There are proposed curbs on depreciation and other write-offs: Straight-line depreciation for real estate would be lengthened to 43 years, up from the current 39-year  maximum. Other assets would be put in one of four depreciation pools based on useful lives, and a set percentage of the costs of assets in each pool would be deducted each year. Intangible assets would be amortized over 20 years…up from 15 years now. The ability to defer tax via a like-kind exchange could be repealed. Advertising expenses would have to be written off over five years. 60% of them could be taken in the first year, and the other 40% would be amortized over four years.  Planning to put an asset in service by Dec. 31 to get 50% bonus depreciation? Keep this in mind because bonus depreciation is set to end after 2013, unless lawmakers decide they will retroactively reinstate this tax break next year. Now let’s turn to more 2013 tax reminders to help avoid last-minute errors: Check the balance in your flexible spending account. You must clean it out by Dec. 31 if your employer has not implemented either the 2½-month grace period or the new $500 carryover rule. Otherwise, you forfeit any money left in your account. Make sure you know the tax rules if you are charging deductible items. For charges that you make with a retail store credit card, you are allowed to claim the deduction for the item only in the tax year in which you pay the bill. For transactions made with a bank credit card, you take the write-off in the tax year that you charged the goods, even if you pay the bill next year. And tax-related identity theft continues to plague IRS. Treasury inspectors estimate that for 2011 alone, […]

By |December 23rd, 2013|Uncategorized|Comments Off on A Mix of IMPORTANT TAX Tips

Quick Tax Updates and Reminders

For the first time in more than a decade the personal tax rate tops corporate rates. The maximum tax rate on individuals is now 39.6% for joint filers with taxable income over $450,000 and single filers above $400,000. The highest rate on corporations remains at 35%.   Health Care Information: The treasury Department has decided that larger firms won’t have to provide health coverage to workers next year. It has decided to delay the employer mandate until 2015 to give businesses more time to comply with the new regulations. The new health care law requires firms with 50 or more full-time employees to provide affordable medical insurance to their workers or pay a stiff penalty. But there’s no delay of the rule that individuals who go without health coverage must pay a fine. That requirement will take effect on Jan. 1, 2014, as scheduled.   Remember that summer day camp costs qualify for the dependent care credit. So if you send your school-age child to math camp or any other special day camps this summer, such as those for computers, theater or soccer, don’t forget the write-off. The same goes for camps that focus on improving reading, writing or study skills. But the costs of summer school and tutoring programs aren’t eligible for the credit. They are treated as education, not care. The other rules for the credit aren’t affected. The child must be under 13, and expenses must be incurred so the parents can work.   Married same-sex couples scored a victory when the Supreme Court struck down a U.S. statute that defined marriage as between a man and a woman for federal law purposes. They notched another win with the resumption of same-sex marriages in […]

By |July 17th, 2013|Uncategorized|Comments Off on Quick Tax Updates and Reminders