Stacy’s Tax Tips
The first time homebuyer’s credit is close to expiring. To qualify, you must have a contract before May 1, 2010 and close no later than July 1, 2010.
With these difficult times, many have suffered with foreclosures, credit card debt and bankruptcy. Often many are helped by receiving cancellation of credit card debt and/or cancellation of mortgage debt. Cancellation of debt is taxable; however, there are certain circumstances where you can receive relief. One is on the mortgage for your primary residence, and another is bankruptcy. My point is that if you receive form 1099C (cancellation of debt) it is important that you speak to a tax advisor that is familiar with this. Most important is that you do not ignore it.
If you are receiving social security only, it usually will not be taxable; however, if you have other income, it is important to ask your advisor if you have to pay taxes. Keep in mind that those who receive social security should have received an extra $250 in lieu of an increase in payments. Ensure that you tell your preparer whether you received it or not.
Call me for all of your accounting and tax needs! If you have a topic of interest, call me and I will try to include it in my tax tips. I can be reached at 718-318-8829 or visit my website at www.sandcpa.com. We are located at 438 Beach 129 Street, 2nd Floor and celebrating our 3rd year in Rockaway.