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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. No second amendment, pro life, pro traditional marriage, reagan or trump tshirts will be sold either. And you cannot draw Mohammed even in your own notebook. And you must wear a helmet at all times while at the fair. And no lawyer jokes can be told except in the designated protest area. And next year no crucifixes, since they are uber offensive to all but Catholics. Have a nice bland day here in the Lego movie. Remember ... Everything is awesome comrades.

  2. Thank you for this post . I just bought a LG External DVD It came with Cyber pwr 2 go . It would not play on Lenovo Idea pad w/8.1 . Your recommended free VLC worked great .

  3. All these sites putting up all the crap they do making Brent Look like A Monster like he's not a good person . First off th fight actually started not because of Brent but because of one of his friends then when the fight popped off his friend ran like a coward which left Brent to fend for himself .It IS NOT a crime to defend yourself 3 of them and 1 of him . just so happened he was a better fighter. I'm Brent s wife so I know him personally and up close . He's a very caring kind loving man . He's not abusive in any way . He is a loving father and really shouldn't be where he is not for self defense . Now because of one of his stupid friends trying to show off and turning out to be nothing but a coward and leaving Brent to be jumped by 3 men not only is Brent suffering but Me his wife , his kids abd step kidshis mom and brother his family is left to live without him abd suffering in more ways then one . that man was and still is my smile ....he's the one real thing I've ever had in my life .....f@#@ You Lafayette court system . Learn to do your jobs right he maybe should have gotten that year for misdemeanor battery but that s it . not one person can stand to me and tell me if u we're in a fight facing 3 men and u just by yourself u wouldn't fight back that you wouldn't do everything u could to walk away to ur family ur kids That's what Brent is guilty of trying to defend himself against 3 men he wanted to go home tohisfamily worse then they did he just happened to be a better fighter and he got the best of th others . what would you do ? Stand there lay there and be stomped and beaten or would u give it everything u got and fight back ? I'd of done the same only I'm so smallid of probably shot or stabbed or picked up something to use as a weapon . if it was me or them I'd do everything I could to make sure I was going to live that I would make it hone to see my kids and husband . I Love You Brent Anthony Forever & Always .....Soul 1 baby

  4. Good points, although this man did have a dog in the legal fight as that it was his mother on trial ... and he a dependent. As for parking spaces, handicap spots for pregnant women sure makes sense to me ... er, I mean pregnant men or women. (Please, I meant to include pregnant men the first time, not Room 101 again, please not Room 101 again. I love BB)

  5. I have no doubt that the ADA and related laws provide that many disabilities must be addressed. The question, however, is "by whom?" Many people get dealt bad cards by life. Some are deaf. Some are blind. Some are crippled. Why is it the business of the state to "collectivize" these problems and to force those who are NOT so afflicted to pay for those who are? The fact that this litigant was a mere spectator and not a party is chilling. What happens when somebody who speaks only East Bazurkistanish wants a translator so that he can "understand" the proceedings in a case in which he has NO interest? Do I and all other taxpayers have to cough up? It would seem so. ADA should be amended to provide a simple rule: "Your handicap, YOUR problem". This would apply particularly to handicapped parking spaces, where it seems that if the "handicap" is an ingrown toenail, the government comes rushing in to assist the poor downtrodden victim. I would grant wounded vets (IED victims come to mind in particular) a pass on this.. but others? Nope.

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