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IBA: Tax time is closer than you think — are you prepared?

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December 31st is right around the corner, and with it comes important considerations for year-end tax planning. Special breaks are still available for 2012, and taking action before December 31 could reduce taxes for 2013 and beyond. Plus, planning now for tomorrow’s tax changes could have a significant impact on your —a nd your clients’ — bottom line.

Get important tips and information on action to take before the end of the year and discover what new tax regulations may be on the horizon, including changes in tax rates, accelerated depreciation, and estate valuation, when the IndyBar hosts Bill Owen, Director of Tax Services at BGBC, on Thursday, November 29 for “Year End Tax Planning Tips for Solo/Small Firm Businesses for 2012 and Beyond.” This program, which includes 2.0 general CLE credits, will be held at the IndyBar Education Center from 3 to 5 p.m. Registration and additional information is available online at www.indybar.org.

In advance of the program, Owen shared with the IndyBar two items that every legal practice and small business should consider between now and the end of the year:

“First, if they are planning on making a significant investment in new equipment in the near future, consider doing so before December 31, 2012. The reason is that currently we have ‘50% Bonus Depreciation’ for any new equipment purchased and placed into service during 2012. That means that 50% of the cost of that equipment can be written off in 2012, and the balance can either be expensed under IRC Sec. 179, or depreciated over its normal depreciable life.

For example, if there is $250,000 of new equipment purchased that has a five year depreciable life, the first $125,000 would be expensed as Bonus Depreciation. The $125,000 balance could either be expensed under Section 179 or depreciated with 20% being depreciation expense for the first year. That means the $250,000 purchase could result in a 2012 depreciation deduction of between $150,000 including regular depreciation and $250,000 if Section 179 is elected.

In 2013, under current law, bonus depreciation goes away and Section 179 drops to $25,000. So acting in 2012 can result in a significant acceleration of deductions for new equipment purchases. However, the equipment must not only be purchased, but also placed in service to be eligible for the current deductions.

Second, everyone should do some income tax planning that looks at both 2012 and 2013. In 2013, the top ordinary income tax rate will climb from 35% in 2012 to 39.6% in 2013. In addition, there will be a .9% Health Insurance Surtax on earned income in 2013 and a 3.8% Medicare Surtax on investment income for those with Adjusted Gross Income above $250,000. That means in 2013, those in the upper income tax brackets could be paying as much as 43.4% on investment income and as much as 40.5% for earned income…and that is just for federal income taxes! This may be a time to consider accelerating income into 2012 to reduce the overall income tax exposure for the combined tax years of 2012 and 2013.”

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  1. wow is this a bunch of bs! i know the facts!

  2. MCBA .... time for a new release about your entire membership (or is it just the alter ego) being "saddened and disappointed" in the failure to lynch a police officer protecting himself in the line of duty. But this time against Eric Holder and the Federal Bureau of Investigation: "WASHINGTON — Justice Department lawyers will recommend that no civil rights charges be brought against the police officer who fatally shot an unarmed teenager in Ferguson, Mo., after an F.B.I. investigation found no evidence to support charges, law enforcement officials said Wednesday." http://www.nytimes.com/2015/01/22/us/justice-department-ferguson-civil-rights-darren-wilson.html?ref=us&_r=0

  3. Dr wail asfour lives 3 hours from the hospital,where if he gets an emergency at least he needs three hours,while even if he is on call he should be in a location where it gives him max 10 minutes to be beside the patient,they get paid double on their on call days ,where look how they handle it,so if the death of the patient occurs on weekend and these doctors still repeat same pattern such issue should be raised,they should be closer to the patient.on other hand if all the death occured on the absence of the Dr and the nurses handle it,the nurses should get trained how to function appearntly they not that good,if the Dr lives 3 hours far from the hospital on his call days he should sleep in the hospital

  4. It's a capital offense...one for you Latin scholars..

  5. I would like to suggest that you train those who search and help others, to be a Confidential Intermediary. Original Birth Certificates should not be handed out "willie nillie". There are many Birth Parents that have never told any of their families about, much less their Husband and Children about a baby born prior to their Mother's marriage. You can't go directly to her house, knock on her door and say I am the baby that you had years ago. This is what an Intermediary does as well as the search. They are appointed by by the Court after going through training and being Certified. If you would like, I can make a copy of my Certificate to give you an idea. you will need to attend classes and be certified then sworn in to follow the laws. I still am active and working on 5 cases at this time. Considering the fact that I am listed as a Senior Citizen, that's not at all bad. Being Certified is a protection for you as well as the Birth Mother. I have worked with many adoptees as well as the Birth Parents. They will also need understanding, guidance, and emotional help to deal with their own lost child and the love and fear that they have had locked up for all these years. If I could talk with those involved with the legal end, as well as those who do the searches and the Birth Mothers that lost their child, we JUST might find an answer that helps all of those involved. I hope that this will help you and others in the future. If you need to talk, I am listed with the Adoption Agencies here in Michigan. They can give you my phone number. My email address is as follows jatoz8@yahoo.com. Make sure that you use the word ADOPTION as the subject. Thank you for reading my message. Jeanette Abronowitz.

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