On January 2, 2013, Congress passed the American Taxpayer Relief Act of 2012. Here are impacts to businesses from the passage of this bill. We can help you understand the effect that the following changes will have on your tax situation.
- Section 179 depreciation increase extended – The dollar limit that can be expensed in 2012 and 2013 is $500,000 and there is a $2 million investment limit. There is also the 15-year recovery period for qualified leasehold improvements, retail improvements and restaurant property until the end of 2013.
- Bonus depreciation extended – The 50% bonus depreciation on new assets placed in service has been extended through 2013.
- Section 41 research tax credit – The Section 41 research tax credit has been extended through 2013.
- Work Opportunity Tax Credit (WOTC) – The WOTC for hiring veterans and other individuals who meet specific criteria has been extended through 2013.
- 100% exclusion for small business stock – The 100% exclusion for gains on a sale of small business stock has been extended through 2013.
- For additional items that impact individual taxpayers click here.
Please contact us with any questions on any of the above related to the American Taxpayer Relief Act of 2012 or any other tax related questions you may have.