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Saturday, February 14, 2009

BULLET POINT SUMMARY OF TAX PROVISIONS OF NEW STIMULUS ACT

The House and Senate versions of The American Recovery and Reinvestment Act of 2009 has cleared the conference committee. Assuming passage by both houses of Congress, the following tax provisions will be in the version that goes to President Obama for signature. The following are short bullet points only to apprise yourself of the key tax provisions – there are plenty of materials that are or will be on the web that will provide the details for those that are interested.

  • Subsidy for COBRA Continuation Coverage of Unemployed Workers
  • New Temporary Deduction for Sales and Excise Taxes on Car Purchases
  • Partial Exclusion from Income of Unemployment Compensation
  • First-time Homebuyer Credit Eased
  • Computers Treated as Education Expenses under 529 Plans
  • A New “American Opportunity” Tax Credit
  • Refundable Child Credit Rules Eased
  • Increase in Earned Income Tax Credit
  • A New “Making Work Pay” Credit
  • S Corp Built-In Gains Holding Period Shortened Temporarily to Seven Years
  • Exclusion for Qualified Small Business Stock Increased to 75% of Gain
  • Modified OID rules for Certain High-Yield Obligations
  • Deferral of Debt Forgiveness Income On Repurchase of Debt
  • Expansion of Groups under Work Opportunity Tax Credit
  • Reduced Estimated Tax Burden in 2009 for Individuals With Small Businesses
  • Small Businesses May Elect Longer NOL Carryback Period
  • Act Boosts Code Sec. 179 expensing for 2009
  • First-Year Depreciation Dollar Cap for New Passenger Autos Placed in Service in 2009 Raised by $8,000
  • Additional 50% First-Year Depreciation OK'd for Most Types of New Depreciable Property Placed in Service in 2009
  • Boosted AMT Exemption Amounts for 2009
  • Personal Nonrefundable Credits May Offset AMT and Regular Tax for 2009
  • Repeal of AMT Limits on Tax Exempt Bonds Issued in 2009 and 2010
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