The Senate passed an extension of the Homebuyer’s credit unanimously, and the House passed it nearly unanimously. So the credit (up to $8,000) has been extended on home purchases until April 30, 2010.
There are some changes in the legislation. The allowable AGI for the full credit has been increased from $75,000 to $125,000 (single; the new limit for Married Filing Jointly is $225,000); the credit fully phases out at an AGI of $145,000 (single) or $245,000 (married). A few of my clients have inquired about this credit, and I based my answers on the old AGI numbers. When I return to Irvine next week I’ll send you revised information.
There was also a change to Net Operating Losses in this legislation. For 2008 and 2009 NOLs, you can carryback the losses for five years rather than the normal two years.
So how does Congress pass this bill–a bill that costs $1 Billion a month–and say that it’s revenue neutral? Joe Kristan noted that Congress used its normal accounting techniques. Those techniques would get you and I a fraud conviction but Congress writes the laws. But I digress….
What it means in English is that calendar-year corporations with $1 billion or more of assets have to overpay third quarter 2014 estimated taxes by 33.25%. They will recover it with a lower fourth quarter payment in December 2014, but that’s after the current five-year Senate budget window ends, so as far as Congressional accounting is concerned, it never happens.
I hope no one wonders why Congress gets such low approval ratings….
Other coverage:
Tax Lawyer’s Blog
Stacie More’s Tax Tips
Roth Tax Updates
Tax Girl