April 15. Man does that day suck or what? I know what I’ll be doing on April 15th — that would be filing an extension on my 2007 taxes.
But some of you rabid avid readers may not be the procrastinator that I am. I bet someone out there right now is working on their taxes, or stuffing crap into a shoe box to take to their CPA.
As is typical, there were lots of changes to the tax code in 2007. Even if you use a tax preparer, I wouldn’t assume they are on top of everything. It can’t hurt to be informed.
So don’t forget these little nuggets as you pour through forms, instructions, TurboTax, aspirin and tequila.
On the home front:
Mortgage insurance premiums (MIP) may be deductible.
Mortgage debt forgiven in a loan restructuring, short sale or foreclosure may be excluded from taxable income.
Other changes:
Standard mileage rate increased.
Alternative Minimum Tax (AMT) exemption increased.
Contribution limits for IRAs raised.
Personal exemptions and standard deductions raised.
And more.
Help comprehending tax changes:
The IRS has a page summarizing the changes here. And here is the IRS Tax FAQ. <— now that is some light reading!
TurboTax explains in less painful English, plus includes changes planed for future years.
Illyce Glink on the Mortgage Debt Forgiveness Act.
World Wide Web Tax has some extensive resources.
For my Arizona brethren, here is the main site of the AZ Department of Revenue. Yes, it looks like the site was built in 1987, but there is current info to be had there.
Non-Arizona residents can likely find info for their state by Googling “My State tax”, “My State dept of revenue”, or “My State tax help”. (Replacing “My State” with your actual state of course).
Required disclaimer: I am neither an attorney, a CPA nor a tax professional. And you know what? Neither is the Internet. This is only a guide for informational purposes. Seek professional assistance.
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[tags]Income tax, IRS, MIP deduction, Mortgage Debt Relief Act, The IRS is a pain in my ass[/tags]
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You forgot one other change – They put my picture on the 1040 this year. I’m sort of a “Corporate Sponsor” or something.
To funny, Kris! I think they have us down for the “Platinum Level Corporate Sponsor” this year.
I’m usually one to wait to the last minute, but not for taxes. I guess I have incentive when I get a refund!
I am a DIY guy… I have an accountant now. He saves enough to pay for himself, and I don’t have to deal with nearly as much. Now if I could just line up a bunch of Congress Critters, I could beat them with forms until they pass the FairTax…
I usually do taxes myself but can’t seem to get started this year. I think I might be with you on the 15th Jay. Thanks for the resources and tax tips.
More and more people are doing their own taxes and efiling. Unfortunately if you miss a deduction you leave money on the table. Real Estate investment is one of the last investments with many deductions available to investors. However they are missed by number of investors.
So we launched a website http://www.realtaxtips.com where investors share their favorite tips. Please try it.
So I am not the only one who files an extension every year. At some point I should catch up as the IRS owes me a pretty penny.
2008 – 2010 are going to be zero capital gains tax for the lower income tax brackets. If Grandma has something to sell, she should probably do it over the next few years. Read more here:
http://www.nysscpa.org/cpajournal/2006/1206/essentials/p40.htm
I’m usually wait to the last minute even when I am getting a refund!
I am a DIY guy… I have an accountant now. He saves enough to pay for himself, and I don’t have to deal with nearly as much. Now if I could just line up a bunch of Congress Critters, I could beat them with forms until they pass the FairTax…
**e file´s last blog post..How to Save Money on Restaurants
So I am not the only one who files an extension every year. At some point I should catch up as the IRS owes me a pretty penny.
**e file´s last blog post..Tax Help Available For Small Businesses