In article <QqP%k.6023$M01.1815[at]bignews3.bellsouth.net> ,
Paul Thomas, CPA <paulthomascpapc[at]bellsouth.net> wrote:

- quote -

"Internal Revenue Code"

Seth

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Paul Thomas, CPA wrote:
- quote -


However I won't be increasing my fee just to add property tax to the
standard deduction.

ChEAr$,
Harlan Lunsford, EA n LA

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Arthur Kamlet wrote:
- quote -

Here's a prediction. When/if I see any new clients year after next
whose returns were prepared by VITA, AARP, etc. odds are that the
property tax will be added to the SD even though no benefit is achieved
thereby, and especially in case of senior citizens whose SD and
exemptions already cause negative taxable income.

So then, if you don't need it, don't use it.

ChEAr$,
Harlan Lunsford, EA n LA

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"George Anthony" <mrblandings[at]atlanticbb.net> wrote
- quote -





And a hearty "THANKS" to all the Congresscritters who voted for the
Accountants Full Employment Act (the official title eludes me at the
moment).







--
Paul A. Thomas, CPA
Watkinsville, Georgia

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"Arthur Kamlet" <kamlet[at]panix.com> wrote in message
news:ghn5lf$ral$1[at]reader1.panix.com...
- quote -


It appears that the 2008 taxes will have to be reworked without the increase
in the standard deduction and the difference compared to the amount of the
rebate. The lessor of the two amounts would then be included as a recovery
in 2009. For most people eligible for the property tax rebate this should
not exceed $150. Will be interesting to say the least.

George L Anthony

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In article <lfC%k.5793$dc4.1920[at]bignews2.bellsouth.net> ,
Paul Thomas, CPA <paulthomascpapc[at]bellsouth.net> wrote:
- quote -

If the recovery rule for an item which provided a Tax Benefit
still holds, then it would generally be taxable.


But suppose the income following a $1000 increase to standard deduction
is reduced to exactly zero and the exemptions would have wiped out
taxable income even if the added standard deduction had never been claimed.

In that case the tax benefit of property tax is zero so a recovery
of property tax should not be taxable.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

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"George Anthony" <mrblandings[at]atlanticbb.net> wrote
- quote -





One would think so. Obviously if the $500 ($1000 MFJ) were less than the
actual tax paid, then the amount to be included in income the following year
would be the lesser amount.

But, Congress isn't known to use common sense and logic in tax matters.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

State and local real estate taxes are deductible as itemized deductions on
Schedule A and taxpayers generally deduct the larger of their itemized
deductions or the standard deduction. If the taxpayer is not able to
itemize and will be taking the standard deduction then for tax years
beginning in 2008 only, an individual taxpayer's standard deduction for a
taxable year is increased by the lesser of the amount allowable to the
taxpayer as a deduction for state and local real estate taxes or $500
($1,000 MFJ).

In Pennsylvania some senior citizens and certain others are eligible for a
"Property Tax Rebate".

If the taxpayer received a state and/or local refund for taxes paid and
ITEMIZED deductions he has to reclaim the deduction as income the following
year.(to the extent it benefited him)

My question is if the taxpayer uses his property tax paid to increase the
standard deduction this year and then receives a property tax rebate from
the state, does he have to claim that as income the following year?


--
Thank you,
George L. Anthony
Anthony's Income Tax Service
1602 Killian Avenue
Johnstown, PA 15909-1220
(814) 322-4740
geoanthony[at]atlanticbb.net

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >