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Closing Deadline Extended to September 30th for Home Buyer Tax Credit

Chris_Ratte — Wed, 14 Jul 2010 15:00:44 +0000

Closing Deadline for Home Buyer Tax Credit Extended to Sept. 30th

Washington has once again extended the closing deadline to qualify for the $8,000 first-time home buyer tax credit or the $6,500 current home buyer tax credit. The new closing deadline is September 30, 2010.

Unfortunately, Congress did not extend the purchase agreement deadline beyond April 30th. This means that only buyers who had entered into a purchase contract on or before April 30, 2010 will be eligible for the tax credit. The extended closing deadline will just give those buyers some additional time to close the sale beyond the prior June 30th deadline.

The extension of the closing deadline was necessary because some types of sales, such as bank owned properties and short sales, require more than the typical 30-60 days to close.

For more information about how the tax credit works, please see my prior posts:

Down to the Wire; Last Days to Qualify for the Home Buyer Tax Credit

First-Time Home Buyer Tax Credit Extended

TIMING IS EVERYTHING: First-Time Home Buyer Tax Credit Increased for 2009

For questions about the home buyer tax credit, please contact me or use my online legal services.

Down to the Wire; Last Days to Qualify for the Home Buyer Tax Credit

Chris_Ratte — Tue, 20 Apr 2010 13:58:53 +0000

There are less than two weeks left to qualify for the federal home buyer tax credit. You must have a signed Purchase and Sale Agreement by Friday, April 30th to qualify. (You then have until June 30th to close the sale.)

Unless you’ve been living under a rock for the past year and a half, you’ve no doubt heard that the federal government is giving first-time and repeat home buyers a credit on their income taxes for buying a new home. The credit was intended to spur activity in the stagnant real estate market and to give home buyers a cash incentive to invest in home ownership.

First-time home buyers may qualify for up to an $8,000.00 credit. A first-time home buyer is considered to be anyone who has not owned a primary residence in the last three years.

Current homeowners, who are selling their primary residence to purchase a new primary residence, may qualify for up to a $6,500.00 credit. The homeowner must have lived in their primary residence for at least five of the last eight years.

There are some income limits and other restrictions. For more information about how the tax credit works, see my previous post “Timing is Everything; First-Time Home Buyer Tax Credit Increased for 2009.”

Unlike last year, there is little chance that the tax credit will be extended beyond April 30th. But there’s still time to take advantage of the credit if you act quickly.

Contact me for more information.

Helpful reading:

Tax Problems? IRS Dispute?

Chris_Ratte — Tue, 26 Jan 2010 21:17:07 +0000

Having tax problems or a dispute with the IRS? Then you should make the time to attend this upcoming presentation.

On Tuesday, February 2nd, Dr. Richard Spead of Spead Tax Group will be speaking about how to handle disputes with the IRS. In light of the IRS’s aggressive campaign against small business owners in the past year, this should be a timely and informative presentation.

The presentation is sponsored by BASE Resources. Prior speakers in the series have included yours truly and other experts in the business, financial and tax worlds.

Here’s the info:

Tax Issues & IRS Disputes

Guest speaker: Dr. Richard Spead of Spead Tax Group PLLC.

Tuesday, February 2, 2010

Great Bay Community College

Pease International Tradeport

320 Corporate Dr, Portsmouth, NH

Room 314. Enter at Business and Training entrance.

Cost $10. 8 am – 9 am. Registration at 7:45 am.

Session runs from 8am-9am. Registration at 7:45 am.

Coffee and muffins provided.

Please RSVP to Diane DeVries 603-534-2040 or diane@digrafika.com

Presented by BASE Resources – The premier source for business solutions

www.base-resources.com

NH Retailers Not Required to Enforce Sales or Use Tax Collection for States Outside NH

admin — Fri, 04 Dec 2009 15:52:06 +0000

NH Says No to Mass. Sales and Use Tax

When the State of Massachusetts attempted to collect sales and use tax from a NH retailer for purchases within NH, the Governor and Legislature acted quickly to put a stop to it.

In response to this claim by Mass. against Town Faire Tire, NH enacted SB-5 prohibiting retailers from disclosing private customer information to foreign states in connection with the collection of certain sales and use taxes.

Gov. John Lynch called the Mass. claim “outrageous” and “unacceptable.”

“We should not allow Massachusetts to turn New Hampshire businesses into tax agents for Massachusetts.” – Gov. John Lynch

The Act creates an irrebutable presumption that, in the absence of voluntary information by the customer, the goods or services purchased in NH are intended to be used in NH.

To impose sales or use tax on purchases within NH, the foreign state must have previously provided written proof to the retailer that its tax laws meet with the very stringent requirements of the new Act. That is unlikely.

Gov. Lynch has vowed to appeal the Town Faire Tire case to Federal Court if necessary to protect NH’s favorable tax structure and pro-business environment.

For more information, contact Attorney Chris Ratté.

NOTICE: The information and articles posted on this website are for informational purposes only and are not intended as legal advice. Contact me to discuss your particular situation or consult a licensed attorney in your state.

