Business Extenders: 2012 American Taxpayer Relief Act

Posted on Monday, January 07, 2013

The recently enacted 2012 American Taxpayer Relief Act extends a host of important tax breaks for businesses.  Here is an overview of selected key tax breaks that were extended by the new law. Please call our office for details of how the new changes may affect you or your business.

Depreciation provisions modified and extended. The following depreciation provisions are retroactively extended by the Act:
... 15-year straight line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements;
... Increased expensing limitations and treatment of certain real property as Section 179 property;
The new law also extends and modifies the bonus depreciation provisions with respect to property placed in service after Dec. 31, 2012, in tax years ending after that date.
Business tax breaks extended. The following business credits and special rules are also extended:
... The research credit is modified and retroactively extended for two years through 2013.
... The employer wage credit for employees who are active duty members of the uniformed services is retroactively extended for two years through 2013.
... The work opportunity tax credit is retroactively extended for two years through 2013.
... Exclusion from a tax-exempt organization's unrelated business taxable income (UBTI) of interest, rent, royalties, and annuities paid to it from a controlled entity is extended through Dec. 31, 2013.
... Exclusion of 100% of gain on certain small business stock acquired before Jan. 1, 2014.
... Basis adjustment to stock of S corporations making charitable contributions of property in tax years beginning before Dec. 31, 2013.
... The reduction in S corporation recognition period for built-in gains tax is extended through 2013, with a 5-year period instead of a 10-year period.

If you would like more details about these changes or any other aspect of the new law, please do not hesitate to call our Fort Wayne or Marion office.

Posted in Tax And Accounting Topics For Business

Disclaimer: The information contained in Dulin, Ward & DeWald’s blog is provided for general educational purposes only and should not be construed as financial or legal advice on any subject matter. Before taking any action based on this information, we strongly encourage you to consult competent legal, accounting or other professional advice about your specific situation. Questions on blog posts may be submitted to your DWD representative.

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