Taxes Deductibility as
have a new ALTERNATIVE itemized deduction for 2004,
for state and local sales INSTEAD of the traditional
state and local income tax.
processing your 2004 tax we will evaluate which alternative
will yield more itemized deduction (which will most likely
reduce your taxes).
is a new deduction only to residence of states without
tax (The lucky
are two options to determine how much you can consider for
sales taxes in computing your allowed itemized deductions.
provided by the IRS based on the number of exemptions
and adjusted gross income (See IRS publication 600) taxes
on certain purchases are added to the tables allowed amounts
(autos, boats, etc).
taxes paid (documented by related receipts).
new alternative requires close watch and planning for future
this option is limited to years 2004 and 2005
Contribution to Charity
Often we get the question “How much I can claim as Noncash
Contribution without ‘really’ sitting down and
going through the ‘brain damage’?”.
answer is the calculation is a must, but not the brain damage.
you find yourself in this situation, please call our office.
We have a spreadsheet template that we can e-mail you where
you can do your calculations and e-mail them back to us with
the least effort.
the amount of your noncash contribution for 2004 is $500
or less you do not need to e-mail us your calculation –
just e-mail us the amount you want to claim.
you are claiming over $500 but less than $5000 we must have
your calculation to prepare the required Form 8283, which
must be attached with your tax return before it can be filled.
donations of over $5000, you must obtain an appraisal with
more restrictive rules – we will be glad to e-mail
you the instructions.
instructions require the information in this worksheet so
they can evaluate if the value claimed is in-line with their
rules and regulations.
Out-of-pocket expenses for volunteer
work for charities are considered cash contributions.
Most likely the amount that may be claimed
as a non-cash contribution is between 10%-20% of your basis
(amount you paid/value when transferred to you), which reflects
Other personal assets that have appreciated
may also be contributed to charities. You are allowed the
appreciated value rather than your original cost, so these
assets yield much higher benefits. A good example of this
is publicly traded stock at work, etc.
you are in doubt please e-mail us your concerns, we will be
glad to clarify and advise.
for paying your taxes
More and more the IRS is trying to act as a real business,
very serious about collecting their share.
to do if your tax return shows balance due and you are short
all cases you must file timely or file an extension timely.
owed may be paid in various ways:
an installment agreement with your taxes, which commits
you to specific payment plan. You still will be charged
interest and some penalties until the full balance is
your credit card to make partial or full payment.
the (EFTPS) system, which stands for (Electronic Federal
Tax Payment System).
funds withdrawal: you authorize the IRS to access your
bank on certain date and for specific amount.
IRS official website states that for 2003:
More than 1.75 million people paid their federal
taxes by electronic funds withdrawals and credit cards.
More than 950, 000 taxpayers paid by credit
More than 800,000 taxpayers paid their taxes
through (EFW) electronic fund withdrawals
credit card payments contact
Official Payments Corporation, 1-800
2PAY-TAX (1-800-272-9829), 1-877-754-4413 (Customer Service)
Link2Gov Corporation, 1-888-PAY –
1040 (1-888-729-1040), 1-888-658-5465 (Customer Service) (www.PAY1040.com)