Posts Tagged ‘tax’

Property Tax Relief - Useful Info and Tips

Saturday, July 23rd, 2011

Tax is a dreaded word for some in the general population. Though paying taxes is both a duty and an obligation for every citizen of the nation, some people feel the weight of giving part of their hard-earned income to the government. This is especially true for people who do not earn enough for themselves, let alone earn enough to pay the taxes. Good news for them is that they may avail of property tax relief which is offered by the government to deserving individuals.

What is property tax relief? Property tax relief is a form of tax break that allows taxpayers to pay zero or less than the actual taxable amount placed on their property. In line with this, the next question to ask is: What is property tax? Property tax is the amount imposed by the government on any real estate property owned by an individual. Property tax is usually computed based on currents costs for building/rebuilding or on a portion of the actual assessed value of the home.

Property assessors are given the task of assessing the value of homes and other real estate. Because assessors are known to appraise and evaluate the value of homes according to the present day standards, many homeowners, specially the poor ones dislike having property assessors visit their homes. They feel this way because they dread that the new assessment will produce a higher value, which most likely, will result to higher property taxes. However, if they know that they can avail of property tax relief, they wouldn’t have to unnecessarily fear property assessors.

Let’s discuss in detail the different forms that property tax relief may take. First, there is property tax relief for first-time homeowners. The tax breaks may be given through refunds and rebates against income tax.This tax relief has done a lot in attracting homebuyers into purchasing real estate after the recent decline in market values of real estate.

Two, the individual must either be a senior citizen or a disabled veteran for him to get a property tax relief. Giving tax breaks to senior citizens and disabled veterans is logical and practical. The two groups of low-income individuals do not have extra cash on their hands to pay for additional expenses like property taxes. Whatever cash they have is needed for their necessities and other needs like medications and medical treatments.

Senior citizens and disabled individuals are also beneficiaries of property tax relief. They are given this special privilege because they have low earning power, most of it coming from their pensions. The tax break allows them to spend only on things they need: food, clothing, medication.

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Do You Qualify for Tax Credits?

Sunday, July 10th, 2011

There are 2 kinds of tax credits available generally. One is the Kid Tax allowance and the other one is the Working Tax Credit. Ordinarily talking, you have to be a UK resident and aged 16 or above to qualify for any kind of tax allowances. In different conditions you might as well qualify even if you are a UK non-resident. If you are a citizen of a country aside from the UK but an affiliate of the Western european Commercial Area ( EEA ) and you are working with in the UK then you might avail tax allowances. If you’re an affiliate of the EEA though not working in Great Britain but receive UK state allowance then you qualify for the tax credit. If you serve the Crown and are posted abroad in another country then you can claim tax subsidy.

The kid tax allowance can’t be claimed individually and you must make a joint claim with your other half. Kid Tax break can only be claimed by individuals who are responsible for at least one kid. The Child Tax allowance is paid right to the person that is the guardian of the kids. If an individual is a single parent then the Kid Tax credit is paid to the individual. The Child Tax break can also be claimed if the person has been posted to another country with in the EEA. This is posted straight from the UK.

The Working Tax break is payable to individuals who are employed and self employed. The person must be working for at least sixteen hours a week and be well placed to work for no less than a month.

Other prerequisites for the Child and Working tax allowance are :

The individual must be sixteen or above and be answerable for one kid.
The individual must be sixteen or above and disabled.
The person must be twenty-five or above and be working at least 30 hours per week.
Aged sixty or above and be working for no less than 16 hours per week.

If you are a pair and you both are working for a minimum of 16 hours a week, then only one of you is due to receive a the Working Tax allowance and you should decide among your selves that who it is going to be. A part of the Working Tax allowance might also be steered towards helping you with the kid care costs

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How to Determine Income Tax for Financial Health

Wednesday, June 16th, 2010

Financial health isn’t something I talk about a lot on this blog, but it is very much related to physical health and I want to talk about it for a minute. Now that we are beginning the new year, and new decade this time around, we have to start thinking about our finances a bit. On that subject, our taxes for last year still need to be paid - many people are very much intimidated by this. The purpose of this article is to help ease your mind a little.

Tax return forms can be very intimidating at first, but when you really get down to how to calculate income tax, it isn’t all that difficult or scary. You should do a quick estimate so you know what to expect when you start doing the long form or go to your tax man.

When you want to figure out your taxes the first thing to do is add up how much money you made. You should have statements from your employer and any investments or interest you earned. Next you have to determine your deductions like charity and mortgage interest. Subtract your deductions from your total income to come up with your taxable income. From there you look up your tax on a tax table. Subtract any credits, like for children, from your tax and add any penalties to get your final tax. Hopefully you paid in more than you owe and will get a big refund.

Now that wasn’t so hard was it. Don’t stress out so much over your financial health. When you are ready to do your taxes, check out some of the online income tax software programs. They are way cheaper than going to a tax professional.

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Is the Canadian First Time Home-Buyers Tax Credit Helping Stimulate the Housing Market?

Tuesday, November 17th, 2009

One of the most emphasized incentives in the governments plan to help with the housing slump was the First Time Home-Buyers Tax Credit. In comparison to the USA tax incentive plan, the Canadian tax credit seems to come a poor second. So do we find it just one big laugh?
Let’s start by looking at both the tax credits on offer. The Canadian Federal government are offering a Tax Credit proposed on a $5,000 deductible. If you want to purchase property in Canada and haven’t owned housing in the last four years, then this deductible is multiplied by 15% - total net of $750.

On the other hand, the American tax credit can be as high as 10% of the real estate’s value, to a maximum of $8,000. In the US the amount is removed from the buyer’s income tax (owing) whereby in Canada it’s deducted from the tax base. When the tax owing doesn’t go over the maximum plan then the new property buyer can look forward to the money being cashed back to them. While in Canada a person can’t have owned a property for the 4 years before, in the US this is only 3.

While the Canadian real estate market bounce back is credited by experts generally to the Bank of Canada interest rate cut, the (still quite shaky) recovery of the American market was indeed fueled by their gigantic tax credit. The American incentive reduced the pressure of finding a down payment for a property and paved the way for first time buyers to get on the housing ladder. Seeing the benefit of the US tax credit, the first thought is shouldn’t Canada be looking more carefully at these options?

What Canadians should ask themselves, is “do we require it”? The force of the Canadian recession vs the US recession on our specific housing markets has been radically different. Many short sales and foreclosures have been seen in the US which inundated the market, although in Canada the hardest hit were real estate agents and investors due to the quick rebound.

Looking at the fiscal situation we also see a variance. In the US there is a enormous budget loss and with over a million taxpayers claiming this aid it impacts on lost tax revenue.

To study the rest, please read our original article “Is the First Time Home-Buyers Tax Credit Really as Good as It Sounds?” Thank you.

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