Tax Incentives To Consider in 2009
Thursday, June 25, 2009 at 2:44PM MAD21 By Brian, CPA
As a result of recent economic conditions and policy moves, Congress has created more and more liberal tax incentives than I have ever seen in my long years of doing income tax work. If you happen to be in a position to take advantage of them, the savings can be huge. OF COURSE, as my parents said so often, a bargain isn't a bargain unless you would have bought it anyway....
By far the largest for consumers is the liberalized first-time homebuyer credit. It's claimed on IRS Form 5405. In general, for the purchase of a qualifying first-time principal residence this credit is available for 10% of the purchase price, up to $8,000 for 2009 purchases. It's critical to note that this credit fundamentally changed radically for 2009. For 2008 it was a good deal, but really only an interest free loan that had to be repaid over 15 years through the purchaser's tax return. For 2009 there is no repayment as long as the house remains the principal residence of the purchaser for 36 months.
Auto Sales, Finances, Financial, Taxes in Finances