Health Care Stimulus 103 presented by Stan Royer, President Brian M. McCook February 18, 2010

State of the Tax Code Many tax incentives set to expire at the end of 2010 –Marginal tax brackets –Estate tax exemptions –Deductions –Credits

Strategy for Tax Planning Must plan for multiple tax years Timing of income and deductions Alternative Minimum Tax

Business Opportunities Depreciation –Expensing of equipment over its useful life Section 179 expensing –$250,000 direct expensing of capital assets Bonus Depreciation

Business Opportunities Employee benefit plans –Deduct amount of health insurance paid –Deduct amount of retirement plan match Automobile usage –Able to deduct actual expenses (gas, oil, etc.) or utilize mileage rate

Business/Individual Tax Items Retirement planning –SEP IRA (2010 limit = $49,000) Easy to set up Easy to deposit into –401(k) (2010 limit = $16,500) Easy to set up Easy to deposit into

Individual Tax Items Roth IRA Conversions –Income limits do not apply during 2010 Capital Gains/Losses Extra itemized deduction for Sales Tax –Vehicles with price under $49,000 –Pro rated for any purchase price above $49,000

Individual Tax Tax credit for energy efficient improvements –30% of eligible expenses, up to a max of $1,500 –Eligible items: windows, furnaces, water heaters, heat pumps, etc. –MAKE SURE IT MEETS THE INCREASED STANDARDS

Individual Tax Charitable giving –Donations made to organizations helping with Haiti relief can deduct gifts made before March 1, 2010, on their 2009 tax returns –Must keep bank record or written communication from charity indicating the amount of charitable gift

Individual Tax Gifts to family and friends –Up to $13,000 can be given tax-free to an unlimited number of people

Health Care Stimulus 103 presented by Stan Royer, President Brian M. McCook AMD Health Care Services