Knight Accounting and Technology

Just this in…the Democrats are NOT backing Obama’s tax cut plan, so my post on Monday is now incorrect!  The assumption was that he could get his Democrats to back him, and while there is still a chance, it is not certain!  Another thing to keep in mind (thanks to R.B. for reminding me…i encourage everyone to ask questions and keep me on my toes!)…the AMT has still not been patched for 2010.  While about 4 million taxpayers were subject to Alternative Minimum Tax last year, that number could grow to 25 million taxpayers this year if a patch is not set by December 31st!  I don’t know about everyone else, but this is keeping me on my toes lately!

It’s Official!  The Worker, Homeownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010). 

The Act has also extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.  For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.  The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.

For more on these new credits, visit my source: http://www.federalhousingtaxcredit.com/home.html.