The 2012 American Taxpayer Relief Act passed earlier this year has a new opportunity for Roth conversions. Now individuals can convert any portion of their balance in an employer-sponsored tax-deferred retirement plan account into a designated Roth account under that plan. Designated Roth accounts are popular retirement plan options because they offer several advantages, such as: Earnings within the account are tax-sheltered. This is the same with a regular qualified employe
Today we will take a look at the 2013 depreciation limits for business autos, light trucks, and vans. The IRS released the inflation-adjusted depreciation limits for these vehicles (which also includes minivans) placed in service by the taxpayer in 2013. Depreciation deduction limits for 2013 are the same as in 2012 for a passenger auto. The limits are $100 higher for a light truck or van, other than the first year limits, which are the same. First-year luxury auto dollar lim
The IRS began processing individual returns on January 30th. However, the Iowa Legislature has not passed the legislation needed to update Iowa's 2012 tax law to include all the changes from the American Tax Payer Relief Act. This will delay some taxpayers from filing a state return. Disclaimer: The items included in the Tax Tip Tuesday Video Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your si
Retroactively effective for tax years beginning in 2012, the new tax act increases the maximum expensing amount under Code Section 179 from $139,000 to $500,000. Effective for tax years beginning in 2013, the tax act increases the maximum expensing amount under Code Section 179 from $25,000 to $500,000. The tax act also increases the phase-out amount to $2 million. For tax years beginning after 2013, the maximum expensing amount is scheduled to drop to $25,000. The retroactiv
Now that Congress has acted, we want to break down the key issues of the American Taxpayer Relief Act, which is also referred to as the Fiscal Cliff Bill. Here's a breakdown of the key issues.
Individual Tax Rates
All the prior individual marginal tax rates are retained (10%, 15%, 25%, 28%, 33%, and 35%). For single filers with taxable income of over $400,000 and married couples filing jointly with over $450,000, a new top rate of 39.6% is imposed. Phaseout of Itemized D