As you begin preparing your 2009 tax individual or corporate tax return, there are several items to keep in mind.
What Individuals need to watch out for when filing 2009 returns:
- Effects of the American Recovery and Reinvestment Act of 2009:
– Making Work Pay Credit
– Changes to the Alternative Minimum Tax
– First Time Home Buyer Credit
– American Opportunity Credit
– Long-Time Resident Home Buyer Credit
– Energy Efficiency Credits
– For more information, read our overview of the American Recovery and Reinvestment Tax Act of 2009 –
Individual Tax Provisions.
- Definition of a dependent:
– More detailed (and confusing) definition of who qualifies as a dependent
– Detailed rules for non-custodial parents to take qualifying child as a dependent
- Changes for homeowners:
– Mortgage Forgiveness Debt Relief Act of 2007 and the rules for reporting cancellation of debt
– Deduction for real estate taxes paid for non-itemizers
- The amount of the phase-out for itemized deductions is reduced
- Installment agreements can now be applied for online
What Businesses need to be aware of for 2009 returns:
- Bonus depreciation of 50% is extended for property placed in service before 1/1/10
- Section 179 expense limit of $250,000 remains in effect for 2009
- Net Operating Loss (NOL) carrybacks can be carried back 3,4 or 5 years, with some limitations
- New IRS rules regarding Cancellation of Debt income for S Corps
- 15 year write-off allowed for certain leasehold, restaurant and retail improvements
- Penalty for late filing of Partnership or S Corporations raised to $195 per owner
- Possibly minimizing self-employment tax of LLC
- Proposed IRS regulations contain rules for expensing vs. capitalizing repairs and property acquisitions
- For more information, read our overview of the American Recovery and Reinvestment Tax Act of 2009 – Business Tax Provisions.
For answers to questions about the above items or any other tax issues, post a comment below or contact our Tax Planning & Preparation Group at 440-449-6800.