RockRidge Financial Blog >> The American Recovery and Reinvestment Act of 2009
Alternative Minimum Tax (AMT) Relief

In general terms, to find out if you owe alternative minimum tax (AMT), you start with regular taxable income, modify it with various adjustments and preferences (such as add backs for property and income tax deductions and dependency exemptions), and then subtract an exemption amount (which phases out at higher levels of income).
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Improved First-Time Homebuyer Credit

Last year's Housing Act included a refundable tax credit for first-time homebuyers equal to the lesser of 10% of the purchase price or $7,500 for qualifying purchases after Apr. 1, 2008 and before July 1, 2009. The credit is essentially an interest-free loan because it has to be paid back to the government over 15 years.
 
The Recovery Act has improved the credit for 2009 purchases by (1) eliminating the requirement to pay it back (subject to exceptions), (2) increasing the maximum credit to $8,000, and (3) making it available for purchases through November 2009.
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New Sales Tax Deduction for Vehicle Purchases

For 2009, there is a new deduction for state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles after Feb. 16, 2009 and before Jan. 1, 2010. The deduction generally is available regardless of whether you itemize deductions on Schedule A or claim the standard deduction.
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What You Need to Know About The American Recovery and Reinvestment Act of 2009

The American Recovery and Reinvestment Act of 2009 (commonly referred to as The Recovery Act), which was signed into law on Feb. 17, 2009, makes a number of beneficial tax changes for individuals. However, most of them are temporary in nature, that is, unless extended by future legislation, they apply for 2009 only or in some cases for 2009 and 2010.
 
Today, and over the next week, I’ll be posting about the more widely applicable provisions that could have an impact on you and your family.
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