Tax research in a down economy
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Tax & Research in a Down Economy. . Tax Research. This session will demonstrate how to utilize tax research to develop new revenue streams in a down economy .

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Tax & Research in a Down Economy.

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Tax research in a down economy

Tax & Research in a Down Economy.


Tax research

Tax Research

  • This session will demonstrate how to utilize tax research to develop new revenue streams in a down economy.

  • Technology has changed the way research is being done to increase practitioner efficiency and productivity. Areas to be covered are how to seamlessly scan you tax data and generate engagements directly out of your research tool to better relate to your clients.  Learn how a research tool can generate “smart charts” as a deliverable you can charge your clients for.  Explore the world of research and the ways to expand your practice by obtaining the knowledge and “how to’s” of the experts

American Recovery and Reinvestment Act


Tax research in a down economy

Areas of Change

  • How ARRA Provides Relief for Individuals

  • How ARRA Affects Housing and Transportation

  • How ARRA Affects Higher Education and Healthcare

  • Recent Changes Affecting Retirement

  • How ARRA Provides Tax Breaks for Businesses

  • Estate, Generation-Skipping, and Gift Tax Rules for 2009; and Issues Remaining After ARRA

American Recovery and Reinvestment Act


Do you know how the new laws affect your clients

Do you know how the new laws affect your clients?

Selling your Services via knowledge

Utilizing the power of connectivity

American Recovery and Reinvestment Act


Improve efficiency and increase revenue

Improve Efficiency and Increase Revenue

  • According to a recently conducted nationwide survey of accounting firms by CCH:

    • Among the factors most partners agree on are driving change and the need to improve efficiency and increase revenue

    • The need for continued growth is driving greater client specialization and firm alliances to expand and enhance client service

    • Increased efficiency and productivity needs require the accelerated adoption of paperless workflows and technology

    • Meeting client, firm and employee needs requires anytime, anywhere access to information and knowledge

American Recovery and Reinvestment Act


Improve efficiency and increase revenue1

Improve Efficiency and Increase Revenue

  • Increase revenue

    • Expand practice to include estate and retirement planning services

  • Improve efficiency

    • With easy-to-use, up-to-date, and robust research tools to provide anytime, anywhere access to information and knowledge

American Recovery and Reinvestment Act


Expanding your practice

Expanding Your Practice

  • Identify clients

    • Search current and prior year’s tax returns

    • Contact these clients to describe the advantages of retirement planning

American Recovery and Reinvestment Act


Extraordinary legislation for extraordinary times

Extraordinary Legislation for Extraordinary Times

  • Federal “economic stimulus” actions begin with late-year 2008 legislation

  • Laws enact “extenders” to stretch sunset of beneficial rates and credits through 2009

  • New 111th Congress passes the American Recovery and Reinvestment Act in response to stock market, employment, housing, and banking crises

American Recovery and Reinvestment Act


American recovery and reinvestment act of 2009

American Recovery and Reinvestment Act of 2009

President Obama signed the American Recovery and Reinvestment Act of 2009 (P.L. 111-5, the ARRA) into law February 17, 2009.

  • Estimated cost: $790 billion, with nearly $300 billion in tax relief

  • Impact on Internal Revenue Code: 300+ changes; one-third are tax incentives

  • Taxpayers affected:

    • Individual employees and self-employed persons

    • Home buyers and homeowners

    • Businesses acquiring equipment or claiming tax credits

American Recovery and Reinvestment Act


How arra provides relief for individuals

How ARRA Provides Relief for Individuals

American Recovery and Reinvestment Act


Overview how arra provides relief for individuals

Overview: How ARRA Provides Relief for Individuals

  • Creates new making work pay credit

  • Issues one-time $250 benefit to certain retired and disabled Americans

  • Extends unemployment benefits and provides exclusions from gross income

American Recovery and Reinvestment Act


Overview continued

Overview Continued

  • Expands earned income tax credit

  • Eases qualifications for child tax credit

  • Provides a patch for the alternative minimum tax

American Recovery and Reinvestment Act


Making work pay credit

Making Work Pay Credit

This new refundable credit is a feature of the ARRA recovery package based on earned income of employees.

