Punchlist of Tax Headlines for 12.30.10

Tax Breaks that were not extended in the Small Business Jobs Act of 2010 that are used most frequently are:

Qualified Motor Vehicle Taxes – the sales tax deduction for new cars taxpayers could include on Schedule A is gone.

Property tax addition to standard deduction – taxpayers can’t add $500 or $1,000 in property taxes to their standard deduction if they don’t itemize

Partial Exclusion of unemployment benefits – all of unemployment benefits are taxable now, the $2,400 exclusion is gone.

Alternative motor vehicle credit – hybrids and lean burning fuel cars are no longer eligible for a credit.

Waiver of the 10% AGI limit on disaster and casualty losses is no longer available.

If you would like more information on any of the above items please give Kelly Phillips a call at 501.753.9700 or email her at kelly.phillips@bellandcompany.net.

New Gift and Estate Rules - By Richard Bell, CPA

I strongly suggest clients visit with us or their estate attorneys, on the new gift and estate rules effective for 2011 and 2012. You may need to update your gift tax plan and have your tax attorney review your estate plan documents.

Happy New Year to All.

Richard Bell, CPA

New Depreication Rules

Under the new depreciation rules you CAN NOT 100% bonus a vehicle under 6,000 pounds. Auto limits still apply to passenger autos. For 2010, that limit is $11,060. This can be made up of section 179, bonus and regular depreciation, but you cannot go over $11,060.

If you have an SUV over 6,000 pounds, you can take section 179 up to $25,000, bonus depreciation and MACRS on the balance. If the SUV was purchased September 9, 2010-December 31, 2010, you can take 100% bonus depreciation on the vehicle. Make sure to mark the appropriate choice in fixed assets on the vehicle tab. Before September 9, bonus is 50%.

The 100% bonus and 50% bonus can be used to create a loss, which will disallow any section 179 you may have intended to take before the 100% bonus period went into effect.


If you have any questions please give our advisors a call today 501.753.9700.

Recent Video of Clayton Bell spokesman for Where the Stars Still Shine, Inc.

Recently our very own Clayton Bell was interviewed on our local news channel please check out the video at this link.





If you would like more information please visit http://www.wherethestarsstillshine.org/

Bell and Company attends Women and Childrens First Event

Bell and Company recently attended a benefit for Women and Childrens First. As you can tell the CPA's hit the town in style to benefit a great cause.

Small Business Jobs Act of 2010

The recently enacted 2010 Small Business Jobs Act includes many tax breaks and incentives for small businesses. Here’s an overview of some of the tax changes in the Act that might affect you and your business. The following provisions apply to all of 2010:

Increased limits on section 179 expensing – Taxpayers can now expense up to $500,000 in asset purchases for 2010 and 2011. Section 179 begins phasing when asset purchases exceed $2,000,000. Up to $250,000 of leasehold improvement property, restaurant property and retail improvement property can be deducted as part of the $500,000 limit.

Extension of 50% bonus depreciation – For new assets purchased in 2010, taxpayers can deduct 50% of the cost of those assets.

Increased deduction for start-up expenditures – Up to $10,000 in start up costs are immediately deductible when taxpayers start a new business. Once the start up costs exceed $60,000, the expense deduction begins phasing out.

Increased first year cap for automobile depreciation – The maximum amount allowed for depreciation (including bonus and section 179) for an automobile or light truck or van is $11,060.

Cell phones are no longer subject to listed property treatment – Cell phones were previously treated as listed property, where personal and business use was to be kept in a log. The new bill repeals this requirement and allows regular asset treatment of a cell phone.

Health insurance is now deductible for the purpose of calculating self employment income - For 2010, self employment tax will be calculated on self employment income after deduction for health insurance. Previously the deduction for health insurance was taken on the taxpayer’s 1040 as an income adjustment, but was not deducted from business income to calculate self employment tax.

For rental property, new requirements for 1099 reporting go in to effect in 2011 – Taxpayers who receive rental income will be required to file 1099’s with the IRS to report payments of $600 or more to service providers. This provision does not go into effect until January 1, 2011. With few exceptions, landlords will now have to request W-9’s from contract labor and other service providers in order to send 1099’s to lawn care, maintenance and repair, and utility providers if the landlord pays the service provider over $600 during 2011.

If you have any questions about the Small Business Jobs Act and how it might apply to your business, please contact Kelly Phillips at (501) 753-9700 for further information.

Tax Tip of the Day

“When will the new 1099-B reporting requirements that require that brokerage and financial institutions include the cost as well as the proceeds from a stock transaction become mandatory?” The new reporting requirement will take effect in 2011 for stocks purchased in 2011, then in 2012, mutual funds and fixed income securities will be included in the reporting requirement. Comment: Over time, the requirement to report cost basis, will increase CPA job security, as the CPA will keep up with the basis of assets to be sold. With the complex issues of computing and tracking basis and tracking the basis, it could extend over generations, if asset are held that long.