These are the taxes that are levied against the property possessed by a person or group. In many countries these taxes are managed at the local level and usually fall into two categories of personal property taxes and the real estate taxes. The very term, tax relief is a sort of a benefit given to the property owner to remove or reduce the burden of property taxes.

Presently, there are various categories of property tax relief which are applicable at different stages of income period to provide some leverage to the owners during their vulnerable income days. The tax relief works according to its category, differently every time in separate cases.

The various kinds of property tax relief, which is applicable at different situations. The categories are listed below for your reference.

Property tax relief for Senior Citizens – This particular tax relaxation is meant for those who have retired from their job and have a low income to meet the tax payments. Earlier they were able to pay as they had a good income out of their work but after retirement that part has emaciated. In this phase the senior citizens pay more for their health related issues as well other related expenses, so the tax relaxation on properties provides them lots of ease and reprieve.

Property tax relaxation for first time homebuyers – There is another great piece of benefit provided to the first time home buyers where they are exempted from property taxes and also offered discounts, which can be included in the income tax. Usually, the first time buyers often purchases a new property to settle with their family to establish themselves that made the government to come up with the tax relief option and also to encourage the home loan services as well as the construction business.

Property tax relaxation for low income tax payers – There are also people that have low income even if not retired. For those with a low income there are also tax relief solutions. Just like with senior citizens, people with low income cannot afford high taxes since they need their income to cope with other expenses. Recognizing this fact, the government provides reductions on property tax for those who can show proof of a low income that wouldn’t otherwise let them afford the full tax returns.

Property tax relief for individual income tax payers – This one is particularly for the people who does not have a sustainable income and belongs to the category individual tax payers who are excused from the property tax. At the time they pay their income taxes, they are offered a refund of taxes in the form of tax relief. This is a great way to support and control the lower income group of the country by returning them back a substantial amount, cut from their taxes.

Statistics suggests that there is high percentage of uncollected credit being lined up with the government. It is either due to the fact, that people still is not aware of its guidelines or they did not bother to apply so as to take back the refunds.

Property tax relief for long term owners – The long term possessors of the property are also allowed some tax relief on the money they pay for their taxes. Although there is difference in the regulations as well in the allowance of the tax reduction between long terms owners and the first time buyers.

One of the major campaign promises that President Obama offered to U.S. citizens was that he would ensure equitable taxation for all so that those who earned more would pay the lion’s share of taxes. The President criticized the Bush Administration for offering tax holidays to the rich, who he felt, did not need any tax advantages (because they were financially comfortable). True to their word, the Obama Administration and the Democrats in Congress has gone a long way in ensuring that the rich will be removed of tax cuts and will bear the largest share of taxes. They have come up with several bills and proposals to have the rich taxed more:

The Three Percent Surtax Proposal

One of the more recent tax moves targeted at the rich is the 3% surtax proposal by Democratic Senate members. If passed, the surtax will be loaded onto high income earners. The Senators are seeking to introduce a bill to have a surtax charge on individuals who earn an income of $1,000,000.00 and above. The proposed tax is part of the attempts to narrow a widening tax deficit in the government.

Democrats Seeking Removal of Bush Tax Cuts

There have been talks from the Democratic politicians in the past two years to have tax cuts removed for high income earners. The Obama Administration has been keen to have the tax cuts removed, but they have compromised their stand owing to various negotiations with the Republicans. However, the removal of the Bush Tax cuts for the rich now seems to be a matter of time. The proposal is to remove the tax cuts for any taxpayer who earns more than $250,000.00 a year. Removal of the Bush tax cuts will raise the effective tax rate for the top income tax bracket by about 6.5%.

0.9% Surtax on Medicare

In 2010, Congress passed a bill to make changes on the Medicare Law. These changes were an attempt to solve the Medicare situation, whereby more retiring citizens are seeking to get free Medicare from the program. As part of the Medicare Law, Congress introduced a 0.9% Medicare Surtax for income earners in the top tax brackets. The Medicare Surtax is to be levied on all taxpayers who earn more than $200,000.00 a year and for couples who file taxes jointly who earned more than $250,000.00 annually.

