticlesBase.com – Elss – Secret of Tax Saving With Mutual Fund Investments

Tax Planning in India

Personal Tax Planning 2009

Make Work Pay
There are a lot of misconceptions going around regarding the new Making Work Pay credit. In order to benefit fully, it is important to understand how you can take advantage of the credit. The most common myth is that the credit will be delivered to qualifying taxpayers through the mail, similarly to the stimulus check last year. However, it is actually distributed through a taxpayer’s check in the form of a reduced tax rate. Because of this, it is your job to check you paychecks and make sure the amount is being added (note that you may need to adjust your withholding to reflect the change).

The First Time Homebuyer Credit
A lot of people are talking about the federal government’s credit for people to purchase a home in the 2009 tax year. However, it is important to remember that the credit is only available to first time homebuyers. To be more specific, the IRS defines a new homebuyer as a person who has not owned a principal residence during the three-year period prior to the purchase. The IRS also specifies that you need to purchase the home between January 1 to December 31, 2009. For more information, check out the IRS’ press release titled “First-Time Homebuyers Have Several Options to Maximize New Tax Credit.”

Energy Conservation Credit
For those of you hoping to upgrade some of your appliances this year, the IRS is giving you even more incentive to go “green.” If you make an energy efficient upgrade to your home—such as installing double-paned windows or buying an approved washer and dryer—you can take a deduction for up to $1,500. However, you must divide the deduction between the 2009 and 2010 tax years, so you will only be able to claim $750 this year. Please note that according to EnergyStar.gov, “geothermal heat pumps, solar water heaters, solar panels, fuel cells, and small wind energy systems… are not subject to this cap.”

Automobile Breaks
Although many hybrid vehicle tax credits are beginning to expire, there are plenty of new ones being announced. The IRS just released new information on the new tax credits being made possible by the Emergency Economic Stabilization Act of 2008 and the American Recovery and Reinvestment Act of 2009. The credits apply to low speed electric vehicles, as well as cars with at least four wheels that draw propulsion using a rechargeable battery. Depending on the height and weight of the vehicle the value of the credit can range from $2,500 to $15,000.

Flood Victims
The IRS unveiled some new tax law changes to assist flood victims this year. One big win for flood victims was the removal of some loss limitations. Whereas in 2008, flood victims could only claim a certain amount of losses, now they can deduct the entire amount. However, it is important to remember that this full amount can only claimed by taxpayers who itemize their deductions. Another less popular tax law change affects individuals who helped victims displaced from their homes. According to the IRS these charitable taxpayers can claim an additional exemption of $500 for each displaced individual they help, with a maximum of $2,000.

Unemployment
With more and more Americans losing their jobs, changes have also been made to the way unemployment benefits are taxed. The key to benefiting from these new changes is by knowing exactly what you are entitled to. According to the newest changes to the tax law, the first $2,400 worth of unemployment benefits is income tax free. Therefore, you could expect an increase on each check you receive by around $25. Additionally, 20 more days have been added to the duration of unemployment.

About the Author:

The Tax Lady Roni Deutch and her law firm Roni Lynn Deutch, A Professional Tax Corporation have been helping taxpayers across the nation find IRS tax relief for over seventeen years. The firm has experienced tax lawyers who can fight IRS tax liens on your behalf.

Article Source: ArticlesBase.com – Your Guide to 2009 Tax Planning

Tax Savings Strategies – Personal Financial Planning Seminar