A&K
Averson & Klinetop, LLP
Certified
Public Accountants
Averson &
Klinetop, LLP provides you with tax planning suggestions; read the summary of
recent legislation below as it affects current and future year tax planning. As
another year end approaches, don’t miss the opportunity for last minute tax
planning opportunities; click this underlined link for a site we have provided
for 2008 Year
End Tax Planning. Since it’s never too soon to start thinking about
next year, we have also provided a link to 2009 Tax Planning
Guide. Contact us for a planning consultation.
2008 Tax Legislation Key
provisions:
Economic Stimulus Act of 2008 (February 13, 2008):
- 50%
bonus depreciation for qualified business capital expenditures acquired
and placed in service after 12/31/07 and before 01/01/09 (applies to
regular and AMT).
- Section
179 expensing enhanced - $250,000 (reduced once capital expenditures
exceed $800,000).
Emergency Economic Stabilization Act of 2008, (October 3, 2008):
- Increased
AMT exemption amounts for 2008 to $69,950 - joint, $46,200 – single.
- Energy
efficient residential property credit can be used to offset AMT and
extends the credit through 2016 (primarily solar, wind and fuel cell
property)
- Extends
forgiveness exclusion for 3 more years (applies to indebtedness
discharged before 01/01/2013). Modifies definition of Qualifying Child
and modifies refundable amount of child tax credit.
- Extends
many provisions that had expired at the end of 2007:
Sales tax deduction (in lieu of income tax)
Qualified tuition deduction
Classroom expense deduction
Tax free IRA distributions to charity
Renewable Energy & Job Creation Act of 2008:
§
Provides deduction of up to $500 ($1,000 for joint)
of real property taxes for those who do not itemize, for 2008 and 2009.
§
Non-business energy property credits that expired
after 2007 are extended to 2009.
It does not apply to 2008.
§
Credits for electric plug in vehicles, certain
energy efficient appliances through 2010.
§ Energy efficient commercial buildings deduction extended through 2013.
Previous Tax Legislation Key
provisions:
The Small Business and Work Opportunity Tax Act of 2007 (May 25, 2007):
- Broadens
the reach of kiddie tax from under 18 to under 19 or, if a student to
under age 24, effective for tax years beginning after May 25, 2007.
2006 Pension Protection Act:
- Starting
with tax years beginning after 08/17/06, even small gifts to charity must
be supported by a bank record or written acknowledgement.
- Gifts of clothes and household items have stricter rules, effective immediately, requiring donation allowed ONLY if goods are in good or better condition.
Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA):
- Lower
capital gain rates and taxing of qualified dividends at capital gain
rates were extended through 2010.
- For 2010, income limits on conversions from traditional IRAs to ROTH IRAs have been eliminated and income on conversion is taxed in 2011 and 2012.
We at Averson and Klinetop, LLP are prepared to explain and
implement the new compliance strategies. Contact us for a review of how these
changes may affect you. Click one
of these links we have provided for either:
The 2009
Tax Planning Guide
or
The 2008
Year End Tax Planning.
Telephone: 315-463-8522
To E-mail, click on akcpa@a-znet.com
AVERSON & KLINETOP, LLP
6320 Fly Road
Suite 108
East Syracuse, NY 13057
315-463-8522
Email: akcpa@a-znet.com
Back to the intro:
|
|