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 Ben Simonton on March 5, 2009 at 12:18pm: Unfortunately, we are all going to pay for this massive spending plan and probably more than any one of us benefits from it.

Comment by william r sturdivant on March 5, 2009 at 11:01am: Thank you much,keep us informed we all need this type of insight.
Good Job!

Comment by John Gatto on March 4, 2009 at 10:23pm: It's stll 1100 pages long so it ain't over till its over

http://www.twitter.com/1liner2

John'oneliner'Gatto
www.dreambig47.com

Comment by Beth Schmillen on March 4, 2009 at 10:09pm: Hi Yvonne,

that is very encouraging news...thanks for letting us know.
It's hard to imagine that the small business owners and everyday
workers will see some financial relief after all the billions that have gone
to bail out banks and the Auto Industry.

Happy Days are Here again!
Beth

"There is a vitality, a life force, an energy, a quickening, that is translated through you into action, and because there is only one of you in all time, this expression is unique. And if you block it, it will never exist through any other medium and will be lost." --Martha Graham

http://www.twitter.com/bethsventures

"There is a vitality, a life force, an energy, a quickening, that is translated through you into action, and because there is only one of you in all time, this expression is unique. And if you block it, it will never exist through any other medium and will be lost." --Martha Graham

Comment by Bia Medley on March 4, 2009 at 8:40pm: Good Information to think about. In today's environment we need to help each other out. Be sure to check me out for electronics etc. at I will be adding product almost every day.
Bia

Comment by nateperkinstv on March 4, 2009 at 3:38pm: SUPER HERE INFO HERE, YVONNE!
Thank you,

Nate

Comment by JD Hawkins on March 4, 2009 at 3:28pm: Thanks You Yvonne for sharing this information and where to get a continued update. I had heard most of this but so much is rumors that the Obama bashers start you don't know what to believe. JD

Comment by John Gatto on March 4, 2009 at 3:15pm: If it rolls around in the mud, and smells like bacon----------Its Pork

John'oneliner'Gatto
www.dreambig47.com

Comment by Annette Willson on March 4, 2009 at 3:10pm: Im a small business owner and i find working IN my business so time consuming so working ON my business doesn't happen
Thanks for the Info AA

Comment by Helene on March 4, 2009 at 1:43pm: Thanks for the tax tips. It's nice to have an administration that cares about Main Street and small businesses.