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 Page Gaddis on March 3, 2009 at 9:39pm: Thanks Yvonne. I just hope I don't fall into the same old trap of being to busy to follow up on them.

Comment by Yvonne Benjamin on March 3, 2009 at 9:28pm: Hello everyone,

Another website to check out is http://www.irs.gov/businesses/small/article/0,,id=110417,00.html for info on starting, operating, or closing a business. I am not a tax professional, but I can be resourceful when the need arises. I hope this information helps.

Be Blessed!

Yvonne : )

Comment by telefriend on March 3, 2009 at 9:26pm: Debasing our currency by printing money in the name of "a recovery?" makes absolutely no sense. How are we supposed to pay commensurate tax increases with dollars that are worth commensurately less?? Starting with the fractional reserve banking system, this economy is a classic scenario of what a "contract of impossible performance" is.

Comment by Malik on March 3, 2009 at 8:57pm: Hey, I need to check with my accountant and make sure I'm getting my benefits. LOL

Comment by Shirl on March 3, 2009 at 8:50pm: Thank you Yvonne.

Comment by jussara on March 3, 2009 at 8:45pm: As Brazilian citizen I am impressed with your knowledge about many things of new action of the Government, as well as, your solidarity in taking care about this matter and write about for all who it may concern. Congratulations!