Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

Archive for February 5th, 2009

Posted by taxguru on February 5, 2009


(Click on image for full size)


(Click on image for full size)


(Click on image for full size)

Posted in comix, Crooks, Dims | Comments Off on

2009 Section 179

Posted by taxguru on February 5, 2009

Q:

Subject: Section 179 for 2009

Hello Mr. Kerstetter,

My company is trying to publish some Section 179 information for our lessees. We are having a difficult time gathering some of the information. Your website typically lends itself to helpful and up-to-date facts. Is there a place I could go to better gather this information? I’ve looked at the IRS and their site is difficult to find what I need.

I’m assuming the first year write off is $128,000, but what is Cola?

Also, 2008 is the last year it lists a phase out $ amount.

Thank you,

A:

We’ve been out of power for a while now, so I haven’t been able to update my main website lately. I have attached the Section 179 chart from the latest edition of TheTaxBook.

As you can see, as it stands right now, the 2009 maximum Section 179 deduction is $133,000, which is the base of $125,000 plus an additional $8,000 for the annual Cost Of Living Adjustment (COLA).

As you can also see on this chart, the phaseout of the Section 179 deduction for 2009 begins at $530,000 of new equipment purchases, which is the base of $500,000 plus an additional $30,000 for the annual Cost Of Living Adjustment (COLA).

Preparing a completely accurate long term multi-year chart of the Section 179 limits is close to impossible because it is a favorite item to be changed by our rulers in DC. It is one of the best incentives for small business owners to invest in new equipment, so chances are good that it will be bumped up in future economic stimulation legislation.

As with all tax matters, it is a full time job just staying current on all of the changes; so be sure to include that in any tax related materials you produce. A warning such as “All information presented is subject to changes at the whims of the politicians in DC. Check with your own personal professional tax advisor before undertaking any tax related transactions” would help cover your rear in case someone relies on info you produce that becomes outdated.

Good luck. I hope this is helpful.

Kerry Kerstetter

Posted in 179 | Comments Off on 2009 Section 179

2009 Standard Deduction

Posted by taxguru on February 5, 2009

Q:

Subject: 2009 Standard Deduction >65

On your web page “2009 Individual Income Taxes Federal – Form 1040“, the section “2009 Standard Deductions” shows:

Single: $5,700 + $1,350 if over 64 and/or blind

However Form 1040es for 2009 shows:

• An unmarried individual (single or head of household) and are:
65 or older or blind . . . . . . . . . . . . . . . $1,400

A:

The $1,400 figure is correct, as you can see on the attached excerpt from the latest TaxBook.

I will fix that on my website as soon as we get our power back and can start up our main computers.

Thanks for catching that.

Kerry

[Update] The web page has been updated to correct the figure.

Posted in Deductions | Comments Off on 2009 Standard Deduction

Posted by taxguru on February 5, 2009

Posted in comix, Crooks, Dims | Comments Off on

More Cabinet Jokes

Posted by taxguru on February 5, 2009

Via NewsMax:

Leno:

Obama is a genius. Whenever he nominates someone, they pay their taxes. He’s found a way to eliminate the deficit — nominate everyone in the country, one person at a time, and they’ll pay their taxes.

Tom Daschle withdrew his name to be in Obama’s Cabinet, due to IRS problems. He said, “I will not be a distraction.” Distraction is Washington talk for “Uh-oh. There’s a lot more crap you don’t know about yet.”

Daschle says his problems with the IRS were unintentional. Of course, they were unintentional — he never intended to get caught.

To Democrats, IRS means, “I’m really sorry.”

Letterman:

Obama has now lost two nominees because of tax trouble. Good luck to the new Health and Human Services nominee — Wesley Snipes.

Former Sen. Tom Daschle form South Dakota had to withdraw because he “forgot” to pay taxes on $150,000. I believe the guy because in South Dakota there are so many distractions.

Conan:

President Obama is working very hard to get the stimulus passed. He has asked the Senate to cut $50 billion from the plan. He said we no longer would need the $50 billion once everyone in his Cabinet pays his taxes.

Posted in Crooks, Dims, humor | Comments Off on More Cabinet Jokes