LANDLINE
JULY 2009
ARTICLE0709LL
STIMULUS CHECKS AND HOME PURCHASES
Q. I'm hearing about stimulus checks but I have not received mine. When can
I expect it?
A. You will not
be receiving any checks (unless you are collecting Social Security, Railroad Retirement
and Veterans
Q. What if I don't
pay estimated taxes?
A. If you are short of cash and extremely worried about our economy and want to hold onto whatever money you have and just do not want to pay your taxes in advance, you WILL receive your stimulus payment through a credit on your 2009 income tax return.
Q. We were looking to
buy a house this year but we are nervous about the economy. I have steady
work and have survived this economy although my business is off 20 per
cent. But I see much lower prices than a year ago. What would you
recommend?
A. We ARE NOT about to recommend to anyone to buy a house in this environment. That said we will list certain points for your consideration.
1. If the home is for your residence and not for an investment, consider it. You should be planning to be in the home at least 5 to 10 years.
2. Possibly same for re-financing. Financing a home now MAY yield you the lowest rates we will see in our lifetime.
3. After your down payment you should have enough cash on hand so that if you should lose your job you can sustain yourself 3 to 5 years.
4. If this is your first house or you did not own a primary
residence in the past three years, you can receive up to an $8000 (10% of the
purchase price with a maximum of $8000) credit on your tax returns (2008 or
2009) if you buy before
5. Evaluate how much lower homes can go versus the potential value five to ten years from now. Once a bottom has been established do not expect a sudden increase in prices.
REMEMBER-we are not recommending you buy a home (that is not our business). We are attempting to put forth the tools you may need in making your own evaluation since so many of our clients have asked.
Q. I'm a
company driver but I don't know what expenses are deductible?
A. While self-employed truckers can deduct most expenses incurred to earn their income, a company driver is limited to expenses necessary or required to perform his job. He or she can deduct per diem and motel, laundry and uniforms, gloves, logbooks, maps, cell phone, CB, tools or any expenses incurred that are necessary. You must reduce the expense deduction of the above items if you were reimbursed for any expenses claimed. You also have to be aware if any part of the reimbursement was included in your w-2 income. The above expenses are shown on your tax return as itemized deductions and cannot be claimed if you take the standard deduction. If questioned by the IRS they may request a letter from your employer stating you had to incur the expenses that you claimed.
Q. I am an over the
road trucker. Do I need to save all my food receipts?
As an over the road trucker you may deduct your actual cost for meals with receipts or deduct the IRS per diem allowance using your logbooks as substantiation now 80% percent of your total is deductible regardless of which method you choose. Corporate shareholders are not entitled to put per diem and must use actual costs.
This article has been presented by PBS Tax & Bookkeeping Services, a company that has been providing income tax and bookkeeping services to the trucking industry for over a quarter century. If you would like further information, please contact us at 800-697-5153 .
Please remember everyone’s financial situation is different. This article does not give and is not intended to give specific accounting and/or tax advice. Please consult with your own tax or accounting professional.