Proposal to Remove Tax Ceiling on Social Security

In May 2010, President Obama mentioned that the government was seeking to make a proposal to remove the ceiling on Social Security taxes. Presently, Social Security taxes are applied to a maximum of $106,800.00 a year and any amounts above this maximum are not levied for Social Security. If the change is made to have no cap on Social Security payments, tax experts project that the move will effectively raise the taxation on the top income earners by about 10%.

Given that the top income earners are currently taxed at a top rate of 35%, with the addition of these new taxes and the aforementioned proposed tax changes, some tax analysts say that this may result in the top income earners paying an effective tax rate of over 60%.

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Canada-based people actually have more concerns than what they hoped for. A pressing issue that they would have deal with in the country is the issue of sales taxes present in the country. Further, the people also need to put up with state sales taxes as well as the provincial ones. Also, people living in certain parts of the country such as Nov Scotia and Newfoundland among others must also endure 14% harmonized tax on provincial taxes regarding the arrangement together of some goods as well as services. The average person in Canada could pay up to 16% with regards to federal and provincial sales taxes in the country. The percentage of the sales taxes could still increase by 14% depending on the case if you are residing in the province. Provinces have imposed harmonized sales taxes as well.

Because of the high sales tax imposed in the country, there are areas thinking that it might be best to have the minimum wage increase from an $8 rate per hour to a rate of $10. This measure is to keep up with high taxes imposed on sales. There are several factors that could be affected when it comes to high sales tax rates. For example, taxes in restaurants could go up to 12%, this in turn would have effects on customers such that one family may not choose to eat anymore considering the high amount. This could effects on the social aspects of the family as well as the economy specifically for the restaurant industry. Though given with the present case and situation, Canadians don’t necessarily have that much problem even with the cost of the sales in such a high rate. This is because, opportunities in employment is not as hard to find in the country. For example, a fresh graduate could earn $40, 000 in a year. For other countries, earning such would be difficult and long. There are fresh graduates who wouldn’t be able to earn in as much in a year given that they reside in a different country elsewhere. In Canada, the high taxes are not so much of a problem since people have the opportunities for jobs that give high incomes.

You might be wondering how come taxes in Canada as high as that or why are people imposed to pay provincial taxes as well as federal ones since they are just similar in a way. For those people who are not in Canada may just be wondering why the scenario is like that? Looking at the rate of taxes in the country and other countries like for example the United States, there is a difference by almost 2%. For New York which is undeniably a big city, the difference comes by in as much as 4%. Although given the situation, the rates of taxes in these areas is still comparatively lower considering the amounts added to the rate by the local governments in Canada. In case you are paying the high rates, it would be wise to inquire about why the taxes have high rates, what functions do these taxes play and what do you get in turn when you pay such taxes.

All people have the right to ask and seek information for correct information when it comes to the taxes we pay. The rates of taxes in countries like the US and Canada have gone a bit out of control or very high. It pays to know what use the government has for such high rates more importantly the taxes themselves.

Donating your car to your favorite charity lets you help the charitable cause that you really believe in supporting. It is however the car donation tax deduction that you receive from that nice tax man at the IRS that rewards you the most in your donation. As your donation will probably be the largest that you ever give to charity, for you to receive your vehicle donation tax break it is vital that you follow all the rules of the donation process. Although not complicated, you need to ensure the correct paperwork for your car donation tax deduction to stick on tax return day.

Car donation tax deduction – procedures to follow & paperwork needed for a successful donation

When it comes to donating a car for tax deduction, first and foremost you need to check that the charity you are considering is one that is IRS-approved and listed as a 501(c)(3) non-profit organization. You will find a list of eligible charities on the IRS website under publication 78. If the charitable organization that you wish to donate a car to is not listed then you would be unable to claim a car donation tax deduction and you should probably consider another charity for your tax break.

