New Tax Legislation
The State of Maine has enacted new tax legislation which affects tax rate schedules and section 179 expenses.
The new tax rate schedule goes into effect on January 1, 2013. Currently there are progressive individual income tax brackets of 2%, 4.5%, 7%, and 8.5%. These four tax brackets will be condensed into only two rate brackets of 6.5% and 7.95% starting at the beginning of 2013.
IRS Code Section 179 depreciation expense allows taxpayers and businesses to elect to deduct the cost of certain types of property on their income taxes as an expense, rather than requiring the cost of the property to be capitalized and depreciated over a number of years. However, the State of Maine tax law has previously limited the allowable section 179 expense for a taxable year to $25,000. Under this new law, which goes into effect January 1, 2011, section 179 expensing is allowed up to $500,000 for property placed in service in 2011.
If you have any questions about these changes to the Maine tax code and how they may relate to your particular situation, please feel free to contact us.
The new tax rate schedule goes into effect on January 1, 2013. Currently there are progressive individual income tax brackets of 2%, 4.5%, 7%, and 8.5%. These four tax brackets will be condensed into only two rate brackets of 6.5% and 7.95% starting at the beginning of 2013.
IRS Code Section 179 depreciation expense allows taxpayers and businesses to elect to deduct the cost of certain types of property on their income taxes as an expense, rather than requiring the cost of the property to be capitalized and depreciated over a number of years. However, the State of Maine tax law has previously limited the allowable section 179 expense for a taxable year to $25,000. Under this new law, which goes into effect January 1, 2011, section 179 expensing is allowed up to $500,000 for property placed in service in 2011.
If you have any questions about these changes to the Maine tax code and how they may relate to your particular situation, please feel free to contact us.