Although you may be familiar with Section 179 Expense Deductions, there have been some significant changes placed in effect for 2010 and 2011.  Simply put, Section 179 is an expense deduction, which applies to tangible business property placed in service during the tax year, up to $500,000, subject to phase out and other limitations.  For the first time, you can use up to $250,000 of the total available deduction for qualified restaurant property, leasehold and retail improvement property (i.e. capital improvements).  Read the rest of this entry »

 On December 17, 2010, the president signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.  While this act was, in essence, a two-year extension of the 2001/2003 Bush-era tax cuts, the Act also reduced the Social Security tax rate on employees to 4.2% (from 6.2%) and reduced the self-employment tax rate from 10.4% (from 12.4%) for 2011 only.  The employer tax rate remains at 6.2%.  Note that the Act did not reduce the contribution base, which is $106,800 for 2011.  Thus, the maximum tax in 2011 for employees is $4,485.60.  This is effective for payrolls beginning January 1, 2011.  As always, if you have questions or concerns, give us a call at the office. 

It’s a new year, which means busier times and tax deadlines are around the corner.  Since taxes are at the top of our “to-do” lists, it is also an excellent time to do some planning ahead to maximize the amount of deductions your business can claim.  One deduction that might be worth a look is the Domestic Production Activities Deduction (DPAD).   Businesses engaged in qualifying production activities are eligible to take a tax deduction of 9% of qualified net income in 2011, which works out to be a free tax break, pure and simple.  Read the rest of this entry »

On September 27, President Obama signed into law the new Small Business Jobs Act of 2010.  The legislation includes a number of taxpayer-friendly changes that you may benefit from.

Health Insurance Premiums Can Be Deducted in Calculating 2010 Self-employment Taxes.  For 2010, health insurance premiums for self-employed individuals are allowed as an expense to reduce Self-Employment Tax (Social Security and Medicare tax).  This could be significant, especially if your health insurance premiums are considerable and you are a sole proprietor or single member LLC taxed as a sole proprietor.  Read the rest of this entry »

As you probably know, on 3/30/10, President Obama signed into law the final piece of his promised Health Reform legislation. Whether you are for or against it, no one can argue that this is landmark legislation that will result in a monumental shift in how health care is delivered in this country. Read the rest of this entry »