Plan
now and you’ll be in a better position to know what you’ll
owe Uncle Sam this time next year.
| 1. |
More
money for gas. The standard mileage deduction
for business increases to 50.5 cents per mile.
Note that mileage rates for medical or moving purposes
fall to 19 cents per mile. |
| |
|
| 2. |
More
money for retirement. You can contribute $5,000
to your IRA ($6,000 if you’re over 50) in 2008. |
| |
|
| 3. |
No
breaks for sales taxes. The provision permitting
taxpayers to deduct state sales taxes — a big plus
in states with no income tax — expired at the end
of 2007. |
| |
|
| 4. |
More
tax breaks for retirement savings. Married taxpayers
with joint income of up to $85,000 will be able to
deduct IRA contributions if they file jointly; individuals
with income of up to $53,000 can take the deduction.
|
| |
|
| 5. |
Higher
standard deduction. If you’re one of the twothirds
of taxpayers who don’t itemize, you’ll be able to
deduct $10,900 as a married couple filing jointly
($5,450 for singles) in 2008. |
| |
|
| 6. |
No
tax on some capital gains. Joint filers whose
taxable income doesn’t exceed $65,100 and single filers
with income that doesn’t exceed $32,550 don’t have
to pay any tax on capital gains they realize in 2008;
the rate for other taxpayers remains at 15 percent.
|
| |
|
| 7. |
More
time to sell a house when you lose a spouse. Taxpayers
who lose a spouse now have up to two years after that
death to take the maximum exclusion of $500,000 in
gain on the sale of a principal residence. The other
requirements for the exclusion must have been met
before the death. |
| |
|
| 8. |
Less
money back for some hybrid cars. While buying
a hybrid car can still save you taxes, the tax credit
has been phased out on many popular models such as
the Toyota Prius. Check out the 2008 Model Year Hybrid
List at www.irs.gov
before you buy. |
| |
|
| 9. |
Tougher
taxes for kids. Children 18 and under or fulltime
students up to 24 years old will pay taxes at their
parents’ tax rate for investment income over $1,700.
Note that this rate doesn’t apply to wages a child
earns. |
| |
|
| 10. |
Higher
cutoffs for Social Security. The maximum amount
of earnings subject to Social Security tax increases
to $102,000 in 2008. |
BY
The National Association of Realtors®
Real
Estate Vocabulary Builder:
Tax lien
A claim against property which may be sold by the taxing
authority arising out of nonpayment of taxes.
Title
The indicator of the "fee" position of the lawful owner
and his or her rights to the property and its "bundle
of rights" and combines of all elements constituting proof
of ownership.
If you would like to suggest a topic for comment in one
of our future emailers, please let me know. You can always
reach me at rory@coakleyrealty.com
or by phone 240-696-6634. I look forward to hearing from
you!
Rory
S. Coakley
Coakley Realty, Inc.
20 Courthouse Square - Suite 106
Rockville, MD 20850
www.coakleyrealty.com
