OrionTheWolf
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ORIGINAL: rulemylife
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ORIGINAL: Mercnbeth
As expected the responses are not pointing to anything stimulated positively by this administration.
Well, for startes, the tax credits. There are more than what I've posted here, just among the tax credit provisions in the bill. But this should get you started if you really want to see what is being done instead of complaining that it's not working when it's only four months old.
Yeah I am seeing many things that can be easily manipulated and used to mine and my clients advantage to lower our tax burden. I get this small business nadbook every year that usually puts it in a more common language, and it looks like they are rushing it to press and I just did a pre-order.
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And I know you tried to head off that argument but these tax credit provisions were designed specifically to improve economic performance over the next two years, so four months into it is not going to provide any reliable indication of whether they are working or not.
The individual tax credits of $400 were already mentioned.
$800 for married, and it phases out to be nothing at AGI of $75,000 single and $150,000 married.
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Then the $8000 tax credit for first-time home buyers, which is a fully refundable credit, meaning even if you don't pay that much in taxes you get a check for the balance. Which is something that should prove to not only stimulate the housing market but also put cash directly into the economy.
I have been looking into it, but I wonder if mortgage companies will take this into account and allow it to be used as part of the downpayment. They are asking for some pretty hefty downpayments these days.
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Increased the amount of the college tax credit, increased those eligible for it, and expanded it to apply to books and supplies as well as tuition. This is also a partially refundable credit so if you don't pay enough tax to qualify you get a direct check:
The New, Improved College Tax Credit - Forbes.com
Not to mention you can pay straight out of a 529 plan for technological things that are used for school, including internet service. My small business clients with kids in college will be able to take full advantage of that, as well as computers and such for the home. Still waiting to see what the restrictions are.
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Various energy tax credits:
ENERGY TAX CREDIT PROVISIONS FEDERAL STIMULUS LEGISLATION
The biggest one I saw is the 30% credit for the price of energy effecient windows and doors. I have been needing to do that anyway, so I will calculate my tax burden this year (now that I am caught up) and see how much I need to replace.
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Increased the amount and removed caps and limits on the HVAC tax credit which encourages homeowners to upgrade for better energy efficiency and stimulate sales and installation for HVAC companies.
For business specifically:
The American Recovery and Reinvestment Act of 2009: Information Center
Net Operating Loss Carryback, Sec. 179 Deduction and Other ARRA Business Provisions
Small businesses with deductions exceeding their income in 2008 can use a new net operating loss tax provision in the American Recovery and Reinvestment Act (ARRA)to get a refund of taxes paid over the past five years instead of the usual two
Reduction of Estimated Tax Payments: Normally, small businesses have to pay 110 percent of their previous year’s taxes in estimated taxes. The Recovery Act permits small businesses to reduce their estimated payments to 90 percent of the previous year’s taxes.
Extension of Bonus Depreciation Deductions Through 2009: Bonus depreciation is extended through 2009, allowing businesses to take a larger tax deduction within the first year of a property’s purchase.
Capital Gains Tax Break for Investment in Small Business: Investors in small business who hold their investments for five years can exclude from taxation 75 percent of their capital gains.
These will take a lot more study to see where the best advantage is here.
This tax system is great, if you have the money to gain the advice you need to manipulate it, then you pay less taxes than someone that does not have the money or is smart enough to manipulate it (sarcasm for those that do not know I am a fairtax supporter).
Thanks for the links RML, as it gave me more information, I checked on that small business hand book which is coming out early this year, so I can advise more people on how to pay less taxes.
Just curious but did you see any of the projected returns on any of those cuts?
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RE: What's Been Stimulated? - 
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