Joe Kristan reports that the House has expanded the new homebuyer credit and extended the carryback period for 2008 and 2009 net operating losses (NOLs) to 5 years:
H.R. 3548 expands the credit to single taxpayers with AGI up to $125,000 and joint filers with AGIs up to $225,000; it phases out over a $20,000 AGI range beyond those limits. It also enables non-virgin homebuyers to qualify for a $6,500 credit if they’ve been in a house for five consecutive years out of the last eight.
The $8,000 credit was slated to expire at the end of this month; it now runs through next April 30.
The bill also allows all taxpayers to carry back net operating losses for 2008 or 2009 back five years — with a weird provision that only lets you offset half your income for the fifth carryback year. This will be welcome news to many taxpayers.
A similar provision passed last year only applied to 2008 losses, and only for businesses with gross receipts up to $15 million. Many money-losing businesses have higher gross receipts, and many businesses are having a worse 2009 than 2008.
Related Posts:
- Homebuyer Credit Extension: Say it Ain’t So (Says) Joe
- 4 Year Old Gets Homebuyer Credit
- IRS Changes 5 Year NOL Carryback Election Rule
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1 Homebuyer’s Credit Extended; NOL Loss Changes « Taxable Talk // Nov 11, 2009 at 2:25 pm
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