Call me Scrooge--but this is just a little reminder to encourage you to start thinking about the items that need to be completed by December 31st. The IRS has recently published two very helpful releases.One details the various credits available as well as deductions you may be entitled to if you take action by the end of the year. Just click on the title above for the full text. Not specifically listed--but very important--is your Section 179 deduction for the year. You must have purchased (financing is OK) and placed in service your qualifying asset by December 31 for Section 179 to apply. Don't forget the limits in 2008 are significantly greater ($250,000) than they will be in 2009 ($133,000).
The second announcement relates to the download version of Publication 17. The IRS has placed its comprehensive tax guide for individuals on IRS.gov, updating it for tax year 2008. The updated on-line version of IRS Publication 17, “Your Federal Income Tax,” contains more than 900 interactive links. Publication 17 has been updated with important changes for 2008, including information on the new recovery rebate credit, new first-time-homebuyer credit, and an additional standard deduction for real estate taxes. It has been published annually by the IRS for more than 65 years and has been available on the IRS Web site since 1996. As in prior years, the publication provides information on how to file an individual tax return, what to include as income, how to calculate capital gains and losses, how IRAs and other expenses can affect how much income to report, whether to take the standard deduction or itemize, and how to figure taxes and credits. Publication 17 is available on line, however, those who do not have access to the Internet can call 1-800-829-3676 to request a free copy from the IRS. Printed copies will be available in January 2009.
Wow--just about anything you would want to know about income taxes. Enjoy the holidays--but do spend some time reviewing these releases so you can take advantage of every credit and deduction to which you are entitled.
