| Title: |
Economic Stimulus Act of 2008 and Late-Breaking 2007 Tax Legislation |
| Prerequisite: |
Overview of Federal Income Taxation or comparable knowledge/experience |
| Advance Preparation: |
None |
| Subject Matter Area: |
Taxation |
| Knowledge: |
Intermediate |
| Date of Publication: |
March 2008 |
| Copyright: |
© 2008 by Bisk Education, Inc. All rights reserved. |
| Recommended CPE Credits: |
1 QAS/Registry (based on 50-minute hour) |
| Expiration Date: |
One year from date of receipt to complete program and submit quizzer to obtain credit |
| Passing Grade for Quizzer: |
70 percent or higher |
Who is eligible for the individual income tax rebates? What is the new limit on IRC §179 expensing for equipment? What are the rules for claiming new bonus depreciation? How is relief from mortgage forgiveness determined? Which taxpayers are eligible for relief and which are not? What other forms of relief are available? Who is eligible for the deduction for qualified home mortgage insurance? When is the AMT credit refundable? What penalty can be imposed on the partners and S corporation shareholders when the reporting entity is late in filing its return? Which taxpayers will benefit from the increase in the AMT exemption for 2007? Ed Zollars, Bill Raby, Jack Norman and Lynn Nichols answer these questions and explain the new provisions of the Economic Stimulus Act of 2008 and the Tax Increase Prevention Act of 2007, the Mortgage Forgiveness Debt Relief Act of 2007, and the Tax Technical Corrections Act of 2007.
Note: Reporting of CPE credit to a CPA’s state board is the responsibility of the CPA. Subscribers to CPE Network Tax Report or the Bisk Audio Tax Report may not receive duplicate credit for this material, which previously aired in the February and March 2008 editions of those programs.
This text is divided into three (3) chapters:
Chapter 1 has two parts. In Part 1, Jack Norman and Lynn Nichols provide an overview of the Economic Stimulus Act of 2008, which was signed February 13, 2008. Key provisions include individual rebates and incentives for businesses to invest in equipment by offering immediate expensing of up to $250,000 of tangible personal property placed in service in tax years beginning in 2008 and first-year depreciation deductions of 50 percent of the asset's basis.
In Part 2, Lynn Nichols, Ed Zollars and Bill Raby explain the most important provisions of the Tax Increase Prevention Act of 2007, the Mortgage Forgiveness Debt Relief Act of 2007, and the Tax Technical Corrections Act of 2007. Key provisions include the increased AMT exemption, the exclusion for mortgage forgiveness on a principal residence, the deduction for qualified home mortgage insurance.
Chapter 2 contains supplemental materials, including summaries of:
- Economic Stimulus Act (March 2008)
- Fact Sheet 2008-16
- Tax Increase Prevention Act of 2007 (Feb. 2008)
- Mortgage Forgiveness Debt Relief Act of 2007
- Tax Technical Corrections Act of 2007
- Exclusion From Gross Income Payments From the Hokie Spirit Memorial Fund
- Energy Independence and Security Act of 2007
Chapter 3 contains two case studies.
E. Lynn Nichols, CPA, he is the founder of Mares Nichols CPE Inc., a developer of continuing education seminars for CPAs. He is a highly rated tax conference speaker and serves as an advisor to a number of local CPA firms on tax practice quality control issues, complex tax matters, and tax controversies. He serves his clients from an office in New Castle, Pennsylvania.
John L. Norman Jr., JD, is an attorney in private practice in Washington, D.C., where he specializes in closely held business organizations, as well as estate and financial planning. He is the former National Director of Taxation for the accounting firm Pannell Kerr Forster, and the Director of Tax Policy for Potomac Electric Power Company. He is presently a senior faculty member at the Keller Graduate School of Management, and previously taught at William and Mary and George Washington University.
William L. Raby, PhD, CPA, is a special consultant on tax matters with the law firm of Burgess Raby in Tempe, Arizona, and the former National Director of Tax Services for Touche Ross, as well as a past chairman of the AICPA's Federal Tax Division. Dr. Raby also served as the chair of the Arizona State Board of Tax Appeals. He is a Professor Emeritus at Arizona State University.
Edward K. Zollars, CPA, is a partner in the firm of Thomas & Zollars, Ltd. in Phoenix, Arizona. A former member of the AICPA Tax Section Tax Technology Committee, Mr. Zollars specializes in individual and business tax planning, as well as tax technology. He has been an expert speaker at numerous AICPA Tax Section meetings and has made presentations at the AICPA National Conference on Federal Taxes.