|
September 2005 Newsletter continued |
|
EDITOR'S NOTE: Should you have questions with respect to the information contained in this newsletter or need help with your personal or business financial, tax and accounting activities, please call. |
|
E-Mail Halliday@hallidaycpa.com |
|
This newsletter offers factual and up-to-date information on the subjects discussed, but should not be regarded as a complete analysis of these subjects. No party assumes liability for any loss or damage resulting from reliance or use of this material. |
|
● Corporate extended tax returns due in 15 days, September 15, 2005 ● 3rd quarter individual & corporate estimated tax payments due September 15, 2005
|
|
Hybrid car tax deduction sweetened in 2006 |
|
Waiting until 2006 to buy a hybrid car will pay off taxwise. The current $2,000 deduction is converted to a credit for vehicles that are bought after 2005. This is in the energy bill President Bush just signed.
The credit will save buyers a lot more money. Honda Civic buyers will get a tax credit of about $2,350. The credit should be about $1,450 for purchasers of the Honda Insight and approximately $2,750 for buyers of the Toyota Prius. The exact amount depends on the mileage figures for the 2006 models. Once they are available, IRS will crunch the numbers and announce the official credit amounts for each model of hybrid vehicle. |
|
Credit available for energy-saving home improvements |
|
The recently passed energy bill creates a small credit for energy-saving home improvements in 2006 and 2007. The credit is 10% of the cost of skylights, outside doors, windows, high-efficiency furnaces, water heaters and central air conditioners. The top credit is $500, with no more than $200 attributable to windows. |