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The Section 179 deduction cannot be used to create or add to a loss.
Income from all trades or businesses in which the taxpayer is engaged is counted in determining the income limitation,
Wages received by taxpayer AND wife from activities unrelated to those created the 179 deduction are treated as income in determining the income limitation.
The maximum deduction allowed in 2012 is the lesser of $500,000 or the Section 179 Income.

The Tax Relief Act of 2010 extended the current tax rate structure through the end of 2012.
For 2012, there will be six tax rate brackets for ordinary income of: 10%, 15%, 25%, 28%, 33%, and 35%.
All taxpayers will pay 35% of any taxable income over $388,350 except MFS pays 35% over $194,175.

For 2011 returns, if your dependent child (claimed as a dependent on your tax return) has no investment income, the child does not have to file a return if earned income does not exceed $5,800. If you child has more than $950 of investment income, even if it has no other earned income, your child must file a tax return. If the child's earned income is only from interest and dividends, and your child has no earned income, you can elect to report this investment income on your tax return

The annual gift tax exclusion increases to $14,000 in 2013, up from $13,000 in 2012.

IRA Contributions $5,500 - IRA Catch-up Contributions $1,000 - Defined Benefit Plan Benefit $205,000 - Defined Contribution Plan Allocation $51,000 - 401(K) or 403(b) Salary reduction deferrals $17,500 - 401(k) or 403(b) Catch-up Contributions $5,500 - SIMPLE plans $12,000 - SIMPLE plan Catch-up Contributions $2,500 - Salary for pension plan $255,000 - Salary for highly compensated employee $115,000 - Salary for Key employee $165,000 - Salary for SEP eligibility $550 - Social Security Taxable Wage base $113,700 -

The limit on employee elective deferrals is $17,500 for 2013. $17,000 for 2012 and $23,000 if age 50 or older ($22,500 in 2012)
The catch up contribution limit for employees 50 and over remains unchanged at $5,500.
Generally, all elective deferrals made to all plans in which you participate are aggregated to determine if you have exceeded these limits.

The health care legislation enacted in 2013 included a new tax that was designed to affect upper income taxpayers.
The 3.8 percent tax is imposed ONLY on those with more than $200,000 of adjusted gross income (AGI) ($250,000 on a joint return).
The tax applies to investment income, defined as interest, dividends, capital gains and net rents. These items are all included in an individual’s AGI.
The new tax does NOT eliminate the benefits of the $250,000/$500,000 exclusion on the sale of a principal residence. Thus, ONLY that portion of a gain above those thresholds is included in AGI and could be subject to the tax.

Generally, Net Investment Income will include interest, dividends,capital gains, annuities,royalties and rents and other income attributable to passive activities.
Gains on the sale of property not used in an active business and income from the investment of working capital are treated as investment income.
Net Investment Income is gross income or net gain reduced by deductions allocated to the income or gain.
It does not include distributions from qualified plans,401(k) plans, IRS's, and eligible 457 plans or municipal bond interest or life insurance proceeds.
The tax will not apply to the first $250,000 on profits from the sale of a personal residence, or to the first $500,000 in the case of a married couple selling their home.

The 3.8% tax on Investment income will fall on individuals with an (AGI) adjusted gross income above $200,000 and couples filing a joint tax return with more than $250,000 AGI.
The calculation will be the LESSER of the Investment income amount OR the Excess of AGI over the $200,000 or $250,000 thresholds.

The .9% (0.009) tax is imposed ONLY on the excess of Earned Income above the threshold amounts. The threshold amounts for individuals is $200,000 and $250,000 on a joint tax return.
Generally, Earned Income is money you earned on your labor such as wages, salaries, commissions. It includes wages and self-employment income