TAX TIPS

Starting in 2009
Estate Tax Exemption: In 2009, the $2,000,000 federal estate tax exemption rises to
$3,500,000.

Credit for Residential Energy-Efficient Property: The $2,000 maximum credit for the
installation of solar water heating equipment, photovoltaic or fuel cell equipment in your
primary residence or a second home expires after 2008.

Starting in 2010
Estate Tax Repealed: The federal estate tax is eliminated for estates of individuals dying
in 2010.

Both IRA Conversions: Starting in 2010, individuals with more than $100,000 of
modified adjusted gross income are free to switch an IRA to a Roth IRA. For conversions
in 2010, taxpayers can spread the tax due over two years. Half the tax will be due in
2011, and the remaining half will be payable in 2012.

HOT TOPICS

Tax Credit to Aid First-Time Homebuyers
The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.

The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.

*Contact our office to obtain your credit report & get pre-qualified for a home-loan.

USEFUL LINKS

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