We here at Planche · Politz · Ledet, LLC feel that an informed client is our best customer. We know that there is a lot of information on the Internet and it can be tough to determine what is valuable. That is why we have selected the following articles for you to view.  Check here for new articles appearing monthly. COBRA changes for Employees and Employers.  You can find more information here on the changes with health insurance after a person loses their job http://www.irs.gov/newsroom/article/0,,id=204505,00.html COBRA applies to certain employers.  Please call if you have any questions   Housing Assistance Tax Act of 2008   First time homebuyers may qualify for a maximum $7,500 refundable tax credit (up to 10% of the price paid for the home, up to maxiumum of $7,500). Qualified home buyers can subtract the credit amount from their federal income tax when they buy a home.  The taxpayer is required to pay the credit back over 15 years (max of $500 per year) starting 2 years after the year of purchase (2010 for purchases in 2008).  The credit phases out for taxpayers with modified adjusted gross income (AGI) between $75,000 and $95,000 ($150,000 and $170,000 for joint filers) for the year of purchase. This credit was expanded in 2009.  Read about the expanded credit on the front page of our website "Expanded credit for first-time homebuyers.    In addition to the tax credit, the tax act includes a measure creating a new, temporary property tax deduction for non-itemizers (i.e., for taxpayers who claim the standard deduction rather than itemizing their deductions).  The deduction is available for only one year (2008).  The deduction is equal to the lesser of the amount of real estate taxes or $500 for single filers or $1,000 for joint filers.  This is helpful to people who do not have enough mortgage interest or taxes to itemize their deductions.  When gathering your tax documents, please remember to provide to us a copy of your real estate tax bill - it will help reduce your taxes in 2008 whether or not you itemize. There are special provisions in the case of subsequenlty selling the home, taxpayer getting divorced, or death.  Please contact us for more information in those situations.   MILEAGE RATES FOR 2009 - The standard mileage rate for 2009 will be 55 cents a mile for all business miles driven during the year.  Medical and Moving mileage will be 24 cents per mile, and Charitable Mileage will be 14 cents per mile.

Changes to the Home Sale Gain Exclusion Many taxpayers bought a second home, such as a vacation home, with the intention of later converting the second home into their principal residence. Under pre-2008 Housing Act law, those taxpayers could have excluded up to $250,000 ($500,000 for certain joint filers) upon a later sale of that former vacation home as long as the two-year ownership and use tests for the exclusion were satisfied.   Are You a Business Owner or Hobbyist? Many of us would like to turn our hobby into a regular business. That's fine as long as the business turns a profit. And, it may be fine as well if the business produces a loss and you enjoy the activity; even better if the loss can offset income from your day job.   Required Minimum Distributions Waived for 2009 Taxpayers can be subjected to an onerous excise tax if they take less than the required minimum distribution (RMD) from their retirement plan each year.