If you have a client that owns Commercial or Residential Rental property that is currently profitable, or was profitable within the last five years, a properly performed engineering based cost segregation study could help reduce their current tax burden or help them qualify for a tax refund. We can provide a free initial evaluation for the property that you can use to assist them with year end tax planning strategies.
December 4, 2009
President Obama signed H.R. 3548, The Worker, Homeownership, and Business Assistance Act of 2009 into law. One of the provisions of the act is the extension of a Five Year NOL Carry Back to most businesses for 2008 or 2009. Previously, under the American Recovery and Reinvestment Act of 2009, eligible small businesses (with average gross receipts of $15 Million or less) were allowed to carry back Net Operating Losses (NOLs) from 2008 for three, four or five years rather than the standard two years.
The new act expands the election to allow most businesses (large and small) to carry back NOLs incurred in 2008 or 2009 (typically not both) to the previous five years. Under the new act, an NOL carried back to the fifth year before the loss is limited to 50% of the available taxable income for that year. Any remaining NOL can then be applied in remaining four carry back years.
BENEFIT: A business can carry back an NOL to a [Read more…]