Yearly Archives: 2012

Why businesses should consider purchasing vehicles before year end

Business-related purchases of new or used vehicles may be eligible for Section 179 expensing, and business-related purchases of new vehicles may be eligible for bonus depreciation. But Sec. 179 expensing limits are scheduled to go down in 2013, and bonus depreciation is scheduled to disappear. So you might benefit from purchasing business vehicles before year […]

Consider the tax implications if you’re awarded restricted stock

In recent years, restricted stock has become a popular form of incentive compensation for executives and other key employees. If you’re awarded restricted stock — stock that’s granted subject to a substantial risk of forfeiture — it’s important to understand the tax implications. Income recognition is normally deferred until the stock is no longer subject […]

Make the most of depreciation-related breaks while you can

Many businesses may benefit from purchasing assets by Dec. 31 to take advantage of depreciation-related deductions that are scheduled to either disappear or become less favorable in 2013: Bonus depreciation. For qualified assets acquired and placed in service through Dec. 31, 2012, this additional first-year depreciation allowance is, generally, 50%. Among the assets that qualify are […]

Need to hire? Consider veterans

Veterans provide a valuable labor pool, full of highly trained, hard-working team players with strong leadership skills. There’s also a tax incentive: The VOW to Hire Heroes Act of 2011 extended the Work Opportunity credit through 2012 for employers that hire qualified veterans. It also expanded the credit by: Doubling the maximum credit — to […]

How to verify that a charity is eligible to receive tax-deductible contributions

Donations to qualified charities are generally fully deductible, and they may be the easiest deductible expense to time to your tax advantage. After all, you control exactly when and how much you give. But before you donate, it’s critical to make sure the charity you’re considering is indeed a qualified charity — that it’s eligible […]

2012 may be the last year to use tax-free ESA funds for precollege expenses

Coverdell Education Savings Accounts (ESAs), like 529 savings plans, offer a tax-smart way to fund education expenses: Contributions aren’t deductible for federal purposes, but plan assets can grow tax-deferred Distributions used to pay qualified expenses (such as tuition, mandatory fees, books, equipment, supplies and, generally, room and board) are income-tax-free for federal purposes and may […]

Now’s the time for giving

For 2012, the gift and estate tax exemption is $5.12 million and the maximum gift and estate tax rate is 35%. Absent additional legislation, for 2013 the exemption will drop to $1 million and the top tax rate will increase to 55%. It’s difficult to predict what Congress will do between now and then, so […]

Crop Insurance Strategies for 2012

With the near record drought facing the United States during this summer of 2012, there will be large payouts of crop insurance proceeds. We are writing to inform you of the special tax election and strategies related to any crop insurance proceeds that you may collect for your 2012 crop. Normally, crop insurance proceeds are […]

Planning for the new 2013 Medicare taxes on higher-level earned and investment income

The health care reform legislation enacted in 2010 included two additional, and potentially painful, taxes on what many refer to as “higher-income taxpayers”. The first tax is anadditional Medicare tax on taxpayers with earned income in excess of certain limits. The second tax is a new Medicare tax on investment income, commonly referred to as unearned income. Click […]

2013 Notice of Tax Changes

After a weekend of intense negotiations, the terms of a fiscal cliff resolution have finally been successfully negotiated. Early on January 1, 2013 the Senate and the House of Representatives passed the “American Taxpayer Relief Act”. The President is expected to quickly sign and enact the bill into law. Following are many tax changes that […]