The Small Business Tax Help Blog

Posts Tagged ‘energy’

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Question: How can a state on the verge of bankruptcy raise taxes?

1.Businesses have already started leaving or folding. Don’t you think to stimulate an economy we should cut taxes and make a state “business friendly?” People are, losing their homes and jobs, so who will bear this burden?

2.Wouldn’t we employ more people if we can keep businesses in our state?

3. Wouldn’t cutting even more taxes in our country stimulate even more growth and employment so that we would not have to rely on the government for health care?

4. What about privatization of services?
Yup, Wild man, you guessed it, and we are going down in flames!
Lisa: Michigan wants to tax services, LaSalle Bank and Comerica left. Small business services will really feel it. So more jobs lost!

Answer: If it's here in Massachusetts, the answer is with ease.

1. Democrats aren't concerned about reality, they'll burn that bridge when they come to it.

2. Yes, but stop thinking logically and realistically, if you are that way you must be a mean spirited Republican.

3. Democrats don't care about growing the economy, only growing the government. We will ram public health care down your throat whether it is good for you or not because it IS good for big government

4. In the liberal world, the only thing private will be the three types of restrooms, men, women, and transgendered.

Week in review

The Senate Republican Caucus has banned Sen. Pam Roach of Auburn for at least one year following an incident concerning Roach's treatment of a staff attorney. An internal investigation found the senator engaged in a personal and demeaning attack, creating a hostile work environment.

USPS to cost tax payers close to 3 billion as opposed to last year over 5 billion!

Question: What is the reason for deductions and credits?

I am just wondering why we have so many deductions and credits in our tax system. Wouldn’t it be much simpler for everyone (businesses, the public and the government) if we all just paid our share and we had fewer deductions and loopholes? I understand some of the deductions we give such as deductions for children (obviously a family should pay less than a single guy only supporting himself), and some other deductions which offer incentives for doing things that are beneficial (such as tax breaks to green energy companies to research new energy). But why do we have SO MANY deductions and credits?

Answer: While I agree that the tax code is extremely complex, it is not because of the deductions and credits.

Deductions and credits serve two purposes. First, they do encourage behavior that the government support. Second, they stimulate the economy. If we paid more money to the government, we would have less money to spend on things such as housing. Without a deduction for mortgage interest, people would be less inclined to buy houses.

As far as supporting large families, taxpayers only get credits for the first two children they have. They get dependency exemptions, but without them people would go broke. Furthermore, families with large incomes get exempt from lots of the deductions and credits. Notice at the bottom of schedule A where you have to determine if your deductions are limited. These deductions and credits do help the people they are intended to.

The only reason the tax code is so complicated is because people try to beat the system. They attempt the breaks allowed by the government to benefit themselves even if they were not originally intended to. If you really look at each deduction and credit, they are all useful.

Tax Credit Elimination Bills Passed- Local Businesses Seeing Red

COLORADO SPRINGS- The State House of Representatives sends two Tax Credit Elimination Bills to the Senate; but business leaders keep fighting.

Recovery: Home Energy Credit - June 09

Question: Is there a tax credit for insulating a business office (Energy Efficiency Credit)?

The office where I work is thinking of addinginsulation to our office building. Is there any tax credits we can take advantage of by doing this?

Answer: Yes.

Taxpayers may expense the cost of energy efficient commercial building property placed in service in calendar years 2006 or 2007. The deduction for any building for any tax year can't be more than the excess if any of
1. $1.80 x the square footage of the building and the
2. deductions allowed under sec. 179 depreciation deductions for earlier years.

Energy efficient commercial building property is property that
1. is depreciable or amortizable
2. installed on or in a building located in the US
3. certified as being installed as part of a plan that will meet a 50% energy use reduction test described in code sec. 179D(c). In some situations where the 50% test isn't satisfied, a partial deduction may be permitted.

Window of opportunity in 2010 for tax credit

Fretting because you didn’t replace those leaky windows in 2009 and take advantage of the federal government’s $1,500 energy tax credit offer? Relax, you have another 12 months. Same deal. Same credit.

Urban Re:Vision Director Eric Corey Freed talks energy efficiency tax credits with Fox Business News

eSmartTax.com, Powered by Liberty Tax, is All New for 2010

VIRGINIA BEACH, Va., Jan. 6 /PRNewswire/ — Now more than ever, online tax filers want their refunds fast and easy.

Home Based Business Tax Deductions & Write Offs 2009, 2010.mov

Question: Don’t these economic plans sound quite promising?

Obama is proposing a new employee tax credit in which businesses would get a credit for each ‘American’ employee hired over the next two years. He is proposing that we allow every family to withdraw up to 15% (up to $10K) of their 401K without penalty throughout 2009 to help with the faulting economy. He’s proposing tax cuts for everyone making less than $250,000/year. Obama wants to make it easier for private lenders to make small business loans by expanding the Small Business Administration’s loan guarantee program. This was only the tip of the iceberg.

If you have any info regarding McCain’s short term or long term plans to help the economy, please list them in your answer. Since McCain said the economy was fundamentally strong, I haven’t seen any changes to his plans.

Answer: Yes. Being a business owner myself, I love this plan. It is highly workable and will help keep jobs in the US where they belong.

McCain, on the other hand, has no plan. He is just a fighter (reinvented himself again today) and I have no idea what he is fighting or where his plans are.

State Senator Seward Delivers His State of the State In Cortland

Cortland, NY (WBNG Binghamton) New York State Senate, Senator James L. Seward (R/C/I – Oneonta) outlined his agenda of state spending cuts, property tax relief and business investments he dubbed “CSI – Upstate.”

R&D Tax Credit and Small Businesses - 1