With the end of the year coming up it seems appropriate to mention an often overlooked potential planning strategy. For some taxpayers who have very little ordinary income and still have deductions resulting in little to negative taxable income for the year, it may make sense to consider doing a Roth conversion on a portion of any tax-deferred retirement accounts. Read more
With year end approaching, we felt it would be appropriate to remind our clients of the 100% Bonus Depreciation deduction that is expiring at the end of 2011. For all eligible assets placed in service before December 31, 2011, you may deduct 100% of the cost on your tax return. That is a full, 100% deduction for major equipment, computers, and other business use assets. Bonus Depreciation is not subject to the typical limitations that Section 179 expense is subject to. For instance, Bonus Depreciation can create a loss that can be carried back to prior years to claim a refund. Bonus Depreciation is also not subject to dollar limitations on assets placed in service like the Section 179 deduction is. Read more