by Nick Groen
9. January 2012 09:12
Note: Congress may retroactively amend some or all of these items
By William J. Barnes, CPA, CVA, MST
Business Tax Changes
- The research and development and work opportunity tax credits expire
- The enhanced charitable deductions for contributions of food, books, and computer technology expire
- The special S corporation built-in gains tax suspension period of 5 years expire – goes back to old law 10 years
- The 15-year recovery period for leasehold improvements, restaurant property, and retail improvements expire
- The 100% bonus depreciation deduction will be scaled back to 50% in 2012
- The Section 179 deduction limit will fall from $500,000 this year to $139,000 in 2012
- Work Opportunity Tax Credit not available except for hiring qualified veterans
- Longer write off period for specialized realty assets – qualified leasehold improvements, qualified restaurant property and qualified retail improvement property placed in service after 2011 a 39 year write off period applies – up from 15 year
Individual Tax Changes
- Deduction of $250 for elementary and secondary school teacher expenses expires
- Deduction for state and local sales taxes expires
- Deduction for mortgage insurance premiums expires
- Deduction for qualified tuition expenses expires
- Tax-free distributions from IRA’s for charitable purposes expires
- Reduced adoption credit – total expenses that nay be taken as a credit reduced to $12,650 – credit is no longer refundable
- Non-business Energy Property Credit expires
- Allowance of personal tax credits against Alternative Minimum Tax
- Exclusion of 100% gain on certain small business stock
Tags: accounting, accounting and assurance, certified public accountants, controls, credits, deductions, exemption, GK & Co., income tax, internal controls, IRS, management consulting, tax rate, taxation, withholding
tax planning