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INDIVIDUALS
- No RMD (Required Minimum Distribution) required for 2009 - applies to participants in IRAs and defined contribution plans.
- Did you lose money in a Ponzi scheme? You may be able to take losses on your tax return.
- Residential Energy Credits are back! - now 30% of
cost of improvements, up to $1,500, may be taken over several years but
all energy credits taken count toward the $1,500 (example - you claim a
credit of $900 in 2009, your maximum available for 2010 is the
remainder of the $1,500 credit, or $600). Credit now applies to
certain asphalt roofs and energy created by biomass stoves. Solar
credit is $2,000. This credit is not limited to primary residence, but
does not extend to investment properties.
- First Time Homebuyer tax credit has been extended.
10% credit, up to $8,000, is available for home purchases between
1/1/09 and 4/30/10 (may be extended to 6/30/10 if under contract on
4/30/10). To be considered a first-time homebuyer you cannot have
owned a home within 3 years prior to date of close. If married, your
spouse must meet the same 3 year test. The credit phases out if your
AGI is between $75K and $150K.
- Long Time Homeowner tax credit now available. 10%
of purchase price of a replacement home, up to $6,500, is available on
primary residence purchases that close between 11/6/09 and 4/30/10
(same 6/30/10 extension available if under contract on 4/30/10). To be
considered a long-time homeowner, you must have owned your previous
residence for 5 consecutive years out of the 8 years preceding the
purchase of the new home. If married, your spouse must meet the same 5
out of 8 year test. The credit phases out if your AGI is between $75K
and $150K.
- Roth IRA Conversions and Recharacterizations - Are
you thinking about converting a Traditional IRA or existing employer
account to a Roth IRA? Did you already do a Roth conversion, and then
Recharacterize back to a Traditional because of a drop in the account
value? Did you know you could reconvert to a Roth? We can help you
decide if you are eligible, and if Conversion/Reconversion makes sense
for you.
BUSINESSES
- Section 179 may be taken up to $250K for the year if total purchases are no more than $800K. If 2009 purchases exceed $800K, 179 deduction drops dollar for dollar.
- 50% bonus depreciation is available for MACRS
property with no more than 20 year recovery period, water utility
property, off the shelf computer software and qualified leasehold
improvement property.
- Businesses may claim a 65% COBRA deduction for
premiums paid for employees - taken on form 941. Taxpayer portion of
COBRA payment tax deduction is recaptured and taxable at AGI between
$150 and $175K.
- Net Operating Losses may be carried back 5 years instead of the prior 2 year limitation.
- 2009 standard mileage rate for business use is 55 cents.
ALL CLIENTS
- Get us your paperwork now for any big events in 2009.
Did you buy or sell a residence or business property? Convert a Roth
IRA? Sell a large chunk of stocks? Even if the rest of your documents
are not ready, get us the information on these significant transactions
now - it can save you time and even money to get a head start on these
items.
- Need tax info before April 1st to meet April 15th filing deadline. It takes time to thoroughly prepare and review a tax return. If you bring us your documentation on or after April 1st, we cannot promise to have your finished return to you by April 15th.
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