More On Tax Planningfrom The Advisor's Professional Library
- Selected Provisions of the American Taxpayer Relief Act of 2012 The experts of Tax Facts have produced this comprehensive analysis of selected provisions of the American Taxpayer Relief Act of 2012 (the Act) to provide the most up-to-date information to our subscribers. This supplement analyzes important changes to the tax code with emphasis on how these developments impact Tax Facts’ major areas of focus: Employee Benefits, Insurance, and Investments.
- Charitable Giving Charitable giving can reduce your clients’ tax liabilities. However, the general and verification rules for the deduction of charitable gifts must be understood in order to take full tax advantage of such gifts.
The tax breaks will allow businesses to write off 100% of new capital investments through 2011, the AP writes. The cost to taxpayers over the next 10 years would be $30 billion, "with most of the money lost in tax revenue being recouped as the economy strengthens."
The proposal expands on stimulus measures from 2008 and 2009 that allowed businesses to depreciate 50% of their capital investments, the AP writes.
Press Secretary Robert Gibbs acknowledged the effect the political environment could have on the proposals.
"We understand what season we've entered in Washington," Gibbs said in a White house briefing. "We certainly hope that there are measures, including some of the ones that the president will outline, that Congress will consider. If they don't do that prior to the election, the president and the economic team still believe that these represent some very important ideas in continuing along our path toward economic recovery."
The AP noted that even if the proposals were approved, it's unlikely that they would have much effect on the economy by November, although an anonymous source told the agency the expanded tax breaks could benefit "several million people and 1.5 million businesses."