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Issue # August 2006

 August 24 2006

 

 

Dear Members

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Editor 'S Note - Peter Tran:    I am sure you are busy for "back to school event" as many are focusing on.  Our firm provides you a short but never the least sound tips to save you more tax this year.  For your convenience, our firm also simply features many businesses so you can save more time with our classified sections.  Enjoy this month article!          

 

 

This month's Products Recommendations And Best Deals :

 

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Important Dates:

January 31 2006    Federal and State Employment Tax Due (Forms 941 & DE-6)

                            W-2, Sales Tax

February 28 2006  Form 1099Misc Income Due To Independent Contractors

April 15 2006        Income Tax Due Sole Proprietorships & Partnerships

April 31 2006        Federal and State Employment Tax Due (Forms 941 & DE-6)

                            Sales Tax

July 31 2006          Federal and State Employment Tax Due (Forms 941 & DE-6)

                            Sales Tax

October 31 2006    Federal and State Employment Tax Due (Forms 941 & DE-6)

                            Sales Tax

 

CONTENTS

_Publisher's Article:  *****       Mortgage Interest Tax Break on Block                              

_Market's New Inventions

_Special Contests & Announcements

_Member' Free Website Tools

_Classifield Ads

 

 

Feature Article:

 

Mortgage Interest Tax Break on Block

Presidential Panel would replace with 15% housing credit

A cherished benefit of homeownership and a primary driver of
the current housing boom, the mortgage-interest deduction would
be eliminated if a presidential tax panel has its way. The
proposals, announced late last year, would also remove interest
deductions currently permitted for home equity loans and second
homes.

 

"It's the biggest tax hike for homeowners ever considered," said
Jerry Howard, executive vice president and CEO of the National
Association of Home Builders. "Replacing the mortgage interest
deduction would punish millions of homeowners, particularly those
living in high-cost markets. The proposals would reduce home
values and send a chill through the housing market."

 


Con' t


 

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A commonly used rule-of-thumb regarding Americans use of funds
from home equity loans and cash-out refinancings is that 35 percent
goes into remodeling, repair or other type of home improvement.
Without the tax incentive of such loans, a major remodeling market
driver would be removed.

 

Currently, mortgage interest on primary mortgages up to $1.1 million
and home equity loans of up to $100,000 can be deducted from federal
taxes. It would be replaced by a 15 percent credit on housing value,
which averages between $227,000 and $427,000 depending on location.

Con't

 

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Polls conducted by the NAHB suggest that a huge majority of Americans,
over 70 percent, support the traditional housing deductions. In the poll,
the association found that the mortgage interest and along with the state
and local tax deductions for homeownership are second only behind the
medical expense deductions in terms of most favored tax deduction by
Americans.

The proposals, which were presented to the Treasury secretary for
consideration in tax reform legislation, are also getting a poor
response from legislators. A slew of Democratic and Republican members
of Congress came out against the plan include eight members of the
principle tax writing body, the House Ways and Means Committee.

 

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The NAHB is urging builders, remodelers and contractors to voice their
opposition to the proposals over the Internet at www. capitolconnect.com/nahb.

 

Source:  Qualified Remodeler: Jan 2006 issue 
Related Topics: Tax deductions
Tax incentives
Mortgages

 

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Special Contests & Announcements
Current Contest:   members who refer 10 "New Subscribers"  will get FREE: ***** *****BlogGuide .  Simply refer to
www.managementtaxtipsezine.com to subscribe.
Note: For Our Current Members Only Please!

 

 

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