Posts Tagged ‘taxes’

Information about the new registration requirements for the Basic School Tax Relief (STAR) property tax exemption.

Basic STAR:

All homeowners currently receiving the Basic STAR exemption must register with the New York State Department of Taxation & Finance in order to continue receiving the exemption in 2014 and subsequent years. This is part of a new initiative to ensure that tax dollars are not wasted on inappropriate or fraudulent STAR exemptions.

The Department of Taxation and Finance will be mailing all current Basic STAR recipients instructions on how to register, including a STAR code that homeowners will need in order to register. According to the Department of Taxation & Finance, letters will be mailed to homeowners in Nassau & Suffolk Counties from September 19th through October 4th. The deadline to register is December 31, 2013.

Enhanced STAR:

Senior citizens who receive the Enhanced STAR exemption are not affected by these new requirements, and as a result will not receive new instructions from the Department of Taxation and Finance. However, Enhanced STAR recipients must continue to reapply annually or participate in the income verification program, as they are currently required to do.

Residents who have any questions about the new registration requirements can call the New York State Department of Taxation and Finance at (518) 457-2036 or Senator Fuschillo’s office at 516-882-0630.

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According to the NAR…

Real Estate Provisions in “Fiscal Cliff” Bill

NAR Issue Brief

On January 1 both the Senate and House passed H.R. 8, legislation to avert the “fiscal cliff.”  The bill was signed by President Barack Obama.

Below are a summary of real estate related provisions in the bill.

Real Estate Tax Extenders

·         Mortgage Cancellation Relief is extended for one year to January 1, 2014

·         Deduction for Mortgage Insurance Premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012

·         Leasehold Improvements: 15 year straight-line cost recovery for qualified leasehold improvements on commercial properties is extended through 2013 and made retroactive to cover 2012.

·         Energy Efficiency Tax Credit: The 10% tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012.

Permanent Repeal of Pease Limitations for 99% of Taxpayers

Under the agreement so called “Pease Limitations” that reduce the value of itemized deductions are permanently repealed for most taxpayers but will be reinstituted for high income filers. These limitations will only apply to individuals earning more than $250,000 and joint filers earning above $300,000. These thresholds have been increased and are indexed for inflation and will rise over time. Under the formula, the amount of adjusted gross income above the threshold is multiplied by 3%. That amount is then used to reduce the total value of the filer’s itemized deductions. The total amount of reduction cannot exceed 80% of the filer’s itemized deductions.

These limits were first enacted in 1990 (named for the Ohio Congressman Don Pease who came up with the idea) and continued throughout the Clinton years. They were gradually phased out as a result of the 2001 tax cuts and were completely eliminated in 2010-2012. Had we gone over the fiscal cliff, Pease limitations would have been reinstituted on all filers starting at $174,450 of adjusted gross income.

Capital Gains

Capital Gains rate stays at 15% for those the top rate of $400,000 individual and $450,000 joint return. After that, any gains above those amounts will be taxed at 20%. The 250/500k exclusion for sale of principle residence remains in place.

Estate Tax The first $5 million dollars in individual estates and $10 million for family estates are now exempted from the estate tax. After that the rate will be 40 percent, up from 35 percent. The exemption amounts are indexed for inflation.

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(Public Meeting)             Public Hearing on Tentative Budget

A Public Hearing will be held on Monday, March 26, 2012 to discuss the tentative 2012-2013 village budget.

8 pm

 Village Hall Courtroom

 3rd Floor

 21 Ireland Place

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