NEED NEW EQUIPMENT IN YOUR OFFICE?

In yet another effort to stimulate the economy, Congress has added a new section to the tax law. Purchase of new business equipment formerly allowed 50% of the cost to be depreciated. Now 100% of the cost can be depreciated for equipment placed in service after September 8, 2010 and before January 1, 2012. Three caveats: the equipment must be new, must be used for business more than 50% of the time, and must have a recovery period of 20 years or less. Check with your accountant.

TAX STRATEGY HINT

Fund private school costs or a college savings account with tax-deductible salary paid to your six year old or older child who performs some tasks in your office. In 2011 a child can earn up to $5,800; up to $5950 in 2012. Check with your accountant.

TAX STRATEGY HINT

If you still employ a staff member hired during 2010 who was unemployed on February 3, 2010, your practice may qualify for the New Hire Retention Tax Credit of up to $1000 per employee. Check with your accountant.