Newsletter Client Tax and Financial Update Client Tax and Financial Update. You will see an update every two months.         (November-December 2009 Issue) (September-October 2009 Issue) (July-August 2009 Issue)                                          (July-August 2010 Issue) (May-June 2009 Issue)                                              (May-June 2010 Issue) (March-April 2009 Issue)                                           (March-April 2010 Issue) (January-Feburary 2009 Issue)                               (January-Feburary 2010 Issue)

Business Buy/Sell Agreements It is important that businesses with more than one owner have a written buy/sell agreement specifying what happens when an owner withdraws from the business. A buy/sell agreement is a contract between the owners (or the owners and the business entity itself) that establishes rules and restrictions applicable to changes in ownership.   Temporary Credit for First-time Homebuyers The recent American Housing Rescue and Foreclosure Prevention Act of 2008 (Housing Act) created a temporary credit to encourage home ownership.   Changes to the Home Sale Gain Exclusion Many taxpayers bought a second home, such as a vacation home, with the intention of later converting the second home into their principal residence. Under pre-2008 Housing Act law, those taxpayers could have excluded up to $250,000 ($500,000 for certain joint filers) upon a later sale of that former vacation home as long as the two-year ownership and use tests for the exclusion were satisfied.