THE AMERICAN RECOVERY ACT: What Does It Mean To You?

As a small business owner I sometimes find myself not keeping abreast of all the tax regulations because I’m busy advertising and running my business. Now with the latest Stimulus package approved by Congress, I needed to know the changes that will impact me personally and as a business owner.

Ronald R. Mueller, MBA, Ph.D. author of “Home Business Tax Savings Made Easy" is informing people that the American Recovery and Reinvestment Act of 2009 is HUGE - not just in its price tag, but also in its complexity - so you can expect to read a whole string of Tax Tips as Dr. Muller continues to dissect this massive package containing 100's of both smart investments and pork barrel projects. Due to my busy schedule, I don’t have to go searching for the information because Dr. Mueller will send updates directly to my inbox.

HERE ARE SOME OF THE HIGHLIGHTS:

• The Section 179 "accelerated depreciation" limit of $250,000, which expired on 12/31/08, has
been extended throughout 2010
• The 50% Bonus Depreciation on purchase of business assets, which also expired on 12/31/08, will
continue also
• 5-year "carry-back" of Net Operating Losses for small businesses (more on this in my next issue
of "Tax Tips You Can Bank On")
• Temporary relief of Estimated Tax Payments for small businesses (more on this in my next issue
of "Tax Tips You Can Bank On")

• W-2 workers' take home pay will increase by $400 (for individuals) and $800 (for married couples)
beginning on/about April 1, paid at rate of 6.2% of earned income, until the $400/800 limits are
reached. Phase-outs apply for high income earners.

• Social Security recipients, Veterans who are on disability pay, and Railroad Retirees will each see
$250, which will be paid by the agency producing their current monthly checks.

• Anyone (not just small businesses) who purchases a new car, light truck, RV or motorcycle from
February 17 through December 31, 2009 may deduct, on their Federal tax returns, any state and
local Sales and Excise taxes.

I think you will find this information to be very valuable. I plan to purchase a new car within the next couple of months. Now thanks to the last bullet above, I will be able to write of the sales and excise taxes. That is awesome!

If you want to be kept in the loop regarding both personal and business tax issues, go to http://www.kickstartcart.com/app/aftrack.asp?afid=943622 and subscribe to “Tax Tips You Can Bank On”. Be sure to pass this valuable information on to everyone you know.

Have a Great Day!

Yvonne Benjamin
www.GreaterTravelBiz.com
yb@greatertravelbiz.com

Tags: act, based, business, deductions, home, irs, recovery, savings, stimulus, tax

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Comment by TULSI PHOKHRIYAL on September 14, 2009 at 11:55pm: wonderful and amazing to be part of this family. I wish lot of success to all it's members. May I request all to through out their wisdom for motivating and inspiring all in oneness.

Comment by Cheryl Piemonte on March 20, 2009 at 5:54am: Thanks for taking the time and providing such great information. I will keep checking out anymore information you provide. Nicely written too! Thanks again!

Comment by Perry Molden Sr on March 9, 2009 at 11:56am: HOW ABOUT HELP PEOPLE WITH THEIR FINANCE.
WE ARE ABOUT HELP PEOPLE WITH A INCOME WHICH ALLOW THEM TO MAKE MONEY OFF OTHER SHOPPING ONLINE AND WHEN THEY SHOP TO . THIS IS FOR ANYONE SHOPPING FOR THEIRSELF OR FOR THEIR FAMILY ,YOU CAN MAKE A INCOME FROM YOUR WEEKLY SHOP AT WAL MART, HOME LOAN,CAR INSURANCE,FREE CREDIT REPORT,BUYING A NEW OR USED CAR, LOOKING FOR A JOB,CREDIT REPAIR,BANKRUPT,FORECLOSED, GETTING A CREDIT CARD AND OTHER TYPE SERVICE WE OFFER TO THEM. IT IS FREE TO JOIN. TAKE A LOOK AT MY SITE FOR YOURSELF.

Comment by Alisa Stevenson on March 7, 2009 at 10:08pm: Thanks Yvonne! It just happens that my sister was car shopping/browsing today! I can't wait to pass this tidbit on to her! And since my husband and I are both working part time outside of our business(it takes so long to get a new business on its feet!) we will look forward to that little extra there!

Comment by John Gatto on March 6, 2009 at 6:19pm: Amen

John'oneliner'Gatto
www.dreambig47.com

Comment by Beckie Rhodes on March 6, 2009 at 3:34pm: I do not want to take advantage of any of it. Honestly, we shouldn't be able to deduct new cars and other personal purchases on our taxes. More government spending is not the answer.

Comment by Patrick Sanders on March 6, 2009 at 4:17am: Thank you for the tax information
Patrick Sanders

Comment by John Gatto on March 5, 2009 at 4:50pm: You get what you pay for
follow me on twitter http://www.twitter.com/1liner2

John'oneliner'Gatto
www.dreambig47.com

Comment by Leah Elise Curry on March 5, 2009 at 2:11pm: This is great information. I was needed to purchase a new car soon and it is nice that I will have a tax benefit for doing so. This was a very informative article and I appreciate you for sharing. -Leah

Comment by Joanne Popp on March 5, 2009 at 12:32pm: Thanks for the info but I must point out that small businesses lose a lot of deductions because we fail to keep accurate records. You go to lunch with your friend, the waitress asks what you do for a living, you hand her your business card; the lunch is now a business lunch. Did you record the who what where why and when along with the expense within 24 hours? If you keep a well documented diary of all business expenses, you have more deductions.