Tax Tips From Tony Navarro

Tuesday, March 9th, 2010 at 8:00 am

This is the second of 7 tips on tax preparation from Tony. Check back each Tuesday to read them all.

Tip Number Two: 2009 Tax Changes • American Recovery and Reinvestment Act has incentives for first-time home and new car purchases, home energy efficiency improvements, college expenses, and persons collecting unemployment. • IRA deductions may apply if adjusted gross income is less than $65,000 or $109,000 married filing jointly. • New standard deductions: $11,400 for married couples filing jointly and widows and widowers; $5,700 for singles and married individuals filing separately; $8,350 for heads of household. Other deduction increases include state/local sales/excise taxes paid on car purchases (after 2/16/09), state/local real estate taxes and losses from federally declared disasters. • New cents-per-mile rates: business 55 cents; medical reasons or deductible moves 24 cents; services to charitable organizations 14 cents. • Taxable investment income a child can have without being taxed at the parent’s rate is $1,900.

Tony Navarro, UCLA, B.A, Economics, 1990: Investment Consultant since 1992; Tax Preparation since 1996 tax year; IRS Audit Representation; IRS-designated Enrolled Agent; Investment Advisor LPL; Notary Public; Bookkeeping Services. 12803 Venice Boulevard • Mar Vista, CA 90066 (310) 398-3231 • tony@taxplusla.com http://www.taxplusla.com