Lower Your NH Property Taxes with an Abatement

admin — Thu, 12 Nov 2009 16:03:13 +0000

A tax abatement may save you money on property taxes.

If you are like most people, you probably think you are paying too much in property taxes. In some cases, you may be right.

Property taxes in New Hampshire are based on the assessed value of your real estate as of April 1st of each year. If your assessment is incorrect, then you may in fact be paying more than your share of property taxes.

An assessment may be incorrect due to a number of reasons, such as the information used by the assessor may have been incorrect (i.e. you actually have 3 bedrooms instead of 4), or the assessment is substantially higher than the equalized market value of the property. The market value of real estate may be determined by having the property appraised by a licensed appraiser or by comparing it with local comparable properties which have sold recently.

To change the assessment of your property, you must file a request for an abatement with your city or town by March 1st (in most locations). If the municipality denies the abatement request or fails to respond by July 1st, which is the same as a denial, then you have until September 1st to file an appeal with the Superior Court or the Board of Land and Tax Appeals. To win the appeal, you must prove through appraisals or other evidence that your taxes are unfair, illegal or disproportionately high.

You must continue paying your property taxes during the abatement process, but if the abatement is granted then you will receive a tax refund plus 6% interest. In addition, the new lower assessment amount will then continue for future tax years until there is a good faith reason to reassess the property (such as changes to the property or a town-wide reassessment).

For more information on how a tax abatement can save you money on property taxes, please contact Attorney Chris Ratté.

First-Time Home Buyer Tax Credit Extended

admin — Thu, 29 Oct 2009 00:10:44 +0000

According to MarketWatch.com, the $8,000 first-time home buyer tax credit has been extended into 2010. The credit, which is currently scheduled to expire on November 30th, will reportedly be extended until the end of April 2010.

The first-time home buyer tax credit has been extended to spur real estate sales.

So, if you’ve been thinking of buying your first home, you can still take advantage of this popular tax credit.

For more information about how the tax credit works, see my previous post “Timing is Everything; First-Time Home Buyer Tax Credit Increased for 2009.”

The tax credit may also be expanded to more than just first-time home buyers. If the measure is approved by Congress, then repeat buyers will receive a $6,500 tax credit for purchasing a new home.

For more information, contact Attorney Chris Ratté.

New Laws Affecting NH Business Owners

admin — Wed, 21 Oct 2009 03:42:43 +0000

UPDATE – On Tuesday, November 3rd, I will be giving a condensed version of my presentation about recent legislation affecting NH businesses. So if you missed the original presentation, you have one more chance to learn how these new laws may affect your business. Here are the details:

Program: Upcoming Legislation Affecting NH Businesses

Date: Tuesday, November 3, 2009, 11:30-1:00

Location: ReMax Coast to Coast Realty, 150 Mirona Road, Portsmouth, NH

Cost: Free

On Friday, October 23rd, I will be giving a presentation on recent legislative changes affecting small businesses in New Hampshire. This should be an informative and interesting program for all NH business owners and managers. I hope to see you there. Details are below.

Program: Upcoming Legislation Affecting NH Businesses

Date: Friday, October 23, 2009, 8-9 am

Location: IOS, Pease International Tradeport,1 New Hampshire Ave., Rm. 300, Portsmouth, NH

Cost: $10

RSVP: Diane DeVries 603-534-2040 or diane@digrafika.com

What's in a Name? What it Really Means to be an Independent Contractor.

admin — Fri, 21 Aug 2009 14:47:18 +0000

Many business owners insist on referring to their workers as “independent contractors” as if the name alone will somehow magically save them from having to pay employment taxes, workers compensation premiums and other costs associated with having employees. The true test, however, is in the actions and not in the words.

To determine whether a worker is an employee or an independent contractor, the IRS has developed a three-part series of factors to be reveiwed.

Behavioral Control: Facts that show whether the business has a right to direct and control how the worker does the task for which the worker is hired, including such factors as when and where to do the work, what tools or equipment to use, and the amount of instruction given for individual tasks.
Financial Control: Facts that show whether the business has a right to control the business aspects of the worker’s job, including the extent to which the worker has unreimbursed business expenses and the extent of the worker’s investment in the facilities or equipment used by the worker in performing the services.
Type of Relationship: Facts that show the parties’ type of relationship include any written contracts describing the relationship the parties intended to create, whether the business provides the worker with employee-type benefits, and whether the relationship will continue indefinitely rather than for a specific project or period of time.

There are many other factors to be considered and each situation must be reviewed on an individual basis. A simple rule of thumb is this: look at what the worker is actually doing, and if they look and act like an employee then they probably are.

For a free half hour consultation regarding employment law issues, please contact Attorney Chris Ratté.

THE POWER OF CHOICE: How to Choose the Proper Business Structure

admin — Wed, 08 Jul 2009 16:13:48 +0000

Choosing the right business entity structure may seem like any easy step in setting up a new business, but the wrong choice can be very costly. Each form of business structure has its own advantages and disadvantages, and each has its own rules and requirements. Choosing the right one is an important choice based upon the particular operation and goals of each individual business.

