For once, the last minute add-ons into a Bill made sense! Or at least they did if you are a small business owner.
The AMT band-aid was extended for another year. I was just starting to gear up some AMT education through TaxLoopholes. If the band-aid had not been extended another 25 million taxpayers would have become subject to this tax. I’m glad the patch was extended through 12-31-08 (for 2008 tax year) but I do hope that they once and for all tackle the AMT issue.
We also saw extensions for a lot of the expiring tax provisions. Please go to the First Class Lounge forum for my quick review of the new Bill. It’s law now. The House passed it yesterday and President Bush quickly signed it. It’s over 442 pages and there is obviously a lot about the bail-out and how it will work. But, there are also some hidden gems and a few strange things for business owners.
For example, you can now get a $20/month credit for riding your bicycle to work! I’m not quite sure how that will work with a home office, but the mental image I keep coming up with would delight my teenage son. (Bicycle on the hardwood stairs to the downstairs office??)
If you’re not yet a member of the First Class Lounge forum, you can try it out for FREE! for 30 days with absolutely no future obligation. You can post questions, get in lively discussions, learn the latest in tax strategies and be inspired by the other active entrepreneurs posting there. PLUS you get an exclusive weekly online workshop and discounts on the educational products. Try it out. You’ll see why people are signing up in droves!