Noy Tax Associates
Certified Public Accountants
Gina Noy, CPA
phone: 646-450-9297
2011 Tax Information

Business Depreciation
36-Month Assets (Straight-Line) Most software (may qualify for section 179)
3-Year Assets (200% DB) Dies, molds, small tools, certain horses
5-Year Assets (200% DB) Cameras, autos, computers, copiers, many types of equipment, private aircraft
7-Year Assets (200% DB) Most manufacturing equipment, office furniture, printing equipment, oil and gas production equipment
7-Year Assets (150% DB) Farm equipment
27.5-Year Assets (Straight-Line) Rental houses, apartments, low-income housing
39-Year Assets (Straight-Line) Nonresidential buildings


Personal Property Depreciation
Percent of Original Depreciable Basis under 200% DB Method. (Not applicable for mid-quarter convention)
Recovery Year 3-Year Class 5-Year Class 7-Year Class
1 33.33 20.00 14.29
2 44.45 32.00 24.49
3 14.81 19.20 17.49
4 7.41 11.52 12.49
5 11.52 8.93
6 5.76 8.92
7 8.93
8 4.46



Section 179 Expense
2013 2012 2011 2010 2009
Maximum expense election $ 25,000 $125,000 $500,000 $500,000 $250,000
Phaseout threshold $200,000 $500,000 $2,000,000 $2,000,000 $800,000



Corporate Income Tax Rates
If Taxable Income Is Between: Your Tax Is: Of Amount Over:
$ 0 - $ 50,000 . 15% $ 0
$ 50,001 - $ 75,000 $ 7,500 + 25% $ 50,000
$ 75,001 - $ 100,000 $ 13,750 + 34% $ 75,000
$ 100,001 - $ 335,000 $ 22,250 + 39% $ 100,000
$ 335,001 - $ 10,000,000 $ 113,900 + 34% $ 335,000
$ 10,000,001 - $ 15,000,000 $ 3,400,000 + 35% $ 10,000,000
$ 15,000,001 - $ 18,333,333 $ 5,150,000 + 38% $ 15,000,000
$ 18,333,334 and above a flat 35%

Personal Service Corporations — 35% flat tax rate.
Capital Gains Tax Rate — Same as regular rate.


Estate Taxes
2013 2012 2011 2010* 2009
Estate tax exemption $ 1,000,000 $ 5,000,000 $ 5,000,000 N/A $ 3,500,000
Applicable credit amount $ 345,800 $ 1,730,800 $ 1,730,800 N/A $ 1,455,800
Top estate tax rate 55% 35% 35% N/A 45%

*Under current law, the estate tax is eliminated in 2010.




Gift Taxes
2011 2010 2009
Lifetime gift tax exemption $ 5,000,000 $ 1,000,000 $ 1,000,000
       
Annual gift tax exclusion
Gifts per person $ 13,000 $ 13,000 $ 12,000
Joint gifts by spouse $ 26,000 $ 26,000 $ 24,000
Top gift tax rate 35% 35% 45%



Long-Term Care Insurance
You may deduct this much of your annual premiums
If you are: 2012 2011 2010 2009
Over 70 $ 4,370 $ 4,240 $ 4,110 $ 3,980
61 to 70 $ 3,500 $ 3,390 $ 3,290 $ 3,180
51 to 60 $ 1,310 $ 1,270 $ 1,230 $ 1,190
41 to 50 $ 660 $ 640 $ 620 $ 600
40 and under $ 350 $ 340 $ 330 $ 320



Capital Gains
Holding Period Top Capital Gains Rates
12 months or less 35%
More than 12 months 15%
Depreciation recapture on real estate 25%
Collectibles and certain small business stock 28%



Coverdell ESAs
2012 2011 2010
Contribution limit $ 2,000 per beneficiary $ 2,000 per beneficiary $ 2,000 per beneficiary
     
AGI phaseouts:*
Joint filers $ 190,000 - $ 220,000 $ 190,000 - $ 220,000 $ 190,000 - $ 220,000
Individual filers $ 95,000 - $ 110,000 $ 95,000 - $ 110,000 $ 95,000 - $ 110,000

*Phaseout applies to the contributor, not the beneficiary.

