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The Virtus View is a weekly to bi-weekly e-mail publication that Brian authors in order to keep you updated on the current market situation.
VIRTUS VIEW 3.31.09
3/31/2009
This communication is intended to add value to your life by helping you understand the real news versus white noise, other alternative investments out there that you might not be aware of at this time and important economic events occurring or about to occur. The weekly e-mail will be sent to both clients as well as individuals we are currently hoping become future clients. Thus, to my valued clients, since we use many alternative investments in your portfolio currently, some of the e-mails might discuss assets that you already understand. It never hurts to review your knowledge of those investments.
Please feel free to forward these e-mails to any friends you have who you believe will benefit from learning more about finances and investments.
It is tax time, which is a season near and dear to all of our hearts. No better time to start thinking about 2009 tax planning then while you are in the midst of the current tax season.
The Stimulus plan, called the American recovery and Reinvestment Tax Act of 2009, includes many new tax laws which might impact you. Please consult your CPA to see if these apply to you.
Making Work Pay Tax Credit – The new law creates a refundable tax credit of up to $400 per single filer and up to $800 for eligible couples filing a joint tax return. Recall, a tax credit is a dollar or dollar reduction against your tax. The credit may be claimed either as a reduction in the federal tax that is withheld from your paycheck or through a credit claimed on your income-tax return.
The credit is calculated at a rate of 6.2% of earned income up the $400/$800 credit maximum. Also, it begins to phase out when annual modified adjusted gross income (AGI) exceeds $75,000 for single filers and $150,000 for married people filing jointly at a rate of 2% of the excess over the phase out amount. Thus, is a married couple has $160,000 in AGI, the credit will be $600 ($160,000 less $150,000 = $10,000 multiplied by 2% = $200. $800 less the $200 = $600 credit).
Economic Recovery Payment – The 2009 act provides for a one-time payment of $250 to adults who are eligible for Social Security benefits, Railroad Retirement benefits, veterans’ disability compensation or pension benefits, or qualified individuals who are eligible for Supplemental Security Income (SS) benefits. An individual can only recover one $250 payment regardless of whether the individual is eligible for a benefit from more than one of the four federal programs.
The 2009 act also provides for a $250 credit to certain government retires who are not eligible for Social Security Benefits.
First-time Homebuyer Credit – This is an extension to a Homebuyer credit already in place. It provides for a maximum of $8,000 credit for qualified first-time homebuyers and extends the cut off date from July 1st, 2009 to December 1st, 2009.
AMT Exemption Increase – The alternative minimum tax (AMT) is designed to ensure that individuals who have high incomes and significant income-tax deductions or credits pay a minimum amount of tax. The tax law provides each taxpayer an AMT exemption, which phases out at higher income levels. The new post Act 2009 exemption is $70,950 for married filing jointly and $46,700 for unmarried.
Private Activity Bond Interest and AMT – Under the 2009 Act, tax-exempt interest on private activity bonds issued for 2009 and 2010 is not considered an AMT tax-preference item.
Deduction for Taxes on Car Purchases – Allows an income-tax deduction for state and local sales and excise taxes paid on the purchase of qualified motor vehicles on or after the 2009 Act’s enactment date and before 2010. For purposes of the new deduction, a “qualified motor vehicle” is generally defined as a new passenger automobile, light truck, motorcycle, or motor home. The deduction is available only for taxes paid on up to $49500 of the cost of the qualified vehicle. Like the other tax acts, the amount that can be deducted is phased out for taxpayers with AGI greater than $125,000 and $250,000 for single and married couples, respectively.
American Opportunity Tax Credit – Pre-2009 Act tax law provided for two tax credits that may be claimed for post secondary education expenses: the Hope Scholarship Credit of up to $1,800 per student and the Lifetime Learning Credit of up to $2,000 per taxpayer. The 2009 Act replaces the Hope Scholarship Credit with the American Opportunity Tax credit beginning in 2009 and 2010 and increases the credit to $2,500 per student per year. The new credit phases out for taxpayers with AGI in excess of $80,000 and $160,000 (filing single or married, respectively).
529 Plans and Computer Costs – The 2009 Act expands the definition of qualified educational expenses to include expense for certain computer technology, equipment, and related services (including Internet access) if such technology are to be used by the 529 plan beneficiary and the beneficiary’s family during any of the years the beneficiary is enrolled.
Temporary Income Exclusions of Unemployment Compensation – The 2009 Act provides an exclusion from gross income for the first $2,400 of unemployment benefits received by a recipient in 2009.
There are also many new business tax incentives. Please feel free to give me a call if you are interested in learning more about these.
Brian Tillotson
Wealth Manager
Virtus Wealth Management
2435 E. Southlake Blvd
Suite 120
Southlake, TX 76092
817-717-3812
866-407-4320
Fax: 817-416-6585
www.virtuswealth.com
Securities and Advisory Services offered through VSR Financial Services, Inc. Member FINRA / SIPC
To opt out of this weekly e-mail, please just reply to this e-mail with “Opt Out” in the subject line.
Please feel free to forward this to any friends you believe will benefit from this information.
Please consult with your tax preparer or CPA to learn if these acts apply to you.
Past performance does not guarantee future performance.
To learn more about Virtus Wealth Management and how we may be able to help you, please visit our website or give us a call. http://virtuswealth.com
Brian Tillotson
Wealth Manager
Virtus Wealth Management
2435 E. Southlake Blvd
Suite 120
Southlake, TX 76092
817-717-3812
866-407-4320
THE VIRTUS VIEW
Good afternoon to all.This communication is intended to add value to your life by helping you understand the real news versus white noise, other alternative investments out there that you might not be aware of at this time and important economic events occurring or about to occur. The weekly e-mail will be sent to both clients as well as individuals we are currently hoping become future clients. Thus, to my valued clients, since we use many alternative investments in your portfolio currently, some of the e-mails might discuss assets that you already understand. It never hurts to review your knowledge of those investments.
