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 Trina L.C. Sonnenberg on March 4, 2009 at 6:27am: Does the vehicle purchased have to be new, or can it be used as well? My husband bought a used truck to save on gas mileage, and I got a new used car after my accident.

Comment by doctor ben salem ezdine on March 4, 2009 at 5:22am: very interesting,very informative,,thank you so much
respectfully
ezdi

Comment by David Ogden on March 4, 2009 at 1:48am: Well I am not myself subject to USA taxes but it does seem that some support is coming the way of small business and work from home business to help them through the crisis.

Comment by Nicholas Salimes www.seastars.ws >>> experience the most powerful lead generation tool on the PLANET on March 4, 2009 at 1:45am: Ok, EVERYONE with a legitimate home business should do taxes, with the guidance of a pro. The savings are astounding! Why most affiliates do not do this is beyond me. If you live in a small apartment, you could write off even 50% of your rent among other things. Send me a message if you want help on INSTANTLY increasing your annual income with strategic tax planning.

Comment by Ted Duboise on March 3, 2009 at 11:46pm: Worker's W-2 income will increase starting April 1st. How about all the people that are unemployed? I guess you have to have a job to get that benefit. Good job on the article - it's very informative. Thanks for posting.

Cheers!
>> Ted <<

Comment by rosett on March 3, 2009 at 10:43pm: Im very thanksful, there are some benefits in this hand out package....Can you please help me to promote my product.....

Please click here:
http://simurl.com/cavmuz

Comment by John Gatto on March 3, 2009 at 10:23pm: I think I'am with you Michael

John'oneliner'Gatto
www.dreambig47.com
Plan B 4 Bailout Yours

Comment by Naomi Trower on March 3, 2009 at 10:17pm

I plan on buying a new car this year so thanks for the useful information!

Comment by John Gatto on March 3, 2009 at 10:15pm: Havw to wait and see what the whole package ads upto

John'oneliner'Gatto
www.dreambig47.com
Plan B 4 Bailout Yours

Comment by Michael D. Brown on March 3, 2009 at 10:14pm: The truth of the matter is that though the Stimulus package was approved-very few people have read the 1100 plus pages. Bits and pieces are trickling out daily. I do believe the new tax increases will not be a good thing for small biz.