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The crisis in the financial markets, the housing slump and the credit crunch are
straining our fragile economy. Consumer and business spending is down and
everyone it seems is looking for ways to make their money go further. On October
3, the President signed into law a $850 billion financial markets rescue
package, the Emergency Economic Stabilization Act of 2008 containing
more than $150 billion in tax incentives.
Troubled Assets Relief Program.
Congress gave the Treasury
Department sweeping powers to purchase "troubled assets" from banks and other
institutions. Many of these troubled assets are linked to home mortgages.
However, the housing slump has sent millions of homeowners into foreclosure,
making these assets much less valuable.
... more general
tax provisions...
Tax Incentives for Individuals.
Many of individual incentives are
familiar. The new law extends the state and local sales tax deduction
(especially beneficial to Tennesseans), middle income AMT relief, higher
education tuition deduction, teachers’ classroom expense deduction, and tax-free
distributions from IRAs for charitable purposes. In all, more than a dozen
important tax breaks has been given new life by being extended. These incentives
are now available for 2008 and 2009. ...more individual
incentives...
Tax Incentives for Businesses.
The business tax incentives in the rescue
package are extensive. The largest business incentives are the research tax
credit, faster write-offs for leasehold improvements, energy conservation,
charitable contributions and disaster relief provisions.
...more business
incentives...
Time for planning.
The Emergency Economic Stabilization Act of 2008
is one of the largest tax laws in recent years. You may be able to take
advantage of one or more the tax incentives. There is still time in 2008 to
utilize these incentives in your strategic tax planning. Planning to take
maximum advantage of these incentives in 2009 also should start now. Please call
or email our office so we can discuss these opportunities in more detail. |
