Tax Credit to Aid First-Time Homebuyers; Must Be Repaid Over 15 Years – IRS explains how the new credit, aka interest free loan, works.

Q:

Hello,

I’d like to buy an ad on your page : http://www.taxguru.org/incometax/prepare.htm.

The ad would be for a website which offers tax attorney.

I don’t have a huge budget, but I’m sure there is a reasonable price we can arrange.

Please get back to me if you’re interested.

Thanks!

A:

I do not sell ad space on my websites.

If you feel you would be a fit for my page on other tax pros who share my philosophy of using tax laws creatively to help clients minimize their tax burdens, I may be willing to list you on my page of Other Tax Pros. 

Kerry Kerstetter

Follow-up:  She did respond with a website that I didn’t feel was appropriate to include on mine.

A New Way to Tap Home Equity – A new twist on equity sharing arrangements, such as this plan from Grander Financial.

Lone accountant takes on IRS and wins – Interesting case on the taxation of insurance company demutualizations.

Boston Tax Party – A vote to repeal the State income tax in Taxachusetts will be an uphill battle, but we wish Libertarian activist Carla Howell the best of luck.

While you’re on Carla’s website, check out her song from 2001,  “How Could I Live Without Filing Taxes?”

CCH has a free seven page explanation of the new tax law that was passed last week, with more info than any of the other sources I’ve cited previously.

New Tax Credit Amounts To a Free Loan for $7,500  –  More details on the new temporary credit for some people buying homes between 4/9/08 and 6/30/09.  As always, this new credit doesn’t apply to the evil rich.

There’s also a new special website devoted just to this new credit.

One very interesting aspect to this new credit is that people have the option to claim it on their 2008 1040 for homes purchased between 1/1/09 and  6/30/09, as described on the FAQ page:

18.  If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?

Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.

19.  For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?

Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.  

Senate Moves to Tax Obama’s Windfall Campaign Cash – A timely parody by Scott Ott of the idiotic concept of having the government confiscate what they classify as Windfall Profits.

Q-1:

Subject:  Is it true that income taxes are voluntary?

Kerry,

I have been doing much due diligence on the topic of my subject line. Do you still adhere to the same advice that you posted in 2000 on your Website? 

Thank you in advance,

My reply:

You’re going to need to be more specific as to what advice you are referring to.  I have posted several thousand items to my websites and blogs.

Kerry Kerstetter

Q-2:

Kerry,

Sorry, here is the link http://www.taxguru.org/incometax/voluntary.htm

A:

Thanks for clarifying that for me.

Yes, the comments I made in that short piece seven and a half years ago are still as true today as they were back then.  As the recent Wesley Snipes case proved, there is still no shortage of people stupid enough to believe the bilge being promoted by tax protestor scammers.

Back in 2000 and earlier, I was extremely frustrated by the official IRS policy of trying to ignore the crackpot theories being espoused by tax protestor groups in the hopes that they would dwindle out on their own.  IRS finally learned that such silence was perceived as agreement by many gullible people, so they started their current aggressive campaign of prosecuting and imprisoning tax scam promoters and their celebrity customers.

Please check out this recent blog post for my feedback to a tax protestor who wants to pretend that there is no law requiring us to pay taxes:

I hope this helps.

Kerry Kerstetter

The first summary I’ve come across of the Farm Tax bill that our rulers in Congress passed over Bush’s veto is in this seven page pdf newsletter from CCH.  It also covers the less controversial Military Tax Relief Bill.

I’m assuming that the other tax reference publishers will have their own summaries posted in the near future.