Archive for August, 2012
by Heather Phillips, CPA | Manager, Not-for-Profit Services Group
When the real estate bubble burst after decades of inflation, many home-owners saw their property decline in value. Some decided to “stay the course” hoping to see prices start to go back up, while others had to sell – sometimes suffering a hefty loss. The commercial real estate market has experienced similar trends. According to the real estate website Trulia, the housing market is 32% back to “normal” through July 2012 (“normal” being “the rough estimate of the long-term pre-bubble average”).
Jim Wagoner, CPA | Partner, Director of Tax Services Group
Although bonus first-year depreciation and more-generous Code Sec. 179 expensing limits have been extended before, another lease on life for these tax breaks is far from certain this time around. Unless Congress acts, additional ‘bonus’ depreciation deductions equal to 50% of the adjusted basis of qualified property won’t be available after this year. Also, the Code Sec. 179 expensing limit is set to plummet to $25,000 for property placed in service next year. Thus, businesses planning to purchase machinery and equipment during the remainder of this year or early the next should try to accelerate their buying plans, if doing so makes sound business sense.
Buy Depreciable Property and Place It in Service This Year to Lock in 50% Bonus First-Year Depreciation
Under current law, a 50% bonus first-year depreciation allowance applies to qualified property acquired and placed in service after Dec. 31, 2011 and before Jan. 1, 2013.
The adjusted basis of qualified property is reduced by the additional 50% depreciation deduction before computing the amount otherwise allowable as a depreciation deduction for the tax year and any later tax year.
By Anita Lawrence, CPA, Manager, Audit and Other Assurance Services Group | Brandon Cook, CPA, Partner, Tax Services Group
You should have received a letter from your insurer towards the end of June letting you know whether or not you should expect a refund from your insurance company. Insurers are now required to let you know how much they spent on medical care in relation to premiums collected.
By Felicia Rupp, Senior, Tax Services Group | Jim Wagoner, CPA, Partner, Tax Services Group
There are several tax provisions (the Bush Tax Cuts) scheduled to expire at the end of 2012. We have summarized the change regarding the Adoption Tax Benefits below. Please look for future tax update articles that will include more information on the other expiring tax provisions.