Tax Tips (NEW)

Sales Tax onVehicle. The IRS reminds taxpayers that purchasing a qualified motor vehicle could qualify them for a special deduction for the state and local sales taxes and excise taxes paid. A qualified motor vehicle is a new passenger automobile, light truck or motorcycle which has a gross vehicle weight rating of 8,500 pounds or less. A motor home is also considered a qualified motor vehicle.

Homebuyer Tax Credit. It is now extended through April 30, 2010 and won't lapse on November 30 as previously scheduled. Binding sales contracts signed by April 30, 2010 must close by June 30, 2010 to qualify for the credit. Congress is unlikely to OK any further extensions. Even current homeowners can use this break. Thoses who've owned a home for  five consecutive years out of the last eight qualify for a tax credit of up to $6,500 if they go out and purchase another home after November 6, 2009 and before May 1, 2010. No credit is allowed for purchasing a home after November 6 from your in-laws. That shuts the loophole in the rules barring the credit for homes bought from relatives.

Energy Incentives. Several of these benefit highly specialized energy production projects. Provisions with broad interest to individuals include extension through 2010 and expansion of the tax credits for personal energy property purchases such as new furnaces, energy-efficient windows and doors, or insulation. 
~ The 30% solar energy property credit isn't limited to just solar panels. The cost of a reflective roof coating qualifies as well, IRS privately says. The coating reflects the sunlight that passes between the cylindrical solar panels back up to the underside of the panels, helping to generate even more electricity. Remember, the system must be placed in service this year to get the credit for 2009.