Changes for 2010

Things in the tax world are constantly changing. For now, here are some things to look out for in 2010:

Home-buyer credit and recapture: If you took the first time home-buyer credit for a home purchased between April 8, 2008 and December 31, 2008, the 15 year repayment period begins in 2010. There is still an $8,000 credit available for first-time home purchases through April 30, 2010. If you enter into a binding contract by April 30, you have until June 30 to close. If you have owned and lived in your home at least 5 years and buy a new home by April 30, you may qualify for a $6,500 credit. Income limitations apply. Please note, if within three years the home ceases to be your main home, the credit will need to be repaid.

Roth IRA Conversions: You can now convert your Traditional IRA to a Roth IRA regardless of your income level. If you convert in 2010, you can opt to spread the tax over two years. Roth IRAs allow for tax-free income in retirement. If you’re thinking about converting, let us know. We’ll run tax projections for you.

Income Limitations: Typically, when your income exceeds certain levels, your itemized deductions and exemptions are reduced. For 2010 only, those reductions will not apply. This is good news not only for high-income individuals, but also for anyone considering converting their IRAs to Roths.

IRA Contributions: The maximum IRA contribution remains $5,000 ($6,000 if you are over 50). If you are interested in making a contribution, please ask how it will affect your tax situation and whether Traditional or Roth contributions would be more beneficial.

Gifts: The annual gift exclusion for 2010 is $13,000. You may gift anyone up to $13,000 without tax consequence (to you or the recipient).

If you have any questions about how these or other tax law changes affect you, please contact us for a complimentary planning appointment.

Book your appointment online!

You might have noticed we have a new button on the right side of the screen that says “Appointment”. Check it out; you can schedule an appointment with us now to discuss how we can help you. We are always looking for great innovative ways to facilitate our communication with our clients and here we are removing the back and forth of tying to find a convenient time for the both of us.  Give it a try!

Book Review: Breakdown, Breakthrough

I was pleased to receive a review copy of Breakdown, Breakthrough: The Professional Woman’s Guide to Claiming a Life of Passion, Power, and Purpose.  The author, Kathy Caprino, is the founder of Elia Communications and a fellow Make Mine a Million Dollar Business program awardee (countmein.org).  Kathy is passionate about empowering and developing women and this passion shows throughout her writing.

Kathy has interviewed countless women who have been through a crisis of one form or another.  Engaging stories introduce us to each chapter, each illustrating vividly a particular challenge many of us have faced (or will face) at one time or another.  These targeted examples seque into an exploration of the topic, complete with advice from those who have been there.  We are  then lead through simple yet powerful steps to move forward.  This book also includes a meaty Resource section with additional books, websites and organizations to help make the fundamental changes necessary to breakthrough.

I believe every woman can relate to the chapter “Balancing Life and Work”.  In today’s over-scheduled, hyper-speed world, this chapter is incredibly relevant.  Kathy guides us through identifying our deepest fears about giving up some of the control we’ve taken on and visualizing what a balanced life looks like.  She challenges us to take on and let go of those fears.  Then we are able to step forward, one step at a time.

If you’re struggling to find a career path, you might be particularly inspired by the chapter, “Using Real Talents in Life and Work”.  This chapter gives you the space and the permission to fully explore who you are and what you love.  It works hand in hand with “Doing Work and Play You Love”.

The chapter that speaks to me the most is “Helping Others and the World”.  It has been pointed out to me that I am a helper.  It’s a fundamental part of who I am.  This chapter helps channel that natural quest to find fulfillment in helping others.  I think we often feel small and insignificant, but we can all make a difference.

For women who are feeling unfulfilled, dissatisfied, pulled down in their current circumstances, there is something in this book to give hope and inspiration.

I will say that, being a Christian, I did find myself continually editing the book in my head as I read, crediting God and His guidance, where the book focuses on a more general spirituality.  However, I found the book to be thought-provoking and will remain in my library to be a source of inspiration and ideas for breaking through life’s challenges.