Make the most of depreciation-related breaks while you can

Many businesses may benefit from purchasing assets by Dec. 31 to take advantage of depreciation-related deductions that are scheduled to either disappear or become less favorable in 2013: Bonus depreciation. For qualified assets acquired and placed in service through Dec. 31, 2012, this additional first-year depreciation allowance is, generally, 50%. Among the assets that qualify are new tangible property with a recovery period of 20 years or less and off-the-shelf computer software. With a few exceptions, bonus depreciation is scheduled to disappear in 2013. Section 179 expensing. This election allows a 100% deduction for the cost of acquiring qualified assets, and it’s subject to different rules than bonus depreciation. On the plus side, used assets can qualify for Sec. 179 expensing. On the minus side, a couple of rules may make Sec. 179 expensing less beneficial to certain businesses: For 2012, expensing is subject to an annual limit of $139,000, and this limit is phased out dollar for dollar if purchases exceed $560,000 for the year. So larger businesses may not benefit. The election can’t reduce net income below zero. So for businesses that are having a bad year, it can’t be used to create or increase a net operating loss for tax purposes. The expensing and asset purchase limits are scheduled to drop to $25,000 and $200,000, respectively, in 2013. These depreciation opportunities, however, bring with them a challenge: Determining whether the larger 2012 deductions will prove beneficial over the long term. Taking these deductions now means forgoing deductions that could otherwise be taken later, over a period of years under normal depreciation schedules. In some situations, future deductions could be more valuable. For example, tax rates for individuals are scheduled to go up in 2013, which means flow-through entities, such as partnerships, limited liability companies and S corporations, might save more by deferring the deductions. Finally, keep an eye on Congress: It’s possible the current versions of these breaks could be extended or even enhanced.

October 2012 tax compliance calendar

Doeren Mayhew

As an individual or business, it is your responsibility to be aware of and to meet your tax filing/reporting deadlines. This calendar summarizes important tax reporting and filing data for individuals, businesses and other taxpayers for the month of October 2012. October 3 Employers. Semi-weekly depositors must deposit employment taxes for payroll dates September 26-28. October 5 Employers. Semi-weekly depositors must deposit employment taxes for payroll dates September 29-October 2. October 10 Employees who work for tips. Employees who received $20 or more in tips during September must report them to their employer using Form 4070. October 11 Employers. Semi-weekly depositors must deposit employment taxes for payroll dates October 3-5. October 12 Employers. Semi-weekly depositors must deposit employment taxes for payroll dates October 6-9. October 15 Individuals. Individuals with automatic 6-month extensions to file their 2011 income tax returns must file Form 1040, 1040A, or 1040EZ, and pay any tax, interest, and penalties due. Partnerships.Electing large partnerships that obtained a 6-month extension for filing the 2011 calendar year return (Form 1065-B) must now file the return. October 17 Employers. Semi-weekly depositors must deposit employment taxes for payroll dates October 10-12. October 19 Employers. Semi-weekly depositors must deposit employment taxes for payroll dates October 13-16. October 24 Employers. Semi-weekly depositors must deposit employment taxes for payroll dates October 17-19. October 26 Employers. Semi-weekly depositors must deposit employment taxes for payroll dates October 20-23. October 31 Employers. Semi-weekly depositors must deposit employment taxes for payroll dates October 24-26. November 2 Employers. Semi-weekly depositors must deposit employment taxes for payroll dates October 27-30.

Doeren Mayhew: August/September Recap

We've been up to a lot these past months and wanted to share some of our recent posts with you. Follow the links below to read financial newsletters, blogs, and guides that Doeren Mayhew has been on:

• Doeren Mayhew: Pursuing Your Financial Dreams (Scribd)
• Doeren Mayhew: Doeren Mayhew on Docstoc
• Doeren Mayhew: Doeren Mayhew on Squidoo
• Doeren Mayhew: Doeren Mayhew on YouTube
• Doeren Mayhew: Doeren Mayhew on Facebook
• Doeren Mayhew: Doeren Mayhew named to Top 100 Accounting Firms list for 14th consecutive year
• Doeren Mayhew: Doeren Mayhew Retirement Financial Planning
• Doeren Mayhew: Doeren Mayhew New Splash Site
• Doeren Mayhew: Doeren Mayhew Free Child ID Kits
• Doeren Mayhew: Doeren Mayhew on CNN
• Doeren Mayhew: Doeren Mayhew on BusinessWeek
• Doeren Mayhew: Doeren Mayhew on DBusiness

Warner Norcross & Judd and Doeren Mayhew Sponsor Workshop on Strengthening Businesses at MichBio Annual Meeting

Southfield, Michigan, April 14, 2009 - Warner Norcross & Judd LLP and Doeren Mayhew are
sponsoring a workshop on “Strengthening Your Company: Business Strategies in a Down Economy” as part of MichBio’s 2009 Annual Business Meeting.
The workshop will be held from 1-5 p.m. on Wednesday, May 6, at the Kensington Court Hotel at 619 Hilton Boulevard in Ann Arbor. The sessions, which will feature presenters from both firms, are designed to provide emerging and established companies with the tools to improve cash flow, maximize their competitive strengths, grow their investment in the business and prepare strategically for the short and long term.
MichBio will hold a networking reception and its annual dinner and business meeting immediately after the workshop. Harry Stylli, the president and CEO of Sequenom, Inc., will present the keynote address during the evening event, which concludes at 8 p.m.
Presenters for the event from Warner Norcross include:
• Kurt Brauer of Warner Norcross and Terry Dykhouse of Doeren Mayhew on“Tax Credits and
the Stimulus Package”
• Jennifer Nichols and Amy Rinaldo of Warner Norcross and Lisa M. White of Doeren Mayhew on
“Streamlining R&D, Securing Tax Credits and Patent Implications”
• Linda Paullin-Hebden and Jennifer Dudley of Warner Norcross and Claudio Calado of Doeren
Mayhew on “Corporate Planning – “How To Strategize in the Current Economy”
Cost for the workshop is $75 for members of MichBio and $100 for non-members. Cost for the
workshop and the dinner meeting is $130 for members and $185 for non-members. To register, go to the
events section at www.michbio.org.
For more information, contact Elise Iafrate at Warner Norcross, 248.784.5012.
About Doeren Mayhew
Founded in 1932, Doeren Mayhew recently celebrated its 75th anniversary and has grown to become
nationally and internationally recognized as trusted business advisors to thousands of individuals and
businesses throughout North America and around the world. Doeren Mayhew represents manufacturers,
contractors and builders, retailers, wholesalers, distributors, auto dealers, financial institutions,
municipalities, school districts, and non-profit organizations, with a full range of accounting, audit, tax,
merger and acquisition, and consulting services.
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Workshop / page 2 of 2
About Warner Norcross & Judd
Warner Norcross & Judd LLP is one of the leading law firms in Michigan and one of the top 200 in the
nation. With more than 220 attorneys in Southfield, Sterling Heights, Grand Rapids, Lansing, Holland
and Muskegon, Warner Norcross is a full-service provider of legal services. More than half of our
partners are listed in the 2009 edition of Best Lawyers in America. Warner Norcross has been recognized
as a national leader in client service among law firms by BTI Consulting, as one of the nation’s leading
employment law firms by Workforce Management and as one of the 101 Best & Brightest Companies to
Work For in both Metro Detroit and West Michigan. The Firm represents local, statewide, regional,
national and international clients in all areas of business and civil law.
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