Welcome to the first edition of the Teipen, Selanders, Poynter & Ayres, P.C. (TSPA) blog.  In this section we will discuss breaking news in the tax and accounting world as well as any hot tax or accounting issues or just areas in which you have an interest.

If you have a particular topic of interest that you would like discussed in the blog please feel free to email Jason at jkieninger@teipencpa.com and we’ll discuss it in an upcoming issue.

It has been pretty quiet on the tax legislature front as of the writing of this blog.  With all of the focus on the US debt situation, the European debt situation and the upcoming election, not much has happened in Congress.

Tax holiday opposition

In typical Washington fashion, the payroll tax holiday that was to be extended another year ran into some opposition and political posturing.  However, it was temporarily extended.  The extension is for the first 2 months of 2012 and includes a recapture provision if the cut is not later extended for the entire year.   All signs point to this being extended for the remainder of the year in early 2012 as well as some other potentially dramatic tax reform being passed, but with the political gridlock that has been standard in Washington lately and the looming presidential election it is hard to say what will happen.

Some items of note for 2012 and things that have changed from 2011:

• 100 percent bonus depreciation in effect for 2011 has expired.  50 percent bonus depreciation is in effect for all of 2012.
• Section 179 limits have decreased to $500,000 purchase limit and $125,000 expense limit for 2012 down from $2 million and $500,000 for 2011.
• Standard business mileage rate for 2012 is 55.5 cents per mile.
• Moving and medical mileage rate is 23 cents per mile for 2012.
• Previously enacted legislation requiring 1099s to be sent to corporation was repealed
• Previously enacted legislation requiring 1099s for rental expenses paid was repealed.
• New for 2012 is an expanded work opportunity tax credit (WOTC) of up to $5,600 for employers that hire veterans who have been looking for employment for more than six months. There is a reduced credit of $2,400 if they were looking for 4 weeks to 6 months. The credit is increased if the veteran has a service related disability.

As always if you have additional questions or would like to schedule an appointment please contact us at 317-598-6700.

Teipen, Selanders, Poynter & Ayres P.C.