Note: Coverdell ESAs (Education Savings Accounts) were formerly known as Education IRAs. Contributions for ESAs must be made before the filing date of the tax return, not including extensions.



Standard Mileage Rates
2012 2011 2010 2009
Business 55.5¢ per mile 51¢ per mile* 50¢ per mile 55¢ per mile
Charitable 14¢ per mile 14¢ per mile 14¢ per mile 14¢ per mile
Medical 23¢ per mile 19¢ per mile 16.5¢ per mile 24¢ per mile
Moving 23¢ per mile 19¢ per mile 16.5¢ per mile 24¢ per mile

*Beginning in 2011, taxpayer may use the business standard mileage rate for vehicles used for hire, such as taxi cabs.



Individual Income Tax Rates — Married, Filing Jointly or Surviving Spouse
If Taxable Income Is Between:
Your Tax Is: Of Amount Over:
$ 0 - $ 16,750 ................ 10% $ 0
$ 16,750 - $ 68,000 $ 1,675 + 15% $ 16,750
$ 68,000 - $ 137,300 $ 9,363 + 25% $ 68,000
$ 137,300 - $ 209,250 $ 26,688 + 28% $ 137,300
$ 209,250 - $ 373,650 $ 46,834 + 33% $ 209,250
$ 373,650 and above $ 101,086 + 35% $ 373,650



Individual Income Tax Rates - Married, Filing Separately
If Taxable Income Is Between: Your Tax Is: Of Amount Over:
$ 0 - $ 8,375 ................ 10% $ 0
$ 8,375 - $ 34,000 $ 838 + 15% $ 8,375
$ 34,000 - $ 68,650 $ 4,681 + 25% $ 34,000
$ 68,650 - $ 104,625 $ 13,344 + 28% $ 68,650
$ 104,625 - $ 186,825 $ 23,417 + 33% $ 104,625
$ 186,825 and above $ 50,543 + 35% $ 186,825



Individual Income Tax Rates - Single
If Taxable Income Is Between: Your Tax Is: Of Amount Over:
$ 0 - $ 8,375 ................ 10% $ 0
$ 8,375 - $ 34,000 $ 838 + 15% $ 8,375
$ 34,000 - $ 82,400 $ 4,681 + 25% $ 34,000
$ 82,400- $ 171,850 $ 16,781 + 28% $ 82,400
$ 171,850 - $ 373,650 $ 41,827 + 33% $ 171,850
$ 373,650 and above $ 108,421 + 35% $ 373,650


Individual Income Tax Rates - Head of Household
If Taxable Income Is Between: Your Tax Is: Of Amount Over:
$ 0 - $ 11,950 ................ 10% $ 0
$ 11,950 - $ 45,550 $ 1,195 + 15% $ 11,950
$ 45,550 - $ 117,650 $ 6,235 + 25% $ 45,550
$ 117,650 - $ 190,550 $ 24,260 + 28% $ 117,650
$ 190,550 - $ 373,650 $ 44,672 + 33% $ 190,550
$ 373,650 and above $ 105,095 + 35% $ 373,650

The phaseout of personal exemptions for taxpayers above certain income levels is not reflected in these schedules.
2010 Qualified Dividend Income 15% (0% for lower brackets)



Standard Deductions*
2012 2011 2010 2009
Married filing jointly $ 11,900 $ 11,600 $ 11,400 $ 11,400
Married filing separately $ 5,950 $ 5,800 $ 5,700 $ 5,700
Single $ 5,850 $ 5,800 $ 5,700 $ 5,700
Head of household $ 8,700 $ 8,500 $ 8,400 $ 8,350
       
Additional — blind or elderly:
   Single $ 1,450 $ 1,450 $ 1,400 $ 1,400
   Married $ 1,450 $ 1,150 $ 1,100 $ 1,100

* Deduct the greater of standard or itemized deductions.




Personal Exemptions
2012* 2011* 2010* 2009
Deduction for each taxpayer, spouse, & dependent $ 3,800 $ 3,700 $ 3,650 $ 3,650
     
Personal exemptions begin to phase out after the following threshold amounts:
Married, filing jointly N/A N/A N/A $ 250,200
Married, filing separately N/A N/A N/A $ 125,100
Single N/A N/A N/A $ 166,800
Head of household N/A N/A N/A $ 208,500

* Under current law, the personal exemptions phaseout is eliminated in 2010 to 2012.



