TaxLoopholes Blog

Received from Aaron VanTrojen, Geneva Mortgage Founder & a very experienced mortgage broker:

In its entirety, this bill has the potential to devastate the mortgage lending industry and cost the home owner lending options and added fees. Contact your Senators and demand that they vote NO to H.R. 1728.

A quick review:

The bill is dangerously vague and has the potential to:

Eliminate yield spread premiums.

The more time you have to plan for your income, the less taxes you’ll pay.

No planning and no time = more taxes.

To pay less tax in 2009, there are three things you must do RIGHT NOW:

( 1) Look at your business structure. If you have a Single Member LLC for your business and haven’t elected tax treatment, you’ll be taxed as a Sole Proprietorship. That means higher taxes, more risk and more chance of IRS audit. Are you ready for a C Corporation? Or, do you need to switch your C to an S?

There are even more tax law changes for 2009 coming your way:

Indexed Tax Brackets. Thanks to higher inflation in the past year, the 10%, 15%, 25%, 28%, 33% and 35% tax brackets all kick in at approximately 5% higher levels of income than in 2008.

Larger Personal Exemptions. For 2009, each personal exemption you can claim is worth $3,650, up by $150 from 2008.

The tax law changes have been coming fast and furious for 2009 and beyond. Is there something here for you? Keep checking back to see the latest.

Tax Credit of Up to $8,000 for First-time Home Buyers.

In this time of rising health care costs and mandatory health care, there is a lot of attention in general on medical expenses.

Plain and simple, medical insurance, if you have it at all, isn’t likely to cover all of your expenses. You’re probably still going to have co-pays due and expenses that your insurance doesn’t cover such as dental, orthodontia, vision, therapeutic massage and supplements.

There are strategies to pay for those extra expenses, but you’ll want to get your plan in place soon to take advantage of deductions for 2009 medical expenses.

It’s happening to you and you might not even know it. Your taxes are increasing everywhere, but it’s being done without tax rate increases. How can you be forced to pay thousands more every year and your tax rate stay the same?

What’s happening is the base of how taxes are calculating is changing. In other words, more items are subject to tax and less items are deductible

Do you want to make money and pay less tax? Want more money in your pocket in 30 days or less? The answer is to start a business.

If you already have a business, and are paying too much in taxes, please contact Richard at 888.592.4769 or via email at Richard@DKTaxServices.com. I’ll do a FREE! CPA tax review of your past year’s tax returns to see how much money we could save you. Yes, it’s free. And yes, I’m going to PERSONALLY do it. But you have to get hold of Richard first.

If you have an employee, chances are you’re pretty clear on how much you pay them in salary. You might have even figured in the costs of payroll taxes (depending on what their job function is - this could be an extra 10% - 20%) and the costs of benefits such as health care and other fringes.

But have you ever considered the hidden costs of employees?

Let’s say you have a business that requires someone to work on the computer during the day. If you have an employee, you are paying them for their time which means they may or may not be productive for you. Only time will tell.

A new Bill, HR 1728, passed through the House with an overwhelming majority in a record 3 days. It’s now at the Senate. If the Senate passes as expected, you may soon see the end of creative real estate investing. There was also a little rider attached to the bill at the last minute that would also allow the government to take away any multi-unit property they deem to be at risk of default.

You can read the entire bill here.

A new Bill, HR 1728, passed through the House with an overwhelming majority in a record 3 days. It’s now at the Senate. If the Senate passes as expected, you may soon see the end of creative real estate investing. There was also a little rider attached to the bill at the last minute that would also allow the government to take away any multi-unit property they deem to be at risk of default.

You can read the entire bill here.