Filing Extensions Changing for Some Business Taxpayers Later this Year

IR-2008-084

IRS has announced a change in the extended due date on certain business returns to help individuals better meet their filing obligations. As a result the six month extension for Partnership and trust will change to five month and will be due on September 15th instead of October 15th.

This change will be effective for extension requests with respect to tax returns due on or after Jan. 1, 2009, and applies to business entities that file the following returns and forms that have a tax year ending on or after Sept. 30, 2008:

1. Form 1065, U.S.Return of Partnership Income

2. Form 1041, U.S. Income Tax Return for Estates & Trusts

3. Form 8804, Annual Return for Partnership Withholding Tax (Section 1446)

The regulation does not change the process for requesting an extension of time to file, nor does it affect extensions of time to file other types of business returns, such as those used by S corporations.

Extended Due Date

The due date for Corporation tax returns that filed an extension for 2008 is due September 15th, 2008. For individuals and Partnerships the due date is October 15th, 2008.

Capital Gain exclusion on Primary residence

As per IRC 121-
When you sell your primary residence, you can make up to $250,000 in profit if you're a single owner, twice that if you're married, and not owe any capital gains taxes if you meet the ownership and use tests. You will generally only need to report the sale of your home if your gain exceeds a certain dollar prescribed by law. You may be entitled to exclude gain from income if during the 5-year period ending on the date of the sale, you must have:

Owned the home for at least 2 years (the ownership test), and
Lived in the home as your main home for at least 2 years (the use test).
During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home.

If you owned and lived in the property as your main home for less than 2 years, you may still be able to claim an exclusion in some cases (change in place of employment, health or unforseen circumstances)

2008 Auto Mileage Rate-

This is sent for informational purposes only- and may be helpful in tax planning for the year.
Effective July 1, 2008, the standard mileage rate deductible forbusiness purposes increases to 58.5 per mile. It was 50.5 cents per mile for Jan 1st 2008 thru June 30th 2008. It is advisable to keep written records that can prove the business purpose for miles claimed as this could mean a significant mileage deduction for the year.