In these tough economic times, people are looking for tax breaks much more so than they do normally. Congress, realizing the need to get the economy going again, has extended and expanded several tax incentives, and come up with some new ones as well.
The first-time homebuyer credit, set to expire November 30, 2009, was extended to April 30, 2010. It was expanded to include individuals who have owned their homes and used them as their principal residence for any five consecutive year period in the past eight years.
An election available to qualified small businesses with net operating losses incurred in 2008, giving them the choice to carry back these NOLs three, four or five years, was expanded to include all U.S. businesses and NOLs incurred in 2008 or 2009.
Rules regarding conversions of traditional IRAs to Roth IRAs have been modified to eliminate the income threshold for conversions made in 2010. This makes Roth conversions available to many more taxpayers in 2010. The income tax on 2010 conversions may also be deferred to 2011 and 2012.
Energy credits have been modified and extended, not only as tax incentives, but also to encourage development of alternative energy sources.
The staff at Blackman & Sloop has the resources available to help you through the maze of tax rules. If you have any questions regarding the above items, or you have another question related to your income taxes, please feel free to contact us.
IRS Circular 230 Notice: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment).
About Blackman & Sloop CPAs, P.A. :
Blackman & Sloop is a full-service CPA firm headquartered in Chapel Hill, North Carolina and is actively involved in auditing, taxation, management consulting, financial planning, and related services. The firm directs a large part of its services toward providing management with advice on budgeting, forecasts, projections, financing decisions, financial analysis, and tax developments. The firm also performs review and compilation services and prepares not-for-profit, corporate, individual, estate, retirement plan, and trust tax returns as well as technology consulting services regarding installation and training on QuickBooks. Blackman & Sloop provides services in Raleigh, Durham, Chapel Hill, RTP, Hillsborough, Pittsboro, Charlotte, and the rest of North Carolina. To find out more please visit http://www.blackmansloop.com
Contact: CPA cpa@blackmansloop.com
Toll Free: 1-877-854-7530 The Exchange West 1414 Raleigh Rd, Suite 300 Chapel Hill, NC 27517