Recent Tax Court decision could wreak ha

Glover v. Comm, a recent tax court decision, presents several issues to Merchant Mariners. Mr. Glover worked for Reinauer Transportation. His tugs pushed oil coastwise as far as Virginia. The tugs wou

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Recent Tax Court decision could wreak havoc on Mariners

State Taxes and Mariners

Suz asked this question So, what about if you live in one state (TN) and work as a merchant mariner in another state (HI), 45 days on/45 days off rotation? Do you pay HI state taxes, or does the payro

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State Taxes and Mariners

Mariner Tax Update January 2011

E-Filing alert! How many times have you read that mariners cannot E-File? How many websites have posted this. Year after year. And then all of a sudden preparers start proclaiming “mariners can

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Mariner Tax Update January 2011

Employee vs. Non-Employee LLC and S-Corp

I’ve been a client of yours for a few years now and I had a general tax question concerning my wife’s job status. She currently works full time for a marketing firm in “Deleted”

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Employee vs. Non-Employee LLC and S-Corp Planning for Mariners and their families

Maritime Tax Preparers and the Alternati

What they don’t want you to know… This video points out the tremendous effect of the AMT on merchant mariners. Seamen taking business deductions and offsets may very well be realizing litt

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Maritime Tax Preparers and the Alternative Minimum Tax

Banks Collapsing… Government Enticing More Risky Mortgages…

by on September 23, 2008 at 7:42 pm

Looking for logic

I’m all for tax incentives and credits. But aren’t we on the verge of some really rough times? Banks looking for government assistance… All because they never thought about what would happen if the housing market stopped climbing. Solution??? Let’s print some more money and use it as an incentive to anyone who is thinking buying a house might not be a financial possibility. Brilliant!

Not a free lunch

The way it’s written, you have 15 years to pay the money back… Great, an interest free loan. My concern would be that there are some serious compliance issues. I can picture folks e-filing claiming a home credit and running to the bank laughing. How many returns will be filed stating they purchased “1600 Penn Ave, Washington DC”? This is not easily regulated. Refundable credits usually require social security numbers for verification. I thought they learned their lesson with this under Reagan.

I’ll bet this ends up being a free lunch down the line when it isn’t causing the necessary stimulation.

First-time homebuyers should begin planning now to take advantage of a new tax credit included in the recently enacted Housing and Economic Recovery Act of 2008.

Washington, D.C. – infoZine – Available for a limited time only, the credit:

* Applies to home purchases after April 8, 2008, and before July 1, 2009.

* Reduces a taxpayer’s tax bill or increases his or her refund, dollar for dollar.

* Is fully refundable, meaning that the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax that they owe.

However, the credit operates much like an interest-free loan, because it must be repaid over a 15-year period. So, for example, an eligible taxpayer who buys a home today and properly claims the maximum available credit of $7,500 on his or her 2008 federal income tax return must begin repaying the credit by including one-fifteenth of this amount, or $500, as an additional tax on his or her 2010 return.

via Tax Credit to Aid First-time Homebuyers; Must be Repaid Over 15 Years – Kansas City infoZine News.

in IRS Updates