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 Walt Mentzer on March 3, 2009 at 2:14pm: We just started a new organization that might interest some self made folks out there. It is The National Assoc. for the Advancement of Conservative People of Color. Get back if it sounds like a group you would like to be part of.

Comment by Sophia Wilson on March 3, 2009 at 2:14pm: I so appreciate the useful information that you have brought to my attention.
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Comment by Betty Tomich on March 3, 2009 at 2:13pm: Thanks...nice to read some positive impacts the STIM will have to offset the media's showcasing of all the negatives.

Comment by Walt Mentzer on March 3, 2009 at 2:10pm: Praise The LORD there are some benefits in this hand out package that might mean something to us business owners. Walt

Comment by Jim Gardner on March 3, 2009 at 2:10pm: Thank you so much for this very useful info.

Jim Gardner

Comment by InternetFamilyMember.com on March 3, 2009 at 2:09pm: Thanks for the info!
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Comment by Laura Jorge on March 3, 2009 at 2:08pm: Thank you very much, Yvonne, for this informative article. Please continue with this program as we can learn a lot from it especially those of us, like myself, who knows very little about taxes, stimulus and the IRS. Thank you once again.

Comment by Marlo T. on March 3, 2009 at 2:06pm: Thank you very much for the VERY useful information!

Comment by Kesha on March 3, 2009 at 2:01pm: Thank you so much for the info!!

Comment by Debbye Tyler on March 3, 2009 at 1:58pm: Thank you so much Yvonne for this helpful tax update. I agree, we are too busy running the day to day operation and I hope my tax guy is keeping up with all these changes!!!!