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The Worker, Homeownership, and Business Assistance Act of 2009
November 6, 2009
By a landslide vote, Congress has recently passed the Worker, Homeownership, and Business Assistance Act of 2009. The President is expected to sign the bill into law shortly. This tax legislation has several tax breaks for both individual taxpayers and businesses.
The biggest buzz is related to the extension and enhancement of the First-time Homebuyer's Credit. The original credit was set to expire soon. However the new law extends the $8,000 credit: taxpayers must enter into a binding contract by April 30, 2010 and must close before July 1, 2010. The new law enhances the old credit by allowing non-first-time homebuyers a reduced credit. Effective for purchases after the enactment of the law, taxpayers who have owned and used the same residence for any five consecutive years in the previous eight-year period will now be eligible for a $6,000 credit on a subsequent principal residence purchase. There are some limitations on claiming the credit such as purchase price limits and adjusted gross income limits - please contact your 415 Group advisor for more details.
While the 2009 Recovery Act had allowed eligible small businesses to elect to carry back net operating losses for five years rather than the standard two years, this new legislation allows a similar election for all U.S. businesses with certain limitations. Limitations include a 50% income limit on the NOL offset in the fifth year and choosing which year's NOL to carry back (2008 or 2009 but not both).
For more information on the new tax law or to discuss how the law impacts your tax situation, please contact your 415 Group advisor.
by: Kathleen S. Krohn, CPA
