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Package Deals

Posted by Myles B. Brandt on 4 June 2009 | 0 Comments

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Needless to say, there’s a lot of confusion in the air right now. With multi-thousand page bills being rushed through Congress and endless speculation on new regulatory and tax proposals, the line between proposed and enacted legislation can be a bit blurry. Financial Planning Magazine had an article entitled “Unwrapping the Package” which lists some of the items in the American Recovery and Reinvestment Act of 2009 that you can benefit from. To read the article, follow the link: http://www.financial-planning.com/fp_issues/2009_5/unwrapping-the-package-understanding-stimulus-bill-2661665-1.html

 

Some items of interest that can help Small Business Owners are increasing the Section 179 deduction, bonus depreciation, up to 5 year look back on losses, and less strict requirements on estimated taxes.

 

If you have just been or know someone who was laid off, it will be worth noting that the first $2,400 of unemployment income is income tax free, and COBRA insurance payments are 35% of your premium.

 

For AMT tax purposes, you don’t have to include interest on private activity municipal bonds. There are also a few environmental, educational, and automotive incentives.

 

Perhaps the most important is the tax credit for first time homebuyers (or at least those who haven’t owned a home for three years or more). The 2009 limit was raised to $8,000.

 Of course, as with all tax incentives, certain limitations, phase-outs, and exceptions apply.
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