Dear Valued Client,
The new year brings about many tax law changes, such as credits that have expired or tax breaks that may not be around much longer. This month's newsletter includes important updates that may apply to you.
If you still need to make your tax appointment, please call this office soon. You don't want to wait too long. The April deadline is just right around the corner.
This office can help you with all of your tax needs.
Sincerely,
Sherri Mahoney-Battles
2010 Brings Increased Deduction for Domestic Production Activities |
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The domestic production deduction was created to encourage manufacturing and production within the U.S., and it provides a substantial business deduction equal to 9% (up from 6% in 2009) of the lesser of: (1) the taxpayer’s net income from qualified production activities or (2) the taxable income (modified adjusted gross income for individual taxpayers) without regard to this deduction for the tax year.
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Many Business Tax Breaks Expired at the End of 2009 |
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Although there is some talk of extension, unless Congress acts to retroactively restore them, the following business tax breaks that expired on December 31, 2009 will not be available in 2010.
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Have a Financial Interest or Signature with a Foreign Financial Account? Better Read This! |
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Each U.S. person who has a financial interest in or signature or other authority over any foreign financial accounts (including bank, securities, or other types of financial accounts in a foreign country), if the aggregate value of these financial accounts exceeds $10,000 at any time during the calendar year, must report that relationship to the U.S. government each calendar year.
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New Limitation on Farm Losses |
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For tax years beginning after 2009, the farming loss of a taxpayer, other than a C corporation, is limited for any tax year in which any applicable subsidies are received.
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Substantial Penalty for Late Partnership and S-Corporation Returns |
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Income from both partnership and S corporation returns passes through to the partners or stockholders. Therefore, filing these returns late creates hardships for the partners or stockholders to timely meet their own filing obligations.
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