Tax Deductions You Don’t Want To Forget

March 8th, 2010 by Reed Allmand

1.  Property taxes – Combined with the new homebuyer tax credit this deduction can save many homeowners a lot on their taxes.  You can add this deduction to your standard deduction if you don’t itemize, or if you choose, you can add it to you itemized deductions. 
2. Sales taxes – Tax law allows you to deduct your local and state sales taxes. I you purchased a big ticket item such as a car, boat or prefabricated home last year, you can add the taxes paid to your itemized tax return to take advantage of the deduction.
3. New car deduction — If you purchased a new car (not used) in 2009 you may be able to deduct the state, local and excise taxes you paid for it.  You don’t need to itemize to take advantage of this deduction on your taxes.
4. Donations To Haiti – If you make a donation to the Haiti earthquake relief efforts between January 11, 2010 and March 31, 2010 those donations can be deducted from your taxes, but only if you itemize.
5. Energy efficiency credit – If you purchased an energy efficient air conditioner, furnace or water heater last year, you may be able to deduct 30 percent of the cost from your taxes.  There is a $1500 cap; but you can include the cost for labor and materials.  If you installed energy efficient window, insulation, sealant and radiant barriers you may also deduct 30 percent of the cost with a $1500 cap, but labor cannot be included.

Also remember, if you are unable to pay your taxes, you may be able to negotiate forbearance with the IRS.  Also, some taxes (depending on the age and other factors) may be dischargeable in bankruptcy.

About Reed Allmand

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Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."

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