2009 Tax Updates
The Worker, Homeownership and Business Assistance Act of 2009,
signed into law on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts.
Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.
The new law also:
►Authorizes the credit for long-time homeowners buying a replacement principal residence, and
►Raises the income limitations for homeowners claiming the credit.
The American Recovery and Reinvestment Act of 2009 (ARRA) provides a number of tax incentive for individual and businesses. A summary of the ARRA provision is listed below. For more detailed information about these provisions, follow the links.
TAX INCENTIVES FOR BUSINESSES
►50% Special Depreciation Allowance/Bonus Depreciation
►Acceleration of Certain Business Credits
►Section 179 Expensing up to $250,000
►Expanded Net Operating Loss Carryback
►Estimated Tax Requirement Modified
►Discharge of Business Indebtedness
►Exclusion of Gain on the Sale of Certain Small Business Stock
►S-Corporation Built-in Gains Holding Period
►COBRA - Health Insurance Continuation Subsidy
►Work Opportunity Tax Credit
TAX PROVISIONS FOR INDIVIDUALS
►Making Work Pay - adjusted payroll tax tables means more take home pay for many working Americans
►First-Time Homebuyer Credit - a credit up to $8000 for qualifing taxpayers who buy a principal residence in 2009
►New Vehicle Purchases - individuals buying certain new vehicles in 2009 may qualify for a deduction
►Enhanced Credits
►Increased Transportation Subsidy
►Tax Free Unemployment Benefits - the first $2400 of unemployment benefits in 2009 are tax free
►Economic Recovery Paymnet - $250 will be paid to Social Security recipients, Veterans, and Railroad Retirees
►Energy Efficiency and Renewable Energy Incentives
►Health Coverage Tax Credit