Archive for September, 2009

Revenue Information Bulletin No. 09-025: Inheritance Tax Receipts Not Required by State Law

The Louisiana Department of Revenue has issued a Revenue Information Bulletin (RIB) regarding inheritance tax receipts.

Acts 2008, No. 822 repealed the state inheritance tax laws, provided by R.S. 47:2401-2426 effective January 1, 2010. The Act also provided that inheritance taxes due to the state for deaths occurring before July 1, 2004, shall be considered due on January 1, 2008 if no inheritance tax return was filed before January 1, 2008, and the inheritance tax shall prescribe, as provided by Louisiana Constitution Article 7, Section 16, in three years from December 31, of the year in which the taxes became due, which would be December 31, 2011, for taxes due January 1, 2008. This section of the Act was effective January 1, 2008.

Louisiana Code of Civil Procedure Article 2953 previously required evidence that the state inheritance tax return was filed with the Louisiana Department of Revenue (LDR), that all state taxes due were paid, and that the tax receipt was filed in the succession proceeding. However, Acts 2007, No. 371 amended Subsection C of Article 2953 to provide that the receipt is not required for deaths occurring after June 30, 2004.

As a result of these Acts, inheritance tax receipts will be issued as follows:

  1. No inheritance tax receipts will be issued for deaths that occurred after June 30, 2004, unless an inheritance and estate transfer tax return was filed with LDR before January 1, 2008.
  2. Inheritance tax receipts will be issued for deaths that occurred before July 1, 2004, until these taxes prescribe on December 31, 2011.
  3. Effective January 1, 2012, no receipts will be issued for inheritance tax regardless of the date of death.

Read the full text of RIB 09-025 at revenue.louisiana.gov.

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Louisiana School Tuition and Expense Tax Deduction

The Louisiana School Tuition and Expense Tax Deduction is in effect for educational expenses paid during 2009.

This is a tax deduction that can reduce the amount of your Louisiana taxable income. It is not a tax credit. The deduction is for 50 percent of the money you spend on education, up to $5,000 per student. It applies to tuition for private and parochial schools and to expenses for uniforms, school supplies, and study materials for all primary and secondary school students. Home-schooling expenses are eligible for this tax deduction.

The deduction cannot exceed the amount of your taxable income.

To claim the deduction, you must be able to claim the student as a dependent on your Louisiana Resident Individual Income Tax Return. Eligible expenses are to be reported on Schedule E, Form IT-540 when you file your state income tax return due on May 15, 2010.

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Free LDR business tax seminar today in Alexandria

Free LDR business tax seminar this afternoon in Alexandria.

FREE BUSINESS TAX SEMINAR: Free, 2-4 p.m., Louisiana Department of Revenue’s Alexandria Office, 900 Murray St., Alexandria. The Department of Revenue offers a free seminar to help business operators understand sales tax and other important business issues. For more information or to register, call (318) 487-5333.

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Meeting of Act 442 Collaborative Working Group

The next meeting of the Collaborative Working Group will be held on Wednesday, September 30, 2009, at 9 a.m. in the Griffon Room on the first floor of the LaSalle Building, 617 N. Third Street, Baton Rouge, Louisiana.

Section 4 of Act 442 of the 2009 Regular Session of the Louisiana Legislature established a collaborative working group of state and local tax administrators and industry representatives for the purpose of assisting in developing policy regarding the determination of which items should be considered as moveable or immovable property for the purposes of state and local sales and use tax.

The group’s mission is to study and develop specific proposals on the definition of tangible personal property under Chapters 2, 2-A, 2-B and 2-D of Title 47 of the Louisiana Revised Statutes of 1950. The group shall report its policy recommendations to the chairmen of the House Committee on Ways and Means and Senate Committee on Revenue and Fiscal Affairs no later than January 31, 2011.

The group shall cease to exist on June 30, 2011.

 Further information concerning this meeting may be obtained from Ted James, Office of the Secretary, P.O. Box 66258, Baton Rouge, LA 70896, phone (225) 219-2707.

