Congress passed some laws that changed the federal tax code, starting in Jan. 2012. All American taxpayers should research these laws, well and/or hire a good C.P.A., to ensure that they obey the laws.
The estate tax, gift tax, and generation-skipping transfer tax exemptions were indexed to inflation. In 2011, the exemption was $5 million. In 2012, the exemption is $5.12 million.
This year, there was a large decrease in how much of the total cost of new equipment, including computers, machinery, and vehicles, a business can deduct. Last year, businesses could deduct up to $500,000, for that purpose. Starting this year, the limit is $125,000.
Some businesses don’t report all of their income, so Congress passed a law to help the IRS help catch those businesses. Starting in 2012, the IRS will require credit card processing companies and third-party payment services, including PayPal, to report how much money they handle for other companies. This law affects businesses who process more than $20,000, in sales, in the same year, and have more than 200 transactions.
To ensure that taxpayers obey all tax laws, more of them should hire a C.P.A., if the taxpayer finds a well-qualified C.P.A., in an appropriate price range.
Sansone & Associates, P.C. is known for guiding our clients through a full range of tax planning and preparation decisions to minimize tax liabilities. We pride ourselves on being available to play a major role in supporting your financial, record keeping and tax planning issues. If there is anything, we can help you with, please schedule an appointment with one of our certified public accountants by calling 815-459-4300.