The five major business forms are sole proprietorship, general partnership, limited partnership, limited liability company, and corporation, which may then be classified as either a “C-Corp.” or an “S-Corp.”

Sole Proprietorship – This is the default business form of any single person doing business who has not taken steps to set up any formal business structure. A sole proprietor is personally responsible for all debts and liabilities of the business. Income is taxed directly to the individual owner on his or her personal income tax return. A sole proprietor may operate under a trade name other his or her own name, often called a “dba” which stands for “doing business as.”

General Partnership – This is the default business form of any business consisting of more than one person, which has not taken steps to set up any formal business structure. Each individual partner is personally responsible for the debts and liabilities of the partnership, even if it was incurred by a fellow partner without his or her consent. Income is taxed to the individual partners’ income tax return in proportion to their ownership interest in the partnership. General partnerships often operate under a Partnership Agreement, which sets forth the rights and responsibilities between the partners.

Limited Partnerships – Unlike general partnerships, limited partnerships are created by filing Articles of Formation with the local Secretary of State’s Office. Limited partnerships are operated by one or more general partners, with one or more limited partners who are essentially passive investors. The general partners are responsible for all of the debts and liabilities of the limited partnerships. In contrast, the limited partners are only responsible for business debts and liabilities up to the value of their interest in the limited partnership. As a tradeoff, limited partners have no say in how the business is run by the general partners. Limited Partnerships are governed a Limited Partnership Agreement. Like a general partnership, income is taxed to the individual partners in proportion to the ownership interest in the limited partnership.

Limited Liability Corporation – An LLC is the newest and most flexible form of the major business structures. LLC’s are created by filing Articles of Formation and are governed by an LLC Operating Agreement. The owners of an LLC are called members, and like the name implies, the members’ liability for business debts is limited to the value of their ownership interest in the LLC. The individual members are not personally liable for the acts of their fellow members like general partners would be. LLC’s may be operated by one or more managers, who may or may not be members of the LLC. LLC’s may be taxed as a “pass-through” entity, meaning income passes through the LLC to the individual owners like a partnership, or the LLC may be taxed on the entity level like a corporation. LLC’s must file business tax returns, annual reports and other requirements.

Corporation – A corporation is the oldest and most popular of the formal business structures. It is created by filing Articles of Incorporation with the Secretary of State and is governed by its By-Laws. Liability of the shareholders is limited to the value of the stock that they own in the corporation. Corporations may be privately held or publicly traded on national and international stock exchanges. Corporations may be classified for tax purposes as either a “C-Corp.” or an “S-Corp.” All corporations are automatically considered to be a C-Corp. unless they elect to be treated as an S-Corp. under Subchapter S of the Internal Revenue Code (hence the name). There are restrictions in the Code that sets forth which corporations qualify for S-Corp. treatment. A qualifying S-Corp. will be taxed as a “pass-through” entity like a partnership. A standard C-Corp. on the other hand will be taxed first on the corporate entity level, then again on the personal level for any distributions received by the individual shareholders. Corporations must file business tax returns, annual reports and other requirements.

For a free half hour consultation about which business structure may be right for you, contact Attorney Christopher E. Ratté.

TIMING IS EVERYTHING: First-Time Home Buyer Tax Credit Increased for 2009.

admin — Wed, 29 Apr 2009 16:38:50 +0000

The United States government wants to pay you to buy your first home in 2009. As part of the massive economic stimulus package recently approved by Congress, first-time home buyers will receive a tax credit up to $8,000.00 for purchasing a home between January 1, 2009 and December 1, 2009. This credit may be taken on either your 2008 or 2009 tax returns.

The 2009 home buyer credit is a true “refundable” tax credit, which means that: (1) the taxpayer gets to take the credit whether or not they owe that much in taxes and (2) the taxpayer does not have to pay it back. This is a substantial improvement over the $7,500.00 tax “credit” passed by the Bush Administration in 2008. If you bought your home in 2008 you will be able to take a $7,500.00 tax credit, but you will have to pay it back over fifteen years. In essence, the 2008 credit was not a credit at all but a zero-interest loan from the government.

There are some limitations on the 2009 credit. First, the amount of the credit is limited to 10% of the purchase price of the home or $8,000.00, whichever is less. With the exception of some condos and small houses, however, most homes will max out the credit. Second, the credit is limited to single home buyers with an adjusted gross income of $75,000.00 or married buyers with an AGI of $150,000.00 or less. Taxpayers with higher incomes may be eligible for a reduced credit. Third, taxpayers must own the home for at least three years. If you sell your home within three years, you may have to repay the credit to the government. Lastly, the credit is only available to first-time home buyers. This may not be quite as limiting as you think, however, as the term “first-time home buyer” is defined as any person who has not owned a primary residence in the last three years. If you owned a home more than three years ago, you may still qualify. Even if you currently own other real estate, such as investment property or a vacation home, you may still qualify for the credit.

For a free consultation to learn more about the First-Time Home Buyer Tax Credit, contact Attorney Chris Ratté .