§179 Expensing
For 2012, taxpayers may expense up to $139,000 of
qualifying property acquired for use in a trade or business.
The deduction phase-out begins at $560,000
on purchases of qualifying property. Taxpayers who
have qualified disaster assistance property may expense
up to $239,000; their deduction phase-out begins at
$1,160,000. The SUV limit remains $25,000.
The 2013 §179 expensing amounts are set to decrease
to $25,000 of qualifying property acquired for use in
a trade or business. The deduction phase-out begins at
$200,000 on the purchase of qualifying property. The
SUV limitation will remain the same at $25,000.
For tax years 2003–2012, taxpayers may make or
revoke a §179 election on an amended return without
the consent of the Commissioner.
Adoption Credit
The maximum credit is $12,650 for 2012. The credit
begins to phase-out when MAGI exceeds $189,710
and is completely phased out when MAGI reaches
$229,710. The credit is no longer refundable as of
December 31, 2011.
Alternative Minimum Tax (AMT)
For 2012, the AMT exemption amounts are as follows:
2012 Exemption 2012 Phase-out
MFJ,QW $45,000 $150,000 - $330,000
S, HH $33,750 $112,500 - $247,500
MFS $22,500 $75,000 - $165,000
For a child subject to kiddie tax $112,500 - $247,500
$6,950 plus child’s
earned income not to
exceed $33,750
Annual Gift Tax Exclusion
For tax year 2012, the annual gift tax exclusion is $13,000 to eachperson. This amount increases
to $14,000 per person for taxyear 2013.
The 2012 annual exclusion to a spouse who is not a citizen of the United States is $139,000. The annual exclusion
increases to $143,000 for tax year 2013.
Capital Gains Rates
Capital gains rates are 0% and 15% for 2008 through 2012. These rates are set to expire after December 31. 2012
For 2012, taxpayers may expense up to $139,000 of
qualifying property acquired for use in a trade or business.
The deduction phase-out begins at $560,000
on purchases of qualifying property. Taxpayers who
have qualified disaster assistance property may expense
up to $239,000; their deduction phase-out begins at
$1,160,000. The SUV limit remains $25,000.
The 2013 §179 expensing amounts are set to decrease
to $25,000 of qualifying property acquired for use in
a trade or business. The deduction phase-out begins at
$200,000 on the purchase of qualifying property. The
SUV limitation will remain the same at $25,000.
For tax years 2003–2012, taxpayers may make or
revoke a §179 election on an amended return without
the consent of the Commissioner.
Adoption Credit
The maximum credit is $12,650 for 2012. The credit
begins to phase-out when MAGI exceeds $189,710
and is completely phased out when MAGI reaches
$229,710. The credit is no longer refundable as of
December 31, 2011.
Alternative Minimum Tax (AMT)
For 2012, the AMT exemption amounts are as follows:
2012 Exemption 2012 Phase-out
MFJ,QW $45,000 $150,000 - $330,000
S, HH $33,750 $112,500 - $247,500
MFS $22,500 $75,000 - $165,000
For a child subject to kiddie tax $112,500 - $247,500
$6,950 plus child’s
earned income not to
exceed $33,750
Annual Gift Tax Exclusion
For tax year 2012, the annual gift tax exclusion is $13,000 to eachperson. This amount increases
to $14,000 per person for taxyear 2013.
The 2012 annual exclusion to a spouse who is not a citizen of the United States is $139,000. The annual exclusion
increases to $143,000 for tax year 2013.
Capital Gains Rates
Capital gains rates are 0% and 15% for 2008 through 2012. These rates are set to expire after December 31. 2012
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