Tax Tips & Real Estate Updates

Let’s just jump right into it.
 Extension Deadline – Tuesday,10/15/2019

• Individuals: File your tax return, if you timely requested a 6-month extension.
• Corporations: File calendar year Form 1120, if you timely requested a 6-month extension.

Electric Car Credit (IRC 30D)
Whether you drive the Maserati Alfieri, Telsa, or the BMW 740e, the IRS allows a tax credit for vehicles acquired after December 31, 2009. The credit is equal to $2,500 plus, for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours. The total amount of the credit allowed for a vehicle is limited to $7,500.
 
Micro-Captive Insurance
Watch out! Micro-Captive Insurance is an effective strategy to save money – if used correctly! Tax law generally allows businesses to create "captive" insurance companies to protect against certain risks. Under section 831(b) of the Internal Revenue Code, certain small insurance companies can choose to pay tax only on their investment income. However, be careful! In abusive "micro-captive" structures, promoters, accountants or wealth planners persuade owners of closely held entities to participate in schemes that lack many of the attributes of genuine insurance. Unfortunately, those individuals engaging in this abusive practice is being hunted by the IRS.
 
First Time Home Buyers
Did You Know you could use your 401(k) savings to Buy Your First Home – without an early distribution penalty? Absolutely! Call your broker to find out more details about this. If they confirm, then your next call should be me, Realtor Largie! Realtor Largie will find you a home for you and the family, asap!

Entreprenuers
Self-employed folks, remember Realtor Largie is also a CPA. You're in excellent hands in Largie's world :)
 
As the last quarter of 2019 winds down, there have been some tax updates that you should know. Straight from the Service, check these updates below.
TAX TIPS, 2019:

• The standard deduction for married filing jointly rises to $24,400 for tax year 2019, up $400 from the prior year. For single taxpayers and married individuals filing separately, the standard deduction rises to $12,200 for 2019, up $200, and for heads of households, the standard deduction will be $18,350 for tax year 2019, up $350.
  
  
• The personal exemption for tax year 2019 remains at 0, as it was for 2018, this elimination of the personal exemption was a provision in the Tax Cuts and Jobs Act.
  
  
• For tax year 2019, the top rate is 37 percent for individual single taxpayers with incomes greater than $510,300 ($612,350 for married couples filing jointly). The other rates are:
  
  
  • 35 percent, for incomes over $204,100 ($408,200 for married couples filing jointly);
  • 32 percent for incomes over $160,725 ($321,450 for married couples filing jointly);
  • 24 percent for incomes over $84,200 ($168,400 for married couples filing jointly);
  • 22 percent for incomes over $39,475 ($78,950 for married couples filing jointly);
  • 12 percent for incomes over $9,700 ($19,400 for married couples filing jointly).
  • The lowest rate is 10 percent for incomes of single individuals with incomes of $9,700 or less ($19,400 for married couples filing jointly).
• The tax year 2019 maximum Earned Income Credit amount is $6,557 for taxpayers filing jointly who have three or more qualifying children, up from a total of $6,431 for tax year 2018. The revenue procedure has a table providing maximum credit amounts for other categories, income thresholds and phase-outs.
  
  
• For calendar year 2019, the dollar amount used to determine the penalty for not maintaining minimum essential health coverage is 0, per the Tax Cuts and Jobs act; for 2018 the amount was $695.
  
  
• For tax year 2019, the adjusted gross income amount used by joint filers to determine the reduction in the Lifetime Learning Credit is $116,000, up from $114,000 for tax year 2018.
  
  
• For tax year 2019, the foreign earned income exclusion is $105,900 up from $103,900 for tax year 2018.
  
  
• Estates of decedents who die during 2019 have a basic exclusion amount of $11,400,000, up from a total of $11,180,000 for estates of decedents who died in 2018.
  
  
• The annual exclusion for gifts is $15,000 for calendar year 2019, as it was for calendar year 2018.
  
  
• The maximum credit allowed for adoptions is the amount of qualified adoption expenses up to $14,080, up from $13,810 for 2018.

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Now that we've gotten the tax reminders and home-buying stuff out the way, who's down for a Jerk Chicken dinner with Realtor Largie?

Have a GREAT day folks!