April 15th is less than six weeks away and we all know what that means. If you've yet to visit your accountant or tax preparer, there are some new tax laws, as well as a few old ones you need to know about. But, don't worry. All of the information we're going to share falls under the category of "good news".

Back again for his yearly tax-time advice is Trevor Rice, a certified public accountant and shareholder with Stern, Kory, Sreden and Morgan, AAC in Stevenson Ranch, California. Considering that Rice's appointment book is filling up quickly, we thought it would be a good idea to get him talking about some of the more favorable changes regarding our taxes from last year.

For Individuals
"With a lot of people struggling and finding themselves in survival mode," Rice says, "Our government is responding with help in the form of new tax laws."

According to Rice, the biggest benefit in terms of tax relief is extended to those who are losing their homes to either foreclosure or short sale. He says in the past, the amount forgiven by the lender could have been considered taxable income. Under the current law, up to $2,000,000 of cancelled debt can be excluded from being taxed.

Rice warns there are some provisions to the law. For starters, it ONLY applies to your principal residence. It also ONLY applies to the debt incurred from either buying the house, or from making upgrades and repairs. In other words, drawing from your equity line to pay off a credit card may still be taxed. Rice went on to say if you are deemed insolvent (the value of your total assets is less than your debt), you might be able to exclude ALL of the cancelled debt.

With this and every other tax law we'll talk about, Rice asks you to check your state laws, and consult with your CPA or tax preparer. While they will apply to your federal income taxes, they are not guaranteed to apply to your state taxes.

The next great tax break is for first-time home buyers, as they are eligible to receive an $8,000 refundable tax credit. Before we go any further we should make it clear that anything labeled a "tax credit" is a dollar for dollar reduction of your tax. Anything labeled a "deduction" is something that reduces your tax based on your income tax bracket.

You should also be made aware the term "first-time home buyer" is defined as anyone who has not owned a principal residence in the last three years. However, the provisions for using this credit on your 2009 taxes include entering into a purchase contract no later than April 30, 2010 and closing the transaction by June 30, 2010. It only applies to homes up to $800,000 in cost, and if you are a high-earner you may not qualify.

Along the same lines for homeowners in 2009 is an existing home buyer tax credit. This is a $6,500 credit for anyone owning a home as a primary residence, five out of the last eight years, but is looking to buy a new home. The same deadline dates for first-time home buyers apply to this credit as well. High-earners may also not qualify.

There's some good news, Rice says, for anyone who made energy-efficient improvements to their home in 2009. A $1,500 tax credit (30% of the first $5,000 spent) is available. Some examples would include the installation of energy-efficient windows or doors, insulation, a new furnace, or water heater. In the case of solar energy upgrades, the credit is thirty percent of the total cost, with no limit!

For anyone who has a child in his or her first four years of college, there is a new $2,500 credit. Also new is that forty percent of this credit is refundable. In other words, if the $2,500 credit exceeds the amount of your tax, forty percent of the difference can be refunded. There are a few exceptions to this credit, so make sure you check with your accountant.

For Businesses
"There are a few changes for business taxes this year," says Rice, "But the biggest are for businesses suffering losses." According to our expert, a business that shows a loss in 2009 has the ability to carry that loss as far back as 5 years and recoup taxes paid in any one of those years. The one provision, he says, speaks specifically to that 5th year, when you can only recoup up to 50 percent of the taxes paid. The trick he claims is for your accountant to look for the best year to apply that deduction.

Bonus depreciation is another law that businesses can use to their advantage. This law allows you to deduct fifty percent of the cost of new equipment purchased in 2009. One of the benefits to this deduction is that you can still use it even if your business suffered losses last year. Rice says that this law has been in existence, but it was supposed to expire in 2008. Thanks to our lawmakers, it has been extended to 2009.

Another law that has been extended from 2008 to 2009 is commonly known as "Section 179 Depreciation". This provides business owners the ability to deduct up to $250,000 of new equipment in one year. Prior to 2008, the amount was limited to $125,000.

Rice closed out our discussion by telling us there are many new tax laws, so involving a CPA in the process of filing your taxes is highly important. Equally as important, he says, is to inform your CPA anytime you have something of major importance going on in your life. This would include buying or selling a home, getting married (or divorced), and having a child. Rice says events like these will always affect your taxes in some way. The key is early intervention, as it allows for the most strategic planning.

Trevor Rice has been a practicing CPA for the past twelve years. A graduate of California State University at Northridge, Trevor also holds the title of CVA or Certified Valuation Analyst. He currently practices at Stern, Kory, Sreden and Morgan in Stevenson Ranch, California where he is also a shareholder. Trevor specializes in both individual and business taxation. He can be contacted via email at Trevor@SKSM.com.