The American Taxpayer Relief Act of 2012 was signed into law by the President yesterday, avoiding the fiscal cliff and giving tax professionals some answers on what 2013 will bring. The 154-page legislation covers a wide range of taxation issues, but a quick initial reading of the bill suggests that taxpayers will find some good news:
- 50% Bonus depreciation is now extended through 2013
- Section 179 limit enhancements ($500,000 limitation/$2,000,000 reduction limitation) now extended through 2013
- QLI (bonus eligible), QRIP, & QRP 15-year life extended through 2013
There’s much more to this legislation, included extension of 45L tax credits (more on that to come). While the road to this compromise has been rocky, we feel that the result can be extremely beneficial to taxpayers, provided they and their advisors carefully consider all the factors involved. If you have any questions about how your clients can best take advantage of this new legislation, contact MS Consultants today.