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ANOTHER new tax form – Tax Tip of the Week February 17, 2010

Posted by bradstreetblogger in : Tax Tip , trackback

Last week we talked about the new Schedule M.  This week we’ll look at the new Schedule L.letter_L

This form is designed for those who typically take the standard deduction on their tax return (those who cannot itemize.)  Specifically, it’s where you deduct real estate taxes, motor vehicle sales taxes, and disaster losses.

Real Estate Taxes: Again this year, taxpayers who do not itemize may claim up to $500 ($1,000 for a joint return) for property taxes paid on their home.

Motor Vehicle Sales Taxes: New this year is a deduction for the sales tax paid on a new motor vehicle.  The deduction is limited to the tax paid on the first $49,500 of the price of the vehicle; however, more than one purchase can qualify for the deduction.  The deduction is phased-out ratably for taxpayers with an AGI of $125,000 and $135,000 ($250,000 and $260,000 if married.)

Disaster Losses: None of us who live in the Greater Dayton area qualify for this deduction so we won’t discuss the details. However, if you have a second property in a region affected by a disaster or simply have questions, give us a call.

This now makes quite an alphabet soup of tax forms!  Be sure to consider all the form letters when doing your tax return.  They now include Schedules: A,B,C,D,E,F,H,J,L,M,R,SE, and T. Whew!

As always, give us a call if you have any questions. In Dayton, call 937-436-3133 and in Xenia, call 937-372-3504. Or visit http://www.bradstreetcpas.com.

Rick Prewitt – the guy behind TTW

…until next week.

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