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Featured Client:
Sonoma Jet Center
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| Sonoma Jet Center offers exceptional flight support, maintenance, and travel services at
the Charles M. Schulz - Sonoma County Airport
(KSTS) in Santa Rosa, California.
Featured Employee:
Matt Melchiori  He practices in tax, auditing and accounting, and works on many of Linkenheimer's consulting engagements. Whether it is working with clients to prepare their individual tax returns, or helping business owners with their cash flow, forecasting, or general business advice, he tries to build short and long-term strategies to meet his clients'financial and personal needs while minimizing their tax exposure. To View His Bio |
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| Fiscal Cliff, CA Props and 2013 Tax Planning |
Greetings!
As a taxpayer, you are facing what is perhaps an unprecedented set of circumstances - the expiration of the tax rates enacted in 2001, the expiration of more than 150 tax provisions and a tax increase of more than $500 billion overall that could result in a much higher tax liability when you file your next return. Newly passed California Propositions- 30 and 38 could also have an effect on you and your business. Please call or come in at your earliest convenience so we can discuss your tax situation and develop a strategy that makes sense for you.    
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CA Propositions and Their Effects on You
As you've undoubtedly heard by now, the recent elections resulted in the passage of two tax-related California propositions:
Proposition 30. With the passage of Proposition 30 , California's sales tax rate will increase .25% from 7.25% to 7.50%. Additionally, Proposition 30 will result in increased individual tax rates (retroactive to 1/1/12) for high income earners. Prior to the passage of proposition 30, California's top rate was 9.3% (10.3% for incomes over $1 million). The rate increases are progressive (from 1% to 3%) and will come into effect as follows: For more information and the complete article, click here. Written by Alan Bertozzi, CPA LinkedIn Profile |
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Bonus Depreciation and Section 179
 Taxpayers may want to consider making fixed asset purchases before December 31, 2012 to take advantage of two accelerated depreciation options: - Bonus Depreciation: For most qualified property placed into service in between January 1, 2012 and December 1, 2012, the maximum bonus depreciation allowance is 50% of the cost of the property. Purchasing new assets that have a useful life of 20 years or less generally qualify for bonus depreciation. Bonus depreciation amounts are based upon a calendar year.
- Section 179: For tax years beginning in 2012, the IRS has set the Section 179 depreciation amount at $139,000, with the total asset purchase phase-out beginning at $560,000 and completely phasing out at $699,000. This means that the Section 179 deduction is reduced dollar-for-dollar for every additional $1 of assets purchased, up to $699,000. Both new and used purchases qualifes for Section 179. The California Section 179 has a maximum amount of $25,000 and a $200,000 placed-in-service threshold. Section 179 limits are based upon a taxpayer's fiscal year and generally cannot exceed taxable income for the year (before the deduction).
Please contact us with further questions regarding asset qualification and if you can take advantage of these accelerated options before year-end.
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3.8% Medicare Tax
 The health care reform package (the Patient Protection and Affordable Care Act and the Health Care and education Reconciliation Act of 2010) imposes a new 3.8% Medicare contribution tax on the investment income of higher-income individuals. Although the tax does not take effect until 2013, now is the time to begin evaluating how this new tax will affect your future income taxes and to evaluate what you can do now to reduce your exposure to this new tax.
For more information and the complete article, click here. |
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Now is the time to call if you have any questions about the new Medicare taxes, year-end planning, the looming fiscal cliff or would like to chat about future plans.
Sincerely,
Chris Jones
Marketing Director
Linkenheimer LLP CPAs & Advisors |
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