||Field Of Study
|Interactive Self Study
||General Understanding of Federal Income Taxation
|Basic to Intermediate
American Recovery and Reinvestment Act
This course focuses on key tax provisions enacted under the $800 billion American Recovery and Reinvestment Act of 2009 by analyzing tax issues affecting individuals and businesses contained in this first installment of President Obama’s massive economic and recovery agenda. Individual provisions included a new "making work pay” tax credit, an AMT patch, a sales tax deduction, tax credits for education and first-time homebuyers and enhanced tax benefits for energy efficient improvements to homes. Business provisions included the treatment of such issues as extended bonus depreciation, a limited five-year net operating loss carryback period, small business expensing and capital gains, estimated tax payments, and COBRA coverage. In addition, the course discusses new energy incentives and changes made to former energy regulations.
Who Should Attend: CPAs, Enrolled Agents, Registered Tax Preparers and all Tax Professionals
- “Making Work Pay” Tax Credit
- “American Opportunity” Education Tax Credit
- Modified Homebuyer Credit
- AMT Patch for Individuals
- Extension of Bonus Depreciation
- Extension of Enhanced Small Business Expensing
- 5-Year Carryback of Net Operating Losses
- Delayed Recognition of Certain Cancellation of Debt Income
- Tax Credits for Energy-Efficient Improvements to Existing Homes
- Advanced Energy Investment Credit
1. Recognize the individual tax provisions of the American Recovery and Reinvestment Act of 2009 (“Act”) by:
a. Identifying the "Making Work Pay" tax credit, the economic recovery payment to Social Security and SSI recipients and the EITC;
b. Citing Act modifications to the 2008 Stabilization Act child tax credit provisions, the Hope credit (renamed the American Opportunity tax credit), tuition saving accounts, the homebuyer tax credit and the low-income housing tax credit; and
c. Determining how to account for and compute 2009 unemployment compensation taxation, allowable qualified motor vehicle deductions, and 2009 individual AMT exemption amounts.
2. Identify the business tax provisions of the American Recovery and Reinvestment Act of 2009 (“Act”) by:
a. Citing changes to the bonus depreciation provision (§168(k)), listing dollar caps for vehicles, and identifying a special election for corporations;
b. Recognizing extended §179 expensing, revised net operating loss provisions; estimated tax payments for small businesses, category additions to the work opportunity credit, and employer-provided transit and vanpool benefits under the Act;
c. Determining the impact of Congress's legislative response to Notice 2008-83, the new cancellation of indebtedness income election, the §1202 small business stock percentage exclusion, the reduced holding period for §1374 assets and the new markets tax credit; and
d. Recognizing the new COBRA requirements, delayed implementation 3% government contractor withholding and the expanded definition of industrial development bonds.
3. Identify the energy provisions of the American Recovery and Reinvestment Act of 2009 (“Act”) by:
a. Specifying the tax benefits, limitations, and requirements of credits for energy property (specifically including solar electric and water heating property), alternative fuel refueling property, electric drive motor vehicles, renewable energy production, and advanced energy manufacturing projects.
b. Determining when an investment tax credit can be taken in lieu of the production tax credit; and
c. Locating the differences between prior law and the Act's expand-ed program for clean renewable energy bonds and qualified energy conservation bonds.