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 Pastor Bruce & Emily Rivers on March 3, 2009 at 6:55pm: Thanks ms. Y.

Pastor Bruce

Comment by Dora Kaeding on March 3, 2009 at 6:04pm: thank u for the information it was nice

Comment by Merric on March 3, 2009 at 5:41pm: Hello Ms. Benjamin:

I know that you are very busy with your business, and you will have limited time to really get into the details of the Recovery package...but, how do you know that there are 100's of pork barrel projects in there? Although Dr. Mueller seems to be a very reputable person, as he has credentials that would suggest it regarding what we see online......the best judge for any business decision on what is good or bad, what is pork and not, is us...the educated citizen and business professionals. I have learned a long time ago, not to trust the "professionals" enough to give me information, but to read things myself and marry that to speaking with them on such important decisions as finances and tax.....and this economy will require all of us to do our own homework and look at financial and tax pros (whether counselors our not) with a more skeptical eye.

We have had a whole congress full of "professionals", and professionals running banks and other financial companies that were out for their own interests. Many of us business people and professionals did not have time to get deep into financial information or financial education as a matter of fact, and we got burned for it. People like Mr. Madoff and other professionals experts who were trusted destroyed a lot and left even celebrities who we think would know better holding the bag.

For this package, there may not actually be a lot of pork barrel spending...or at least not as much as the last 8 years....So I am very thankful for what we have and consider it a better first step.

I urge all business owners to do your own homework....we may be very busy doing our thing...but there is always someone who is out for their own..and trusting that you will not do your research. I do not want to dump on legitimate professionals who are excellent at counseling and giving info to others, but we got to know enough to know when that knowledge is biased and when it is right. Many times there is always a mix of the biased and the unbiased.

Comment by Herschel on March 3, 2009 at 5:38pm: Thank you Yvonne for the information, like so many others we are so busy running our business but we need to stop for a second and try to understand what this package is all about and how it will help us.

Comment by Felicia on March 3, 2009 at 5:35pm: Thank you so much for the advice!

Comment by Ionie Beckford on March 3, 2009 at 5:23pm: Thanks for the info
It is of great help to me and my family.
To God be the Glory!
Ionie

Comment by IndigoBlue on March 3, 2009 at 5:18pm: Thank you for this information! ~Kathleen

Comment by Lydia Scott on March 3, 2009 at 5:04pm: Nice research! Thank you very much for executing valuable information to everyone. I hope to here from you again with more information through out the year. Part 2 will be GREAT
Thanks once again,
Lydia

Comment by Denny Simmons, Jr. (Tazy) on March 3, 2009 at 4:50pm: Thanks so much, very helpful and I will pass you article on.

Thanks Again,
Denny (Tazy)