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Greetings!
We know how hectic
winter and holidays can be, but we wanted to ensure you can take action for tax minimization before December 31, 2008.
With less than three weeks until year end, we wanted you to have the opportunity to share with you the current thinking of what is likely to happen to the tax code in 2009.
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Economic Stimulus Package?
Doubtful!
 It is unlikely there will be any major changes to 2008 tax code. A second economic stimulus package is still possible this year, but it appears that Congress is leaning more toward investments in infrastructure designed to spur economic growth. (Think FDR and New Deal). So, it is highly unlikely you'll get any relief for those Holiday bills! Using cash is your best bet for the holidays!
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Capital Gains
Do you want to take them?
 You might want to review your portfolio, and definitely sell any worthless stocks. These can be used to offset any gains that you may have been fortunate enough to amass. Furthermore, it is expected that we will see an increase in the capital gain rate in the coming year. If you are one of the lucky who has gains available given the decline in the market, this is the time to take them.
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Personal Tax Issues
Charitable Cash
Contributions:
The holidays mean giving and gifts are on everyone's
mind. The IRS has changed its record keeping requirements for cash charitable
contributions - what this means for you? Each cash charitable contribution you
make must be backed up with a written receipt or other documentation, regardless
of the amount. Gone are the days of estimates. So, continue to be as generous as
you'd like, but don't forget to get that receipt!
Did You Invest
in Your Business?If you loaned money to your business, you are
required to charge interest on the loan and report it as income on your personal
return! If you don't, the IRS may reclassify it as a contribution to capital.
Call or email and we can help you understand this better!
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Business Issues
For those who own their own businesses:
(1) Accelerated business expensing up to $250,000 under Sec. 179 expires this year, with 2009 levels set to drop to $133,000. So, this is the year to purchase that large item for maximum credit.
(2) Consider deferring new hires until January as Obama has proposed a $3,000 refundable tax credit in 2009 and 2010 for each full-time employee added to the workforce by existing businesses.
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We hope you
enjoy a wonderful holiday season and just remember, we're only a phone call or
email away with solutions to any of your tax questions. Let us help!
We have a few new offerings this year during tax season: In addition to free efiling, we are now offering RAL(Refund Anticipation Loans) loans (which we do not recommend due to their high cost, but in these times, you might need) and Audit Shield (Our Better Safe than Sorry protection plan which will pay up to $2500 in penalties, etc. imposed by the IRS due to an error on your part on forgetting to give us a critical piece of your income information).
We look forward to working with you during this tax season!
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Warmest Wishes for a Wonderful Holiday Season!
From All of Us
at
Maco
& Associates, LLC
Telephone:
(610)489-7215
Email:info@macoassociates.com
4183 Ironbridge Drive
Collegeville, PA
19426
Visit our Blog
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