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 Shelby on March 4, 2009 at 11:39am: Thank you so much for the great information. I am very happy to hear about the Temporary Relief of Estimated Tax Payments. That one is always tough in the beginning of the year.

Shelby
Sampling the Good Life!

Comment by Church Ohio on March 4, 2009 at 11:37am: Great information! Thanks for letting us know!

Comment by Ty on March 4, 2009 at 11:34am: Good stuff! If you don't mind I'd like to share this entry on my other soc. net. sites...will include your tags as well.

We travel pros have to stick together!
Ty
www.thetravelhood.com
~LQQK BEFORE YOU BOOK~

Comment by Krystara-El Kumara on March 4, 2009 at 11:33am: Great information. Thank you. I recently resigned from my day job to start my own business. These tips are great to know. I just bought a new car so it's good to know about the tax deduction. I will also be getting a tax break for recently purchasing a new energy efficient heating and air conditioning system for my home that will help the environment and is EPA approved. Awesome! Thanks for the info.

Krystara

Comment by Vicente B Galindo on March 4, 2009 at 11:30am: The Recovery act will be actually I feel and have calculated only 25% efficient at the most...it is based on a linear econimic model which has no precendence to the sophisticated USA economty...Obama is a trader and he is intellectually gifted enough to discover what can actaully can hurt USA. I will become soon his number one intellectual challenge..i am bying some of the banks out in USA with my own cash ...something that he cannot do lack to full Enterpreneur Intellectual Value and Reasoning.

Comment by Dorothy Thompson on March 4, 2009 at 11:28am: This is excellent! Thank you so much!

Comment by Maria Isabel Lopez on March 4, 2009 at 11:01am: Yvonne, thank you for sharing this helpful information.

Best regards, Maria Isabel

Comment by eMusicBlast.com on March 4, 2009 at 8:58am: Good stuff!

Comment by Alex A Obiefuna on March 4, 2009 at 8:36am: Thanks for your informatiion, my business is very new and I do not look to benefit from these tax arrangement in the short run, but it gives me something to think about future.
Al