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Extensions For Your Business From The Taxpayer Relief Act

Posted by Keith Huggett on Thu, Jan 24, 2013 @ 09:01 AM

How the Relief Act is Working for Businesses, Part 2

Author: Keith Huggett 

business relief In continuation of our series on the American Taxpayer Relief Act of 2012, we are discussing the extensions made solely for businesses. Out of the thirty one provisions made, we have covered a total of six.  In this article we will be covering another five provisions having to do with industries for 2012 through 2014.

  • For Regulated Investment Companies, treatment of certain dividends have been modified. For tax years beginning after December 31, 2011, through tax years ending before December 31, 2014, a provision allowing a regulated investment company (RIC) under certain circumstances, to designate all or a portion of certain dividends as an "interest-related dividend" or a "short-term capital gain dividend."  

  • The Act also extends retroactively from January 1, 2012 through December 31, 2013 the inclusion of a RIC within the definition of a "qualified investment entity" under the Foreign Investment in Real Property Act (FIRPTA) rules.

  • The Act extends retroactively from January 1, 2012 through December 31, 2013, the special rules for interest, rents, royalties and annuities received by a tax-exempt entity from a controlled entity.

  • The Research and Development Creat has been reinstated retroactively from January 1, 2012 through December 31, 2012. The Act also modifies rules for taxpayers under common control and rules for computing the credit when a portion of a trade or business changes hands.

  • Empowerment Zones were extended for two years, through December 31, 2013.  Businesses and individual residents within "empowerment zones" are eligible for special tax incentives. An "empowerment zone" is an area of certain economical depressed census tracts.

There are twenty-two additional provisions which will be covered in future articles. We hope you will look for them.

As tax laws change, we all need to adjust with them. Pro-active tax planning is the key to keeping ahead, or even abreast of the rapid changes. The specialists at The Tax Office Inc., are there, to help you with your tax planning, tax preparation, or just answering any questions you may have about the new tax laws. Contact us today.

Topics: Keith Huggett, tax payer relief act