My point of view for Cash for Clunkers Federal program

Dear friends,

The help has arrived to the people.Taxpayers are buyers and sellers, the federal program has been a success, people have responded.

In the short term it is a true injection to our economy and on the long term to our environment and our oil dependency from countries that don't like us.

We need a national conscience to lower our oil dependency, we know that oil won't last forever, what are we going to do after the oil is gone?

This program covers in essence many of these topics and they have been addressed responsibly.

But one of my issues is that we are now a global economy and helping domestic car manufacturers ( American cars) would have made a lot of sense for our country.

The reality is that U.S. manufacturers they have not improved in the miles per gallon (MPG) and foreign manufacturers will reap the benefit.

Toyota,Honda, Hyundai,and others were ready for the challenge, american manufacturers were not.

This is program is a victory for the new administration, honor when honor is deserved.

We are loosing our managerial skills and competitive advantages, the great leaders of the past have gone to sleep and the new leaders are not waking up.

Let us not forget about our American industries, they need our help and we need them to maintain ourselves as an always progressive country.

We have a complex economy that have been the envy of the world for many years and we will overcome our current failures and grow stronger learning from our past .

I know this because, I am one of those americans and millions like me, are ready to built our nation stronger than ever, a block at a time.
Please have no doubt about it, we will succeed.

Jose F Padro, P.A. CPA

My point of view of Florida and Miami -Dade County Real Estate Taxes

Our State and local Government have grown to big to fail, but they are killing us.

So they have decided to maintain their current size and expenses with little adjustments for window dressing.

They knew the real estate bubble was going to burst, they saw it coming, they have economist on their payroll and they decided to look the other way.

In Miami- Dade the commissioners decided not to confront the anger of the people and cowardly abstained themselves from voting for the budget.

These so called commissioners, representative of our taxpayers, respond very little to our interest and respond very much to the special interests.

These commissioners,which I question their formal education are career politicians, with some exceptions of course, that would not be successful running a business in the real world are now in control of our government and a Strong Mayor than instead of being running the county like Raul Martinez did in Hialeah, has kept a county manager to run the day to day operations. So what's the purpose?

The reality is that when the economy retracts the budgets must retract. This is true and brings a reality of how common sense and professionalism is used in budgeting in our capitalist society.

Lets remember our politicians, that we are a democratic and capitalistic society and not a socialistic society in which the government can abuse society members for the benefit of the government.

We the people understand our social responsibilities but ,we are angered by our local, state and federal governments misuse of our funds, and then after those abuses they want more of our money.

No, No, No......No more taxes...Get your budget balanced...If you need to cut expenses, cut them...If you need to cut the pension, cut it...If you need to stop the abuse, stop it...If you need to cut from payroll an employee ,cut it...If you need to cut a fireman from payroll , cut it....If you need to cut a police from payroll, cut it......... I know about this, because I am a business owner and I deal with budgets every day of my life and when I can't afford an employee with my heart broken, I have to let go.

We also have limited and shrinking budgets. Do politicians and government understand, that we the taxpayers have been affected by this recession and we don't have money to spare.

Is that so difficult to understand ? Nobody is helping my business nor my employees during these harsh times and now you want us to pay more taxes, local, state and federal.

Hey, we are watching you and we will exercise our vote and we will kick you out of office if you force us,

This is no a threat, this is a fact of life.


Jose F Padro
Padro & Company, P.A.
Certified Public Accountants
http://www.padrocpa.com