When to use vehicle fair market value for your car donation tax deduction

You can use the fair market value of your vehicle in two scenarios:

If you know that your car will have a value when sold of less than $500, or

If the charity beneficiary of your donation uses the vehicle in their day to day charitable business, rather than selling at auction, then you can use the fair market value in this situation as well. If your charity takes this option, due to tax rules that came into force several years ago, the charity concerned will have to provide you with an acknowledgement inside thirty days of your donation stating the cars intended business use. This same tax law also makes it necessary for the charity to provide you with a receipt of the proceeds within 30 days of the sale at auction of your vehicle. You can find the current tax break rules with the IRS Donors Guide to Car Donations publication under IRS Publication 4303 on the IRS website.

If you are in the position of using the fair market value of your car for your tax return, then your easiest option is to find your car value with one of the many trusted sources online like Kelley Blue Book.

If you are not in a position to donate a car to charity then keep in mind the same tax breaks apply to the donation of other vehicles as well. Motor homes, trailers, trucks, boats, snowmobiles and jet ski’s, plus motorbikes often have the same tax benefits as a tax deductible car donation. However, for these vehicles it is vital to check for any tax rules that apply specifically to these other modes of transport. Your accountant should be consulted if in any doubt of the validity of your vehicles tax deductible status before you list the vehicle as an itemized tax return item.

If you simply keep these rules in mind when you donate your vehicle, then your car donation tax deduction will be assured and you will have made a big difference to your charitable organization. More importantly you will have the satisfaction of knowing you have helped someone in need, and at the same time be rewarded with a tax present from the IRS.

Donating your car to your favorite charity lets you help the charitable cause that you really believe in supporting. It is however the car donation tax deduction that you receive from that nice tax man at the IRS that rewards you the most in your donation. As your donation will probably be the largest that you ever give to charity, for you to receive your vehicle donation tax break it is vital that you follow all the rules of the donation process. Although not complicated, you need to ensure the correct paperwork for your car donation tax deduction to stick on tax return day.

Car donation tax deduction – procedures to follow & paperwork needed for a successful donation

When it comes to donating a car for tax deduction, first and foremost you need to check that the charity you are considering is one that is IRS-approved and listed as a 501(c)(3) non-profit organization. You will find a list of eligible charities on the IRS website under publication 78. If the charitable organization that you wish to donate a car to is not listed then you would be unable to claim a car donation tax deduction and you should probably consider another charity for your tax break.

When to use vehicle fair market value for your car donation tax deduction

You can use the fair market value of your vehicle in two scenarios:

If you know that your car will have a value when sold of less than $500, or

If the charity beneficiary of your donation uses the vehicle in their day to day charitable business, rather than selling at auction, then you can use the fair market value in this situation as well. If your charity takes this option, due to tax rules that came into force several years ago, the charity concerned will have to provide you with an acknowledgement inside thirty days of your donation stating the cars intended business use. This same tax law also makes it necessary for the charity to provide you with a receipt of the proceeds within 30 days of the sale at auction of your vehicle. You can find the current tax break rules with the IRS Donors Guide to Car Donations publication under IRS Publication 4303 on the IRS website.

If you are in the position of using the fair market value of your car for your tax return, then your easiest option is to find your car value with one of the many trusted sources online like Kelley Blue Book.

If you are not in a position to donate a car to charity then keep in mind the same tax breaks apply to the donation of other vehicles as well. Motor homes, trailers, trucks, boats, snowmobiles and jet ski’s, plus motorbikes often have the same tax benefits as a tax deductible car donation. However, for these vehicles it is vital to check for any tax rules that apply specifically to these other modes of transport. Your accountant should be consulted if in any doubt of the validity of your vehicles tax deductible status before you list the vehicle as an itemized tax return item.

If you simply keep these rules in mind when you donate your vehicle, then your car donation tax deduction will be assured and you will have made a big difference to your charitable organization. More importantly you will have the satisfaction of knowing you have helped someone in need, and at the same time be rewarded with a tax present from the IRS.