Another year has rolled around and it’s time to think about
tax planning. Here are more helpful tax tips for this year.
Two Important Changes for 2007!
One-Time Mortgage Insurance Deduction
Mortgage insurance is deductible as qualified residence
interest,
for 2007 only.
Mortgage insurance is insurance you are often required to
carry by your mortgage lender, which provides coverage for
losses the lender might incur if there is a default on your
mortgage. You qualify if you have mortgage insurance, your
income does not exceed $110,000, and you itemize deductions.
Some rules and limits apply, so do your research if you
prepare your own tax return.
Note: If the amount of your mortgage insurance is not
indicated on the annual statement you receive from your
mortgage company, contact the mortgage company.
Partnership Returns No Longer Required
For years, I have been telling IBOs they are not required to
file partnership returns just because their spouse is their
partner in the business. The IRS has finally heard me and it is no longer
required! For those who have been filing partnership
returns, make sure you bring this up to your preparer. No
sense paying a preparer to do two tax returns when you
really only need one!
Note: At this time, the IRS
hasn’t issued guidance on how to make the election not to
file partnership returns, but it’s the law.
More to come…
Joe
Learn more about
Joe DePetris, Jr., and IBO tax return preparation
and tax issues at
IBO Bookkeeping 101.
This article is provided as an
educational resource for your guidance, and is
strictly informational. It does not constitute
legal, accounting, or other professional
counsel. Nothing included herein implies a
recommendation by the author, the
IBOA International, or
Quixtar, of any course or method of
regulatory compliance. Readers and users who
intend to take, or refrain from taking, any
action based on information contained herein
should first consult with their qualified tax
advisor, preferably a C.P.A., or appropriate
regulatory authorities.
