2004 CHARITABLE CONTRIBUTION FOR TSUNAMI RELIEF EXTENDED THRU JAN., 2005
A new law enacted on January 7, 2005 extends the time for 2004 deductible donations to help the victims of the
December 26 Indian Ocean tsunami. Cash donations made by January 31, 2005 may be deducted as an itemized
deduction on the taxpayer’s 2004 or 2005 tax return. UPDATE TO THE HYBRID GAS-ELECTRIC VEHICLE DEDUCTION The Working Families Tax Relief Act of 2004 restored the full $2,000 deduction for the purchase of a qualifying new
hybrid gas-electric passenger vehicle in 2004 or 2005. The current qualifying hybrid vehicles are:
- Honda Civic Hybrid, 2004 model
- Honda Insight, 2004 model
- Toyota Prius, 2004 and 2005 models
SALE OF PERSONAL RESIDENCE ACQUIRED IN A LIKE-KIND EXCHANGE A taxpayer can generally exclude up to $250,000 (or $500,000 for a married couple) of gain on the sale of a home,
provided the home was owned and used as a principal residence for two out of the five years before the sale.
However, effective October 22, 2004, if the home was obtained through a like-kind exchange, for example, a rental
property converted to a principal residence, the American Jobs Creation Act of 2004 does not allow the exclusion for
homes sold within five years of acquisition. |
