Estoppel certificate

These are often found in the context of commercial lease situations where the landlord and a third party are in negotiations for the sale of the real property.  The potential buyer would like to know if there are any potential disputes with respect to existing leases and submits the estoppel certificates for the tenant to complete and execute.

The certificate itself will generally contain the amount of rent, the lease term, the security deposit, a statement by the tenant that it is not insolvent and no lawsuits are pending or threatened against it, that the tenant has not subet or assigned its interest in the lease and an acknowledgement that the statements contained in the certificate will be relied upon by the potential buyer.

IRS to issue refund related to cell phone usage

Earlier this year the U.S. Treasury Department announced that it would no longer collect the 3% excise tax that, among other calls, was imposd on calls made on cellular telephones.  As a result, the Internal Revenue Service will be issuing refunds of the tax collected from taxpayers over the last three years.  Refunds will be paid in 2007 and can be claimed as part of filing the Form 1040.  Interest will be paid on the refund amount.

The IRS is presently working on a method for simplifying the refund process and the exact amount that each taxpayer will receive is not yet known.  For the official notice click here.

Tax credit for home improvements

Taxpayers who make certain energy effecient improvements to their homes may be eligible to claim a credit for a portion of those expenditures. The improvements must be made between January 1, 2006-December 31, 2007. Eligible improvements include:

• Insulation systems reducing heat loss/gain
  
• Exterior windows and doors
  
• Metal roofs that meet applicable Energy Star™ requirements

The maximum credit for both years is $500, of which no more than $200 may be attributable to expenses for windows.

Pension Protection Act of 2006

On August 17, 2006, President Bush signed the Pension Protection Act of 2006. Under the Act, in order to claim a deduction for used clothing and household items, the items must be in "good" condition. Well, that's fine and dandy but the IRS has failed to provide us with a definition of "good". Therefore, I'm not real certain how this really changes things from a practical perspective. Also, under the Act, NO deduction is allowed for cash contributions, chekc or other monetary gifts unless the donor can show by written communication from the donee or bank record of the donor, what the amount of the contribution was, the date contributed and the name of the charity.