Retirement Plans
Indexed Contribution & Benefits Limits for Qualified Plans
Type of Plan 2012 2011 2010 2009
Individual Retirement Accounts (IRAs)* $ 5,000 $ 5,000 $ 5,000 $ 5,000
Section 401(k) plans or SAR-SEPs* $ 17,000 $ 16,500 $ 16,500 $ 16,500
Section 403(b) plans* $ 17,000 $ 16,500 $ 16,500 $ 16,500
Section 408(p)(2)(E) SIMPLE contributions* $ 11,500 $ 11,500 $ 11,500 $ 11,500
Section 457(b)(2) limit* $ 17,000 $ 16,500 $ 16,500 $ 16,500
       
Section 415 limit for:
   Defined contribution plans** $ 50,000 $ 49,000 $ 49,000 $ 49,000
   Defined benefit plans $ 200,000 $ 195,000 $ 195,000 $ 195,000
   Highly compensated employees Section 414(q) $ 115,000 $ 110,000 $ 110,000 $ 110,000
       
FICA taxable wage base
   Social Security (tax rate 6.20%*** for
       employees; 12.40%*** for self-employed)		 $ 110,100 $ 106,800 $ 106,800 $ 106,800
   Medicare (tax rate 1.45% for employees;
      2.90% for self-employed)		 No limit No limit No limit No limit
       
* Age 50 additional contributions $ 5,500 $ 5,500 $ 5,500 $ 5,500
   401(k) type plans $ 5,500 $ 5,500 $ 5,500 $ 5,500
   SIMPLEs $ 2,500 $ 2,500 $ 2,500 $ 2,500
   IRAs $ 1,000 $ 1,000 $ 1,000 $ 1,000


*** For 2011 only, Social Security tax rate is 4.2% for employees and 10.40% for self-employed.



Roth IRAs
AGI limit for maximum contributions
 2012 2011* 2010* 2009
Joint filers $ 173,000 $ 169,000 $ 167,000 $ 166,000
Individual filers $ 110,000 $ 107,000 $ 105,000 $ 105,000

* Beginning in 2010, the income limit on converting traditional IRAs to Roth IRAs is eliminated.



Social Security
Maximum Annual Earned
Income Limit
 2012 2011 2010 2009
Under full retirement age $ 14,640 $ 14,160 $ 14,160 $ 14,160
Full retirement age No Limit No Limit No Limit No Limit

* For people reaching full retirement age in 2012, the limit is $38,880 and in 2011, the limit is $37,680 for months prior to attainment. Beginning the month in which they turn full retirement age, there is no limit.



Health Savings Account
Contribution Limits 2012 2011 2010 2009
Individual, self-only $ 3,100 $ 3,050 $ 3,050 $ 3,000
Family Coverage $ 6,250 $ 6,150 $ 6,150 $ 5,950
Catch-up for those age 55 and older $ 1,000 $ 1,000 $ 1,000 $ 1,000

For 2011 and 2012, the minimum deductible for a high-deductible health plan (HDHP) is $1,200 for self-only coverage and $2,400 for family coverage. The maximum out-of-pocket limit is $6,050 for self-only coverage and $12,100 for family plans.



Alternative Minimum Tax
AMT Exemptions 2012 2011 2010 2009
Married, filing jointly $ 45,000 $ 74,450 $ 72,450 $ 70,950
Married, filing separately $ 22,500 $ 37,225 $ 36,225 $ 35,475
Single $ 33,750 $ 48,450 $ 47,750 $ 46,700
Head of household $ 33,750 $ 48,450 $ 47,750 $ 46,700



Education Tax Credit
Type of Credit 2012 2011
American Opportunity Credit up to$ 2,500 up to$ 2,500
Lifetime Learning Credit up to$ 2,000 up to$ 2,000
Tuition and Fees Deduction $ 0 up to$ 4,000
Student Loan Intrest Deduction up to$ 2,500 up to$ 2,500

The material contained in this presentation is for general information and should not be acted upon without prior professional consultation.
This publication is not rendering legal, accounting, or other professional advice and assume no liability whatsoever in connection with its
use.