Feb 28 2011
Click here to find a printable I-9 form. This document from the U.S. Department of Homeland Security will allow you to verify your employees’ eligibility to work under U.S. law. Contact with any questions.
Feb 25 2011
The 2010 Tax Relief Act made tax-saving changes to the estate and gift tax scheme that apply to estates transferring in 2011 and 2012.
The bill set a lower rate and higher exemption for estates transferring in 2011 and 2012. The top rate was lowered to 35% and the exemption was reduced to $5 million for 2011 along with an increase for inflation in 2012. However, it should be noted that after 2012 the top rate will be 55%, and the exemption will be $1 million.
If you have any questions on estate tax rates and exemption limits, or on tax planning in general, please contact our office.
© 2011 Thomson Reuters/RIA. All rights reserved.
Feb 23 2011
The 2010 Form 1040 reflects a number of new tax breaks we want you to be aware of so you can take full advantage of them. Today’s post addresses changes to the tax laws regarding small business cell phones and luxury vehicles.
Cellular telephones (cell phones) and other similar telecommunications equipment have been removed from the categories of “listed property.” This means that cell phones can be deducted or depreciated like other business property, without onerous record keeping requirements.
Also, first-year luxury auto limits for vehicles first placed in service in 2010 are $11,060 for autos and $11,160 for light trucks or vans (for vehicles ineligible for bonus depreciation, or if the taxpayer elects out, $3,060 and $3,160, respectively).
If you have any questions regarding these changes, or tax planning, please contact our office.
© 2011 Thomson Reuters/RIA. All rights reserved.
Feb 21 2011
It’s tax season, and to make this stressful time a little easier for our clients, we have placed some printable tax forms on our website. A copy of the Indiana Power of Attorney worksheet is included on the site.
Feb 18 2011
The 2010 Tax Relief Act enacted many beneficial items in regard to estate and gift taxes. One in particular provides a tax saving choice.
The Act allows estates of decedents who died in 2010 to choose between (1) estate tax (based on a $5 million exemption and 35% top rate) and a step-up in basis, or (2) no estate tax and modified carryover basis. Basis is the measure of income tax gain or loss when an asset is sold. With a step-up in basis, pre-death gain is eliminated because the basis the applied to the heir is increased to the date of death value of the asset. Conversely, with a modified carryover basis, an heir gets the decedent’s original basis, plus certain increases, which can be substantial. However, if the decedent had a relatively low basis and significant assets, some pre-death gain may be taxed when the heir sells the property. These concerns factor into the special choice for 2010.
Please direct any questions on which choice works best for you, or on tax planning in general, to our office.
© 2011 Thomson Reuters/RIA. All rights reserved.
Feb 16 2011
The 2010 Form 1040 reflects a number of new tax breaks for small businesses. Today’s post addresses changes to the tax laws regarding small business expensing, depreciation, and general business credits.
To help small businesses quickly recover the cost of capital outlays, small business taxpayers can elect to write off Section 179 expenditures in the year they are made instead of recovering them through depreciation. For 2010, you generally may expense up to $500,000 of qualifying property placed in service during the tax year. This annual limit is reduced by the amount by which the cost of property placed in service exceeds $2,000,000.
Businesses that acquire and place qualified property into service after September 8, 2010 can now claim a depreciation allowance in the placed-in-service year equal to 100% of the cost of the property. Businesses that acquired qualified property from January 1, 2010 through September 8, 2010 can claim a bonus first-year depreciation allowance of 50% of the cost of the property.
Finally, there are changes in the carryback of general business credits. Generally, a business’s unused general business credits can be carried back to offset taxes paid in the previous year, and the remaining amount can be carried forward for 20 years to offset future tax liabilities. However, for 2010, eligible small businesses can carry back unused general business credits for five years instead of just one.
If you have any questions about these changes, or about tax planning, please contact our office.
© 2011 Thomson Reuters/RIA. All rights reserved.
Feb 14 2011
For the convenience of our clients, we have placed some popular tax forms on our website. Click here to access the state request form for a business tax closure.
Feb 12 2011
While everyone remembers the April 15th tax deadline, there are a number of other important tax deadlines which affect small businesses. Be sure to check with your accountant to be sure you are in compliance with the following dates:
Feb 11 2011
The 2010 Tax Relief Act made many beneficial changes to the estate and gift tax rules. One new rule make a particularly significant change to the gift tax.
Years ago, the gift tax and the estate tax were unified, meaning they shared a single exemption and were subject to the same rates. In recent years, this has not been the case. For example, in 2010, the top gift tax rate was 35% and the exemption was $1 million. Now, for gifts made after Dec. 31, 2010, the gift tax and estate tax are reunified and an overall $5 million exemption applies.
If you have questions regarding this change to the tax rules, or about tax planning in general, please give us a call.
© 2011 Thomson Reuters/RIA. All rights reserved.
Feb 09 2011
The 2010 Form 1040 reflects a number of new tax breaks we want you to be aware of so you can take full advantage of them. Today’s post addresses changes to the tax laws regarding health insurance for small and self-employers.
There’s a new tax credit for an eligible small employer who makes qualifying contributions to buy health insurance for his/her employees. This credit is very complex but it can yield substantial tax savings. In general, the credit is 35% of premiums paid and can be taken against regular and alternative minimum tax.
There is also a self-employed health insurance deduction for 2010. Effective March 30, 2010, a self-employed person who paid for health insurance may be able to include in his/her self-employed health insurance deduction any premiums s/he paid to cover his/her child who was under age 27 at the end of 2010, even if the child was not his/her dependent. Also, health insurance costs for a taxpayer and his/her family are deductible in computing 2010 self-employment tax.
If you have any questions regarding these tax changes, or tax planning in general, please contact our office.
© 2011 Thomson Reuters/RIA. All rights reserved.
