The most immediate changes can be found in the American Taxpayer Relief Act of 2012, aka the fiscal cliff bill. I love Wikipedia, and you will find that I get a lot of my information from there. So, if you would like to read the summary of the bill according to Wikipedia, click here. If you are more concerned as how it effects you as a dentist, the following information is more useful.
Instead of going into all of the details, I plan on giving a cliff notes version. After all, this is a blog, not Clintonpedia! Most of my information came from an article entitled Fiscal cliff bill ready for signature: What dental professionals need to know on DentistryIQ.com, which I find to be an extremely useful site. Obviously you should talk to your CPA about how these changes effect you, I'm only a messenger. The following are the highlights of the bill, and I can't get my bullets or numbered lines to work, so if this looks generic, I apologize.
1. The payroll tax holiday has NOT been extended meaning FICA taxes now rise back to the 7.65% we had prior to 2012. This means an immediate decrease in the net pay for your paycheck as well as your employees. Your employees may want to fill out a new tax withholdings form.
2. Depreciation and special depreciation extended. Use of the Section 179 depreciation deduction will remain at the high levels we have been used to for 2011 and 2012, indexed for inflation ($500,000).
3. Business tax extenders. Tax breaks, including depreciation provisions, notably including bonus depreciation.
4. Deduction limitations for individuals with income over $250,000. The Act would reinstate the Pep and Pease limitations on the personal exemption and itemized deductions for families with adjusted gross income over $300,000.
Hopefully, this paraphrased summary has helped one of you. With an audience of one, that would give me a 100% success rate. Alright! In all seriousness, these are important changes, and I am here to help you and your business adapt to these changes. As always, feel free to contact me with any questions. Sty tuned for OSHA & ACA. Go Cats!