Posts Tagged "business assets"

Depreciation rules change for 2012

Posted on Feb 28, 2012

If you’re planning to buy equipment or other business assets this year, you need to be aware of the changes in how much of the cost you can deduct in 2012.  Here are the new limits.  * Bonus depreciation. The enhanced deduction — up to 100% of qualified assets — expired at the end of 2011. The maximum bonus depreciation allowance for most qualified property placed in service in 2012 is 50% of the cost of the property.  Bonus depreciation is generally available for new assets that have a useful life of 20 years or less.  * Section 179. The expanded $500,000 Section 179 write-off that has been available for the past two years ended December 31, 2011. For 2012, you can elect to expense up to $139,000 of qualified assets you purchase during the year.  To receive the full benefit of the Section 179 deduction, the total cost of all qualifying assets purchased in 2012 must be $560,000 or less. Your deduction may also be limited by the amount of your business income.  Both new and used assets qualify for Section 179.  Congress may change these rules at any time. If you’re thinking of purchasing assets for your business this year, please give us a call for the latest depreciation...

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Prepare now for a possible disaster

Posted on Aug 27, 2010

There’s never a good time to plan for a disaster. There’s never a better time either. So why wait? Instead of having to reconstruct personal and business records in the aftermath of an unexpected calamity, safeguarding documents before you suffer a loss will make it easier to claim casualty deductions and other tax breaks. Here’s an overview of some of the paperwork to include in your disaster preparedness plan and why you’ll need it. 1. Purchase and acquisition information. The amount of a casualty loss is generally the lesser of your adjusted basis or the reduction in your property’s fair market value due to the casualty. With the exception of gifts, inheritances, and certain other property, adjusted basis typically equals what you paid for your assets plus improvements, reduced by depreciation or other reductions. Tip: Make duplicates of titles, mortgages, closing papers, and receipts or scan them into digital form. Store the originals and the copies in separate locations, preferably in fire- and water-proof containers. 2. Prior-year tax returns. When your loss occurs in a presidentially declared federal disaster area, you can amend an already filed prior-year federal return to claim the deduction and the resulting tax refund. 3. Detailed inventory. As a general rule, you’re required to reduce the amount of your personal property casualty losses by $100. In addition, losses must exceed 10% of your adjusted gross income (except in federal disaster areas). A list of your possessions, supplemented by photographs or a video, is essential for maximizing your deduction. We’re here to help you with pre-crisis management and recovery planning for your personal and business assets. Please call if you would like to schedule a...

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