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 [...]
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 [...]
No one likes to pay taxes any sooner than required. Therefore year-end strategies typically focus on deferring income from this year into future years and accelerating deductions from future years into this year. Following are some basic principles that can help guide your overall thinking: If you expect your tax rate to be higher next year, [...]
If you are an avid reader of our website and blog, you probably know that on November 2nd, we hosted a great Bankers' Panel as well as a seminar for many of our construction clients and several that soon will be clients! Just to make sure we are keeping our readers informed, here are the [...]
Sponsors of SIMPLE plans must make an annual notification to eligible employees regarding their opportunity to participate in the plan, and the contribution option the employer elects for the coming year (either the match or the non-elective). This year the notice must be provided to eligible employees no later than Wednesday, November 2, 2011. JMF will be sending [...]
A federal appeals court affirmed a popular gift tax strategy that is available for taxpayers to help lessen the blow when IRS does not accept valuation discounts on gifts. This technique is intended to discourage the IRS from challenging valuation discounts. By making gifts default to charity if the valuation discounts are adjusted by the IRS, it effectively takes those [...]
Attention, Alabama home builders: This year, the Alabama legislature passed Act 2011-544, the “Homeowners and Storm Victims Protection Act of 2011”. The act became effective on September 1, 2011. A provision in the act reduces ad valorem taxes you pay on your inventoried houses and underlying lots by 50% for a period of 24 [...]
JamisonMoneyFarmer continues to take a leadership role in the business and CPA world in the state of Alabama. After we shared Carl Jamison's work with the Alabama Business Council last week, we are pleased to announce that another JMF shareholder, Leighanne Faught, has been appointed by Governor Robert Bentley, upon confirmation of the Senate, to serve on [...]
The U.S. Department of Transportation has released the Standard Industry Fare Level (SIFL) rates for the second half of 2011. SIFL rates and terminal charges are used for income tax purposes in a special formula for valuing imputed income from employer-provided noncommercial flights. These rates are calculated by the Department of Transportation and revised semi-annually. The most recent amounts [...]