The Beacon: Technical Update 2011
Quick Facts
STANDARD MILEAGE RATES:
2012: 55.5 cents per mile
2011 July-Dec: 55.5 cents per mile
2011 Jan-June: 51 cents per mile
2010: 50 cents per mile
HSA CONTRIBUTION LIMITS:
2012 self only: $3,100
2012 family: $6,250
(add $1,000 if age 55 or over)
2011 self only: $3,050
2011 family: $6,150
(add $1,000 if age 55 or over)
(contributions for calendar year 2011 can be made until April 15, 2012)
2011 TAX RETURN DEADLINES:
Corporations & S Corps
are due March 15, 2012
and may be extended to
September 17, 2012
Partnerships, estates and
and trusts are due April 17, 2012
and may be extended to
September 17, 2012
Individuals are due April 17
2012 and may be extended
to October 15, 2012
Non-profits are due May 16,
2012 and may be extended
to August 16, 2012
2012 ESTIMATED TAX DEADLINES:
CORPORATIONS:
April 17, 2012
June 15, 2012
Sept 17, 2012
Dec 17, 2012
INDIVIDUALS:
April 17, 2012
June 15, 2012
Sept 17, 2012
Jan 15, 2013
In a changing climate of new laws and emerging economic recovery many factors should be considered when filing 2010 tax returns and making decisions in 2011.
Our experienced team is available to provide important financial and tax information to guide you successfully to your desired destination.
Our experienced team is available to provide important financial and tax information to guide you successfully to your desired destination.
Foreign Bank and Financial Accounts: US citizens, residents, and domestic entities that have a financial interest in or signature authority over a foreign financial account that exceeds $10,000 at any time during the calendar year are required to file a Report of Foreign Bank and Financial Accounts (FBAR).
Furthermore, newly enacted Internal Revenue Code Sec. 6038D will require tax return disclosures from individuals with interests in “specified foreign financial assets” if the aggregate value of the assets exceeds $50,000.
100% Write-off for Heavy SUVs: Businesses that acquire and place qualified property into service after Sept 8, 2010 can now claim a bonus depreciation allowance of 100 percent of the cost of the property. The property must be placed in service before January 1, 2012.
Roth Conversions in 2010: any amount required to be included in income is included half in 2011and half in 2012 unless the individual elects to include the entire amount in income in 2010.
Health Insurance Deduction Reduces Self Employment Tax: Self-employed and greater than 2% S Corporation shareholders can now reduce their net earnings from self-employment by the cost of health insurance payments. Previously, the deduction was allowed only for income tax purposes. Beginning for tax year 2010, the deduction also reduces earnings subject to SE taxes.
Small Business Health Care Tax Credit: The credit is available to eligible small employers that pay at least half of the premiums for single health insurance for their employees. For tax years 2010 to 2013, the maximum credit is 35% of the premiums paid by businesses and 25% of premiums paid by tax-exempt organizations. In 2014 the credit increases to 50% and 35% respectively.
The credit is completely phased out for employers that have 25 or more full-time equivalents or pay average wages of $50,000 per employee or more per year.
Businesses Can Benefit from Higher Expensing & Depreciation Limits: For tax years beginning in 2010 and 2011, businesses can expense up to $500,000 of the first $2 million of qualified business property placed in service during the year. The $500,000 amount is reduced, but not below zero, if the cost of all section 179 property placed in service by the taxpayer during the tax year exceeds $2 million.
The definition of section 179 property is expanded to include qualified real property for certain leasehold improvement property, restaurant property, and retail improvement property.
For tax years beginning in 2012, the maximum Section 179 deduction amount is $125,000.
Furthermore, newly enacted Internal Revenue Code Sec. 6038D will require tax return disclosures from individuals with interests in “specified foreign financial assets” if the aggregate value of the assets exceeds $50,000.
100% Write-off for Heavy SUVs: Businesses that acquire and place qualified property into service after Sept 8, 2010 can now claim a bonus depreciation allowance of 100 percent of the cost of the property. The property must be placed in service before January 1, 2012.
Roth Conversions in 2010: any amount required to be included in income is included half in 2011and half in 2012 unless the individual elects to include the entire amount in income in 2010.
Health Insurance Deduction Reduces Self Employment Tax: Self-employed and greater than 2% S Corporation shareholders can now reduce their net earnings from self-employment by the cost of health insurance payments. Previously, the deduction was allowed only for income tax purposes. Beginning for tax year 2010, the deduction also reduces earnings subject to SE taxes.
Small Business Health Care Tax Credit: The credit is available to eligible small employers that pay at least half of the premiums for single health insurance for their employees. For tax years 2010 to 2013, the maximum credit is 35% of the premiums paid by businesses and 25% of premiums paid by tax-exempt organizations. In 2014 the credit increases to 50% and 35% respectively.
The credit is completely phased out for employers that have 25 or more full-time equivalents or pay average wages of $50,000 per employee or more per year.
Businesses Can Benefit from Higher Expensing & Depreciation Limits: For tax years beginning in 2010 and 2011, businesses can expense up to $500,000 of the first $2 million of qualified business property placed in service during the year. The $500,000 amount is reduced, but not below zero, if the cost of all section 179 property placed in service by the taxpayer during the tax year exceeds $2 million.
The definition of section 179 property is expanded to include qualified real property for certain leasehold improvement property, restaurant property, and retail improvement property.
For tax years beginning in 2012, the maximum Section 179 deduction amount is $125,000.