The MBT Bite - How Much is Your Share?

ATTENTION - SMALL BUSINESS OWNERS DOING BUSINESS IN MICHIGAN:
Why concern yourself with the Michigan Business Tax (MBT)? Because you need to be sure the proper planning and research has taken place (or assure it is being done on your behalf) to protect your business from any unnecessary Michigan tax increases. The MBT is the new replacement tax for the former Single Business Tax (SBT) in the Michigan taxing system. Under the MBT, you fall into one of two categories, which we'll call: (1) allowed to follow the "good" rules or (2) forced to follow the "bad" rules. If you are fortunate enough to be in the first category, the changeover to the MBT will most likely go unnoticed. However, you should know the triggers that would place you into the latter category, because if you land in that category, even just a little, the price is very steep. For those of you already finding your business in that second category, please talk to a competent advisor (such as Valley Oak Financial) to assure all planning has been done to minimize your tax exposure. At VOF we have a great deal of experience, specifically from business planning done in 2008, that has produced significant tax benefits to those who chose to plan ahead. Now that it's 2009, there is not much you can do about 2008. Since it is prime tax season time, there is no better time than the present to get the MBT back on the proper course for 2009 going forward.

Housing Tax Credits

If you've purchased your first home after April 8, 2008, the IRS may give you a $7,500 credit on your 2008 tax return. As part of the Housing and Economic Recovery Act of 2008, the first-time home buyer credit, is fully refundable, meaning that the credit will be paid out in excess of your total tax liability to eligible taxpayers. The maximum credit is $7,500 and is calculated at 10% of the cost of the home (up to $7,500). Buyer beware, the credit isn't as prestigious as it seems. You will have to pay back the credit over 15 years, beginning in the year after you receive the credit. There are income limitations and special rules. If you think you qualify or want to try and qualify, please contact our office to put a game plan together. As with much in life, nothing lasts forever, meaning, we may see significant changes to this tax benefit upon the passing of the proposed 2009 economic stimulus package. Please stay tuned to the Valley Oak blog for further updates. Feel free to visit the following link for the current housing proposals being discussed.
http://isakson.senate.gov/press/2009/020409housing.htm