Mike Hastings Blog

A lot has been in the news lately about the first time home buyer credit. And this can be a great savings if you have bought or are thinking about buying a home in Gainesville. It's confusing because there are now two first time home buyer credits. Here is the release direct from the IRS:

Governor Charlie Crist is proposing some changes that would impact current and future homeowners in Gainesville and Alachua County. Recent legislation introduced in the Florida House and Senate would give first time home owners exemptions on half of the assessed value on the first year of owning their new home up to $250,000 or a maximum of $5,000 in savings.

Also introduced was legislation to make it easier for homeowners to challenge property assessments by placing the burden of proof on the county's property appraiser.

Last, Gov. Crist is proposing a cap on second homes, investment property and rental housing tax assessments. Last year voter's approved a constitutional amendment that limited increases to 10%. This year there is a proposed limit of a 5%.

Here is a video of the Governor discussing his plans to help Florida homeowners and some of the proposed changes: http://www.youtube.com/
watch?v=e7cnevu5oRU

This came from the helpful folks at www.moveadvocate.com:

The Basics of Moving and Taxation

It seems that 2008 is over and now is the time that you and your clients are beginning to think about taxes. Many of us are getting our records in order in preparation for tax day, April 15, 2009. If you or your clients have made a move this year, deducting moving expenses may be on your mind. But are all expenses allowable tax deductions?

The IRS does allow tax deductions for some of the costs associated with a move to accommodate a job in a new location. There are, however, two tests which must be met in order to qualify for deductions.

Test 1 - Distance Test
To qualify for a deduction, your new principal workplace must meet a 50 mile test. The distance between the old home and old work minus the distance between the old home and the new work must be greater than 50 miles. In other words, if the commute to the old workplace was 3 miles, a commute from the previous home to the new workplace must be at least 53 miles. If the person did not have a job before moving, then the new job must be at least 50 miles from the previous home.

Test 2 - Time Test
A person must work full time in the general area of the new workplace for at least 39 weeks during the 12 months right after the move. There are exceptions to the time test and other rules apply for those that are self-employed.

If you are not sure if you or your clients meet the requirements to deduct your moving expenses it is best to check with a tax advisor or visit the IRS website, Publication 521, and Form 3903 for more details.

If both tests are passed then some expenses may be deductible:

• Costs for packing, crating and movement of your household goods
  
• Up to 30 days of storage and insurance for household goods
  
• Transportation and lodging expenses (not meals) while traveling to new location
  

If you have clients who have made a move in 2008, it is a good idea to advise them to check with a tax advisor before deducting their expenses to make sure that they take the right deductions. According to Forbes, one of the top reasons for IRS tax audits is claiming too much for itemized deductions, including the deduction of moving expenses.