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Monday, January 10, 2011
Good News From The IRS?
Actually, the “Tax Relief, Unemployment Insurance Authorization, and Job Creation Act of 2010” does provide some good news.
First, while many had expected income tax rates to rise this year, the six federal income tax rates will remain at the same levels and itemized deductions will continued to be allowed in full.
Second, the social security tax rate was lowered for all wage earners from 6.2% to 4.2% for 2011. This decreased rate replaces the Making Work Pay credit, but we’ll have to wait and see what this tax rate is for 2012.
Third, the 2010 Small Business Jobs Act increased the amount a business can write off for an asset valued between $250,000 to $500,000 that was purchased during the year from for 2010 and 2011. This write-off applies as long as the total assets purchased do not exceed $2 million.
Fourth, the 2010 Tax Relief Act increased the bonus depreciation (for new assets only) to 100% if purchased between Sept. 8, 2010 and Jan. 1, 2012.
Best Of All, the District of Columbia’s new holiday – Emancipation Day – falls on April 15, 2011. That means that the tax processing deadline for your 2010 return is April 18, 2011 – so you have three extra days to prepare and file your return.
Posted by Shoffner & Associates at 2:19 PM