Adoptions:  If you your someone you know has adopted a child this year, you need to know that the adoption tax credit has changed.  First, the maximum credit was raised to $13,170, and it's refundable-- which means you can get the credit even if you owe no tax for the year.  In the past, the adoption credit could only offset tax you owed.  Many people who have claimed the credit in the past have to carry it forward because their tax owed is less than the credit.  Not any more!  The downside is going to be new documentation requirements and that means filing paper returns which will slow down the refund to about eight weeks. 

 

 

Artists:  Congress (yeah, the guys who are on break until November 15th) is considering changing the rules about donating your art.  For the past 40 years the rule has been if you're an artist and you donate a work of art to a charity, you can only claim the value of your art supplies for the piece as your donation.  Let's say you're a painter and the regular market rate for a painting that you donate to a charity is $400.  You don't get to claim the $400 as a tax deduction, you can only claim the dollar value of the canvas and the paints you used.  If Congress passes this law, this could be very helpful to many of you.

 

 It hasn't passed yet, but it's supposed to be ruled on this year. Those of you who are affected might want to consider a little note to your representatives.  Right now, the way I read it, the law would only apply to visual artists, not musicians or performers.  Here's a link for more information.

Tax Breaks for Artists 

 

 

 

 

I was recently talking with one of my non-profit groups and even though I prepared their tax returns, I had no idea of some of the really wonderful things that they had done recently.  As part of the tax return, I list the "big stuff" but  its those "little" stories that really touch the heart and make people want to give you donations.  If you're doing fundraising, remember to include those touching stories in your appeals.  Remember, saving the world can be a daunting prospect to a donor, but getting little Cindy Lou Who a Christmas present might even get the Grinch to open his wallet.  Check out Network for Good's blog about Questions to Answer when appealing for donations. They have some good ideas. 

 

Congress finally passed the Small Business Bill and I think the most significant piece of that legislation for many of us is that we can now write off our health insurance as a business deduction instead of as a regular deduction.  It's also retroactive so that you can do this on your 2010 tax return.  This is important!  Business owners are not just folks who own stores, or construction companys or income tax services.  Business owners are anyone who files a schedule C with their 1040.  All you people who say, "I don't own a business, I do contract labor."  This law includes you too.   I'm going to Jefferson City for an IRS class in mid-November.  I'll have more details for you in the December newsletter. 

  

http://robergtaxsolutions.com/2010/09/small-business-bill-passes/ 

 

If you want to have a fun, safe Halloween trick-or-treating event for the kids, bring them out to Westport Plaza on Thursday evening, October 28 between 6 and 8pm for the children's parade. I'll be there with our own "Bill the Pirate."  The event is outside unless the weather is bad, then it will be moved to the Indoor Pavilion (go past Casa Gallardo, enter on the left and go upstairs.)  The event is free, but the organizers would like for you to register.  Call (314) 738-2599.  Sponsored by Westport Plaza and the City of Maryland Heights Parks & Recreation Department.