Time to start tax planning for 2009
Print- •
-
Share
- Share this item
-
Grab the link
Copy and paste the link:
- Blog about it
- Close
- •
-
Post a Comment
- •
Favorite- •
With less than two months left before the end of the year, Jose G. Peña, professor and extension economist-management of Uvalde, states it is time to identify tax benefits that could reduce your 2009 tax bill and assist to plan income taxes ahead for 2010.
He notes this year's tax system will be similar to last year, except for minor tax benefits which are phasing in from provisions added by the Emergency Economic Stabilization Act of 2008, which addressed emerging financial bailout measures, and major benefits added by the American Recovery and Reinvestment Act of 2009, passed by Congress in January.
One of the most significant changes affecting agriculture is a provision which allows farm equipment to be depreciated faster. New farm machinery and equipment put in use in 2009 can be written off over six years instead of eight years. This doesn't cover grain bins, cotton ginning assets, temperature controlled storage facilities or land improvements such as fences.
Basic tax planning requires considering the income tax consequence, both this and next year or longer into the future. This means considering whether to accelerate into 2009 or defer into 2010 income or deductions.
This simulation will assist you to evaluate the impact this actions may have on Adjusted Gross Income and your ability to maximize itemized deductions that are tied to AGI, such as IRA deductions, standard deductions, personal exemptions, transfers to ROTH IRA's, etc. If, for example, you expect to be in a lower or at least no higher tax bracket next year, consider pulling some 2010 deductions into this year, e.g., charitable donations, early payment of property taxes, etc.
Other tax items that have changed or are extended into 2009 include: Tax brackets, standard deduction planning, expensing option, energy efficiency improvements, sales tax paid on a new vehicle, standard deduction, deductions of classroom training materials for teachers and other education professionals, IRA distributions for individuals age 70.5 years old and older are not required in 2009, tax-free IRA distributions of up to $100,000 can be made directly to charity, etc.
Again, for complete information on any of these changes, contact your tax preparer or CPA.
New County Trapper
As in the previous arrangements, through the joint effort of Texas AgriLife Extension Service and Victoria County Commissioners Court, a new county trapper has just been hired for Victoria County. Tony Elliot began work in the county the first week of November.
Tony has a lot of experience and has been with the Wildlife Services Program for 20 years.
If you have a predator problem on your farm or ranch and need his services for trapping information, trapping assistance or solving a predator problem, you may contact Tony at 361-920-0212.
In past Texas surveys, results reveal up to $13 million of losses to the Texas sheep and goat industry and potentially up to $30 million in losses to the cattle business due to predators.
The latest trapping problem species facing landowners is the tremendous spread and population growth of feral hogs and their destructive habits causing an estimated $52 million of damage on a yearly basis in Texas.
Joe Janak is a Victoria County extension agent.