Please feel free to forward these e-mails to any friends you have who you believe will benefit from learning more about finances and investments.
It is tax time, which is a season near and dear to all of our hearts. No better time to start thinking about 2009 tax planning then while you are in the midst of the current tax season.
The Stimulus plan, called the American recovery and Reinvestment Tax Act of 2009, includes many new tax laws which might impact you. Please consult your CPA to see if these apply to you.
Making Work Pay Tax Credit – The new law creates a refundable tax credit of up to $400 per single filer and up to $800 for eligible couples filing a joint tax return. Recall, a tax credit is a dollar or dollar reduction against your tax. The credit may be claimed either as a reduction in the federal tax that is withheld from your paycheck or through a credit claimed on your income-tax return.
The credit is calculated at a rate of 6.2% of earned income up the $400/$800 credit maximum. Also, it begins to phase out when annual modified adjusted gross income (AGI) exceeds $75,000 for single filers and $150,000 for married people filing jointly at a rate of 2% of the excess over the phase out amount. Thus, is a married couple has $160,000 in AGI, the credit will be $600 ($160,000 less $150,000 = $10,000 multiplied by 2% = $200. $800 less the $200 = $600 credit).
Economic Recovery Payment – The 2009 act provides for a one-time payment of $250 to adults who are eligible for Social Security benefits, Railroad Retirement benefits, veterans’ disability compensation or pension benefits, or qualified individuals who are eligible for Supplemental Security Income (SS) benefits. An individual can only recover one $250 payment regardless of whether the individual is eligible for a benefit from more than one of the four federal programs.
The 2009 act also provides for a $250 credit to certain government retires who are not eligible for Social Security Benefits.
First-time Homebuyer Credit – This is an extension to a Homebuyer credit already in place. It provides for a maximum of $8,000 credit for qualified first-time homebuyers and extends the cut off date from July 1st, 2009 to December 1st, 2009.
AMT Exemption Increase – The alternative minimum tax (AMT) is designed to ensure that individuals who have high incomes and significant income-tax deductions or credits pay a minimum amount of tax. The tax law provides each taxpayer an AMT exemption, which phases out at higher income levels. The new post Act 2009 exemption is $70,950 for married filing jointly and $46,700 for unmarried.
Private Activity Bond Interest and AMT – Under the 2009 Act, tax-exempt interest on private activity bonds issued for 2009 and 2010 is not considered an AMT tax-preference item.
Deduction for Taxes on Car Purchases – Allows an income-tax deduction for state and local sales and excise taxes paid on the purchase of qualified motor vehicles on or after the 2009 Act’s enactment date and before 2010. For purposes of the new deduction, a “qualified motor vehicle” is generally defined as a new passenger automobile, light truck, motorcycle, or motor home. The deduction is available only for taxes paid on up to $49500 of the cost of the qualified vehicle. Like the other tax acts, the amount that can be deducted is phased out for taxpayers with AGI greater than $125,000 and $250,000 for single and married couples, respectively.
American Opportunity Tax Credit – Pre-2009 Act tax law provided for two tax credits that may be claimed for post secondary education expenses: the Hope Scholarship Credit of up to $1,800 per student and the Lifetime Learning Credit of up to $2,000 per taxpayer. The 2009 Act replaces the Hope Scholarship Credit with the American Opportunity Tax credit beginning in 2009 and 2010 and increases the credit to $2,500 per student per year. The new credit phases out for taxpayers with AGI in excess of $80,000 and $160,000 (filing single or married, respectively).
529 Plans and Computer Costs – The 2009 Act expands the definition of qualified educational expenses to include expense for certain computer technology, equipment, and related services (including Internet access) if such technology are to be used by the 529 plan beneficiary and the beneficiary’s family during any of the years the beneficiary is enrolled.
Temporary Income Exclusions of Unemployment Compensation – The 2009 Act provides an exclusion from gross income for the first $2,400 of unemployment benefits received by a recipient in 2009.
There are also many new business tax incentives. Please feel free to give me a call if you are interested in learning more about these.
Brian Tillotson
Wealth Manager
Virtus Wealth Management
2435 E. Southlake Blvd
Suite 120
Southlake, TX 76092
817-717-3812
866-407-4320
Fax: 817-416-6585
www.virtuswealth.com
Securities and Advisory Services offered through VSR Financial Services, Inc. Member FINRA / SIPC
To opt out of this weekly e-mail, please just reply to this e-mail with “Opt Out” in the subject line.
Please feel free to forward this to any friends you believe will benefit from this information.
Please consult with your tax preparer or CPA to learn if these acts apply to you.
Past performance does not guarantee future performance.
To learn more about Virtus Wealth Management and how we may be able to help you, please visit our website or give us a call. http://virtuswealth.com
Brian Tillotson
Wealth Manager
Virtus Wealth Management
2435 E. Southlake Blvd
Suite 120
Southlake, TX 76092
817-717-3812
866-407-4320
CONTACT US: 2435 E. Southlake Blvd • Suite 120, Southlake, TX 76092 • (817) 717-3812
Toll Free (866) 407-4320 • Fax (817) 416-6585 • BTillotson@VirtusWealth.com
Toll Free (866) 407-4320 • Fax (817) 416-6585 • BTillotson@VirtusWealth.com
Securities & Advisory services offered through VSR Financial Services, Inc., a Registered Investment
Adviser and Member FINRA & SIPC. Virtus Wealth Management is independent of VSR.
Adviser and Member FINRA & SIPC. Virtus Wealth Management is independent of VSR.
