Although Congress averted many of the consequences of a possible tumble over the fiscal cliff with last-minute action, you should be aware of the potential impact on your business of the American Taxpayer Relief Act of 2012. I encourage you to review the highlights of the new law below and call me at 954-591-8290 if you have any concerns about how your tax situation will change as I prepare your tax returns.

A number of popular business tax provisions were set to expire at the end of 2012. For example, small business expensing under Internal Revenue Code Section 179 was increased retroactive to Jan. 1, 2012, and extended through 2013. The dollar limit that can be expensed in 2012 and 2013 is $500,000 and there is a $2 million investment limit. You also can make use of the 15-year recovery period for qualified leasehold improvements, retail improvements and restaurant property until the end of 2013.

Many other business tax benefits that had expired or were set to expire were extended through 2013, including:

The 50% bonus depreciation
The Section 41 research tax credit
The Work Opportunity Tax Credit for hiring veterans and other individuals who meet specific criteria
The 100% exclusion for gains on a sale of small business stock
Special tax incentives for businesses located in empowerment zones
Rules on S corporations making charitable donations of property

These are just a few of the most important provisions of the new law. I can help you understand the effect that these and other changes will have on your tax situation.

In addition to preparing your return in a way that maximizes tax advantages for your business, I am available all year, not only during tax season like a lot of other firms; to counsel you on proactive strategies and planning decisions that will minimize taxes and meet your financial goals. Planning is particularly important because the law preserved several popular provisions that are set to expire at the end of this year.

Kenneth Hoffman counsels Entrepreneurs, Professionals and Select Individuals in taking control of their taxes, and businesses. Discover how I can help you overcome your tax and business challenges. To start the conversation or to become a client, call Kenneth Hoffman at (954) 591-8290 Monday - Friday between 8:30 a.m. to 1:00 p.m. for a no cost consultation, or drop me a note.

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