As you have probably heard, businesses can claim substantial deductions for heavy (over 6,000 pounds gross vehicle weight) SUVs, trucks, and vans used primarily (over 50% of the time) in the business. For a heavy SUV, the business can deduct up to $25,000 of the SUV’s cost in the year it is purchased. Also, the rules that limit the amount of annual depreciation allowed on passenger automobiles do not apply to heavy SUVs. This means that, for new vehicles placed in service in 2012, 50% of the remaining cost of the heavy SUV can be written off as bonus depreciation in 2012, with the balance written off over five years.
Starting July 1, 2012, qualified Illinois small businesses can receive a $2,500 per job tax credit for creating one or more new, full-time positions that meet the eligibility requirements. The program is an extension of the pilot program which expired on June 30, 2011.
With few Americans aware of the number and types of taxes they pay each year, the American Institute of CPAs’ Total Tax Insights calculator sheds light on the existence of 10 common taxes you may not know you’re paying. The 10 common, but not widely known, taxes are among more than 20 factored into the Total Tax Insights calculator’s estimations. They are (ranked in no particular order):
In October, Miller Verchota, Inc. welcomed a new member to our team!
Miller Verchota would like to inform you about the various Federal and Illinois Work Opportunity Tax Credits available to business owners like you! These tax credits target employment opportunities for Veterans, qualified young people, vocational rehabilitation referrals, among others. The Illinois Department of Employment Security (IDES) has a website with terrific information about how business owners can offer employment to in-need members of the community while also receiving valuable tax credits. We have provided the link to the IDES site that has important information about the programs being offered. Please let us know if you would like to or are already participating in this program when we meet with you for year-end and tax preparation. We look forward to hearing from you!
The Heavy Highway Vehicle tax deadline applies to Form 2290 with a taxable Gross weight of 55k pounds. Call one of our Accountants today! If you E-file this form be sure to submit it before 1pm on August 31st. The IRS will be performing maintenance from 1pm on Friday the 31st through September 4th. Don’t miss the deadline!
Have you recently thought about adjusting your 2012 withholding? It’s simple- Act now and contact one of our experts here at Miller Verchota, Inc. When you pay closer to what you actually owed you can put money back into your pocket now! Call us today!
To Our Clients and Friends:
Thanks to the extension of the so-called Bush tax cuts through 2012, the current federal income tax environment remains favorable through year-end. That said, now is the time to take advantage because we don’t know what tax rates will be in 2013 and beyond.
A recent court case decided in favor of the IRS was one of those “are you kidding!” moments CPA’s such as I cannot believe. (Mary Miller, CPA/ABV,CVA)
All 2009 QuickBooks users who use the payroll services need to upgrade by June 30, 2012! QuickBooks will no longer automatically calculate correct payroll taxes or provide payroll tax forms. The program will be inactive July 1, 2012.