In Business Las Vegas, December 14th, 2007
This could be the last year taxpayers may claim certain deductions that expire Dec. 31.
The state sales tax deduction and the
Kurtis
Allen, a certified public accountant
with McNair & Associates (No. 9b).$250 schoolteacher deduction haven't been renewed for 2008 by Congress, said
There is also a mortgage insurance credit for 2007 only for specific income brackets, he said.
"If they don't change (update) them, you don't have a tax raise," he said. "The tax you pay will go up because you lose those deductions."
Any charitable contributions — no matter the amount — this year have to be backed up with either a receipt, canceled check and proof of a tangible item's condition,
Allen
said. This includes dollars dropped in a bell ringer's bucket or church collection plate, he added.
"I'm telling clients to take a picture," he said.
The change to charitable giving claims is because of what the Internal Revenue Service calls a "tax gap," which may be larger than believed because of overstated charitable claims.
People making
Allen
said, could be required to pay it if the tax isn't adjusted.$70,000 to $80,000 could be hit with a flat tax if Congress doesn't adjust the alternative minimum tax, originally imposed in 1969 as a way to collect taxes from wealthy Americans. Many upper-middle-class people in the $70,000 to $80,000 tax bracket,
For businesses, one deduction that could benefit them has increased for this year, he said. Under specific rules, businesses can deduct up to $125,000 for purchased machinery under Section 179 of the tax code. The deduction, he said, can't be taken if it will create a loss, however, he said.
There are also work opportunity credits for employers of people of low economic status, he said, but eligibility for that credit is narrow.
