Change is inevitable in life, business, and taxes. As taxes impact both life and business, it’s important to stay abreast of changes in this ever evolving category. This can be a tad too consuming for professionals in Carroll County, Ohio and Columbiana County, Ohio with much on their plates. Fortunately, the certified value analysts at Appalachian Basin CPAs, Inc. in Canton, Ohio are skilled in sorting out the specifics as they do for companies in Jefferson County, Ohio and Harrison County, Ohio. They are well aware of 2013 exemptions, credits, and deductions as well as investment guidelines, mileage allowance changes, and business tax details relevant to you.

The R&D tax credit, for example, will remain unchanged. This is the work opportunity credit for hiring disadvantaged workers. And credits and deductions are not the only tax aspects showing some consistency. Other continuing business tax breaks include the 15-year depreciation for restaurant renovations and leasehold improvements. And the 100% gain exclusion for investors who buy stock in a small, regular corporation directly from the company and sell more than five years later.

Also an important investment note, the top rate on capital gains and dividends rises to 20% for high-incomers. This includes singles with taxable income of about $400,000 and couples with income over $450,000. And the Medicare surtax can boost the rate to 23.8%. Known for having its own set of rates and deductions, the AMT system is changing too. AMT 2013 exemptions will exceed those of 2012. They jump to $80,800 for couples and $51,900 for both singles and household heads, up from 2012 by $2,050 and $1,300, respectively.

As business assets are personal assets to business owners that ultimately become parts of the estates, Appalachian Basin CPAs, Inc. consider transfer details key. The estate and gift tax exemption for 2013, for instance, increases to $5,250,000. The tax rate jumps to 40%. And the annual gift tax exclusion rises to $14,000 per donee. Such information suggests the need for proper planning that the certified value analysts in Canton can provide.

Should your business be one of the many mobile organizations in existence, you and your employees may benefit from Congress’ decision to increase the standard mileage allowance. Anyone who travels from their office to their customers is allowed to claim the miles in between as a business expense. For 2013, the standard mileage allowance for business driving is 56.5 cents per mile, up a penny.  The allowance rises 24 cents a mile for travel for medical purposes and job-related moves.  But the rate for charitable driving remains stuck at 14 cents a mile.

Carroll County and Columbiana County companies with equipment in service can expect similar depreciation figures to those of 2012. As can those with machines moving in Jefferson County, Harrison County, and the rest of the US. This includes the 50 percent bonus depreciation that remains in effect for assets placed in use in 2013. And up to $500,000 of business assets can be expensed…a continuation of the rule that was retroactively reinstated for 2012 as well.  The $500,000 ceiling is reduced dollar for dollar after more than $2 million of assets are put in service.

Impactful to employees, the payroll tax reduction expired December 31.  Lawmakers did not renew the two-percentage-point cut in the employees’ share of the Social security tax. They did not like the idea that government funding was required to make up the decrease in tax revenue for the Social Security trust fund.  As a result, they decided to let this break lapse.

It goes without saying that there is a wealth of other business tax information relevant to you. Mileage allowance may be minor in comparison to the full scope of changes to 2013 exemptions, credits, and deductions that the team at Appalachian Basin CPAs, Inc. can share with you. As planning enables progress, it would likely behoove you to seek their advice sooner than later. Visit their website at www.abbacpas.com to explore their services or call 330.437.1182 to set an appointment. Businesses in Carroll County, Ohio; Columbiana County, Ohio; Jefferson County, Ohio; and Harrison County, Ohio with many moving parts need focused team members. Make Appalachian Basin CPAs, Inc. part of your team and benefit from their focused input today.

Appalachian Basin CPAs, Inc.
213 Market Avenue North
Canton, Ohio 44702
330.437.1182
www.abbacpas.com