Tag Archives: Taxable Income

New Tax Rules Tax Rulings

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That way the IRS can deduct more taxes from my paycheck throughout the year so i can get more money back at the end of the year. it’s kinda like a savings account you could say. Makes good sense to me. But with every new year comes a new set of tax laws. this year the “AMT” or alternative minimum tax was passed and this is going to affect many middle income families. Under the regular IRS rules, you start with your gross income and subtract deductions like state taxes you paid, and exemptions like child credits. Eventually, you arrive at your taxable income. Under AMT rules, you still start with your gross income, but many of the usual deductions and exemptions are disallowed. Suddenly, your taxable income is alot higher. Some key breaks are lost so here’s a list of them. state and local income taxes and property taxes, unreimbursed business expenses, child-tax credits, tax-preparation fees, legal fees, home-equity loan interest just to name a few. The original idea behind this tax was to prevent people with very high incomes from using special tax benefits to pay little or no tax. But for various reasons the AMT reaches more people each year, including some people who don’t have very high income. I have a professional tax consultant do my taxes every year because it has just become so complicated i can’t afford to make mistakes so i recommend this same advice to most people out there unless you can stay on top of the ever changing tax laws

http://www.afatherslifeonline.com/2008/01/new-year-brings-new-tax-laws.html

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Tax Advantages Reverse Mortgage

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For many seniors the “golden years” have turned out to be more difficult than they might have imagined during their working years.  Property taxes continue to soar, homeowners insurance has become more expensive, the cost of gasoline and heating oil has skyrocketed and health care costs take a bigger bite of the budget each year.  In a household where Social Security, a small company pension and personal savings are being stretched to the limit, a reverse mortgage can unlock a portion of the equity that people have in their homes and provide tax free income through a government insured reverse mortgage product.

A reverse mortgage is a government insured loan product for seniors age 62 and older that provides loan proceeds to a borrower, which is not taxable income, doesn’t require them to make a monthly payment of principal and interest and doesn’t require repayment until the last borrower has permanently left their home.  The proceeds of the loan can be used for almost anything from paying current bills, to consolidating debt, to making necessary home repairs or improvements, to taking that long postponed vacation trip you’ve always wanted.  More importantly, the home owner will never be required to leave their home until they’re ready.  The only caveats are that the home must remain the borrowers primary residence, they must continue to pay their property taxes and insurance and keep their home in good repair.

http://www.mainecoastpropertiesblog.com/maine_realty/2008/01/reverse-mortgag.html

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