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Tax changes are here. Consult May, Taylor & Company, CPA's, for details and consultation

March 4, 2011 • Business, Local Business Review

The professional staff at May, Taylor & Co. includes (left to right:)  Dick Taylor, CPA; Yolanda Rodriguez; Michelle Huckabee; Patricia Rutley; Viola Vigil; and Zan Coger. (Not shown are Taleyna Thompson and Diane Taylor.) May, Taylor & Co., located at 302 West Tilden, is a full service accounting firm. Please phone 622-2330 for complete information on any of the services May, Taylor & Company provides.

Congress extended the Bush tax cuts for two years and made a few other changes. Congress waited until the end of December to pass tax legislation. Because of the late date, the Internal Revenue Service (IRS) will not process returns until February 14, 2011, if you itemize or have additional schedules. All of the tax rates will stay in place for 2011 and 2012, then Congress will need to address this issue again as taxes will automatically increase in 2013.

Congress made several other changes that will affect small business and individual tax payers.

Congress repealed the Make Works Tax credit and replaced it with a reduction in Social Security tax from 6.2% to 4.2% on the employee for one year only, 2011. The matching tax that the employer pays remains at 6.2%.

Congress had put in place a bonus depreciation of 50% for 2010 earlier in the year, then they increased the bonus deprecation to 100% for new fixed assets purchased on or after September 9, 2010 through December 31, 2011. This applies only to new equipment. For calendar year 2012, the Legislation continues bonus depreciation at 50%.

The 2010 Tax Relief Act made the following changes to the Estate Tax for deaths in 2010, the Login to read more

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