New and Extended Tax Incentives
Within the 451 page Rescue Bill are nearly 100 tax code changes that directly affect individuals and business owners, including education deductions, sales tax, energy credits, and even new disaster aid. Other tax breaks, which were due to expire, were extended, including property tax deductions, the Mortgage Debt Forgiveness Act, and the shield for the Alternative Minimum Tax (AMT). The property tax provision, set to expire in 2008, has been extended to 2009, and allows up to $500 ($1000 for joint filers) in deductions in addition to the standard property tax deduction – even if you don't itemize! The Mortgage Debt Forgiveness Act, extended to 2012, was designed to protect those who already lost their homes due to foreclosures from facing an additional tax penalty for qualifying cancelled or "forgiven" debt of up to $2 million. And, finally, the Rescue Bill also saves about 23 million Americans from the dreaded AMT, a kind of extra tax that some people have to pay on top of their regular income tax created by the Tax Reform Act of 1969.
These are just a few of the potential tax benefits created or extended by the Rescue Bill. As always, there are specific qualifying standards, and so it is essential to speak with a qualified tax professional about these and other tax benefits that could help you lower your tax bill and increase your confidence in today's tumultuous financial markets.
Comments (3)
I'm looking forward to hearing what else you've got to share, Jonathan.
Joshua Dorkin, over 15 years ago
Really, I'm not sure anyone has a grasp on it. What I can say is that people should have a really good CPA, not just accountant (no offense to accountants, my mother is an accountant :) and these were her words). As the tax laws change so do the times and may of our clients may it be short refinance or short sale currently rely on these tax benefits so we hope that some of the more important ones get extended as well. Thanks for posting! Stay tuned as there will be many other posts to come.
Jonathan Katz, over 15 years ago
All the accountants must be spinning with everything the government has been up to. Does anyone really know all the ramifications yet?
Joshua Dorkin, over 15 years ago