January 24th, 2013 : Tax Changes for 2013 - Checklist Part 3
Standard Mileage Rates
The rate for business miles driven is 56.5 cents per mile for 2013, up from 55.5 cents per mile in 2012.
Section 179 Expensing
For 2013 the maximum Section 179 expense deduction for equipment purchases increases to $500,000 of the first $2,000,000 of business property placed in service during 2013. The bonus depreciation of 50% is also extended through 2013.
Work Opportunity Tax Credit (WOTC)
The WOTC is extended through 2013 (retroactive to 2012) and includes a one-year extension of the enhanced credit for hiring certain veterans. When a business hires a person from one of several specific economically disadvantaged groups it may claim a Work Opportunity Tax Credit, generally equal to 40 percent of the first $6,000 in wages paid to a new hire.
Transportation Fringe Benefits
If you provide transportation fringe benefits to your employees, for tax years beginning in 2013 (through 2017) the maximum monthly limitation for transportation in a commuter highway vehicle as well as any transit pass is $245 up from $240 in 2012 (the American Taxpayer Relief Act provided for a retroactive increase from the $125 limit that had been in place for 2012). The monthly limitation for qualified parking is $240.
While this checklist outlines important tax changes for 2013, additional changes in tax law are more than likely to arise during the year ahead.
Don't hesitate to call us if you want to get an early start on tax planning for 2013. We're here to help!