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Items to Consider for Your 2009 Tax Return (Individual & Corporate)

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.

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