[QCWA] Celebrate Tax Law Extension

[thirsch at ameritech.net]

ATTENTION QCWA MEMBERS:

Some recent changes have been made to depreciation and estate tax laws 
as a result of the Tax
Relief Act of 2010. The QCWA Finance Committee wanted to be sure you are 
aware of these new
changes in the event they can benefit you, or your company. The Estate 
Tax law/*was*/ extended,
but will be in debate during 2011.....Watch the 2011 congressional 
debates on the Estate Tax
portion of their debates, as bequests to QCWA may be affected.  Please 
see the depreciation
changes outlined below.

/*Depreciation Highlights:*/

    * *Section 179 deduction is $500,000 for 2010 and 2011*
    * *100% bonus depreciation available September 9, 2010 - December
      31, 2011*
    * *50% bonus**depreciation available for 2012*

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation 
Act of 2010 has been
passed by Congress and signed by the President. This bill contains 
several tax provisions that are
advantageous for individuals and companies, and the Estate Tax changes 
are important to QCWA
members and QCWA.

The tax provisions listed above, in the highlights, are described in 
more detail below:

*Section 179:*

*The Section 179 deduction is $500,000 for tax years beginning in 2010 
and 2011.*

    * These limits were established by prior law and remain in effect.
          o A section 179 deduction is available for both new and used
            equipment purchases.
          o The cap where this benefit begins to phase out is $2,000,000.**

*Bonus Depreciation:*

    * For qualifying property purchased and placed in service between
      September 9, 2010 and
    * December 31, 2011, the original user/purchaser will be allowed
      /bonus depreciation/ equal
    * to 100% of the tax basis/cost. /note:/ Trade-ins and their book
      values may affect taxes.
    * In general, qualifying property includes MACRS property with a
      recovery period of 20 years
    * or less, computers, software, and certain leasehold improvements.
    * 50% bonus appreciation applies to assets placed in service from
      January 1, 2008 -
    * September 8, 2010 and from January 1, 2010 - December 31, 2012.
    * Bonus depreciation is not available on /*used*/ equipment.
      However, major repairs/reconditioning
    * of machines which are capitalized would qualify for the additional
      first year depreciation.
      *
      *

*The Committee strongly recommends you consult with your tax advisor* to 
see how these tax saving
opportunities from Section 179, bonus depreciation, and estate tax 
extensions may apply in your situation.
In the event that the depreciation rules give you tax relief and 
additional 'disposable' income, the QCWA
operating budget would benefit from your/tax-deductible/ contribution. 
The Estate Tax provisions are at
least temporarily extended, and should also be contemplated when 
arranging your bequests. Please
consider adding QCWA to your annual contributions,  and add to your list 
of bequests..........