Monday, November 9, 2009
A Primer On The Worker, Homeownership, and Business Assistance Act of 2009
The Congress just passed The Worker, Homeownership and Business Assistance Act of 2009 this past week and was promptly signed into law by the president. The most publicized aspect of the bill is the extension of the deadline of the First Time Homebuyer Credit from November 1, 2009 to May 1, 2010. Also part of the bill was the creation of a new credit for homeowners or those who have owned in the past and are in the process of buying a new home. The way it works is those who have owned a home that was their principal residence for five consecutive years out of the previous eight can claim a $6500 credit on the purchase of a new home. For both the $8000 and $6500 credits, they have increased income levels from $95,000 for single people to $125,000 and from $170,000 to $225,000 for married filing jointly. Another important part of the bill is new carryback loss rules which will allow businesses to carryback losses five years instead of two on losses from 2008 and 2009. Businesses can offset 50% of losses on the fifth year and 100% on the remaining four. This will allow struggling businesses to access needed funds.