Friday, July 6, 2012

Significant tax changes for businesses in 2012: Part 2

This is part two, of the significant federal business tax changes occurring in 2011:

1. Energy Efficient Homes

For 2011, builders of energy efficient homes, qualified for a $2,000 credit per qualified home. In 2012, there is no deduction for these homes built.

2. Work Opportunity

In 2011 and prior there was a tax credit available for employers whom paid wages to several targeted groups. For 2012, the only group eligible for the tax credit are qualifying veterans.

3. Qualified Small Business Stock

Qualified Small Business Stock (QSBS) acquired during 2011 qualified for 100% gain exclusion, if certain holding period, and other restrictions were not applicable. In 2012, this gain exclusion is lowered to 50% of the gain, however, the same restrictions apply.

4. Domestic Production Activity Deduction (Section 199 QPAD)

The only major change to the QPAD is that Puerto Rico is no longer considered domestic production income, in the QPAD calculation in 2012.

Please note these items are likely to change throughout the year, as changes occur, I will not update this post, but will post subsequently! Please look for subsequent updates.

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