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July 2010 Newsletter 

Liberty Helps Landlords. Shoe Boxes are for Shoes. And Sharpening Your #2 Pencils for Tax School.

Reducing Headaches & Heartaches of A Landlord

Leaking pipes. Noisy tenants. Yapping dogs. If you are a property owner, you have a lot of things to think about on a daily basis, when dealing with tenants. How you're going to handle your tax filing options should be on the top of your list, also.

Property owners that rent to individuals need to factor in a number of considerations when the time to prepare income taxes rolls around, according to the Web site PropertyOwnersDirectory.com.

Income, capital gains and inheritance taxes all come into play when preparing documents. The legal status of your property and how it is held is another factor that should be designated correctly. Holding the property as an individual, joint ownership or as part of one's portfolio through a company can affect how to file taxes.

Looking to sell your property? Owners who sell properties may also reduce your capital gains tax if you are aware of exemptions and other forms of tax relief you may be eligible for, the Web site reports.

Given all the unique property ownerships, in addition to other assets an individual may hold, owners are encouraged to consult with a Liberty Tax Service tax preparer to gain the maximum benefits on your return. Seeking guidance from a Liberty pro may also help you avoid inaccuracies or misclassifications on your tax documents. 

No More Shoe Boxes!

Shoe boxes are for, well, shoes … and the occasional arts and crafts project. Shoe boxes are not the best way to store your vitally important receipts! Imagine a world, or at least a tax season, where every receipt, mileage log and trip description is documented, preserved and protected from anywhere in the world. With Liberty Expense Tracking, it’s a reality!

Liberty Tax now offers Liberty Expense Tracking, a program designed specifically for organizationally challenged, self-employed or commissioned professionals to help avoid late-filing stress, kitchen table receipt sorting, lost production time and costly lost receipts. In less than 1 minute and for 70 cents a day, you can enter your day’s expenses. All you need is Internet access.

Liberty’s Expense Tracking enables you to add up your receipts, categorize, enter and file them away--never to be seen again. Worried about a tax audit? When tax time comes, print your summary report and bring it to the nearest Liberty Tax Service office. The report is acceptable by the IRS in the Expense Tracking format.

Expense Tracking is so easy, there is no user manual—you won’t need one. And for less than a cup of coffee a day, your expenses are recorded in a safe, organized location. Wanna’ see a free, no obligation run-through? Visit your local Liberty Tax Office or call 866-871-1040 for more information.

Safeguarding Before The Storm

Planning what to do in case of a disaster is an important part of being prepared. Liberty Tax encourages everyone to safeguard their records. Simple steps can help individuals and businesses protect financial and tax records in case of disasters.

• Paperless
  Many people receive bank statements and documents by e-mail. This is an outstanding way to secure financial records. Important tax records such as W-2s, tax returns and other paper documents can be scanned into an electronic format.
• Document Valuables
  Photograph or videotape the contents of your home and/or business, especially items of greater value. Store the photos with a friend or family member who lives away from the area at risk.
• Consider Fiduciary Bonds
  Employers who use payroll service providers should ask if their provider has a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider.
• Getting Back to Business
  How quickly your company gets back to business after a disaster often depends on emergency planning. Start planning now to improve how your company will survive and recover. There are real benefits to being prepared for disasters. The following strategies are common to all disasters.
• Develop an emergency plan.
• Learn where to seek shelter from all types of hazards.
• Back up your computer data systems regularly.
• Decide how you will communicate with employees, customers and others.
• Use cell phones, walkie-talkies, or other devices.
• Collect and assemble a disaster supplies kit. Include a portable generator.
• Count on Liberty Tax Service

Count on Liberty Tax Service
In the event of a disaster, Liberty stands ready to help. We have valuable information you can request if your records are destroyed. Immediately after a casualty, you can request a copy of a return and all attachments (including Form W-2) by contacting your local office.

First-time Homebuyers Credit Extended for Service Personnel

Military service people who missed the homebuyer tax credit may be eligible for an extension. The incentive, which provides up to an $8,000 credit for first-time homebuyers and $6,500 for repeat owners, will be extended to April 30, 2011, for military, foreign service and intelligence members.

The extension will apply to military personnel on a tour of duty outside the U.S. for at least 90 days between December 31, 2008, and May 1, 2010. The special rules also shield members from the 36-month recapture law if you are must relocate or sell your home purchased under the credit due to an extended duty of service.

Military personnel who plan to purchase a home under the extended rules should consult with your local Liberty Tax preparer during filing season to ensure your income paperwork is accurate. 

Back-to-Tax-SCHOOL

Nothing is as certain as an ever-changing and confusing income tax code. Now is your chance to go back-to- school and take control of that situation with Liberty Tax. The Liberty Tax Service’s Basic Income Tax classes will educate you about the latest tax changes and every facet of individual income tax preparation. No prior tax experience is necessary to enroll. Sign up and you'll be on the way to freedom from the complexity of income tax regulations and the pursuit of a new career!

The curriculum is designed to cover the fundamentals of basic income tax preparation. With Liberty’s Basic Income Tax Course, instructors cover all schedules, credits and forms that can be filed with an individual tax return. Students apply their tax knowledge to prepare taxes both on paper and computer. The only cost may be a minimal charge for books. Whether you choose a traditional classroom setting or an online course, with Liberty you’re certain to move to the head of the class.

Contact your local Liberty Tax Service office to register or call 1-800-658-1042, to locate the closest Liberty office. Liberty Tax School’s are tuition FREE. There may be a small fee for books, which may vary per market. Availability is based on classroom capacities per office.   

Yep, It's A Deduction...

Posing Oil

In a 2004 case, Wheir, Corey L. v. Comm. (T.C. Summ. Op. 2004-117)), the IRS allowed a taxpayer to take a business deduction for posing oil. The taxpayer was a professional bodybuilder and he utilized the posing oil to enhance the appearance of his muscle tone, thereby enabling him to finish better in the competition and potentially more money.