DO YOU KNOW WHAT TAX PROVISIONS ARE EXPIRING?

As 2011 is almost at an end there are several income tax provisions that are schedule to expire with the close of the year. Some of the more significant ones affect the tax treatment of fixed assets. Here are just a few:

- Depreciation deduction for qualifying property placed in service after September 8, 2010 and through 2011 which was increased to 100% will revert to 50% bonus depreciation deduction.

- Fifteen year straight-line cost recovery for qualified leasehold improvements, qualified restaurants buildings and improvements, and qualified improvements will expire also.

- Special expensing rules certain film and television productions allowing a deduction for qualified costs, rather then capitalizing and amortizing the costs under the income forecast method will also expire.

There will also be changes impacting Businesses which may include:

- The tax credit for research  and experimentation expenses only applies to amount paid before January 1, 2012.

- The credit for construction of new energy-efficient homes available to eligible contractors  will not apply to homes acquired after December 31, 2011.

- The new market tax credit for employers who hold a qualified equity investment in a qualified community development entity will no  longer be in place after 2011. 

If you don't understand what this means for you go to our website which s full of information and call us for an appointment. www.sykesaccounting.com


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