Tax Law Changes
The most frequently asked tax questions related to Tax Law Changes
Transportation assistance - 2012
Asked Thursday, April 05, 2012 by an anonymous userCPA Answer:
If you provide certain transportation fringe benefits, there are 2012 changes.
The limit on the value for monthly free parking will rise to $240 (up from $230), while the limit on monthly transit passes and vanpooling will drop to $125 (down from $230).
Bicycling assistance will stay at $20 per month.
The limit on the value for monthly free parking will rise to $240 (up from $230), while the limit on monthly transit passes and vanpooling will drop to $125 (down from $230).
Bicycling assistance will stay at $20 per month.
Estate Tax - New
Asked Tuesday, February 14, 2012 by an anonymous userCPA Answer:
New for 2011, 2012 and 2013 is a concept named portability which allows a surviving spouse's estate to use any portion of the exemption amount not used by the other spouse’s estate.
For 2013 the exemption is $5,250.000.
For 2013 the exemption is $5,250.000.
Personal and Dependency Exemptions - 2012
Asked Tuesday, January 17, 2012 by an anonymous userCPA Answer:
For 2012, the Personal and Dependency Exemptions increased by $100 to $3,800.
in 2013 ATRA, permanently extends the repeal of the personal exemption phase-out on incomes at or below $250,000 (individual filers), $275,000 (heads of households) and $300,000 (married filing jointly).,br> Exemptions will be phased out for taxpayers with adjusted gross income (AGI) above the AGI's mentioned above.
in 2013 ATRA, permanently extends the repeal of the personal exemption phase-out on incomes at or below $250,000 (individual filers), $275,000 (heads of households) and $300,000 (married filing jointly).,br> Exemptions will be phased out for taxpayers with adjusted gross income (AGI) above the AGI's mentioned above.
Annual Gift Exclusion -
Asked Tuesday, January 17, 2012 by an anonymous userCPA Answer:
The Annual Gift Exclusion remains at $14,000 per donee.
Estate and Gift Unified Credit - 2013
Asked Tuesday, January 17, 2012 by an anonymous userCPA Answer:
The Federal Estate tax Unified credit has increased to $5,250,000.
Section 179 expensing - 2012
Asked Tuesday, January 03, 2012 by an anonymous userCPA Answer:
For a tax year beginning in 2012, the Code Sec.179 expensing election which was supposed to have been reduced to $139,000 was increased under the American Tax Relief Act of 2012. The new law restores the 2011 limits of $500,000 as a maximum deduction with a $2 million threshold through 2013
Bonus Depreciation
Asked Tuesday, January 03, 2012 by an anonymous userCPA Answer:
For qualified property acquired and placed in service in 2016, a 50% bonus first-year depreciation allowance applies under Code Sec. 168(k).
Work Opportunity Credit - 2012
Asked Tuesday, January 03, 2012 by an anonymous userCPA Answer:
The Work opportunity tax credit (WOTC) is not available except for hiring qualified veterans. The WOTC under Code Sec. 51 generally can't be claimed for an individual who begins work for the employer after Dec. 31, 2011. However, the WOTC continues to be available for employers that hire qualified veterans who began work for the employer before Jan. 1, 2013.
Leasehold Improvement Property - 2012
Asked Tuesday, January 03, 2012 by an anonymous userCPA Answer:
There is a longer write-off period for certain realty property. For specialized realty assets (qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property) placed in service after 2011, a 39-year (up from 15-year) write-off period generally applies.