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Miller & Stewart, CPA’s
Semi-Monthly Newsletter
12/1/2013
Tax Break Expirations
The following tax breaks currently expire this year:
For businesses, 2013 means the end under
current tax law of the 50% bonus first year
depreciation; a $500,000 cap on Code Sec. 179
expensing with a $2 million investment-based
phaseout; claiming up to $250,000 of expensing
(within the overall dollar cap) for qualified real
property; and a tax credit for qualifying research
and development expenses.
Volume 2
Another Year
Passes

2013 is almost over and
now is the time to do your
final year-end tax planning
before it’s too late.
Although the Holiday
Season is filled with hustle
and bustle, businesses,
owners, and individuals,
should take the time to
Individuals who buy qualified small business stock
before January 1, 2014 will be able to exclude
100% of the gain on the sale if they hold the stock
for more than five years. New business ventures,
start-ups, inventions, and spin offs, now is the
time!
For individuals, tax breaks expiring this year
include: the option to deduct state and local sales
and use taxes instead of state and local income
taxes; tax-free distributions by those age 70 ½ or
older from IRA’s for charitable purposes; a tax
credit for energy-saving home improvements;
and the up to $4,000 above the line deduction
for qualified higher education expenses.
New taxes include the 3.8% surtax on Net
Investment Income and the 0.9% Medicare tax
on earned income.
wrap up their financial
affairs for the year.
Establishment of
Retirement Plans; Year
End Charitable
Contributions;
Acceleration of Capital
Expenditures; Dividend
Distributions; Accelerating
or Deferring Income; and
the Effects of the New
Surtax on Net Investment
Income and the New
Payroll Tax on Higher
Income Wage Earners are
all areas we at Miller &
Stewart will assist you
with. Strategies today
eliminates surprises
tomorrow!
Additional Tips for 2013:
Qualified Small Business Stock:
To be QSBS, stock must be issued after August
10, 1993 and, with exceptions, must be stock
you acquire when it is issued (directly or
through an underwriter) in exchange for money,
property (other than stock), or services (other
than underwriting). Also, the stock must be in a
corporation that:
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



Is not a mutual fund or other special type
of corporation;
Must be taxed as a regular corporation;
Had gross assets that did not exceed
$50,000,000 before stock issuance;
Has gross assets after the stock issuance
that do not exceed $50,000,000;
More than 80% of its assets are used in
the active conduct of a trade or business.
Some types of businesses like farming, real
estate, stocks or securities may not qualify for
the 80% test.
Check your basis in
Partnerships and SCorporations.
Possibly prepay higher
education expenses to maximize
the deduction in 2013.
Make energy saving
improvements to your home
this year if you still qualify for
the credit.
Accelerate big ticket purchases
into 2013 if you intend to claim
sales and use tax as an itemized
deduction instead of state and
local income taxes.
Consider advancing your
January estimate for state and
local taxes into December.
Miller & Stewart CPA’s
Danny Woods
Leslie R. Miller, CPA
Partner
Renee C. Stewart, CPA
Partner
Nancy P. Briscoe, CPA
James A Briscoe, CPA
Christopher P. Rodgers, CPA
Michelle L. Rodgers, CPA
Mallory J. Miller
Danny K. Woods, CPA
354 E. National Ave.
P.O. Box 70
Brazil, In 47834
Ph (812) 448-2551
fax (812) 446-3309
www.miller-stewart.com
email: [email protected]