New Tax Laws Having a Profound Impact on Individuals.

PRLog (Press Release) – Oct 06, 2008 – Recent tax law changes coupled with the bail out plan passed by the president makes yearend tax planning essential. There have been several tax law changes since summer 2008. Analysis of your financial situation in light of these recent changes may necessitate some life changing decisions. These recent law changes make it financially incumbent upon taxpayers to visit with their tax strategist immediately.

Many Americans are struggling with decisions that may impact their financial lives for years to come.    If individuals are thinking about walking away from their homes, possibly thinking of buying a home , if they are concerned about tax implications as a result of any financial moves in 2008 or if they are paying estimated taxes,  they need to stop and revisit these decisions.

There have been several major tax acts since the beginning of summer that have a profound impact on individuals.

Emergency Economic Stabilization Act of 2008
This is the major piece of legislation passed; it has some major significance to tax planning. It allows for the restructuring of some loans, including the write-down of principal. It also allows taxpayers to treat gains/losses from the sale of preferred stock in certain troubled financial institutions as ordinary gain/loss.
 
Energy Improvement and Extension Act of 2008
This act extended a host of credits that had expired in 2007 or were to expire in 2008. These credits are associated with renewable energy, alternative fuels, and energy efficiency. Some of these credits are available for the individual homeowner.

Alternative Minimum Tax Relief Act of 2008
First and foremost, the AMT exemption has been increased for another year and this will have a major impact on anyone in an alternative minimum tax situation. For itemizers, the state and local sales tax deduction has been extended through 2009. The $250 teacher deduction and the qualified tuition deduction have been extended through 2009. The additional $500 property tax deduction for non-itemizers that was just added by the Housing Assistance Tax Act this year has already been extended to include 2009.

Before making any financial moves, check in with your tax professional and make sure your decisions are solid in light of the recent tax law changes.

Karla Dennis is a Tax Strategist, Speaker and President of COHESIVE™, a tax advisory firm.  COHESIVE™ is licensed in all 50 states and consults with clients Nationwide.

COHESIVE™
6701 Katella Avenue
Suite 110
Cypress, CA 90630
1-800-878-4051
http://www.cohesivetax.com