  • Estimated cost: $116 billion over two years

  • Effective date: Retroactive to January 1, 2009, for 2009 and 2010

  • Excluded individuals:

    • Single filers having MAGI exceeding $95,000 (phaseout starts at $75,000)

    • Joint return filers having MAGI exceeding $190,000 (phaseout starts at $150,000

    • Dependents

    • Trusts and estates

    • Nonresident aliens

American Recovery and Reinvestment Act


Applying the making work pay credit

Applying the Making Work Pay Credit

  • Credit implemented by adjusting employees’ withholding

  • Maximum credit:

    • Lesser of 6.2% of earned income (up to $6,452; $12,903 for joint filers)

    • $400 for individual filers, $800 for joint returns

American Recovery and Reinvestment Act


One time 250 payment to certain nonworkers

One-Time $250 Payment to Certain Nonworkers

  • Payment no later than June 17, 2009

  • Qualified individuals:

    • Social Security benefit recipients

    • Railroad Retirement benefit recipients

    • Disabled veterans

    • Social Security income recipients

American Recovery and Reinvestment Act


Arra changes to unemployment compensation

ARRA Changes to Unemployment Compensation

  • Benefits of up to $2,400 excludible from gross income in 2009

  • Duration of benefits extended to 33 weeks

  • Weekly unemployment benefits increased by $25

American Recovery and Reinvestment Act


Are you communicating the information with your clients and prospects

Are you communicating the information with your clients and prospects

Client Relate Services:

Planning

Bulletins

Services

American Recovery and Reinvestment Act


How arra affects housing and transportation

How ARRA Affects Housing and Transportation

American Recovery and Reinvestment Act


Overview how arra affects housing and transportation

Overview: How ARRA Affects Housing and Transportation

  • Enhances first-time homebuyer credit of the Housing Assistance Tax Act of 2008

  • Does not change terms of the nonqu1alifying use applied to home sale gain exclusions

  • Expands personal credits for residential energy improvement expenditures

  • Keeps recently added exclusion from taxable income of the amount forgiven in cancellation of debt on home mortgages

American Recovery and Reinvestment Act


Modifications to first time homebuyer tax credit

Modifications to First-Time Homebuyer Tax Credit

ARRA makes key changes to the first-time homebuyer credit created by the Housing Assistance Act of 2008 applicable only to homes purchased between January 1, 2009, and November 30, 2009:

  • Increases the credit from $7,500 to $8,000

  • Waives the original repayment requirement for the credit

  • Extends the increased $8,000 credit through November 30, 2009

American Recovery and Reinvestment Act


Rules for first time homebuyers under arra

Rules for First-Time Homebuyers Under ARRA

  • A principal residence may be any of the following:

    • Freestanding one-family home

    • Multifamily home used as a principal residence

    • Houseboat

    • Mobile home

    • Condominium

    • Cooperative apartment

  • First-time homebuyers in the District of Columbia cannot opt to claim the DC homebuyer credit

American Recovery and Reinvestment Act


Nonqualifying use for home sale exclusion

Nonqualifying Use for Home Sale Exclusion

  • Qualified home sellers may exclude gain of up to $250,000 each ($500,000 for joint filers) from sale of their principal residence (this amount has not changed since mid-1997 and remains at this level post-ARRA)

  • Exclusion does not apply to post-2008 periods of “nonqualifying use” of property as:

    • Vacation home

    • Rental property

  • ARRA did not change the rules for the exclusion set by Housing and Economic Recovery Act of 2008

American Recovery and Reinvestment Act


Income exclusion for cancellation of debt

Income Exclusion for Cancellation of Debt

  • Qualified cancellation of debt income excludible for mortgage principal subject to:

    • Maximum of $1 million for single and married filing separately filers

    • Maximum of $2 million for joint filers

  • Exclusion applies only to indebtedness incurred for:

    • Home purchase (first mortgage)

    • Home building costs

    • Substantial improvements to main home

    • Refinancing remaining mortgage used to buy, build, or substantially improve main home

American Recovery and Reinvestment Act


Research at work

Research at work

Demonstration of effectively utilizing the tools

American Recovery and Reinvestment Act


Questions

Questions

[email protected]

American Recovery and Reinvestment Act


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