tags: accountant new york, Homeownership and Business Assistance Act of 2009 (Public Law Number P.L. 11-92), MANHATTAN TAX, Net operating Loss, Net Operating Loss Carryback, new york certified public accountant, New York CPA, small business carryback, small businesses, Tax NYC, TAX PREPARATION NYC, Taxes NYC, Troubled Asset Relief Program, Worker
Good news for small business owners: Earlier this month, President Obama signed into law the Worker, Homeownership and Business Assistance Act of 2009 (Public Law Number P.L. 11-92). The passing of this legislation comes as quite a boon for small businesses who have experienced hardship due to the economy.
This new provision will enable any business with a net operating loss (NOL) to carry back losses incurred in either 2008 or 2009 against income earned in the past five years. This is in contrast to the previous provision issued earlier this year that only applied to small businesses and only allowed for a carry back period of 2 years.
The provision is available to any Taxpayer who has experienced an NOL for a taxable year ending after Dec. 31 2007 and beginning before Jan. 1, 2010, except those who have received payments under the Troubled Asset Relief Program.
Under the procedure, Taxpayers may elect to carry back a NOL for a period of three, four or five years to offset taxable income in those previous taxable years. A NOL carried back five years may not offset any more than 50 perfect of a taxpayer’s taxable income in the fifth preceding year. However, this limitation applies only to the fifth year, and does not apply to the fourth or third preceding year.
If you would like to find out how this new provision can help your business, feel free to contact me. My Manhattan CPA firm specializes in assisting small businesses and individuals. My practice has been serving clients in New York City and abroad for over 7 years. If your small business is in need of an experienced CPA, I’m your guy.
About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City (Manhattan), dedicated to helping small business owners, freelancers and individuals. In addition, we also provide CPA services to people outside of the state and country.
Jonathan Medows, CPA
MEDOWS CPA, PLLC
A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses