Tax Lawyer Blog

A Blog written by the Tax Attorneys for Individuals and Businesses

American Recovery and Reinvestment Act of 2009

What you can do right now for your bottom line. 
The Stimulus Bill, a.k.a., The American Recovery and Reinvestment Act of 2009 provides for many practical and valuable tax incentives which will really benefit individuals and businesses. Everyone should consult with a tax advisor, as this is not “a walk in the park.” Knowing how to take advantage requires understanding of qualifications and your circumstances. We call this “intelligent tax planning.”

At our law firm we practice aggressive tax negotiations and “intelligent tax planning” and want to take every deduction and credit where legally applicable to our clients. We watch out for phase-outs and qualifications for tax deductions and credits, business goals, and your bottom line.

Some highlights of this Stimulus Bill:

Depreciation:

A bonus for small business. Section 179 Deduction: now allows a taxpayer to expense up to $250,000 of qualifying property, with a phase out of qualifying property valued above $800,00. This is almost double the prior expense allowance.

Bonus Depreciation & Carry Back Losses:

Need some cash? Need some new equipment for your business? There is now a 50% first year bonus depreciation for qualified property placed in service in 2008 and extending to 2009. Businesses consider using this increase in depreciation and to take advantage of net operating loss carry backs for small businesses.

Special Depreciation and Sales Tax Deduction:

Need some new wheels? Purchase a qualified new motor vehicle, motorcycle, or motor home and starting on February 19, 2009, both itemizers and non-itemizers are allowed a deduction for sales and excise taxes incurred on the purchase.

The bottom line: to flourish in this economy stay ahead of taxes.

March 2010 Tax Times

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Articles in this issue:

THE UNINTENDED CONSEQUENCES OF SECTION 1706 AND
POSSIBLE SOLUTIONS Plane Crashes into IRS Building ~
Suicide Note Blames I.R.C. § 1706
Article by Anthony Diosdi, J.D., L.LM
Senior Associate Attorney

THE ESTATE TAX: THE GOOD AND THE BAD
Article by Anthony Diosdi, J.D., L.LM
Senior Associate Attorney

ASSET PROTECTION
Article by Stephen M. Moskowitz, J.D., L.LM
Senior Partner

ESTIMATED TAX PAYMENTS
Article by Christopher P. Housh, E.A.
Enrolled Agent