Last year's tax breaks may bring 2009 tax savings

When it comes to your personal finances, 2008 may be a year you'd rather forget. But a little reflection on last year's tax changes could be the springboard you need to save taxes in 2009.
New tax rules for homeowners
Last October, with passage of the Emergency Economic Stabilization Act of 2008, Congress extended several important tax provisions that were set to expire. For example, a homeowner tax break in the Mortgage Forgiveness Debt Relief Act of 2007 would have ended after 2009, but instead remains in effect through 2012. This rule allows you to exclude from taxable income up to $2 million of forgiven mortgage debt, such as that resulting from home foreclosure or loan restructuring. Now there is no longer any tax-driven pressure to restructure your loan before the end of 2009.
HOME PURCHASE CREDIT. If you are looking to buy a house in 2009, there is still time to take advantage of the home buyer's tax credit. You can receive a tax credit of 10% of the purchase price (up to $8,000) if you buy your home before November 30, 2009. There are a few catches, however. There are income limits, and you cannot have owned a principal residence during the previous three years. If you own the home for 36 months, the credit does not have to be repaid to the government.
PROPERTY TAX DEDUCTION. If you already own a home, but usually do not have enough deductions to itemize on your tax return, there is good news for you, too! Congress extended through 2009 a rule allowing nonitemizers to deduct up to $1,000 ($500 for single filers) in real estate property taxes in addition to the regular standard deduction amount.
HOME SALE CHANGE. In 2009, the tax treatment changes for vacation homes converted to personal residences. Beginning this year, the popular $250,000/$500,000 taxable gain exclusion for sales of personal residences won't apply for gain attributable to periods during which the home was used as a vacation home or a rental property. The adjustment to the amount of gain that can be excluded is based on "nonqualified use periods" beginning January 1, 2009.
College and charity tax breaks
TUITION DEDUCTION. The Emergency Economic Stabilization Act of 2008 also extended the tax deduction for higher education costs. As much as $4,000 in tuition and fees incurred by the taxpayer, spouse, or a dependent can be written off from taxable income. However, if your adjusted gross income exceeds $130,000 filing jointly ($65,000 filing single), the deduction is reduced.
IRA TO CHARITY. Remember the charitable IRA rollover for taxpayers 70½ years old or older? It's back! Congress reinstated the rule that allows older taxpayers to donate to charity up to $100,000 directly from their IRA. The withdrawal is not included in taxable income, and it does not qualify as a deductible contribution to charity. However, the charitable rollover satisfies the required minimum distribution (RMD) rules, making this a tax-advantaged way to benefit your favorite charity. The RMD rules are suspended for 2009.
Businesses as well have an added incentive to make charitable contributions in 2009. Enhanced deductions will again be given to businesses that donate qualified food to charities or books and computer equipment to schools.
A silver lining to the economic downturn
CAPITAL LOSSES. Did last year's economic woes hammer your portfolio or business? Capital losses resulting from the sale of assets such as stocks and bonds can be used to offset capital gains and up to $3,000 of ordinary income per year. Any capital losses left over from 2008 can be carried forward to offset capital gains in 2009 – something to think about if the stock market rebounds this year.
NOLs. Qualifying small business owners who incurred a net operating loss (NOL) in 2008 can offset those losses against business income. In fact, a 2008 NOL can be carried back up to five years to a previous profitable year's tax return, providing a more immediate tax refund.
Incentives to go green
ENERGY. Congress reinstated several laws in 2008 and 2009 that provide tax breaks to individuals and business owners who purchase energy efficient equipment. Most taxpayers stand to benefit from the rule that provides as much as $1,500 in tax credits for energy saving home improvements such as qualified insulation, exterior windows, or doors. Businesses that invest in energy efficient commercial buildings could also reap tax savings.
The tried and true
Some solid tax-cutting strategies remain the same from one year to the next. Maximizing your 2009 retirement plan contribution is a good place to start. The annual 401(k) or 403(b) elective deferral limitation increases from $15,500 to $16,500 this year. Those who have reached age 50 by the end of 2009 may contribute an additional $5,500.
If your employer provides a health savings account or a flexible spending account, review your 2008 health or dependent care expenses to make the most of these tax-advantaged plans for 2009. Otherwise, you might be leaving money on the table.
Now is also a good time to review your income tax withholding or estimated tax payments. Anticipated changes to your dependents, income, or deductions might call for an adjustment to your tax withholding. Failure to make these changes now may result in tax penalties if you come up short, or unnecessarily tie up cash if you overpay.
Get an early start
The earlier you begin your 2009 tax planning the better. It's important that you take taxes into account before making financial decisions in your personal and business affairs this year. For tax-cutting guidance under the ever-changing rules, give us a call.
NOTE: This newsletter is issued annually to provide you with information about minimizing your taxes. Do not apply this general information to your specific situation without additional details. Be aware that the tax laws contain varying effective dates and numerous limitations and exceptions that cannot be summarized easily. For details and guidance in applying the tax rules to your individual circumstances, please contact us.
PADRO & Company, P.A.

2009 Tax Planning Letter - PADRÓ & Company, P.A.

Dear Clients and Friends,

With an economy struggling to recover from the financial woes of 2008, we are all hoping that 2009 will be a better year. A new administration in Washington means we're certain to have more changes to the tax code in 2009, but the shape and timing of these changes will depend on our economic situation.

The financial turmoil may have you wondering whether you'll have enough money to send your children to college, to pay for your own retirement, or to meet your other financial goals. This Tax Planning Letter is intended to stimulate your thinking about tax strategies that can leave more money in your pocket to spend or invest.

Effective tax planning is a year-round, lifelong activity, and though constantly changing tax law can make planning a challenge, making it a priority will pay off with lower taxes. We are committed to working with you to find the tax strategies best suited to your individual circumstances. If you have questions about anything in this Letter or about your tax-cutting options, please call. And if you have friends or associates who might be interested in tax planning information, feel free to share this Letter with them.

Jose F. Padró, CPA

To view this letter go to:
http://www.planningtips.com/4422/default.asp?Co_ID=115183&Tip_ID=4422