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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. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  2. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  3. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

  4. Dear Fan, let me help you correct the title to your post. "ACLU is [Left] most of the time" will render it accurate. Just google it if you doubt that I am, err, "right" about this: "By the mid-1930s, Roger Nash Baldwin had carved out a well-established reputation as America’s foremost civil libertarian. He was, at the same time, one of the nation’s leading figures in left-of-center circles. Founder and long time director of the American Civil Liberties Union, Baldwin was a firm Popular Fronter who believed that forces on the left side of the political spectrum should unite to ward off the threat posed by right-wing aggressors and to advance progressive causes. Baldwin’s expansive civil liberties perspective, coupled with his determined belief in the need for sweeping socioeconomic change, sometimes resulted in contradictory and controversial pronouncements. That made him something of a lightning rod for those who painted the ACLU with a red brush." http://www.harvardsquarelibrary.org/biographies/roger-baldwin-2/ "[George Soros underwrites the ACLU' which It supports open borders, has rushed to the defense of suspected terrorists and their abettors, and appointed former New Left terrorist Bernardine Dohrn to its Advisory Board." http://www.discoverthenetworks.org/viewSubCategory.asp?id=1237 "The creation of non-profit law firms ushered in an era of progressive public interest firms modeled after already established like the National Association for the Advancement of Colored People ("NAACP") and the American Civil Liberties Union ("ACLU") to advance progressive causes from the environmental protection to consumer advocacy." https://en.wikipedia.org/wiki/Cause_lawyering

  5. Mr. Foltz: Your comment that the ACLU is "one of the most wicked and evil organizations in existence today" clearly shows you have no real understanding of what the ACLU does for Americans. The fact that the state is paying out so much in legal fees to the ACLU is clear evidence the ACLU is doing something right, defending all of us from laws that are unconstitutional. The ACLU is the single largest advocacy group for the US Constitution. Every single citizen of the United States owes some level of debt to the ACLU for defending our rights.

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