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Virginia Department of Taxation Legislative Update Presentation 2009

Virginia Department of Taxation Legislative Update Presentation 2009. Fixed-Date Conformity. HB 1737 and SB 985 – IRC Conformity Date Advanced The date has advanced from December 31, 2007 to December 31, 2008

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Virginia Department of Taxation Legislative Update Presentation 2009

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  1. Virginia Department of TaxationLegislative Update Presentation 2009

  2. Fixed-Date Conformity • HB 1737 and SB 985 – IRC Conformity Date Advanced • The date has advanced from December 31, 2007 to December 31, 2008 • The advancement allows the benefits of the following acts of Congress to flow through to Virginia taxpayers: • The Economic Stimulus Act, which increases 179 expensing; • The Food and Energy Security Act and the Heartland, Habitat, Harvest, and Horticulture Act; • The Heroes Earnings Assistance and Relief Tax Act; • The Housing and Economic Recovery Act; • The Emergency Economic Stabilization Act

  3. College Savings Plans • Effective for taxable year 2009 • Prepaid tuition plans or savings trust accounts will increase from $2,00 to $4,000 per plan or account • No restriction on individuals 70 or over

  4. Dealer disposition of Real Property • Effective for taxable year 2009, Senate Bill 978: • Virginia individuals and corporations • The sale occurs on or after January 1, 2009 • The property sold is real estate • The taxpayer reports the entire gain as income on the federal return

  5. Dealer disposition of Real Property • Allows the taxpayer to treat certain sales as installment sales for Virginia purpose

  6. Subtraction for Gain on Sales of Land Preservation Credit • Reconfirms existing law • Subtraction allowed to the extent that a gain is reported for federal purposes

  7. Limitation on Land Preservation Credit • Reduction from $100,000 per taxpayer to $50,000 per taxpayer for credits claimed for taxable years beginning on or after January 1, 2009, but before January 1, 2011. • Carryover period extended for the affected years

  8. Increase in Livable Home Tax Credit • The amount of the credit will be $2,000 for a new residence designed to improve accessibility • Or 50% of the cost, not to exceed $2,000, for retrofitting an existing residence to improve accessibility • Previously, the maximum amount of the credit was $1,000

  9. Personal Exemption • Effective 2008 $900 to $930 Remember: This does not apply to exemptions for age or blindness

  10. Mandatory Electronic Filing Requirements • Effective for taxable year 2008 • 100 or more clients must submit all returns electronically • Tax Preparer hardship waiver form 8454P

  11. Military Filing Extensions • Effective for taxable year 2008 • The due date for Virginia income tax extended until 90 days after the completion of the member’s non-combat deployment outside the United States

  12. UpcomingTax Changes

  13. Household Employers • Effective January 1, 2009 • Annual fling status for the household employer • Quarterly wages less than $5,000

  14. Digital Media • Effective July 1, 2009,Senate Bill 1421 • Businesses that provide lodging facilities in Virginia may be subject to collect the fee • The fee applies to digit media offered via an in-room television at a rate of 10%

  15. Virginia Motor Vehicle Fuel Sales Tax • Effective January 1, 2010, Senate Bill 1532 • Changes the tax on fuel sales • New tax rate is 2.1% • Distribution now liable, not retailers • Affects only certain localities

  16. Neighborhood Assistance Act Credit • House Bill 1790 expands credit provisions to include services provided by veterinarians

  17. PTE Withholding Reminder • Effective January 1, 2008 • PTE’s required to withhold tax on behalf of nonresident owners • ALL nonresident owners, not just individuals

  18. Get Square VA • Senate Bill 1120 • October 7 though December 5, 2009 • Pay the tax due plus one-half the interest

  19. Get Square VA You back taxes by the numbers • 50% How much of your interest charges will be waived if you pay what you owe during Get Square VA • 100% How much of your penalties will be waived if you pay what you owe during Get Square VA • 20% Amount you’ll be charged in penalties if you fail to pay what you owe during Get Square VA

  20. Get Square VA • At the conclusion, any remaining amnesty qualified tax liabilities will be assessed a 20% penalty. • More info www.GetSquareVA.com

  21. Handout Review

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