8 Changes to Know About Before Filing Your 2010 Taxes

Despite calls for simplifing the tax laws, they have actually become more complicated in the last few years. We want you to be aware of the new tax breaks for this filing season so you can take full advantage of them. Please call Mantyla McReynolds for more details.

1. Roth IRA conversions - You may now convert a traditional IRA to a Roth IRA, regardless of the amount of your income. In 2010, income from the conversion can be deferred so half is taxable in 2011 and the other half in 2012.



2. Small business health insurance credit - If you pay for your employee health insurance, you may qualify for a credit of up to 35% of premiums you pay depending on the number of employees and wages you pay.



3. Homebuyer credit - You may qualify for a first time homebuyer credit if you purchased a home by July 31, 2010.



4. Adoption credit - The max credit is $13,170 per eligible child and is refundable (you get it even if your tax is zero).



5. Gifts to charity - You may donate $100,000 directly from your IRA. A donation in January 2011 can be treated as made in 2010.



6. Section 179 expensing - You may expense up to $500,000 of qualified fixed asset purchases made in 2010.



7. Bonus depreciation - You may expense from 50% to 100% of never before used qualifying fixed asset purchases made in 2010.



8. Luxury auto limits - You may deduct up to $11,000 for luxury auto and light truck or van purchases in 2010. You can deduct up to $25,000 for purchases of SUV's in 2010.

Also, don't forget that the filing deadline is Monday, April 18th. Why?