Generating Cash Flow in a Cash-Poor Economy

The Worker, Homeownership and Business Assistance Act of 2009 allows businesses other than small businesses to carry back NOLs to more than two - and less than six - years. However, the amount of the NOL that may be carried back to the fifth tax year preceding the year of loss cannot exceed 50 perce...

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Bibliographic Details
Published inExecutive's Tax & Management Report Vol. 73; no. 1; p. 1
Main Author Hamilton, Anita
Format Trade Publication Article
LanguageEnglish
Published Riverwoods CCH INCORPORATED 01.01.2010
Subjects
Accelerated cost recovery system
American Recovery & Reinvestment Act 2009-US
Carryback
Cash flow
Corporate tax planning
Cost control
Depreciable assets
Internal Revenue Code
Net operating losses
Personal property
Section 179
Small business
Tax deductions
Tax refunds
Taxes
Taxpayers
United States > US
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Summary:The Worker, Homeownership and Business Assistance Act of 2009 allows businesses other than small businesses to carry back NOLs to more than two - and less than six - years. However, the amount of the NOL that may be carried back to the fifth tax year preceding the year of loss cannot exceed 50 percent of the taxpayer's taxable income for the carryback year computed without regard to the NOL for the loss year or any tax year thereafter. This applies to NOLs for 2008 and 2009. An additional deduction for 2009 is the increased Internal Revenue Code Section 179 depreciation expense deduction. It was extended to apply to tax years beginning in 2009. Thus, for tax years beginning in 2008 and 2009, the dollar limitation is $250,000 and the investment limitation is $800,000 The Economic Stimulus Act of 2008 allowed additional first-year depreciation for assets acquired and placed into service in 2008. The 2009 Recovery Act extends bonus depreciation for one year.
ISSN:1098-1594