FEDERAL TAX UPDATES
SECTION 179 & BONUS DEPRECIATIONTWO TAX BREAKS TO JUMPSTART THE
ECONOMYADDED & INCREASED - ECONOMIC
STIMULUS ACT OF 2008EXTENDED - RECOVERY ACT OF 2009DOWN ECONOMY – BENEFIT ??
SECTION 179NOT A NEW BENEFIT9/11 INCREASED TO STIMULATE
ECONOMY$128,000 FOR 2008 – PURCHASES NOT TO
EXCEED $510,0002008 STIMULUS INCREASED TO $250,000 –
PURCHASES NOT TO EXCEED $800,000
SECTION 179 (CONT’D)QUALIFYING PROPERTYTANGIBLE PERSONAL PROPERTY USED IN
BUSINESSUSED OVER 50% FOR BUSINESSEQUIPMENT, FURNITURE, AIRPLANES,
SINGLE PURPOSE AGRICULTURAL BUILDINGS, LIVESTOCK, COMPUTER SOFTWARE
SECTION 179 (CONT’D)COST SEGREGATIONSPECIAL PURPOSE ELECTRICAL &
PLUMBING SEGREGATEDNEW & USED PROPERTY QUALIFYCAN NOT REDUCE INCOME BELOW ZEROCAN CARRYFORWARD TO FUTURE YEARSINCREASED AMOUNTS EXTENDED IN
RECOVERY ACT OF 2009
BONUS DEPRECIATION50% WRITE OFF YEAR OF PURCHASECAN DECREASE TAXABLE INCOME BELOW
ZEROCAN CREATE A NET OPERATING LOSSQUALIFYING PROPERTY–SIMILAR TO
SECTION 179MUST BE NEW PROPERTYNET OPERATING LOSS CAN NOW BE
CARRIED BACK FIVE YEARS – GET CASH NOW !!
FOR SMALL BUSINESSES WITH RECEIPTS LESS THAN $15,000,000
2009 RECOVERY ACT-INDIVIDUALS FIRST TIME HOME BUYER CREDIT - $7,500PASSED IN 2008 STIMULUS AS A 15 YEAR
LOANPERSONAL RESIDENCES PURCHASED
AFTER APRIL 9,2008 TO JULY 1, 2009TURNED TO A REAL CREDIT BY 2009
RECOVERYMUST BE PURCHASED IN 2009, PRIOR TO
12-1-2009INCOME LIMITATIONS - $75,000 S -
$150,000 MIR 2009-14 ALLOWS 2009 CREDIT ON 2008
RETURN
SALES TAX DEDUCTION-VEHICLESDEDUCTION FOR AGICARS, LIGHT TRUCKS, RECREATIONAL
VEHICLES,MOTORCYCLES PURCHASED 2009
UP TO $49,000 VEHICLE COSTAGI $125,000 S - $250,000 M
MAKING WORK PAY TAX CREDIT2009 & 2010 $400 S - $800 MREDUCED WITHHOLDING STARTING 4-01-
2009NO WITHHOLDING – CREDIT ON 2009
RETURN
FORGIVENESS OF DEBT INCOMEBANKRUPTCY & INSOLVENCY EXCLUDEDISCHARGE OF QUALIFYING FARM
INDEBTEDNESSDISCHARGE OF CERTAIN REAL PROPERTY
DEBTDISCHARGE UP TO $2,000,000 MORTGAGE
DEBT PRINCIPAL RESIDENCEDO NOT QUALIFY FOR EXCLUSION –
ORDINARY INCOME.