The Department of Industrial Relations has posted the SUI rates for 2012. This year the lowest rate is down a full point from 2011! The lowest rate available is now 1.19% with a .06% security assessment. You can pull the rate document from the DIR egov site. To do so, log in to your account [...]
Property that does not qualify for an immediate tax write-off under Section 179 may qualify for an increased first-year depreciation deduction under bonus depreciation rules. Unlike the Section 179 deduction, there are no restrictions on the amount of qualifying property and there is no taxable income limit. This deduction is equal to 100 percent of [...]
Instead of depreciating an asset over several years, Internal Revenue Code Section 179 allows the expensing of all or a portion of certain qualifying new and used assets in the year placed in service. There are limitations including a business taxable income limit. You cannot claim a Section 179 write-off that would create or [...]
The annual gift tax exclusion for 2012 remains at the 2010 and 2011 level of $13,000. If you are married, you can gift up to $26,000 per donee, per year, by using the gift-splitting rules while avoiding any federal gift tax ramifications. Gifting is a good way to reduce your taxable estate. For example, if [...]
On October 14th, the IRS issued Revenue Procedure 2011-48, 2011-42 IRB 527 which provides guidance for filing protective claims for refund under Section 2053 of the Code. Protective claims are needed due to the uncertainty surrounding many of the expenses associated with the administration of an estate. Commonly, legal and accounting fees related to the [...]
In the spirit of wrapping up 2011, we decided to give you our ten most viewed blog posts of 2011. That means you loved them! 10. Bonus Payments are wages from November 30 9. Alabama’s 529 fund could lower your tax bill from December 20 8. New Home Builder Ad Valorem Tax Reduction Opportunity from [...]
You can avoid penalties and excise taxes if you make deposits of deferrals and loan payments that are received by the retirement plan within seven (7) business days of the payroll date. [expand title="Read More..."] Many plan sponsors mistakenly believe that deferrals and loan payments which are remitted by the middle of the next month [...]
Congress agreed on, and the President signed, a temporary extension of the payroll tax cut from 2011. This extension expires on February 29, 2012, unless extended again. This is still only for the employee portion of Social Security and it continues to be 4.2% of wages. The law also includes a recapture provision that will [...]
As you may know not all states repaid interest due to the federal government related to unemployment borrowings. As a result the IRS has listed the states that are required to reduce their FUTA credit on Form 940 for 2011. An employer in a credit reduction state must complete Schedule A and include it with [...]
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