Sales Tax Deduction Tables

NEWS FLASH - IRS just released the Sales Tax Tables everyone's been waiting for. Here's Publication 600.

This is designed so people who live in states without state income taxes can deduct sales tax expenses instead. It's also a good planning strategy for people who pay little or no state income taxes to get a deduction.

This is great if you just bought a personal car or other large-ticket item. There are some interesting planning possibilities if you think about it.

HSA Alert

As much as I love those new accounts, be very careful about moving money from your Medical Savings Account (MSA) into one of these accounts. It could trigger taxable income, especially if your state doesn't recognize the HSAs.

Refinancing Alert

You're merrily refinancing your home for the 4th time in 3 years. You're counting on being able to deduct the points from the last refinance. Not any more.

IRS just clarified the rules on that. If you refinance your loan with your existing lender, you must continue to write off the old points for the life of the loan.

To be able to deduct points from previous loans - make sure you replace that loan with a loan from a different company or lender.

Commuting Alert

Taxpayers have traditionally been deducting commuting mileage when they worked on temporary jobs. Under Revenue Ruling 99-7, you may not deduct mileage within your metropolitan area. That's defined as being within a 35 mile radius of your home.