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IRS Tax Tips – Six Recovery Tax Incentives for Individuals

Six Recovery Tax Incentives for Individuals

IRS Special Edition Tax Tip 2009-08

The American Recovery and Reinvestment Act provides tax incentives for first-time homebuyers, people purchasing new cars, those interested in making their homes more energy efficient, and parents and students paying for college.

Here are six things the IRS wants you to know about ARRA tax incentives for individuals:

  1. First-Time Homebuyer Credit Taxpayers who haven’t owned a principal residence during the past three years prior to the purchase date of a home before Dec. 1 of this year may be eligible to receive a credit of up to $8,000 on an original or amended 2008 tax return. They can also wait and claim the credit on their 2009 return.
  2. New Vehicle Purchase Incentive Qualifying taxpayers can deduct the state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles. The deduction per vehicle is limited to the tax on up to $49,500 of the purchase price of each qualifying vehicle and phases out for taxpayers at higher income levels.
  3. Making Work Pay and Withholding The Making Work Pay Credit lowered employees’ tax withholding rates this year and has already put more money into the pockets of wage earners.  Self-employed individuals will have an opportunity to claim this credit when they file their 2009 return. Taxpayers who fall into any of the following groups should review their tax withholding rates to ensure enough tax is currently being withheld: multiple job holders, families in which both spouses work, workers who can be claimed as dependents by other taxpayers, workers without a valid social security number, some social security recipients who work and pensioners. Failure to adjust your withholding in these situations could result in potentially smaller refunds or in limited instances may cause you to owe tax rather than receive a refund next year.
  4. Tax Credit for First Four Years of College The American Opportunity Credit can help parents and students pay part of the cost of the first four years of college. The new credit modifies the existing Hope Credit for tax years 2009 and 2010, making it available to a broader range of taxpayers. Eligible taxpayers may qualify for the maximum annual credit of $2,500 per student.
  5. Certain Computer Technology Purchases Allowed for 529 Plans ARRA adds computer technology to the list of college expenses that can be paid for by a qualified tuition program, commonly referred to as a 529 plan. For 2009 and 2010, the law expands the definition of qualified higher education expenses to include expenses for computer technology and equipment or Internet access and related services.
  6. Energy-Efficient Home Improvements The credit for nonbusiness energy-efficient improvements is increased for homeowners who make qualified improvements to existing homes. Qualifying improvements include the addition of insulation, energy-efficient exterior windows and energy-efficient heating and air conditioning systems.

For more information on this and other key tax provisions of the Recovery Act, visit the official IRS Website at IRS.gov/Recovery.

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Revenue Ruling No. 09-002

Revenue Ruling No. 09-002 concerns the state sales and use taxability of cooking oils and shortening purchased by restaurants.

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Private Letter Ruling No. 09-019

This redacted version of Private Letter Ruling No. 09-019 discusses the taxability of an ingestible medical diagnostic capsule.

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Revenue Ruling No. 09-001

Revenue Ruling No. 09-001 concerns the taxability of certain sales, lease, and rental transactions by non-profit Economic Development Corporations where the property is subsequently transferred to for-profit corporations as part of economic development projects.

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Louisiana Tax-Free Shopping Program en Espanol

You find the most interesting things on YouTube.

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2nd Amendment Weekend Sales Tax Holiday starts Friday

The inaugural Louisiana Second Amendment Weekend Sales Tax Holiday takes place Friday, September 4, through Sunday, September 6.

During this sales tax holiday weekend, the sales and use tax levied by the state and its political subdivisions shall not apply to any consumer purchases of firearms, ammunition and hunting supplies. The Annual Louisiana Second Amendment Weekend Holiday Act became effective July 9, 2009.

The state and local sales and use tax exemption applies to an individual’s purchase of firearms, ammunition and hunting supplies. The sales and use tax exemption is not available for business purchases. Consumer purchases do not include the purchase of animals for hunting.

Guidelines for the sales tax holiday are available online at revenue.louisiana.gov.

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